ACC 306 (ASH)

Question 1

ACC 306 Entire Course

Answer 1

ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6

ACC 306 Week 1 DQ 1 Equity Method

ACC 306 Week 1 DQ 2 Judgment Case 13-9

ACC 306 Week 2 DQ 1 Ethics Case 14-8 Hunt Manufacturing

ACC 306 Week 2 DQ 2 Ethics Case 15-4

ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16

ACC 306 Week 3 Ethics Case 17-6

ACC 306 Week 3 Integrating Case 16-5

ACC 306 Week 4 Communication Case 18-10

ACC 306 Week 4 Ethics Case 19-7

ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5

ACC 306 Week 5 Analysis Case 20-10

ACC 306 Week 5 Ethics Case 20-5

ACC 306 Week 5 Ethics Case 21-7

ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14

ACC 306 Week 5 Final Paper (Lease)
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Question 2

ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6

Answer 2

ACC 306 Week 1 Assignment E13-21, E13-22, P12-1, P12-7,P12-10, P12-14, P13-6
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Question 3

ACC 306 Week 1 DQ 1 Equity Method

Answer 3

P 12–13 - Miller Properties - Equity method ● LO5 LO6
On January 2, 2011, Miller Properties paid $19 million for 1 million shares of Marlon Company’s 6 million outstanding common shares. Miller’s CEO became a member of Marlon’s board of directors during the first quarter of 2011.
The carrying amount of Marlon’s net assets was $66 million. Miller estimated the fair value of those net as- sets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years.
Marlon reported earnings of $12 million and paid dividends of $6 million during 2011. On December 31, 2011, Marlon’s common stock was trading on the NYSE at $18.50 per share.
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Question 4

ACC 306 Week 1 DQ 2 Judgment Case 13-9

Answer 4

Judgment Case 13–9 - Valleck Corporation - Loss contingency and full disclosure ● LO5 LO6

In the March 2012 meeting of Valleck Corporation’s board of directors, a question arose as to the way a possible obligation should be disclosed in the forthcoming financial statements for the year ended December 31. A veteran board member brought to the meeting a draft of a disclosure note that had been prepared by the controller’s office for inclusion in the annual report. Here is the note:

On May 9, 2011, the United States Environmental Protection Agency (EPA) issued a Notice of Violation (NOV) to Valleck alleging violations of the Clean Air Act. Subsequently, in June 2011, the EPA commenced a civil action with respect to the foregoing violation seeking civil penalties of approximately $853,000. The EPA alleges that Valleck exceeded applicable volatile organic substance emission limits. The Company estimates that the cost to achieve compliance will be $190,000; in addition the Company expects to settle the EPA lawsuit for a civil penalty of $205,000 which will be paid in 2014.
“ Where did we get the $205,000 figure? ” he asked. On being informed that this is the amount negotiated last month by company attorneys with the EPA, the director inquires, “Aren’t we supposed to report a liability for that in addition to the note? ”
Required:

Explain whether Valleck should report a liability in addition to the note. Why or why not? For full disclosure, should anything be added to the disclosure note itself?​
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Question 5

ACC 306 Week 2 Assignment E 14-16, E 14-18, E 15-25, P14-21, P15-3

Answer 5

ACC 306 Week 2 Assignment E 14-16, E 14-18, E 15-25, P14-21, P15-3
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Question 6

ACC 306 Week 2 DQ 1 Ethics Case 14-8 Hunt Manufacturing

Answer 6

Ethics Case 14–8 - Hunt Manufacturing - Debt for equity swaps; have your cake and eat it too ● LO5

The cloudy afternoon mirrored the mood of the conference of division managers. Claude Meyer, assistant to the controller for Hunt Manufacturing, wore one of the gloomy faces that were just emerging from the conference room. “Wow, I knew it was bad, but not that bad,” Claude thought to himself. “I don’t look forward to sharing those numbers with shareholders.”
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Question 7

ACC 306 Week 2 DQ 2 Ethics Case 15-4

Answer 7

Ethics Case 15–4 - American Movieplex - Leasehold improvements ● LO3

American Movieplex, a large movie theater chain, leases most of its theater facilities. In conjunction with recent operating leases, the company spent $28 million for seats and carpeting. The question being discussed over break- fast on Wednesday morning was the length of the depreciation period for these leasehold improvements. The com- pany controller, Sarah Keene, was surprised by the suggestion of Larry Person, her new assistant.
http://www.homeworktab.com/acc-306-ash/acc-306-week-2-dq-2-ethics-case-15-4

Question 8

ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16

Answer 8

ACC 306 Week 3 Assignment E 16-24, E 16-25, E 17-10, E 17-19, P 16-7, P 17-16
http://www.homeworktab.com/acc-306-ash/acc-306-week-3-assignment-e-16-24-e-16-25-e-17-10-e-17-19-p-16-7-p-17-16

Question 9

ACC 306 Week 3 Ethics Case 17-6

Answer 9

Ethics Case 17–6 - VXI International - 401(k) plan contributions ● LO1

You are in your third year as internal auditor with VXI International, manufacturer of parts and supplies for jet air- craft. VXI began a defined contribution pension plan three years ago. The plan is a so-called 401(k) plan (named after the Tax Code section that specifies the conditions for the favorable tax treatment of these plans) that permits voluntary contributions by employees. Employees’ contributions are matched with one dollar of employer contribution for every two dollars of employee contribution. Approximately $500,000 of contributions is deducted from employee paychecks each month for investment in one of three employer-sponsored mutual funds.
http://www.homeworktab.com/acc-306-ash/acc-306-week-3-ethics-case-17-6

