Dakota Corporation is an owner/operator of 15 water filtration systems in the Northwestern region of the United States. During February 2022, 4 of the tanks had leaks which contaminated the water and surrounding environment. Dakota is very concerned about their obligation to the community to maintain the environment. Dakota
Q: ASAP Kindly give a full explanation for each option why it is correct or why others are wrong 1...
A: Process costing is one of the important section of cost accounting, under which costs and expenses o...
Q: Laker Company reported the following January purchases and sales data for its only product. Units so...
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: Pleasant Heating & Cooling (PHC) Co. manufactures furnaces and air conditioners that are in great de...
A: Revenue from Contract With customers According ASC 606 the revenue from contract with customers whic...
Q: Luker Corporation Luses a process costing system. The company had $177,500 of beginning Finished Goo...
A: Answer) The entry is required for cost of goods manufactured during the year. In this question, good...
Q: On January 1, 2022, Ivanhoe Corporation had the following stockholders’ equity accounts. Common Sto...
A: A shareholder, also referred to as a stockholder. He is a person or company, that owns at least one ...
Q: Lebel Corporation has the following capital structure at the beginning of the year: Preferred shares...
A: The question is based on the concept of Financial Accounting.
Q: Suppose you have $2,100 and plan to purchase a 10-year certificate of deposit (CD) that pays 13.1% i...
A: Value when the CD matures = 2100 x (1 + 0.131)^10 = $7191.93
Q: Required A Required B Required C Compute Mr. Jackson's taxable estate. (Consider intermediate calcul...
A: FMV of the property owned include Cash & current or non-current assets 50% of property if owned...
Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of uni...
A: Variable costing is a concept used in accounting in which the fixed manufacturing overhead is exclud...
Q: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operati...
A: As per our protocol we provide solution to the one question or to the 3 sub-parts but as you have as...
Q: Which of the following is the correct order of preparing the financial statements?A. income statemen...
A: Financial Statement - Financial Statements are the statement that shows the overall performance and ...
Q: Costs of a product that are regarded as an asset for financial reporting under GAAP are called
A: Cost of product are regarded as an asset if the product is not yet sold. Product cost are also known...
Q: Estate Taxes – Computation of Estate Tax Payable (Answer All questions) (a) In 2017 Warren made $600...
A: Taxable Estate = $11,580,000 Adjustable taxable gifts = $825,000 Unified credit = $4,577,800 prevail...
Q: 1. There are a few errors in the annual income statement for Mayfare Plumb- ing, owned by James Fare...
A: Income statement means the statement which show the cost of goods sold and selling price and give ou...
Q: H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached w...
A: The journal entries are prepared to keep the record of day to day transactions of the business. The...
Q: What should be the amount of Goodwill on December 31, 2020?
A: Shadow company acquired net assets of Recruit company on July 1, 2019 and recorded the value of good...
Q: Henson company had determined the 2019 and 2020 net income to be 4,000,000 and 5,000,000 respectivel...
A: Net income is total earning of a firm that is obtained by sales-cost of goods sold ,operating expens...
Q: Brown Corporation shows its cash account balance of P525,000 before reconciliation. The bank stateme...
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with...
Q: Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two childr...
A: Calculation of taxable income Particulars Amount Gross income 168300 Less: itemized deduction...
Q: Consider the following information for Presidio Inc.'s most recent year of operations. Number of uni...
A: Under Full Absorption Income Statement , Gross Profit = Sales - Cost of goods sold Net Operating Inc...
Q: A company that uses a job order costing system would make the following entry to record the flow of ...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Uncollectible Accounts-Allowance Method Pyle Nurseries uses the allowance method to record the follo...
A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the en...
Q: Which of the following best describes a contingent liability that is unlikely to occur?A. remoteB. p...
A: Contingent liabilities are those liabilities that will occur on the basis of future events. These li...
Q: Required: Using the balance sheet and income statement above, complete the operating section workshe...
A: Cash Flow statements are the statement of changes in cash in an organization. Any non-cash item will...
