Acc401 Week 1

7. Land Purchases do NOT affect the Partner's Capital Account because it does NOT affect the Partner's Equity. The Partner's Tax Basis increases by the Partner's share of Liability. Reverse for a decrease of Liability. The higher the Partner's Tax Basis means the Partner can take more Losses if necessary.

Whether certain allocations of partnership income, gain, loss, deductions, and credits have substantial economic effect and whether that has any impact on the partners’ distributive shares.

The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise.

d. The Johnsons own a rental home. They incurred $8,500 of expenses associated with the property.

1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?

Facility on a net or gross basis within the financing activities section of its statement of

Before diving directly into the article from the Governmental Accounting Standards Board (GASB) titled Governments to Report Liabilities Connected with Their Obligations to Clean Up Pollution (2006), one must first take a step back and take time to read, comprehend, and take to heart exactly what this organization stands for. Taken directly from their main web page under the tab labeled Education, the first thing seen in big, bold, blue letters is, “Due Process: The GASB Is Listening” followed by a definition of what listening means, “to hear with thoughtful attention”. When researching a little more into the GASB, it is easy to see how crucial listening truly is for them in order to fully accomplish their

3.) . Should the February 1, 2012, agreement and the May 1, 2012, agreement be accounted for separately or as a single arrangement?

| (TCO A,B,C) The revenue a property is expected to generate after adjusting for operating expenses, but before providing for debt service or income tax consequences, is ______________ .

5. Manufactured Homes accounts for these transactions as sales in accordance with Statement of Financial Accounting Standards No. 77, “Reporting by Transferors for Transfers of Receivables with Recourse”, and recognizes finance participation income equal to the difference between the contractual interest rates of the instalment contracts and the agreed upon rates to the financial institutions; the portion retained by the financial institutions is discounted for estimated time of collection and carried at its

Activity-based costing (ABC) methodology is an instrument designed to provide accountants and managers with valuable costing information that will allow them to make sound strategic decisions. It is used as a secondary methodology rather than a replacement for the company’s primarily costing system. The ABC methodology identifies activities in an organization and for each activity it assigns a cost. The cost reflects the actual resource consumption by each activity that has been identified.

Do you feel that there might be an ethical issue present? For the moment, assume that no laws have been broken and just focus on any possible ethical issues.

9. Debt service coverage = (Net Income + Interest + Depreciation) in Statement of Operations/ Interest + Principal Payments ($10 million assumed for this assignment)

b) Determine the carrying amount and tax base of the plant at year end. Prepare the

Longevity or Continuity of the Organization: Once the agreement of the partnership ends, the partnership ends. Any remaining partners can keep the partnership going if they so wish to.