Just A Little Something To Digest. When It Comes To Farming,

Just a Little Something to Digest When it comes to farming, the image of an open green field and a little red barn may come to mind; however, the reality is much different. Since the industrialization of animal agriculture, the small farms we commonly think of have been consumed by large, congested factories called CAFOs, or Concentrated Animal Feeding Operations. The goal of these enormous factory farms is to produce large quantities of food as fast and cheap as possible. While this may sound ideal, the truth is that these â€Å"super farms† are not a sustainable method of food production. They pose a huge threat to our environment and cause sickness in humans. Due to the greed and influence of large corporations, production is put before the†¦show more content†¦As reported by a study made by the University of Kentucky in 2014, the purpose of the insecticides is to â€Å"transform cow manure from a breeding ground for fly maggots into a lethal substrate that kills the maggots† (Hamilton 240). While the chemicals may sound like a solution to one problem, they actually disrupt the waste’s ability to be recycled by soil, creating an emissions machine (Hamilton 240). Additionally, all this manure, natural or modified, is advertised by corporations to be repurposed as fertilizer or stored and treated safely in lagoons, but the extreme amount of manure being produced from CAFOs can not be reused in the way companies say it is reused. Overwhelming amounts of manure are lathered over fields, and the soil cannot retain or reuse a majority of the resources, especially soil tainted by insecticides. Unable to decompose, the waste releases toxic gases into the atmosphere. Another strategy of handling waste is pumping huge lagoons full of livestock manure. These lagoons and lakes are fermenting pots of chemicals which release into the atmosphere, perpetuating the warming of the earth. Not only do these lagoons pollute the air, but they also damage drinking water sources. Leaks and overflows are much too common in waste lagoons, contaminating surrounding water sources (Hayes and Hayes 100). According to the EPA, â€Å"The mishandling of manure has resulted in contaminated drinking water sources forShow MoreRelatedAttention Global Citizens : Why Shouldn T We All Become Vegans?916 Words   |  4 Pagessaving our planet. What he fails to relay to his readers is just how incredibly multifaceted the issue itself and the facts surrounding it truly are. Some research actually suggests that there are some vegetables that actually produce more emissions than some meat products. According to Shrink That Footprint’s founder and author of the article Compa ring Carbon Foodprints, Lindsay Wilson demonstrates how different food groups compare when it comes to â€Å"how carbon intensive it is for Americans to get theirRead MoreThe Ethics Of A Vegetarian Lifestyle Essay1208 Words   |  5 Pagesleast a more ethical consumption of meat. Factory farming is responsible for about 18% of the green house gas emissions these days. The living conditions for the animals are brutal all the way to their death. They live in tight, unsanitary conditions. The poor living conditions topped with low moral for the animals’ causes a great deal of antibiotics to be administered just to keep the animals alive enough to get to the slaughter house. These are just a few of the environmental and ethical reasons peopleRead MoreThe Issue Of Genetically Modified Organisms1752 Words   |  8 Pagesthinking what all they’ve heard about GMOs might be false. Everything looks good on paper though. It isn’t very clear to customers what they are ea ting when they purchase GMO foods because there is no labeling. Vegans or Vegetarians could accidentally eat plant based foods that contain the genes of an animal. A person with an allergy could unknowingly digest a certain ingredient and be unexpectedly effected. Some of the effects of GMOs on human health can be unpredictable. The chemical compounds foundRead MoreThe Ethical Theories Of Ethics2607 Words   |  11 Pagesmorally obligated to follow a certain set of rules. One of the most well known deontologists is Immanuel Kant. He came up with how we should morally live based on deontology. He believes that an action should not have any motives behind it; it should just be the moral obligation. There is the categorical imperative that is if you aim to be ethical, moral, good, that means never treating anyone as a mere means. A mere means is using someone or an act of manipulation. He came up with universalizationRead MoreHuman Nature2511 Words   |  11 Pagesimportant than the similarities. People desire to have connections with those in their environment, for the bonds of kinship are the strongest of all relationships. Kinship, as defined by Dr. Crandall, is â€Å"about a sense of belonging and being part of something, about human feelings that we all experience but can never properly describe† (Crandall 53). Kinship often occurs with in a family unit, but may also occur outside of the family. It unites people and can result in advantageous or damaging bondsRead More Factory Farmers: Americas Very Own Bullies Essay3879 Words   |  16 Pagesthe average number of chickens on a given egg farm in the United States was 100, but now the average number is a shocking 10,000 chickens (â€Å"Factory Farms† 4). The reason for the increase of chickens has to do with new and cheaper technology developed just after World War II. The new technology increased the number of chickens, while it had the opposite effect on dairy and meat cows, their numbers went in the o ther direction. The number of cows used for milk was cut by more than half between 1950 andRead MoreEarthworms1911 Words   |  8 PagesHow Does Temperature Effect Earthworms? Introduction When one thinks of earthworms usually one thinks about slimy and nasty creatures that are only used for fishing. Wrong! If there were no worms on earth, farms and many plants could not be properly maintained. This paper will explain how important earthworms are to the earth and to our environment. In addition, this paper will cover the origin of an earthworm, the anatomy and other important characteristics. Origin TheRead MoreImmigration in the Workplace2277 Words   |  10 Pagesillegal immigrants but the facts show that sense 2005 the number of illegal immigrants has grown. The United States government grants over 1 million immigrants citizenship a year. This means that the U.S. government is allowing immigrants to come to America legally. When immigrants get desperate, they enter the country illegally. Illegal immigrants enter not because there is no proper way to become a U.S. citizen but because the legalization process is long, it costs money to the individual, requires themRead MoreProblems of the Food System Essay2113 Words   |  9 PagesWe live in an age in which we have come to expect everything to be instantaneously at our fingertips. We live in an age of instant coffee, instant tea, and even instant mashed potatoes. We can walk down the street at 5 in the morning and get a gallon of milk or even a weeks worth of groceries at our discretion. Even though it is great that f ood is now readily available at all times, this convenience comes at a price, for both the producer and the consumer. Farmers are cheated out of money and areRead MoreEssay on Ian Wilmut and the Cloning of Dolly4070 Words   |  17 PagesNext, Wilmut implanted the egg into an ewe of a Scottish Blackface who became Dolly’s surrogate mother. Five months later, Dolly was born (Wills, 22). Wilmut used three different breeds of sheep so it would be apparent that Dolly’s genes did not come from her surrogate mother nor the egg donor, but from the six year old, Finn Dorset. In addition, in order to account for problems such as cells being in the wrong stage, or having the wrong set of genes turned on, or having cells that are too metabolically

School Finance Article Analysis Free Essays

After the Second World War, there has been a dramatic increase on school finance in the United States. Through the article, Guthrie explains some of the critical incidents that contributed the considerable increase of the per-pupil expenditures in public elementary and secondary learning institutions. Upon reading the article, one should have an understanding on how do certain events affect per student spending in America. We will write a custom essay sample on School Finance Article Analysis or any similar topic only for you Order Now Some of the factors cited by Guthrie are the constant expansions regarding the services offered by schools, more pricey specialized classes on high school students, and special education programs. Also, Guthrie includes that grants for students from disadvantaged backgrounds and those with disabilities make a contribution to increased costs. In the article, Guthrie suggests that it is very likely that the increasing expenditure on school finance continues. With this, the author offers some solutions to be considered to put a halt or, at the least, control its growth rate. Some of these are privatization and contracting. Just like the article states about the increasing per student expenditure, school finance in Massachusetts is also affected by the factors stated earlier. Thus, one can say that Massachusetts is on its way on a much higher education budget. In the event that the education status in Massachusetts will continue (that is, its school’s productivity is increased), there can be a possibility that the trend will snap, thus making the funds for public elementary and secondary schools could be minimized. How to cite School Finance Article Analysis, Papers