Q: 18. Which of the following cost allocation methods does not take into consideration that service cen...
A: The direct method is the simplest of the four. The direct method allocates the costs of each of the ...
Q: Caring Company has the following cost and production date for the month of January 2022: All materi...
A: Process costing is a method of cost accounting, which is used where there is continuous production a...
Q: A. Operating expenses are a function of: a. The cost of equity and the cost of debt b. The...
A: Operating Expenses: In the business world, an operational expenditure is a cost that a company incur...
Q: 6. True or False: When two processes are needed, the cost of finished units in Process #1 is transfe...
A: Process costing is costing method followed where one product is manufactured in bulk in a multi-proc...
Q: PRINCESS Trading Company presents the following data as of December 31, 2018. Percent to sales Amoun...
A: Additional Fund Needed: Greater funds necessary (AFN) refers to the amount of money a corporation ne...
Q: Consider the following events: • 25,000 shares of preferred stock, cumulative, 5%, $40 par was issue...
A: Introduction: Cash flow statements: All cash in and out flows are shown in cash flows statements. It...
Q: Uncollectible Accounts-Percentage of Sales Rossin's Racers has total credit sales for the year of $2...
A: As per the percentage of sales method, the prior balance of allowance for doubtful accounts is ignor...
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay ...
A: Formula used for calculating discount on bonds payable: Discount on bonds payable = issued price - c...
Q: You are an accountant working for a company that has recently decided to incorporate. The company ha...
A: Expenses incurred in the process of incorporation are known as preliminary expenses or incorporation...
Q: Treasury stock is generally accounted for by the?
A: The question is based on the concept of cost accounting. Companies occasionally buy their own shares...
Q: The following balances appeared in the inventory accounts of Forest Components for July. Materials I...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: from home). Super Soups did an analysis of the capabilities of the old production equipment and all ...
A: Loss on Sale of Assets: It is an ordinary activity and occurs when carrying amount of assets is les...
Q: Santa Rosa recently purchased a new boat to help ship product overseas. The followinginformation is ...
A: Acquisition cost - Acquisition cost is cost of an assets purchased. It includes all the purchase cos...
Q: alculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12...
A: EcoFabrics has budgeted overhead costs of $1,039,500. It has two main products - Wool and cotton. Th...
Q: Popoy is a messenger of Basha Logistics. He receives a monthly salary of P25,000. At the end of the ...
A: computation of taxable income of Mr. Popoy for the year particulars Amount (PHP) Basic salar...
Q: 10. An example of a period cost is O advertising expense. O indirect materials. O depreciation on fa...
A: Introduction:- All costs are not related to production of a product is treated as period costs.
Q: How do we journalize this transaction for the month of October? Explanation not allowed. Transactio...
A: For real accounts, rule for journal entry is debit what comes in and credit what goes out. Here, pho...
Q: The WGN Company has a bonus arrangement, which grants the financial vice president and other executi...
A: Introduction:- The finance vice president and other executives of the WGN Company are eligible for a...
Q: On December 31, 20X8, Mercury Corporation acquired 100 percent ownership of Saturn Corporation. On t...
A: Acquisition of the company means when one company acquires another company either only some percenta...
Q: Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction ...
A: Solution A journal is a company's official book in which all business transactions are recorded in c...
Q: What amount will be recorded as goodwill on January 1, 2020?
A: Goodwill is the amount which is occurred and takes place when the person pays more than the amount w...
Q: Which of the following statement is not true?
A: Special journal is prime book of entry it would record and analyze specific transactions. making sp...
Q: the Accumulated OCI included in the 12 O credit O debit 0 credit
A: Stockholders' equity refers remaining value of monetary remained at a company after it has sorted al...
Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable inco...
A: Introduction:- Individuals or enterprises (taxpayers) pay an income tax depending on their earnings ...
Q: Direct Materials and Direct Labor Variance Analysis Abbeville Company manufactures faucets in a sma...
A: Variance analysis is one of the important technique of management accounting under which all standar...
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay ...
A: Lets understand the basics. When bond is issued for the price which is less than its face value then...
