subject
Business, 21.01.2021 22:50 223103

Hefty Industries is a small business that sells home beauty products in the San Luis Obispo, California, area. The company has experienced a cash crunch and is unable to pay its bills on a timely basis. A great deal of pressure exists to minimize cash outflows such as income tax payments to the Internal Revenue Service (IRS) by interpreting income tax regulations as liberally as possible. You are the tax accountant and a CPA working at the company and you report to the tax manager. He reports to the controller. You are concerned about the fact that your supervisor has asked you to go along with an improper treatment of section 179 depreciation on the 2015 tax return so you can deduct the $100,000 full cost of eligible equipment against taxable income. The problem as you see it is the 2014 limitation of $500,000, which would have been fine for 2015 had Congress extended it, was rolled back to a maximum of $25,000. Therefore, your supervisor is planning to allow Shifty to deduct $75,000 more than allowed by law. Using a 35 percent tax rate it means the company is increasing its cash flow by $26,250.1. What values are most important to you in deciding on a course of action? Why?2. Who are the stakeholders in this case and how might they be affected by your course of action?3. What would you do and why, assuming your approach will be based on the application of the ethical reasoning methods discussed in the chapter

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 23:00
Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is:
Answers: 1
question
Business, 22.06.2019 23:50
Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $360,000; cash paid for rent, $44,000; cash paid to employees for services rendered during the year, $124,000; cash paid for utilities, $54,000.in addition, you determine that customers owed the company $64,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,400 at year-end, and the rent payment was for a two-year period.calculate accrual net income for the year.
Answers: 2
question
Business, 23.06.2019 15:00
Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?
Answers: 1
question
Business, 24.06.2019 01:30
Which of the following is not a creative thinking exercise entrepreneurs use generate ideas
Answers: 3
You know the right answer?
Hefty Industries is a small business that sells home beauty products in the San Luis Obispo, Califor...
Questions
question
Chemistry, 25.04.2020 00:47
question
Biology, 25.04.2020 00:47