Integration of Corporate and Shareholder Taxes

Question: Discuss about the Integration of Corporate and Shareholder Taxes. Answer: Introduction: In the present scenario, Kit is residing in Australia, but he spends most of the time in an oil rig of Indonesia; where he was recruited for his job in Australia. He is living in Australia from last four years with him family in his own house. The salary is remunerated directly into the bank account with Westpac Bank Ltd. in Australia. All the investment comprising dividend income remains in Chile. One month off is provided to him after every two months, and after these occasions, he meets with his family members either in Australia or at some other place for holidays. The primary test which is conducted for tax residency is known as a resident test. In case a person resides in Australia the same is considered as resident for tax purpose,and there is no need to apply another resident test. In case the person does not satisfy the resident test, he or she is still considered as Australian resident if any one of the three situations is satisfied by him. The prescribed three situations are as follows: Domicile Test: In case the person in domicile, i.e. your permanent home is in Australia, and the taxation officers are satisfied that your permanent place of abode in not Australia. Thus, it can be said that the onus of proof remains on those who assert a new domicile choice and appeals that their domicile of origin is lost (Graetz, and Warren, 2016). 183 Day Test: In case the person is actually present in Australia for more than half of financial year without any break or with breaks than it is assumed that you have a constructive residential house in Australia. The same is deemed to be assumed unless it can be proved that the person is usually outside Australia and having no purpose of taking up residence in Australia. Superannuation Test: The test assures that the Australian government employees employed outside Australia are treated as a resident for the taxation purpose (Harding, 2013). An explanation is also provided by the Commissioner relating to residency provisions that the length of time for which a person is present in Australia does not itself ascertain whether he or she is resident or not. Though, importance is given to continuity or habit consistent with someone residing who resides in Australia. The other factors which are considered are: Family and Employment/ business ties. Social and living arrangements Purpose of presence Social and living arrangements (Tax residency for individuals the domicile test. 2013/) Analysis of the case In the present case as Kit has a permanent house is Australia, according to the facts provided and his family is living there; he will be deemed to be a resident of Australian for taxation purpose. Thus if a person is deemed to be a resident of Australia has to provide details regarding his income from all the resources and has to pay tax liability on the same.Income earned through all direct and indirect sources is included in assessable income, and the tax is payable on same. However, Kit is an Australian resident according to provisions available in Domicile test as well as in accordance with the explanation provided by the commissioner. Taxation of Salary and Investment Income Salary is taxable as per provision of Sec 6-5 ITAA 1997. The present tax-free threshold for resident individuals in $18200 and the same will be available to Kit. The other provisions of specified sections will also apply accordingly.The dividend received on share portfolio will be taxed in accordance with provisions available in Section 6-10 of ITAA 1997 (Dividend Income, 2017). As per these provisions usually, a dividend is paid as money or credited with bonus shares. In case the company pays or credits the dividend the same would be applicable for franking tax offset.According to Steen and Peel, (2015), the same is also called imputation credit, and it is to be appropriately shown on the return for the purpose of availing this benefit. In case the same information is not in accordance with the amount declared on the return of taxpayer. It will prescribe the details with comparison with information which the department is having,and rectification is done accordingly. Explanation of Outcome: The high court concluded in specified case that the nature of gain produced from a business i.e. whether it is of income nature of relating to capital character it is majorly dependable on the character of existing transaction and business and relationship between the transactions through which gains have been produced (ATO Interpretative Decision. 2014). The same provisions were pertained for ascertaining conclusion in the case of AA Finance Ltd v CIR (1994)16 NZTC 11383. Explanation of Outcome: The decision which was provided through this case was that the authority for the ordinary realisation of an asset in an enterprising way was on capital account. The taxpayer was having the intention of availing maximum benefit as the available land was no more suitable for original business, and thus he was selling off the same. Thus the court provided a decision in favour of the taxpayer as he was not engaged in the business of developing and selling, but he was merely disposing of the capital asset in best possible manner. Explanation of Outcome: It was unanimously held by High Court that the steps were taken by the taxpayer were for more that advantageous realisation of a capital asset; thus the activities deemed to be assumed as constituted a business of land and development (Taxation Ruling,2014) . The same gave rise to assessable income. The decision was taken by considering three issues: Whether business of land and development exist (ordinary usage vs.concept of income) Application of section 26a and its relationship with section 25 of ITAA97 Explanation of Outcome: It was concluded in the above case that for the purpose of satisfying taxable purpose requirement it is necessary that the project of the taxpayer must be an income- producing activity (Capital Gains Tax-Subdivision. 2015). In the present scenario, the project of the taxpayer was subdividing and trading capital asset which was available as capital land. Thus, according to the provision of paragraph 36 of Taxation ruling, it was concluded by the court that gain realised on investment will be not treated as income even in the case the individual present the same recognition in an enterprise way. In the present case as provision available in paragraph 40-840 (2) (c) of Income Tax Assessment Act 1997 were not satisfied; therefore no transactions are being conceded with a profitable objective in accordance with provisions of Subdivision 40-I of ITAA 1997. Explanation of Outcome: It was decided in above case by Federal Court that the profit from the subdivision and sale of property proportions is not assessable under the provision of section 25 (1) as well as 25A of ITAA 1997.It was argued by the taxpayer that subdivision and trading of property proportions, thus the same is the realisation of the capital asset and not a transaction of profitable business (Capital Gains Tax-Subdivision., 2015). Further,in the present, the profit which is derived is not from the conduct of the business of selling and subdividing land mere represent the realisation of the capital asset. Explanation of Outcome: In above-specified case, the income was received by the taxpayer as a result of isolated transaction i.e. acquired land for working and sold the sand subsequently. Thus the income was treated as ordinary income by the High Court in accordance with provisions of section 25 (1) of ITAA 97. The profit arise from the resumption of land was treated as assessable profit as the ultimate purpose of the taxpayer was to make a profit and the same was assessable under section 26 (a). Explanation of Outcome: The decision in the present case was distinguished on the basis that the property was used as a mine for a longer period in comparison to farming. Thus the proceeds received from the sale of subdivided land which was acquired for the purpose of farming were treated as a realisation of a capital asset. Explanation of Outcome: It was concluded by Federal Court in above case that the sale of land was assessable under section 25(1) (Taxation Ruling, 2014). In the present case, the person enters into a business which was for the purpose of profit making. Thus as the property was attained with the objective of receiving profit the venture is not regarded as investment and profit from the same is treated as income for the purpose of section 25 (1). References Steen, A. and Peel, V., 2015. Economic and Social Consequences of Changing Taxation Arrangements to Working Holiday Makers. J. Austl. Tax'n, 17.Pp.225-230. Harding, M., 2013. Taxation of dividend, interest, and capital gain income. Graetz, M.J. and Warren, A.C., 2016. Integration of Corporate and Shareholder Taxes. Dividend Income. 2017. [Online]. Available through https://www.ato.gov.au/individuals/data-matching-letters/types-of-letters/dividend-income/. [Accessed on 2nd May 2017] Tax residency for individuals the domicile test. 2013. [Online]. Available through https://talktoataxpert.wordpress.com/2013/03/10/tax-resdidency-for-individuals-the-domicile-test/. [Accessed on 2nd May 2017] ATO Interpretative Decision. 2014. [Online]. Available through https://law.ato.gov.au/atolaw/view.htm?docid=aid/aid2002483/. [Accessed on 2nd May 2017] Taxation Ruling. 2014. [Online]. Available through https://law.ato.gov.au/atolaw/view.htmldocid=TXR/TR923/NAT/ATO/00001. [Accessed on 2nd May 2017] Capital Gains Tax-Subdivision. 2015. [Online]. Available through https://austaxpbr.com.au/document/PBR. [Accessed on 2nd May 2017]

Plato And Aristotle Essays (2179 words) - Ancient Greek Philosophers

Plato And Aristotle Plato, a Greek philosopher was among the most important and creative thinkers of the ancient world. He was born in Athens in 428 BC to an aristocratic and well-off family. Even as a young child Plato was familiar with political life because he's father, Ariston was the last king of Athens. Ariston died when Plato was a young boy. However, the excessive Athenian political life, which was under the oligarchical rule of the Thirty Tyrants and the restored democracy, seem to have forced him to give up any ambitions of political life. In 388 BC he journeyed to Italy and Sicily, where he became the friend of Dionysius the ruler of Syracuse, and his brother-in-law Dion. The following year he returned to Athens, where he devoted his time to research and instruction in philosophy and the sciences. Most of his life thereafter was spent in teaching and guiding these activities. In 347 BC Plato died, while he's published writings all still live. They consist of some 26 dramatic dialogues on phil osophy and related themes. The philosopher Socrates was a close friend of Plato's family as well as his teacher. Plato's writings attest to great influence on him. This could be a good explanation to why Plato uses Socrates to voice his own opinions about his Ideal State. Book I of Plato's Republic, beings with Socrates, Cephalus, Polemarchus and Thrasymachus discussing justice. Each give their own meaning of justice or dikaiosyne. Cephalus says justice is truth telling and debt paying. He views justice this way because he is an honest and just businessman. Polemarchus, who is Cephalus's son, agrees with Cephalus's definition, but continues by saying justice, is giving each his own due. By this he means, helping one's friend. Finally, Thrasymachus, who is a sophist, defines justice as the advantage of the stronger. Justice is not to the advantage of everyone but to the advantage of the rulers. Socrates proves that justice brings unity to any group of people, because it allows them to trust and rely on one another. The discussion of justice is continued in the beginning of Book II. Glaucon enters the conversation and he divides all things into three categories: 1) Those that are pleasurable for themselves and their results, 2) Those that bring good results, but with difficulty, and 3) Those that bring no results, but are pleasurable. Glacon then asks Socrates which category justice falls within. He replies by placing it in the first category. ?I myself put it among the finest goods, as something to be valued by anyone who is going to be blessed with happiness, both because of itself and what it comes from? (Republic, Book II 358a). Glaucon claims that the general view of justice lies in the second category, the mean between two extremes. Glaucon defends his argument by using the example of the ?Ring of Gyes,? a magical ring that turns its wearer invisible. He continues to argue that if humans were given the opportunity to be unjust without getting caught or without suffering any punishment or l oss of good reputation, they would naturally choose a life of injustice, in order to maximize their own interests. Now the issue at hand is to prove whether it is more beneficial to lead a just or unjust life. In an attempt to provide a satisfactory definition of justice, Socrates tries to make an analogy between the justice of an individual human being and of an entire society or city. He then begins to build and imaginary city. Socrates defines the basic city as the Health City opposed to a Feverish City. Socrates states that the fundamental needs of human beings in the society are food, shelter, and necessary clothing and things needed for production. However, Socrates is aware that the people of this city will want more then just the bare necessities. He continues to build this political correct city by manipulating a number of different things such as; adding a specialized class of soldiers, adding guardians, controlling any false information (censoring), creating men and women equal, and balancing their education between philosophy and physical training. Finally, Socrates just city is built. Now that Socrates has built his just city