Question 10

ACC 306 Week 3 Integrating Case 16-5

Answer 10

Integrating Case 16–5 - Williams-Santana, Inc. - Tax effects of accounting changes and error correction; six situations ● LO1 LO2 LO8
Williams-Santana, Inc. is a manufacturer of high-tech industrial parts that was started in 1997 by two talented engineers with little business training. In 2011, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2011 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.
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Question 11

ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5

Answer 11

ACC 306 Week 4 Assignment E 18-18, E 18-24, E 19-2, E 19-5, E 19-9, E 19-24, P 18-5
http://www.homeworktab.com/acc-306-ash/acc-306-week-4-assignment-e-18-18-e-18-24-e-19-2–e-19-5-e-19-9–e-19-24-p-18-5

Question 12

ACC 306 Week 4 Communication Case 18-10

Answer 12

Communication Case 18–10 Should the present two-category distinction between liabilities and equity be retained? Group interaction. ● LO1
The current conceptual distinction between liabilities and equity defines liabilities independently of assets and equity, with equity defined as a residual amount. The present proliferation of financial instruments that combine features of both debt and equity and the difficulty of drawing a distinction have led many to conclude that the present two-category distinction between liabilities and equity should be eliminated. Two opposing viewpoints are:

View 1: The distinction should be maintained.

View 2: The distinction should be eliminated and financial instruments should instead be reported in accordance with the priority of their claims to enterprise assets.
http://www.homeworktab.com/acc-306-ash/acc-306-week-4-communication-case-18-10

Question 13

ACC 306 Week 4 Ethics Case 19-7

Answer 13

Ethics Case 19–7 International Network Solutions ● LO6

International Network Solutions provides products and services related to remote access networking. The company has grown rapidly during its first 10 years of operations. As its segment of the industry has begun to mature, though, the fast growth of previous years has begun to slow. In fact, this year revenues and profits are roughly the same as last year.

One morning, nine weeks before the close of the fiscal year, Rob Mashburn, CFO, and Jessica L
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Question 14

ACC 306 Week 5 Analysis Case 20-10

Answer 14

Analysis Case 20–10 - DRS Corporation - Various changes ● LO1 through LO4

DRS Corporation changed the way it depreciates its computers from the sum-of-the-year’s-digits method to the straight-line method beginning January 1, 2011. DRS also changed its estimated residual value used in computing depreciation for its office building. At the end of 2011, DRS changed the specific subsidiaries constituting the group of companies for which its consolidated financial statements are prepared.
http://www.homeworktab.com/acc-306-ash/acc-306-week-5-analysis-case-20-10

Question 15

ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14

Answer 15

ACC 306 Week 5 Assignment E 20-18, P 21-11, P 21-14

http://www.homeworktab.com/acc-306-ash/acc-306-week-5-assignment-e-20-18-p-21-11-p-21-14

Question 16

ACC 306 Week 5 Ethics Case 20-5

Answer 16

Ethics Case 20–5 Softening the blow ● LO1 LO2 LO3

Late one Thursday afternoon, Joy Martin, a veteran audit manager with a regional CPA firm, was reviewing documents for a long-time client of the firm, AMT Transport. The year-end audit was scheduled to begin Monday.

For three months, the economy had been in a down cycle and the transportation industry was particularly hard hit. As a result, Joy expected AMT’s financial results would not be pleasant news to shareholders. However, what Joy saw in the preliminary statements made her sigh aloud. Results were much worse than she feared.

“Larry (the company president) already is in the doghouse with shareholders,” Joy thought to herself. “When they see these numbers, they’ll hang him out to dry.”
http://www.homeworktab.com/acc-306-ash/acc-306-week-5-ethics-case-20-5

Question 17

ACC 306 Week 5 Ethics Case 21-7

Answer 17

Ethics Case 21–7 - Ben Naegle - Where’s the cash? ● LO1 LO3

After graduating near the top of his class, Ben Naegle was hired by the local office of a Big 4 CPA firm in his hometown. Two years later, impressed with his technical skills and experience, Park Electronics, a large regional consumer electronics chain, hired Ben as assistant controller. This was last week. Now Ben’s initial excitement has turned to distress.
The cause of Ben’s distress is the set of financial statements he’s stared at for the last four hours. For some time prior to his recruitment, he had been aware of the long trend of moderate profitability of his new employer. The reports on his desk confirm the slight, but steady, improvements in net income in recent years. The trend he was just now becoming aware of, though, was the decline in cash flows from operations.
Ben had sketched out the following comparison ($ in millions):

Profits? Yes. Increasing profits? Yes. The cause of his distress? The ominous trend in cash flow which is con sistently lower than net income.
http://www.homeworktab.com/acc-306-ash/acc-306-week-5-ethics-case-21-7

Question 18

ACC 306 Week 5 Final Paper (Lease)

Answer 18

ACC 306 Week 5 Final Paper (Lease)

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