ACC 6810, Fall 2016
Corporate Income Tax Example
On January 1, 2016, Jack and Pam formed Zephyr Inc. Jack and Pam each own one-half of
the outstanding common stock, the only class of stock authorized. Jack serves as the
president of Zephyr a
ACC 6810, Fall 2016
Comparison of Tax Costs of Various Legal Forms of Business
Example 1: A business has the following revenues and expenses for 2016.
a) The taxpayer is a sing
ACC 6810, Fall 2016
Deferred Tax Accounting Example Year 2
The GAAP-based net income for the Zephyr Corporation for the year ending December 31,
2017, the corporations second year of operations, is presented on the attached worksheet.
ACC 6810, Fall 2016
Reading Guide for Chapters 1 & 2
We will cover most of the material in Chapter 1 on the first night of class. You may skip the following
sections in Chapter 1:
Tax Services: p. 25
The Internet as a Research Tool
II. Short Answer
1. Compare the accounting definition of income with the economic definition of income.
Explain the advantages of the accounting definition of income over the economic
definition of income for measuring the tax base for an individual taxpa
1. KSU must meet one of the 3 criteria in order to be in compliance with Title IX rule of effective
accommodation of athletic interests and abilities to men and women necessary for providing
equal athletics opportunities.
The Percentage of male/female a
4. I thought they should allocate engineer cost by engineer hours since the products would not
exist without this expense. I do not think marketing and sales expenses should be allocated to
For JCP I allocated based on the following:
1. Set forth and compare the business cases for each of the two projects under
consideration by Emily Harris. Which do you regard as more compelling?
Match my Doll Clothing Line:
Involves expanding the already successful doll clothing line to match all-se
Advanced Managerial Accounting
Report addressing the rising cost of production:
From 2007 to 2010 total production cost rose from $27,065,750 to $55,997,800. This
$28,932,350 increase is not consistent with their sales. Sales on
ABC costing has many added benefits in regards to allocating overhead, but those
benefits come at a high price. It allows you to identify product lines that are less profitable vs
ones that are more profitable. It increases the accuracy of information man
Questions 1, 2 (a, b, and c), 3 and 5
Smaller investment because buying/renting a truck would be cheaper than
Can change locations easily to find best customer base
6-5 Part C
i. dividends on preferred stock should be deducted from net income.
ii. When acquiring treasury stock, it should be included in the computation for weighted average
number of shares outstanding. Which is used in the denominator of EPS.
A. Explain the meaning of cost, expense, and loss as used for financial reporting in
conformity with GAAP.
Cost: The amount given in consideration of goods received or to be received.
Expense: Outflows of assets or incurrences of liabilities during a peri
What is the conceptual framework?
An attempt by the FASB to develop concepts
useful in guiding the Board in establishing
standards and in providing a frame of
reference for resolving accounting iss
What is income?
Income Recognition and Realization
Quality of earnings
It depends who you ask!
Economic versus Accounting Income
Chapter 3 & $
General Motors and Fords inventory will have older cost & their cost of goods sold will
be represented using the most recent cost. The opposite is true for Honda and DaimlerBenz. I think the FIFO method would be more benefici
A. The term accounting principles in the audit report refers to various principles and
pronouncements that have are being used to guide the auditors work. It is difficult to
define precisely because no single reference source exists for all such princ
Task 1 Questions
1. A roll forward is important for testing PPE because it allows us to see what additions and
disposals occurred during the year, which helps make sure ending balances were
accurate. Steps B & C are important because if the numbers are no
Just for Feet
Debt to Assets
Debt to equity
Age of Inventory
Age of A/R
Total Asset turnover
Profit Margin on sales
Return on total assets
Return on equity
Goodner Case Questions.
1. List what you believe should have been three to five internal control objectives of the
Goodners Huntington sales office.
Safeguarding of Assets
Detect and prevent fraud
Accuracy of accounting records
Segregation of duti
Describe the major (management, not physical) structures and systems of this
The manufacturing department sold goods to the contracting department. They were all one
company, and therefore had high communication levels between
1.Co-Op pulled data from a period of March-May to implement ABC. I think they shouldve used
information from a wider range of time. Or maybe even one month from each quarter. There could be
different banking trends depending on the time of the year (i.e.
EU Design is a successful company in the field of fashion and merchandising,
supplying trim to many fashion companies. With over 80% of their sales coming from this small
group of stores, EU is extremely dependent on them. The fashion indust
1. I do not think that INVESTools should capitalize these cost. Their pretax earnings would still
be negative and it does not seem to be worth the work for such a small adjustment.
2. Exhibit 1 confirms negative market response to other companies that fil
ACC 3310 Intermediate Accounting I
Chapter 10 Overview
Characteristics Property Plant and Equipment (Plant Assets, Fixed Assets)
1. Used in operations not for resale: assets used in normal business operations are
classified as PP&E. Idle building is inves
Foreign Companies that trade on the U.S. Exchange
1. U.S. GAAP
2. IFRS with no carve outs
3. Any other established standards that reconcile to U.S. GAAP
U.S. Companies under SEC jurisdiction
Publicly traded companies report to the