Playing with Titles

Playing with Titles Playing with Titles Playing with Titles By Maeve Maddox Sometimes writers need to take time out from the slogging business of writing to play a little. This week several members of my critique group had a little fun with a feature at Lulu.com. The Titlescorer is an interactive feature that purports to analyze a book title in terms of how likely it is to find its way to the bestseller list. According to the information at the site, a research team analyzed the title of every novel to have topped the hardback fiction section of the New York Times Bestseller List during the half-century from 1955 to 2004 and then compare[d] them with the titles of a control group of less successful novels by the same authors. The data is based on about 700 titles. If you type in the titles of some bestsellers you’ll find yourself wondering how the research team arrived at its conclusions. Some blockbusters come up with â€Å"a 10.2% chance of being a bestselling title.† Along with typing the title, you have to choose from a couple of drop-down menus that ask you to specify â€Å"grammar type† and indicate part of speech. Depending how you answer, The DaVinci Code can score as high as 35.9% or as low as 10.2%. I’ll have to admit to having spent more time than I should have playing with it. No matter what combinations I tried, the highest score for any title I was able to come up with was 59.3%. One of my colleagues put in a title that scored 65%. I wouldn’t be too influenced by the results you get for your title, but playing around with the Titlescorer is as good a way as any to hash out your ideas. Just don’t play too long. That draft is waiting. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Freelance Writing category, check our popular posts, or choose a related post below:Is She a "Lady" or a "Woman"?Comma Before ButThe Two Sounds of G

A Case Study On Brand Equity Marketing Essay

A Case Study On Brand Equity Marketing Essay Brand equity can be viewed both as an intangible or tangible asset and or liability. The tangible being the monetary value of a brand and best viewed as the amount of additional income expected from a branded product over and above what might be expected from an identical, but unbranded product. To best illustrate this point would be a supermarket, they frequently sell unbranded versions of name brand products. The branded and unbranded products are produced by the same companies, but they carry a generic brand or store brand label like No Name or Home brand. Store brands sell for significantly less than their name brand counterparts, even when the contents are identical. This price difference is the monetary value of the brand name. However, according to (Aaker,1996) the most important assets of any business are intangible: its company name, brand, symbols, and slogans, and their underlying associations, perceived quality, name awareness, customer base, and proprietary resources su ch as patents, trademarks, and channel relationships. The intangible value associated with a product that can not be accounted for by price or features is illustrated by globally renowned company Nike. I has created many intangible benefits for their athletic products by associating them with star athletes. Children and adults want to wear Nike’s products to feel some association with these star athletes (â€Å"be like Mike.† ) The marketing image that has been created for Nike is the driving force of the demand for the products rather than the physical features. Buyers are willing to pay extremely high price premiums over lesser known brands which may offer the same, or better, product quality and features. Ideally brand equity is a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm’s customers.(Aaker,1996) These assets, which comprise brand equity, are a primary source of competitive advantage and future earnings. (Aaker, 1996) The overall description of Brand Equity incorporates the ability to provide added value to company’s products and services. This added value can be an advantage to charge price premiums, lower marketing costs and offer greater opportunities for customer purchase The assets/ advantages of brand equity: Allows you to charge a price premium compared to competitors with less brand equity. Strong brand names simplify the decision process for low-cost and non-essential products. Brand name can give comfort to buyers unsure of their decision by reducing their perceived risk. Maintain higher awareness of your products. Use as leverage when introducing new products. Often interpreted as an indicator of quality. High Brand Equity makes sure your products are included in most consumers consideration set. Your brand can be linked to a quality image that buyers want to be associated with. Offer a strong defense against new products and new competitors. Can lead to higher rates of product trial and repeat purchasing due to buyers’ awareness of your brand, approval of its image/reputation and trust in its quality.

Balance Sheet, Income Statement and Objectives of Accounting and Firms Assignment

Balance Sheet, Income Statement and Objectives of Accounting and Firms - Assignment Example Contra Asset accounts are accounts that are offsetting accounts for certain asset accounts which are often called valuation allowances. Credits increase contra asset accounts, and debits decrease these accounts. Accounts such as doubtful accounts, and accumulated depreciation. Liability accounts are accounts that increase credits and decrease with debits. The examples of the liability accounts are accounts payable, long-term debt (loan), taxes payable and wages payable. Contra liability accounts are accounts that are offsetting accounts for certain liability accounts which are often called valuation allowances. Debits increase contra liability accounts, and credits decrease these accounts. The short-term portion of the mortgage payable is an example of a contra liability account. The accounts in the income statement are closed out every ending period and transferred to Retained Earnings and entered into the Income Statement. The two types of accounts used in the Income Statement are called Revenue and Expense accounts. Assumption: Cash would increase thus increasing the Cash account in the Balance Sheet, and Equity would increase thus increasing the Equity account in the Balance Sheet. Both sides of the Balance Sheet increase by $5000. The primary objectives of accounting are to fairly present the financial information in the financial statements with necessary disclosures in accordance with Generally Accepted Accounting Principles (GAAP) so that users of the financial statements can use them to make informative decisions. This fulfills one of the main objectives which is to give assurance to the public about financial statements. The main objective of the firm producing financial statements is to monitor business performance throughout the year and possibly compare with past results. When comparative financial statements are compiled, a better understanding of the level of consistency can be obtained.

Early Childhood Studies Essay Example | Topics and Well Written Essays - 3000 words

Early Childhood Studies - Essay Example However, research has shown that this does not have immediate effect on speech development in children hence they are not necessary though they are helpful. From the above argument, it has been suggested that language acquisition by children is promoted through speaking to children in special way. Mothers often speak in a slow way such that they carefully articulate basic vocabulary which is easier to understand by the children. Grady (2005) calls this motherese where the mother speaks in a slow way so the child can grasp the meaning of speech or the words uttered. To a greater extent, it can be noted that this aspect of speech development is very important given that it is commonly believed that the child adopts a language from the mother. This is the reason why the child’s first language is called the mother tongue in different social dispositions. Though this aspect of motherese is not necessary in speech development, it has been observed that it significantly contributes t o the development of speech in young children. In some cultures, adults do not simplify their language when they are talking to the children but these children still learn their language perfectly. There is a misconception among people that children require special instructions for them to learn a language. According to the author of the given article, children can still learn a language without special help from the parent but there is one external condition that has to exist in as far as language acquisition is concerned. The author argues that children need to hear sentences they can actually understand before they know a lot about the language they are... This paper approves that it can be argued that language is acquired given that in some instances, it may not be possible to create a formal learning environment for infants whose minds are still very young to be reasonable enough to learn a language at a faster rate. It is pretty difficult for a child to be taught to create a meaningful sentence at a tender age as this can be confusing. Children often construct meaningful sentences without using the same words from their parents which brings us to the conclusion that language acquisition is not an art of imitation. This report makes a conclusion that it can be observed that there are different misconceptions with regards to language acquisition and learning in children. Some scholars believe that language is acquired naturally while others believe that it is learnt from the people around. However, a closer analysis of different concepts proposed by different scholars show that there is no agreed way about how children learn a language. It can also be said that the external environment has a bearing on the way children learn or acquire their first language. The culture of a particular group has a strong influence on the way at which a child acquires a language. Normally, the behaviour of people is shaped by their cultural values as well as their language. It is also easier for the children to learn to construct meaningful sentences through the guidance of someone but this does not necessarily mean to say that they have to undergo a formal learning programme as this can be done subconsciously. Yo ung children are capable of learning from the social environment around them.

Insecurity and Ignorance Essay Example for Free

Insecurity and Ignorance Essay Grasping the idea of sexual assault and rape can be a difficult task. We know of it within our world, but it may not effect us in our own lives. Vulnerability is a more comprehensible feeling. Many girls around the world can relate the constant comparison between themselves and others, their need for attention, and insecurity. In Joyce Carol Oats’ Where Are You Going, Where Have You Been? , the main character, Connie, displays these feelings through her subconscious thoughts and mindless actions. Her longing for acknowledgement leads to the extremely unfortunate event, meeting Arnold Friend. Connie’s low self-esteem, constant need for male attention, and lack of judgment force her to be helpless to the manipulative people she attracts. Connie’s insecurity causes her to constantly desire for male attention. She consistently daydreams about the boys she has been with, â€Å"Her mind slipped over onto thoughts of the boy she had been with the night before. †(365) Even as Connie goes through her normal, relaxing day, her mind subconsciously slips to thoughts of boys. This shows her obsession, desiring more from the males with whom she interacts. Connie’s clothing also displays her low self-esteem, when talking about Connie’s two different appearances: â€Å"She wore a pullover jersey blouse that looked one way at home and another way when she was away from home. †(362) Connie’s need for male attention causes her to dress in an inappropriate way, that she cannot show at home. She lost all self-respect, allowing herself to dress in a way to fulfill her mind’s desires. Because of the way she dresses, males treat her as they would someone much older, who dresses in the same way. Connie’s low self-esteem causes her to think that being pretty is all that matters, â€Å"She knew she was pretty and that was everything. † (361) Connie believes she is pretty and that she is better than anyone else because of that. Her world revolves around boys, and she thinks that all men care about is how pretty women appear, therefore being pretty is everything. The actions and thoughts of Connie cause her to have little self-respect in a world that revolves around males. Connie’s attitude and action towards males does not attract her the kind of attention she desires. Her mother tends to get angry with Connie for her arrogance. When Connie explains her mother’s preference for her older sister, June, she said, â€Å"If Connie’s name was mentioned it was disapproving. † (364). In Connie’s mind, the importance of the boys in her life is much greater than the importance of family. Spending nights at the drive-in restaurant, a popular hangout spot, Connie attracts the attention of older boys. This is what she intends to happen, but she is unaware of how this can lead to trouble. Older boys treat Connie as they would a girl their own age. This pressures Connie into doing things she would not normally do with someone as young as herself. In addition to the pressure from older boys, her actions by hanging out at the drive-in put her in danger. When Connie was with a boy at the drive-in restaurant, she caught the eye of a man who would prove dangerous: â€Å"He wagged a finger and laughed and said, ‘Gonna get you, baby. ’† (363-364) Connie does not know at the time that she was attracting danger. Connie is naive of the world around her, acting without thinking about the affects these decisions could have on her life. Through flirtatious acts and her attitude, Connie attracted a rapist, from whom she was unable to escape. By hanging out at the drive-in restaurant, flirting with older boys, and wearing provocative clothing Connie attracted the attention of the creepy Arnold Friend, whose intentions can be inferred from the story. When Arnold first pulls up to Connie’s house, and they officially meet for the first time, Connie instantly thinks about his impression on her: â€Å"She couldn’t decide if she liked him or if he was a jerk. (367). Connie did not find this abrupt encounter with Arnold strange, because he showed up at her house and knew about her. She first thinks about whether she liked him or not. She is oblivious to the danger of strangers, only thinking about if he is worth her flirting. Once Connie fell into Arnold’s trap, she is unable to escape: â€Å"She thought for the first time in her life that is was nothing that was hers, that belonged to her, but just a pounding, living thing inside this body that wasn’t really hers either. (377). She no longer had control of herself or of her fate. Everything lies in the hands of Arnold Friend. A potential rapist easily takes advantage of Connie, because of her vulnerability, longing for male acknowledgement, and not thinking about her actions. Connie’s whole world is centered around boys, consistently in her thoughts, which influence her actions. As a result, Connie’s daydreams of being with boys turned into nightmares of reality.