Dakota Corporation is an owner/operator of 15 water filtration systems in the Northwestern region of the United States.
During February 2022, 4 of the tanks had leaks which contaminated the water and surrounding environment. Dakota is very concerned about their obligation to the community to maintain the environment. Dakota corrected the leaks by installing new water filters and liners which cost $500,000. These corrections will extend the life of the tanks and improve future production. These improvements will also prevent any future environmental contamination. Overall, the $500,000 spent on the new water filters and liners have improved the facility. Dakota is unsure whether the $500,000 spent for this environmental issue should be capitalized or expensed.
Accounting Issue: Should Dakota capitalize or expense the $500,000 spent on the new water filters and liners?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company spills chemicals onto Russian land, causing damage that will cost $7million to clean. There is no environmental legislation but the companyy has clear green policies on its website. What are the effects of this on the Financial Statement of the company in the current year?1. A tank behind Tom’s service station has leaked a large quantity of heating oil into the soil below. If left uncontained,experts estimate a 10% chance that the oil will contaminate local drinking water and cause $3 million worth of repairs, and an additional 0.5% chance that the oil will reach both the local aquifer and neighboring waterways, causing a total of $10million worth of damage. 2.1. If these are the only risk factors, what is the expected value of damage from Tom’s tank? Show your calculations. 2.2. If Tom is willing to pay up to $355,00 to an insurance company to cover this risk, what is Tom’s risk burden? Show your calculations.Russell Forest Products Limited needed to upgrade a burner at its sawmill in Cochrane, Ontario, to comply with the new air pollution standards. The new burner, which is used to burn the scrap wood from its sawing operations, will not only reduce the amount of pollution, but will supply heat for the plant facility, including the wood dryer. In order to encourage Russell Forest Products Limited in its compliance with the stan- dards, the Province of Ontario extended an interest-free loan of $400,000 on December 31, 2011. The only conditions in obtaining the interest-free loan are that the loan proceeds be applied directly to the construction costs and that the loan be repaid in full on December 31, 2019. RussellForest Products Limited borrowed the remaining funds from the bank for the construction of the burner and will be paying interest at the rate of 7% per year. Instructions (a) Discuss the issues related to obtaining the interest-free loan from the Province of Ontario. (b)…
- Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each tonne of pollution dumped into the river. The government will sell 40 pollution permits for $75 each. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. Between the cost of permits and the cost of eliminating pollution, the likely outcome is Firm A spends and Firm B spends cross out $4000; $3500 cross out O b. $3000; $2500 cross out O c. $3000; $3500 cross out O d. $4000; $2500 cross out O e. $5000; $2500 cross out O f. $5000; $35001. In November of the current year, an automobile manufacturing company recalled all pickup trucks manufactured during the past two years. A flaw in the battery cable was discovered and the recall provides for replacement of the defective cables. The estimated cost of this recall is $3.7 million. 2. The EPA has notified a company of violations of environmental laws relating to hazardous waste. These actions seek cleanup costs penalties, and damages to property. The company is reasonably certain there will be cost associated with the cleanup, but cannot estimate the amount. The cleanup cost could be as high as $4,170,000 or as little as $670,000 and insurance could reimburse all o part of the cost. There is no way to more accurately estimate the cost to the company at this time. 3. Holland Company does not carry property damage insurance because of the cost. The company has suffered substantial losses each of the past three years. However, it has had no losses for the current year.…The international environmental management standard ISO 14000 requires that Oliver, the pollution control officer of BUCENG, must install suitable pollution control equipment. He is considering two of them, one based on the principle of neutralization and the other of precipitation. They cost Php 7,500,000 and Php 4,500,000 respectively; both are expected to last 5 years and have salvage values of Php 1,500,000 and Php 1,050,000 respectively. The chemical needed for the neutralization-based equipment costs Php 500,000 per year, while for the other Php 950,000 per year. Their annual maintenance costs are Php 5,000 and Php 7,500 respectively. Develop a cashflow table to help Oliver visually compare the data pertaining to the two alternatives.