Friendship Essay: My Best Friends Funeral -- friendship essay, my best

I never thought that I would ever had to attend to a funeral of a close friend. Aaron Smith was only 18 years old and passed away from a tragic automobile accident. He was always a really happy guy and had the biggest smile there could ever be, his smile would make anyone get cheered up. He was about 5 foot 9 inches, light brown skin, and he had a thick body, and black hair. Aaron would always help out a friend in need, even though he had trouble with his divorced parents he wouldn’t let that get him down. His mother and sisters live in Stockton, California and his father lives in Royal City, Washington so Aaron would always be traveling from California to Washington state. That made it hard on him trying to be with both families, but his favorite place to reside was Royal City because he had all of us as friends we gave him all the love that he needed to be comfortable living without his mom and sisters. So this is were the story begins. I remember November 13, 2006 like it were yesterday I was very excited because we had just moved in to a new house it wasn‘t in Royal city but it was only 30 minutes away. Our new house had three bed rooms, three bathrooms, two living rooms, and the best part of all a big swimming pool with a slide and a diving board! It was one of the most exciting days of my life, even tough we had tons of boxes to un pack it was all good. My bedroom was outside of the actual house it was the guest room but I claimed it as my room it was perfect. That day I was with my boyfriend who was also very close to Aaron, we were watching a scary movie and it was about 8Pm and Ray (my boyfriend) had a really weird feeling like he had to leave back to Royal as soon as possible ... ...ood-bye. We were all just hanging out in the room until it was all over. From Moses Lake Aaron had a last trip he was going to be buried in California we all knew that Aaron would have rather be in Royal City but his mom thought otherwise. To some up this awful story we finally left the funeral house, and everyone left back to Royal City. To all of us it was a nightmare come true to lose a close friend but now that I think about it he is in a better place not having to decide between mom or dad, California or Washington. This funeral was the worst thing that could happen to me, I lost a good friend and I would never get to see him again. When I think about him now days I look at it like if he were in California and that I will see him eventually. I dream about him once in a while and I know he’s dead but in my dream it makes me happy to see him and talk to him.