- In the aftermath of Hurricane Thelma, the U.S. Army Corps of Engineers is considering two alternative approaches to protect a freshwater wetland from the encroaching seawater during high tides. The first alternative, the construction of a 5-mile long, 20-foot-high levee, would have an investment cost of $25,000,000 with annual upkeep costs estimated at$725,000. A new roadway along the top of the levee would provide two major benefits: (1) improved recreational access for fishermen and (2) reduction of the driving distance between the towns at opposite ends of the proposed levee by 11 miles. The annual benefit for the levee has been estimated at $1,500,000. The second alternative, a channel-dredging operation, would have an investment cost of $15,000,000. The annual cost of maintaining the channel is estimated at $375,000. There are no documented benefits for the channel-dredging project. Using a MARR of 8% and assuming a 25-year life for either alternative, apply the incremental B–C…Arsenic enters drinking water supplies from natural deposits in the earth or from agricultural and industrial practices. Since it has been linked to cancer of the bladder, kidney, and other internal organs, the EPA has lowered the arsenic standard for drinking water from 0.050 parts per million to 0.010 parts per million (10 parts per billion). The annual cost to public water utilities to meet the new standard is estimated to be $202 per household. If it is estimated that there are 92 million households in the United States and that the lower standard can save 52 lives per year valued at S 4 million per life, what is the benefit/cost ratio of the regulation? Important Note: Give B/C with 3 decimal placesWhen Hurricane Katrina struck New Orleans, there was a significant loss of aquarium fish at the Audubon Aquarium of the Americas. FEMA originallystated that the aquarium needed to buy the fish from commercial vendors, a method the agency said would cost $616,849 but would comply with disaster aid laws. FEMA later reversed their decision and allowed the aquarium staff to catch the fish themselves at a total cost of $99,766. If it is assumed that the aquarium staff spent the $99,766 equally over a 12-month period of time, what rate of return per month did their effort represent? Assume FEMA would have given the aquarium the $616,849 at the end of month 12.
- The state is considering three proposals for increasing the capacity of the main drainage canal in an agricultural region. Proposal A requires dredging the canal. The state is planning to purchase the dredging equipment and accessories for $650,000. The equipment is expected to have a 10-year life with a $17,000 salvage value. The annual operating costs are estimated to total $50,000. To control weeds in the canal itself and along the banks, environmentally safe herbicides will be sprayed during the irrigation season. The yearly cost of the weed control program is expected to be $120,000.Proposal B is to line the canal walls with concrete at an initial cost of $4 million. The lining is assumed to be permanent, but minor maintenance willbe required every year at a cost of $5000. In addition, lining repairs will have to be made every 5 years at a cost of $30,000.Proposal C is to construct a new pipeline along a different route. Estimatesare: an initial cost of $6 million, annual…In a recent year, an oil refinery in Texas City, Texas, on the Houston Ship Channel exploded. The explosion killed 14 people and sent a plume of smoke hundreds of feet into the air. The blast started as a fire in the section of the plant that increased the octane of gasoline that was produced at the refinery. The Houston Ship Channel is the main waterway that allows commerce to flow from the Gulf of Mexico into Houston. The Texas Commission on Environmental Quality express concern about the release of nitrogen oxides, benzene, and other known carcinogens as a result of blast. Neighbors of the plant complained that the plant had been emitting carcinogens for years and that the regulators had ignored their complaints about emissions and unsafe working conditions. Instructions Answer the following Questions Outline the costs that the company now faces as a result of the accident. How could the company have reduced the cost associated with the accident?On April 1, 2014, the company incurred capital cost of $100 million in respect of themine and it is expected that the mine will be abandoned in eight years’ time.The mine is situated in a country where there is no environmental legislationobliging companies to rectify environmental damage and is it very unlikely that anysuch legislation will be enacted within eight years.It has been estimated that the cost of the cleaning the site and re-planting the treeswill be $25 million if the replanting were successful at the first attempt, but it willprobably be necessary to make a further attempt, which will increase the cost by afurther $5 million. The company’s cost of capital is 10%.