Accounting Test Solutions

ch13 Student:   1. Some liabilities are not contractual obligations and may not be payable in cash. True False 2. Amounts withheld from employees in connection with payroll often represent liabilities to third parties. True False 3. A customer advance produces a liability that is satisfied when the product or service is provided. True False 4. Long-term debt that is callable by the creditor in the upcoming year should be classified as a current liability only if the debt is expected to be called.True False 5. The concept of substance over form influences the classification of obligations expected to be refinanced. True False 6. Under IFRS, a liability that is refinanced after the balance sheet date but before the financial statements are issued would typically be classified as a current liability. True False 7. Warranty expense is recorded along with the related liability in the reporting period in which the product under warranty is sold. True False 8. For a loss contingency to be accrued, the claim must have been made before the accounting period ended.True False 9. A company should accrue a liability for a loss contingency if it is at least reasonably possible that assets have been impaired and the amount of potential loss can be reasonably estimated. True False 10. A disclosure note is required for all material loss contingencies for which the probability of loss is reasonably possible. True False 11. Under IFRS, the term â€Å"probable† indicates a threshold of probability that is substantially higher than a 50/ 50 chance. True False 12.Under IFRS, if it is probable that a contingent liability will result in a future payment but there is a range of equally likely amounts that will be paid, the midpoint of the range should be accrued as a loss. True False 13. The cost of promotional offers should be recorded as expenses in the accounting period when the offers are redeemed by customers. True False 14. Unlike the Social security tax there is no maxi mum wage base for the Medicare portion of the FICA tax. True False 15. State and Federal Unemployment Taxes (SUTA and FUTA) must be withheld from employees' wages. True False 16.Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. __ Liabilities when received. __ __ Confirming event is likely to occur. __ A loss contingency accrued in the period of__ related sales. __ Most common temporary financing__ arrangement. __ __ Requires collateral. __ 1. Short-term note 2. Warranty liability 3. Advances from customers 4. Secured loan 5. Probable 17. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Accrued liabilities 2. Discount on notes payable 3.Interest payable 4. Sales tax payable 5. Callable Due on demand. Contra liability. A third party liability. Accrues with passage of time. Expenses incurred but not yet paid. ____ ____ ____ ____ ____ 18. M atch each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Reasonably possible 2. Noncommitted lines of credit 3. Customer deposits 4. Interest paid on debt 5. Gain contingencies Liabilities until refunded. More than remote but less than likely. Face amount x rate x time. Not recorded until realized. Informal borrowing agreements. ____ ____ ____ ____ ____ 19.Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Unasserted claims 2. Factoring 3. Subsequent events 4. Accounting liabilities 5. Effective interest __ Exceeds the stated rate on discounted notes. __ __ May include items that are not legal liabilities. __ __ Sales of receivables. __ Evaluated for recognition only if an unfavorable__ outcome is probable. __ Occur in the current year before prior year financial__ statements are issued. __ 20. Match each phrase with the correct term placing th e letter designating the best term in the space provided by the phrase. . Noninterestbearing notes 2. Loss contingencies 3. Committed lines of credit 4. Accounts payable 5. Pledging arrangements __ Use accounts receivable as collateral. __ __ Often require compensating balance. __ __ Only formal credit instrument is the invoice. __ __ Effective interest higher than stated interest. __ Recorded if probable and amount is known or__ reasonably estimable. __ 21. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. Present value of interest plus present value__ of principal. __ __ Required for contingencies. __ __ Payable with current assets. _ Short-term debt to be refinanced__ with long-term bonds payable. __ __ Avoids registration with SEC. __ 1. Current liabilities 2. Usual valuation of long-term liabilities 3. Disclosure notes 4. Long-term liabilities 5. Commercial paper 22. Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 2011. 1. Not reported 2. Disclosure note only 3. Liability 4. Liability A material gain contingent on a future event that appears__ exceedingly likely. __ A penalty assessment that probably will be asserted by__ the EPA, in which case a determinable payment is probable. _ Unassessed penalty with a reasonable possibility of being__ asserted, in which case a determinable payment is probable. __ An extremely likely loss due to an event that occurred__ previously and whose amount is unknown but estimable. __ 23. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. _ _ How present values affect the measurement_ of contingent liabilities under IFRS. _ _ _ _ Definition of â€Å"probable† under IFRS. _ _ how IFRS refers to an accrued liability_ that would generally be referred to as_ an â€Å"accrued contingent loss† under U.S. GAAP. _ _ _ The amount IFRS would accrue given a range_ of equally likely outcomes. _ _ _ _ Treatment of contingent gains under IFRS. _ 1. mid-point of the range 2. provision 3. more likely than not 4. contingent gains are not accrued 5. report at present value whenever time value of money is material 24. Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 2011. 1. Current liability 2. Current liability __ Estimated warranty cost. __ A material gain contingent on a future event that appears__ extremely likely to occur in three months. _ Unasserted assessment of penalty that probably will be 3. Not asserted, in which case there would probably be a loss in six__ reported months. __ 4. Unasserted assessment of penalty with a reasonable possibility Disclosure of being asserted, in which case there would probably be a loss in__ note only 13 months. __ A determinable loss from a past event that is contingent on 5. Current a future even t that appears extremely likely to occur in three__ liability months. __ 25. Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 2011. 26.Indicate (by letter) the way each of the items listed below should be reported in a balance sheet at December 31, 2011. 27. The most common type of liability is: A. B. C. D. One that comes into existence due to a loss contingency. One that must be estimated. One that comes into existence due to a gain contingency. One to be paid in cash and for which the amount and timing are known. 28. Which of the following is not a characteristic of a liability? A. B. C. D. It represents a probable, future sacrifice of economic benefits. It must be payable in cash. It arises from present obligations to other entities.It results from past transactions or events. 29. Which of the following is the best definition of a current liability? A. An obligation payable within one year. B. An obligation payable within one year of the balance sheet date. C. An obligation payable within one year or within the normal operating cycle, whichever is longer. D. An obligation expected to be satisfied with current assets or by the creation of other current liabilities. 30. Which of the following is not a liability? A. B. C. D. An unused line of credit. Estimated income taxes. Sales tax collected from customers. Advances from customers. 31.Current liabilities normally are recorded at their: A. B. C. D. Present value. Cost. Maturity amount. Expected value. 32. Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of: A. B. C. D. Matching. Consistency. Materiality. Conservatism. 33. The key accounting considerations relating to accounts payable are: A. Determining their existence and ensuring that they are recorded in the appropriate accounting period. B. Determining their present value and ensuring that they are recorded in the appropriate accounting period.C. Determining their existence and determining the correct amount. D. Determining the present value of the principal and the amount of the interest. 34. Classifying liabilities as either current or long-term helps creditors assess: A. B. C. D. Profitability. The relative risk of a firm's liabilities. The degree of a firm's liabilities. The amount of a firm's liabilities. 35. When cash is received from customers in the form of a refundable deposit, the cash account is increased with a corresponding increase in: A. B. C. D. A current liability. Revenue. Shareholders' equity. Paid-in capital. 36.A discount on a noninterest-bearing note payable is classified in the balance sheet as: A. B. C. D. An asset. A component of shareholders' equity. A contingent liability. A contra liability. 37. The rate of interest printed on the face of a note payable is called the: A. B. C. D. Yield rate. Effective rate. Market ra te. Stated rate. 38. The rate of interest that actually is incurred on a note payable is called the: A. B. C. D. Face rate. Contract rate. Effective rate. Stated rate. 39. On October 31, 2011, Simeon Builders borrowed $16 million cash and issued a 7-month, noninterestbearing note.The loan was made by Star Finance Co. whose stated discount rate is 8%. Sky's effective interest rate on this loan is: A. B. C. D. More than the stated discount rate of 8%. Less than the stated discount rate of 8%. Equal to the stated discount rate of 8%. Unrelated to the stated discount rate of 8%. 40. Jane's Donut Co. borrowed $200,000 on January 1, 2011, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2013. In connection with this note, Jane's should report interest expense at December 31, 2011, in the amount of: A. B. C. D. $0. $24,000. 48,000. $50,880. 41. What is the effective interest rate (rounded) on a 3-month, noninterest-bearing note with a stated rate of 12% and a maturity value of $200,000? A. B. C. D. 12. 4%. 12. 0 %. 11. 5%. 3. 0%. 42. On September 1, 2011, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial Bank whose stated discount rate is 9%. Hiker's effective interest rate on this loan (rounded) is: A. B. C. D. 9. 0%. 9. 5%. 9. 6%. 9. 7%. 43. Universal Travel Inc. borrowed $500,000 on November 1, 2011, and signed a 12-month note bearing interest at 6%.Interest is payable in full at maturity on October 31, 2012. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2011, in the amount of: A. B. C. D. $8,000. $30,000. $5,000. $25,000. 44. Knique Shoes issued a $100,000, 8-month, â€Å"noninterest-bearing note. † The loan was made by Second Commercial Bank whose stated â€Å"discount rate† is 9%. The effective interest rate on this loan (rounded) is: A. B. C. D. 9. 28% 9. 49% 9. 50% 9. 57% 45. Oklahom a Oil Corp. paid interest of $785,000 during 2011, and the interest payable account decreased by $125,000.What was interest expense for the year? A. B. C. D. $890,000. $660,000. $555,000. $785,000. 46. On June 1, 2011, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $500,000 and a discount rate of 6%. What is the carrying value of the note as of September 30, 2011? A. B. C. D. $525,000. $300,000. $495,000. $475,000. 47. At times, businesses require advance payments from customers that will be applied to the purchase price when goods are delivered or services provided. These customer advances represent: A. B. C. D. Liabilities until the product or service is provided.A component of shareholders' equity. Long-term assets until the product or service is provided. Revenue upon receipt of the advance payment. 48. M Corp. has an employee benefit plan for compensated absences that gives employees 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2011, M's unadjusted balance of liability for compensated absences was $30,000. M estimated that there were 200 vacation days available at December 31, 2011. M's employees earn an average of $150 per day.In its December 31, 2011, balance sheet, what amount of liability for compensated absences is M required to report? A. B. C. D. $0. $30,000. $225,000. $450,000. 49. Which of the following generally is associated with accounts payable? A. B. C. D. Option A Option B Option C Option D 50. Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Related information for 2011 is as follows ($ in millions): What amount should Lake report as a current liability for advances from customers in its Dec. 31, 2011, balance sheet? A. B. C. D. $0. $80. $125. $170. 51.All of the following but one represent collections for t hird parties. Which one of the following is not a collection for a third party? A. B. C. D. Sales tax payable. Customer deposits. Employee insurance deductions. Social security taxes deductions. 52. When a deposit on returnable containers is forfeited, the firm holding the deposit will experience: A. B. C. D. A decrease in cost of goods sold. An increase in current liabilities. An increase in accounts receivable. An increase in revenue. 53. B Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days.Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 31, 2011, B's unadjusted balance of liability for compensated absences was $42,000. B estimated that there were 300 vacation days and 150 sick days available at December 31, 2011. B's employees earn an average of $200 per day. In it s December 31, 2011, balance sheet, what amount of liability for compensated absences is B required to report? A. B. C. D. $60,000. $84,000. $90,000. 144,000. 54. On January 1, 2011, G Corporation agreed to grant its employees two weeks vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2011, G's employees each earned an average of $800 per week. 500 vacation weeks earned in 2011 were not taken during 2011. Wage rates for employees rose by an average of 5 percent by the time vacations actually were taken in 2012. What is the amount of G's 2012 wages expense related to 2011 vacation time? A. B. C. D. $0 $20,000 $400,000 $420,000 55.Revenue associated with gift card sales should be recognized: A. When the gift card is sold. B. No later than the last day of the operating period in which the gift card is delivered to the customer. C. When the probability of gift card redemption is viewed as remote. D. Under no circumstances, as gift cards are not themselves a delivered product, but rather a selling technique. 56. All else equal, a large increase in unearned revenue in the current period would be expected to produce what effect on revenue in a future period? A. Large increase, because unearned revenue becomes revenue when revenue is earned. B.Large decrease, because unearned revenue implies that less revenue has been earned, which reduces future revenue. C. No effect, because unearned revenue is a liability, so payment will use assets rather than providing revenue. D. Large decrease, because unearned revenue indicates collection problems that will reduce net revenues in future periods. 57. Peterson Photoshop sold $1000 of gift cards on a special promotion on October 15, 2011, and sold $1500 of gift cards on another special promotion on November 15, 2011. Of the cards sold in October, $100 were redeemed in October, $250 in November, and $300 in December.Of the cards sold in Novemb er, $150 were redeemed in November and $350 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2011, Peterson would show an unearned revenue account for their gift cards with a balance of: A. B. C. D. $0. $1000. $1350. $1500. 58. When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes: A. B. C. D. A debit to a revenue and a credit to a liability account. A debit to a evenue and a credit to an asset account. A debit to an asset and a credit to a revenue account. A debit to a liability and a credit to a revenue account. 59. Clark's Chemical Company received customer deposits on returnable containers in the amount of $100,000 during 2011. Twelve percent of the containers were not returned. The deposits are based on the container cost marked up 20%. What is cost of goods sold relative to this forfeitu re? A. B. C. D. $0. $2,000. $10,000. $14,400. 60. In May of 2011, Raymond Financial Services became involved in a penalty dispute with the EPA.At December 31, 2011, the environmental attorney for Raymond indicated that an unfavorable outcome to the dispute was probable. The additional penalties were estimated to be $770,000 but could be as high as $1,170,000. After the year-end, but before the 2011 financial statements were issued, Raymond accepted an EPA settlement offer of $900,000. Raymond should have reported an accrued liability on its December 31, 2011, balance sheet of: A. B. C. D. $770,000. $900,000. $970,000. $1,170,000. 61. Slotnick Chemical received customer deposits on returnable containers in the amount of $300,000 during 2011.Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Slotnick realize on the forfeited deposits? A. B. C. D. $0. $7,500. $9,000. $45,000. 62. Which of the following is not a current liability? A. B. C. D. Accounts payable. A note payable due in 2 years. Accrued interest payable. Sales tax payable. 63. Short-term obligations can be reported as long-term liabilities if: A. B. C. D. The firm has a long-term line of credit. The firm has tentative plans to issue long-term bonds. The firm intends to and has the ability to refinance as long-term.The firm has the ability to refinance on a long-term basis. 64. Of the following, which typically would not be classified as a current liability? A. B. C. D. Estimated liability from cash rebate program. A long-term note payable maturing within the coming year. Rent revenue received in advance. A six-month bank loan to be paid with the proceeds from the sale of common stock. 65. Large, highly rated firms sometimes sell commercial paper: A. B. C. D. To borrow funds at a lower rate than through a bank. To earn a profit on the paper. To avoid paperwork. Because the interest rate is locked in by the Federal Reserve Board. 6. Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet? A. B. C. D. The long-term debt is callable by the creditor. The creditor has the right to demand payment due to a contractual violation. The long-term debt matures within the upcoming year. All of the above require the current classification. 67. A long-term liability should be reported as a current liability in a classified balance sheet if the long-term debt A. B. C. D. is callable by the creditor. is secured by adequate collateral. ill be refinanced with stock. will be refinanced with debt. 68. On December 31, 2011, L, Inc. had a $1,500,000 note payable outstanding, due July 31, 2012. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $500,000 of the note on January 23, 2012. In February 2012, L completed a $3 ,000,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2012. On March 13, 2012, L issued its 2011 financial statements.What amount of the note payable should L include in the current liabilities section of its December 31, 2011, balance sheet? A. B. C. D. $0 $500,000 $1,000,000 $1,500,000 69. Liabilities payable within the coming year are classified as long-term liabilities if refinancing is completed before date of issuance of the financial statements under A. B. C. D. US GAAP. IFRS. Either U. S. GAAP and IFRS. Neither U. S. GAAP and IFRS. 70. Kline Company refinanced current debt as long-term debt on January 5, 2012. Kline's fiscal year ended on December 31, 2011, and its financial statements will be issued sometime in early March, 2012.Under IFRS, how would Kline classify the debt on its December 31, 2011 balance sheet? A. In the â€Å"mezzanine† between current and non-current liabilitie s. B. Kline would not classify the debt as current or noncurrent, but rather would write a disclosure note explaining the circumstances. C. As a noncurrent liability. D. As a current liability. 71. Branch Company, a building materials supplier, has $18,000,000 of notes payable due April 12, 2012. At December 31, 2011, Branch signed an agreement with First Bank to borrow up to $18,000,000 to refinance the notes on a long-term basis.The agreement specified that borrowings would not exceed 75% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2011, financial statements, the value of Branch's collateral was $20,000,000. On its December 31, 2011, balance sheet, Branch should classify the notes as follows: A. B. C. D. $15,000,000 long-term and $3,000,000 current liabilities. $4,500,000 short-term and $13,500,000 current liabilities. $18,000,000 of current liabilities. $18,000,000 of long-term liabilities. 72. Other things being equal, most manag ers would prefer to report liabilities as noncurrent rather than current.The logic behind this preference is that the long-term classification permits the company to report: A. B. C. D. Higher working capital and a higher inventory turnover. Lower working capital and a higher current ratio. Higher working capital and a higher current ratio. Higher working capital and a lower debt to equity ratio. 73. Footnote disclosure is required for material potential losses when the loss is at least reasonably possible: A. B. C. D. Only if the amount is known. Only if the amount is known or reasonably estimable. Unless the amount is not reasonably estimable. Even if the amount is not reasonably estimable. 4. Gain contingencies usually are recognized in a company's income statement when: A. B. C. D. Realized. The amount can be reasonably estimated. The gain is reasonably possible and the amount can be reasonable estimated. The gain is probable and the amount can be reasonably estimated. 75. A com pany should accrue a loss contingency only if the likelihood that a liability has been incurred is: A. B. C. D. More likely than not and the amount of the loss is known. At least reasonably possible and the amount of the loss is known. At least reasonably possible and the amount of the loss can be reasonably estimated.Probable and the amount of the loss can be reasonably estimated. 76. A contingent loss should be reported in a footnote to the financial statements rather than being accrued if: A. B. C. D. The likelihood of a loss is remote. The incurrence of a loss is reasonably possible. The incurrence of a loss is more likely than not. The likelihood of a loss is probable. 77. Which of the following is a contingency that should be accrued? A. B. C. D. The company is being sued and a loss is reasonably possible and reasonably estimable. The company deducts life insurance premiums from employees' paychecks.The company offers a two-year warranty and the expenses can be reasonably esti mated. It is probable that the company will receive $100,000 in settlement of a lawsuit. 78. A loss contingency should be accrued in a company's financial statements only if the likelihood that a liability has been incurred is: A. B. C. D. at least remotely possible and the amount of the loss is known. reasonably possible and the amount of the loss is known. reasonably possible and the amount of the loss can be reasonably estimated. probable and the amount of the loss can be reasonably estimated. 79.Paul Company issues a product recall due to an apparently pre-existing and material defect discovered after the end of its fiscal year. Financial statements have not yet been issued. The action required of Paul Company for this reasonably estimable contingency for the year just ended is: A. B. C. D. To disclose it in a footnote. To accrue a long-term liability. To accrue the liability and explain it in a footnote. To do nothing relative to the contingency. 80. Accounting for costs of inc entive programs for customer purchases: A. B. C. D. Requires probability estimation. Follows the matching principle.Is a loss contingency situation. All of the above are correct. 81. Providing a monetary rebate program for purchasing a product: A. B. C. D. Is accounted for similarly to product warranties. Creates an expense for the seller in the period of sale. Creates a contingent liability for the seller at the time of sale. All of the above are correct. 82. The main difference between accounting for rebate and cash discount coupons is: A. B. C. D. The latter is not treated as an expense. Only the former creates a contingent liability when issued. The expense for the latter is usually deferred until redemption of the coupon.There are no significant differences in accounting between the two. 83. Which of the following entail essentially the same accounting treatment? A. B. C. D. Coupons for cash rebates and coupons for other premiums Cents-off coupons and coupons for other premiums Cents-off coupons and coupons for cash rebates All of the above are correct. 84. Blue Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If the likelihood of expropriation is remote, a loss contingency should be A. B. C. D. Disclosed but not accrued as a liability. Disclosed and accrued as a liability.Accrued as liability but not disclosed. Neither accrued as a liability nor disclosed. 85. Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's asset in that country. If expropriation is reasonably possible, a loss contingency should be A. B. C. D. Disclosed but not accrued as a liability. Disclosed and accrued as a liability. Accrued as liability but not disclosed. Neither accrued as a liability nor disclosed. 86. Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in t hat country.If expropriation is probable, a loss contingency should be A. B. C. D. Disclosed but not accrued as a liability. Disclosed and accrued as a liability. Accrued as liability but not disclosed. Neither accrued as a liability nor disclosed. 87. Z Co. filed suit against W, Inc. in 2011 seeking damages for patent infringement. At December 31, 2011, legal counsel for Z believed that it was probable that Z would be successful against W for an estimated amount in the range of $30 million to $60 million, with each amount in that range considered equally likely.Z was awarded $40 million in April 2012. Z should report this award in its 2011 financial statements, issued in March, 2012 as A. A receivable and unearned revenue of $40 million. B. A receivable and revenue of $40 million. C. A disclosure of a gain contingency of $40 million. D. A disclosure of a gain contingency of an undetermined amount in the range of $30 million to $60 million. 88. When a material gain contingency is pr obable and the amount of gain can be reasonably estimated, the gain should be: A. B. C. D. Reported in the income statement and disclosed.Offset against shareholders' equity. Disclosed, but not recognized in the income statement. Neither recognized in the income statement nor disclosed. 89. Which of the following is a contingency that would most likely require accrual? A. B. C. D. Potential claims on extended warranties. Customer premium offers. Potential liability on a product where none have yet been sold. Sales tax payable. 90. The cost of customer premium offers should be charged to expense: A. B. C. D. When the related product is sold. When the premium offer expires.Over the life cycle of the product to which the premium relates. When the premiums are claimed. 91. The accounting concept that requires recognition of a liability for customer premium offers is A. B. C. D. Periodicity. Conservatism. Historical cost. The matching principle. 92. Accounting for costs of incentive prog rams for frequent customer purchases involves: A. B. C. D. Recording an expense and a liability each period. Recording a liability and a reduction of revenue each period. Recording an expense and an asset reduction each period. Recording an expense and revenue each period. 93.A customer of RoughEdge Sharpeners alleges that RoughEdge's new razor sharpener had a defect that resulted in serious injury to the customer. RoughEdge believes the customer has a 51% chance of winning the case, and that if the customer wins the case, there is a range of losses of between $1,000,000 and $3,000,000 in which any number is equally likely to occur. Under U. S. GAAP, RoughEdge should accrue a liability in the amount of: A. B. C. D. $0. $1,000,000. $2,000,000. $3,000,000. 94. A customer of Razor Sharpeners alleges that Razor's new razor sharpener had a defect that resulted in serious injury to the customer.Razor believes the customer has a 51% chance of winning the case, and that if the customer wins the case, there is a range of losses of between $1,000,000 and $3,000,000 in which any number is equally likely to occur. Under IFRS, Razor should accrue a liability in the amount of: A. B. C. D. $0. $1,000,000. $2,000,000. $3,000,000. 95. Volt Electronics sells equipment that includes a three-year warranty. Repairs under the warranty are performed by an independent service company under contract with Volt. Based on prior experience, warranty costs are estimated to be $25 per item sold. Volt should recognize these warranty costs: A. B. C. D.When the equipment is sold. When the repairs are performed. When payments are made to the service firm. Evenly over the life of the warranty. 96. Funzy Cereal includes one coupon in each package of Wheatos that it sells and offers a toy car in exchange for $1. 00 and 3 coupons. The cars cost Funzy $1. 50 each. Experience indicates that 40% of the coupons eventually will be redeemed. During the last month of 2011, the first month of the offer, Fu nzy sold 12 million boxes of Wheatos and 2. 4 million of the coupons were redeemed. What amount should Funzy report as a promotional expense for coupons on its December 31, 2011, income statement?A. B. C. D. $0. $400,000. $800,000. $1,200,000. 97. Captain Cook Cereal includes one coupon in each package of Granola that it sells and offers a puzzle in exchange for $2. 00 and 3 coupons. The puzzles cost Captain Cook $3. 50 each. Experience indicates that 20% of the coupons eventually will be redeemed. During the last month of 2011, the first month of the offer, Captain Cook sold 6 million boxes of Granola and 900,000 of the coupons were redeemed. What amount should Captain Cook report as a liability for coupons on its December 31, 2011, balance sheet? A. B. C. D. $0. $150,000. 300,000. $450,000. 98. At the beginning of 2011, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2011 were $180 million. Fifteen percent of the units sold were returned in 2011 and repaired or replaced at a cost of $5. 3 million. The amount of warranty expense on Angel's 2011 income statement is: A. B. C. D. $5. 3 million. $7. 2 million. $10. 6 million. $27. 0 million. 99. During 2011, Deluxe Leather Goods sold 800,000 reversible belts under a new sales promotional program.Each belt carried one coupon, which entitles the customer to a $5. 00 cash rebate. Deluxe estimates that 70% of the coupons will be redeemed, even though only 350,000 coupons had been processed during 2011. At December 31, 2011, Deluxe should report a liability for unredeemed coupons of: A. B. C. D. $560,000. $1,050,000. $1,225,000. $1,750,000. In 2011, Holyoak Inc. offers a $20 cash rebate coupon to customers who purchased one of its new line of products. Holyoak sold 10,000 of these products during the year. By year end of 2011, 7,600 of the rebates had been claimed, and 7,100 had been paid.Holyoak's his torical experience with such rebates indicates that 85% of customers claim the rebates. 100. What is the expense that Holyoak should report for its promotional rebates in its 2011 income statement? A. B. C. D. $142,000 $152,000 $170,000 $200,000 101. What is the rebate promotion liability that Holyoak should report in its December 31, 2011 balance sheet? A. B. C. D. $20,000 $28,000 $18,000 None of the above is correct. 102. In the current year, Hanna Company reported warranty expense of $190,000 and the warranty liability account increased by $20,000. What were warranty expenditures during the year?A. B. C. D. $190,000. $170,000. $210,000. $0. 103. Panther Co. had a warranty liability of $350,000 at the beginning of 2011, and $310,000 at end of 2011. Warranty expense is based on 4% of sales, which were $50 million for the year. What were the warranty expenditures for 2011? A. B. C. D. $0. $1,960,000. $2,000,000. $2,040,000. 104. Carpenter Inc. had a balance of $80,000 in its warrant y liability account as of December 31, 2010. In 2011, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2011 were $40 million.What was the balance in the warranty liability account as of December 31, 2011? A. B. C. D. $35,000. $425,000. $125,000. $480,000. General Product Inc. shipped 100 million coupons in products it sold in 2011. The coupons are redeemable for thirty cents each. General anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2012. There were 45 million coupons redeemed in 2011, and 30 million redeemed in 2012. 105. What was General's coupon liability as of December 31, 2011? A. B. C. D. $7. 5 million. $13. 5 million. $16. 5 million. $21. 0 million. 106.What was General's coupon promotion expense in 2011? A. B. C. D. $30. 0 million. $21. 0 million. $13. 5 million. $7. 5 million. 107. What was General's coupon promotional expense in 2012? A. B. C. D. Zero, since all the expe nse should be reflected in 2011. $1. 5 million. $7. 5 million. $9. 0 million. 108. During the year, L Leather Goods sold 1,000,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $4. 00 cash rebate. L estimates that 70% of the coupons will be redeemed, even though only 500,000 coupons had been processed during the year.At December 31, L should report a liability for unredeemed coupons of: A. B. C. D. $700,000 $800,000 $1,000,000 $2,800,000 109. Which of the following may create employer liabilities in connection with their payrolls? A. B. C. D. Employee withholding taxes Employee voluntary deductions Employee fringe benefits All of the above are correct. 110. Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January, 2011, the first month of BMS's fiscal year. The journal entry to record payroll for the January 2011 pay period will include a debit to payroll tax expense of A.B. C. D. $6,120 $4,960 $11,080 $57,880 111. Ontario Resources, a natural energy supplier, borrowed $80 million cash on November 1, 2011, to fund a geological survey. The loan was made by Quebec Banque under a short-term credit line. Ontario Resources issued a 9-month, 12% promissory note with interest payable at maturity. Ontario Resources' fiscal period is the calendar year. Required: (1. ) Prepare the journal entry for the issuance of the note by Ontario Resources. (2. ) Prepare the appropriate adjusting entry for the note by Ontario Resources on December 31, 2011. Show calculations. (3. Prepare the journal entry for the payment of the note at maturity. Show calculations. 112. On September 1, 2011, Triton Entertainment borrowed $24 million cash to fund a new Fun Park. The loan was made by Nevada Bank under a noncommitted short-term line of credit arrangement. Triton issued a 9month, 12% promissory note. Interest was payable at maturity. Triton's fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Triton. 2. Prepare the appropriate adjusting entry for the note by Triton on December 31, 2011. 3. Prepare the journal entry for the payment of the note at maturity. 113.On May 1, Lectric Industries issued 9-month notes in the amount of $60 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: 114. Grossman Products began operations in 2011. The following selected transactions occurred from September 2011 through March 2012. Grossman's fiscal year ends on December 31. 2011: (a. ) On September 5, Grossman opened a checking account and negotiated a short-term line of credit of up to $10,000,000 at 10% interest. The company is not required to pay any commitment fees. b. ) On October 1, Grossman borrowed $8,000,000 cash and issued a 5-month promissory note wi th 10% interest payable at maturity. (c. ) Grossman received $3,000 of refundable deposits in December for reusable containers. (d. ) For the September through December period, sales totaled $5,000,000. The state sales tax rate is 4% and 75% of sales are subject to sales tax. (e. ) Grossman recorded accrued interest. 2012: (f. ) Grossman paid the promissory note on the March 1 due date. (g. ) Half of the storage containers are returned in March, with the other half expected to be returned over the next 6 months. Required: 1.Prepare the appropriate journal entries for the 2011 transactions. 2. Prepare the liability section of the balance sheet at December 31, 2011, based on the data supplied. 3. Prepare the appropriate journal entries for the 2012 transactions. 115. Bencorp issues a $90,000, 6-month, noninterest-bearing note which the bank discounted at a 10% discount rate. Required: (1. ) Prepare the appropriate journal entry to record the issuance of the note. (2. ) Determine the e ffective interest rate. 116. On November 1, 2011, a $216,000, 9-month, noninterest-bearing note is issued at a 10% discount rate. Required: (1. Prepare the appropriate journal entry to record the issuance of the note. (2. ) Determine the effective interest rate. (3. ) Prepare the appropriate journal entry on December 31, 2011, to record interest on the note for the 2011 financial statements. (4. ) Prepare the appropriate journal entry(s) on July 31, 2012, to record interest and the payment of the note. 117. On November 1, 2011, Ziegler Products issued a $200,000, 9-month, noninterest-bearing note to the bank. Interest was discounted at a 12% discount rate. Required: (1. ) Prepare the appropriate journal entry by Ziegler to record the issuance of the note. 2. ) Determine the effective interest rate. (3. ) Suppose the note had been structured as a 12% note with interest and principal payable at maturity. Prepare the appropriate journal entry to record the issuance of the note by Ziegl er. (4. ) Prepare the appropriate journal entry on December 31, 2011, to accrue interest expense on the note described in 3 for the 2011 financial statements. 118. On October 1, 2011, Home Builders Company issued to Carlton Bank a $600,000, 8-month, noninterestbearing note. Interest was discounted by the bank at a 12% discount rate. Required: 1.Prepare the appropriate journal entry by Home Builders to record the issuance of the note. 2. Determine the effective interest rate. 3. Suppose the note had been structured as a 12% note with interest and principal payable at maturity. Prepare the appropriate journal entry to record the issuance of the note by Home Builders. 4. Prepare the appropriate journal entry on December 31, 2011, to accrue interest expense on the note described in 3 for the 2011 financial statements. 119. The following selected transactions relate to liabilities of Rose Dish Corporation. Rose's fiscal year ends on December 31.Required: Prepare the appropriate journal e ntries through the maturity of each liability. 2011 Feb. 3 Negotiated a revolving credit agreement with Second Bank which can be renewed annually upon bank approval. The amount available under the line of credit is $30,000,000 at the bank's prime rate. April 1 Arranged a 3-month bank loan of $12 million with Second Bank under the line of credit agreement. Interest at the prime rate of 8% was payable at maturity. July 1 Paid the 8% note at maturity. Nov. 1 Supported by the credit line, issued $20 million of commercial paper on a nine-month note.Interest was discounted at issuance at a 6% discount rate. Dec. 31 Recorded any necessary adjusting entry(s). 2012 Aug. 1 Paid the commercial paper at maturity. 120. Stern Corporation borrowed $10 million cash on September 1, 2011, to provide additional working capital for the year's production. Stern issued a 6-month, 10% promissory note to Second State Bank. Interest on the note is payable at maturity. Each firm uses the calendar year as the fiscal year. Required: 1. Prepare all journal entries from issuance to maturity for Stern Corporation. 2. Prepare all journal entries from issuance to maturity for Second State Bank. 21. Hot Springs Marine borrowed $20 million cash on December 1, 2011, to provide working capital for year-end inventory. Hot Springs Marine issued a 4-month, 9% promissory note to Third Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Hot Springs Marine and (b) Third Bank's receivable on December 1, 2011. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through March 31, 2012. 3.Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% is the bank's stated â€Å"discount rate. † Prepare the journal entries to record the issua nce of the noninterestbearing note by Hot Springs Marine on December 1, 2011. What would be the effective interest rate? 122. On June 30, 2011, Chu Industries issued 9-month notes in the amount of $700,000. Assume that interest is payable at maturity in the following three independent cases: Required: Determine the amount of interest expense that should be accrued in a year-end adjusting entry under each assumption: 23. The following selected transactions relate to liabilities of Chicago Glass Corporation (Chicago) for 2011. Chicago's fiscal year ends on December 31. (1. ) On January 15, Chicago received $7,000 from Henry Construction toward the purchase of $66,000 of plate glass to be delivered on February 6. (2. ) On February 3, Chicago received $6,700 of refundable deposits relating to containers used to transport glass components. (3. ) On February 6, Chicago delivered the plate glass to Henry Construction and received the balance of the purchase price. (4. ) First quarter credi t sales totaled $700,000.The state sales tax rate is 4% and the local sales tax rate is 2%. Required: Prepare journal entries for the above transactions. 124. In its 2011 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure: REVENUE RECOGNITION †¢ Advertising revenue is recognized when advertisements are published, broadcast or when placed on the Company's Web sites, net of provisions for estimated rebates, credit and rate adjustments and discounts. †¢ Circulation revenue includes single copy and home-delivery subscription revenue. Single copy revenue is recognized based on date of publication, net of provisions for related returns.Proceeds from home-delivery subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are recognized in earnings on a pro rata basis over the terms of the subscriptions. †¢ Other revenue is recognized when the related service or product has been delivered. Also, the following information on its current liabilities was included in its comparative balance sheets: Required: Assuming that Ank-Morpork Times Inc. collected $440,000,000 in cash for home delivery subscriptions during fiscal year 2011, what amount of revenue did it recognize during 2011 from this source?Show the relevant T-account information to support your answer. 125. MullerB Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately, meaning an employee is entitled to the pay even if employment terminates. During 2011, total wages paid to employees equaled $808,000, including $8,000 for vacations actually taken in 2011, but not including vacations related to 2011 that will be taken in 2012. All vacations earned before 2011 were taken before January 1, 2011. No accrual entries have been made for the vacations.Required: Prepare the appropriate adjusting entry for vacations earned but not taken in 2011. 126. The followin g facts relate to gift cards sold by Sunbru Coffee Company during 2011. Sunbru's fiscal year ends on December 31. (a. ) In October, 2011 sold $3,000 of gift cards, and redeemed $500 of those gift cards. (b. ) In November, 2011, sold $4,000 of gift cards, and redeemed $1,400 of October gift cards and $700 of November gift cards. (c. ) In December, 2011, sold $3,000 of gift cards, and redeemed $200 of October gift cards, $2,000 of November gift cards, and $400 of December gift cards. (d. Sunbru views a gift card to be â€Å"broken† (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required: 1. Prepare all journal entries appropriate to be recorded only during the month of December, 2011 relevant to gift card sales, gift card redemptions, and gift card breakage. 2. Determine the balance of the unearned revenue liability to be reported in the December 31, 2011, balance sheet. Show the relevant T-account information to support your answer. 127.Diversified Industries sells perishable electronic products. Some must be shipped in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container's cost. Customers receive a refund when the container is returned. During 2011, deposits collected on containers shipped were $700,000. Deposits are forfeited if containers are not returned in 18 months. Containers held by customers on January 1, 2011, were $330,000. During 2011, $410,000 was refunded and deposits of $25,000 were forfeited. Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2011. . Determine the liability for refundable deposits to be reported in the December 31, 2011, balance sheet. 128. At December 31, 2011, Cordova Leather's liabilities include the following: 1. $15 million of noncallable 9% notes were issued for $ 15 million on August 31, 1992. The notes mature on July 31, 2012. Sufficient cash is expected to be available to retire the notes at maturity. 2. $30 million of 8% notes were issued for $30 million on May 31, 2007. The notes mature on May 31, 2017, but investors have the option of calling (demanding payment on) the notes on June 30, 2012.However, the call option is not expected to be exercised, given prevailing market conditions. 3. $18 million of 10% notes are due on March 31, 2013. A debt covenant requires Cordova to maintain current assets at least equal to 150% of its current liabilities. On December 31, 2011, Cordova is in violation of this covenant. Cordova obtained a waiver from Village Bank until June 2012, having convinced the bank that the company's normal 2 to 1 ratio of current assets to current liabilities will be reestablished during the first half of 2012.Required: For each of the three liabilities, indicate the portion of the debt that can be excluded from classifica tion as a current liability (that is, reported as a noncurrent liability). Explain. 129. In its 2011 annual report to shareholders, Border Airlines Inc. presented the following balance sheet information about its liabilities: In addition, Border presented the following among its footnote disclosures: Maturities of long-term debt (including sinking fund requirements) for the next five years are: 2012 – $421 million; 2013 – $212 million; 2014 – $273 million; 2015 – $1. 0 billion; 2016 – $777 million.Required: Consider the appropriate classification of these long-term debt obligations. Assuming no more long-term debt will be issued, what are the implications of the information above for Border's liquidity and solvency risk in 2011 and the following years? 130. Mozart Music Co. began operations in December of 2011. The company sold gift certificates during December in various amounts totaling $1,600. The gift certificates are redeemable for merchandise within 3 years of the purchase date. However, experience within the industry predicts that 90% of gift certificates will be redeemed within one year.Certificates totaling $500 were presented for redemption during 2011 as part of merchandise purchases having a total retail price of $750. Required: (1. ) Determine the liability for gift certificates to be reported in the December 31, 2011, balance sheet. (2. ) What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2011? Show calculations. In its 2011 annual report to shareholders, the Goodday Chemical Company included the following footnote excerpts on CONTINGENCIES in its annual report to shareholders: At December 31, 2011, Goodday had recorded liabilities aggregating $66. million for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by Goodday. These costs include legal and consulting fees, sit e studies, the design and implementation of remediation plans, post-remediation monitoring and related activities and will be paid over several years. The amount of Goodday's ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute.At December 31, 2011, Goodday had recorded liabilities aggregating $218. 7 million for potential product liability and other tort claims, including related legal fees expected to be incurred, presently asserted against Goodday. The amount recorded was determined on the basis of an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, current trends.Goodday is a defendant in numerous lawsuits involving at December 31, 2011, approximately 63,000 claimants alleging various asbestos related personal injuries purported t o result from exposure to asbestos in certain rubber coated products manufactured by Goodday in the past or in certain Goodday facilities. Typically, these lawsuits have been brought against multiple defendants in state and Federal courts. In the past, Goodday has disposed of approximately 22,000 cases by defending and obtaining the dismissal thereof or by entering into a settlement.Goodday has policies and coverage-in-place agreements with certain of its insurance carriers that cover a substantial portion of estimated indemnity payments and legal fees in respect of the pending claims. At December 31, 2011, Goodday has recorded an asset in the amount it expects to collect under the policies and coverage-in-place agreements with certain carriers related to its estimated asbestos liability. Goodday has also commenced discussions with certain of its excess coverage insurance carriers to establish arrangements in respect of their policies.Subject to the uncertainties referred to above, Goodday has concluded that in respect of any of the above described liabilities, it is not reasonably possible that it would incur a loss exceeding the amount recognized at December 31, 2011, with respect thereto which would be material relative to the consolidated financial position, results of operations, or liquidity of Goodday. 131. Required: Briefly explain the authoritative basis on which the costs/obligations for environmental cleanup and product liability/tort claim matters were accrued in the financial statements.Answer: GAAP regarding accounting for contingencies requires that contingent losses (and the corresponding obligations) be recorded (accrued) when the loss is both probable and the amount is known or reasonably estimable. Goodday based its analysis on pending claims, historical experience and current trends, such as recent case verdicts with similar manufacturers. 132. Required: What is the point of the last paragraph of the Goodday disclosure? Explain in terms of authoritative GAAP. 133.Required: Show the summary journal entry that Goodday recorded for the environmental cleanup and product liability/tort claim matters, described in the footnote disclosure. 134. The following selected transactions relate to contingencies of Eastern Products Inc. which began operations in July, 2011. Eastern's fiscal year ends on December 31. Financial statements are published in April, 2012. 1. No customer accounts have been shown to be uncollectible as yet, but Eastern estimates that 3% of credit sales will eventually prove uncollectible.Sales were $300 million (all credit) for 2011. 2. Eastern offers a one-year warranty against manufacturer's defects for all its products. Industry experience indicates that warranty costs will approximate 2% of sales. Actual warranty expenditures were $3. 5 million in 2011 and were recorded as warranty expense when incurred. 3. In December, 2011, Eastern became aware of an engineering flaw in a product that poses a potential risk of injury. As a result, a product recall appears inevitable. This move would likely cost the company $1. 5 million. 4.In November, 2011, the State of Vermont filed suit against Eastern, asking civil penalties and injunctive relief for violations of clean water laws. Eastern reached a settlement with state authorities to pay $4. 2 million in penalties on February 3, 2012. 5. Eastern is the plaintiff in a $40 million lawsuit filed against a customer for costs and lost profits from contracts rejected in 2011. The lawsuit is in final appeal and attorneys advise that it is virtually certain that Eastern will be awarded $30 million. Required: Prepare the appropriate journal entries that should be recorded as a result of each of these contingencies.If no journal entry is indicated, state why. 135. The following selected transactions relate to contingencies of Bowe-Whitney Inc. Bowe-Whitney's fiscal year ends on December 31, 2011, and financial statements are published in March 2012. 1. Bowe-Whitney is involved in a lawsuit resulting from a dispute with a customer over a 2011 transaction. At December 31, attorneys advised that it was probable that Bowe-Whitney would lose $3 million in an unfavorable outcome. On February 12, 2012, judgment was rendered against Bowe-Whitney in the amount of $14 million plus interest, a total of $15. 2 million.Bowe-Whitney does not plan to appeal the judgment. 2. Since August of 2011, Bowe-Whitney has been involved in labor disputes at two of its facilities. Negotiations between the company and the unions have not produced a settlement and, since January 2011, strikes have been ongoing at these facilities. It is virtually certain that material costs will be incurred but the amount of resultant costs cannot be adequately predicted. 3. Bowe-Whitney is the defendant in a lawsuit filed in January 2012 in which Access Company seeks $10 million as an adjustment to the purchase price related to the sale of Bowe-Whitney's hardwood division in 2011.The lawsuit alleges that Bowe-Whitney misrepresented the division's assets and liabilities. Legal counsel advises that it is reasonably possible that Bowe-Whitney could lose $5 million, but that it's extremely unlikely it could lose the $10 million asked for. 4. At March 1, 2012, the EPA is in the process of investigating the possibility of environmental violations at one of Bowe-Whitney's sites, but has not proposed a penalty assessment. Management feels an assessment is reasonably possible, and if an assessment is made, a settlement of up to $33 million is probable.Required: Prepare journal entries that should be recorded as a result of each of the above contingencies. 136. Concept 1 Office Products sells office electronics that carry a 60-day manufacturer's warranty. At the time of purchase, customers are offered the opportunity to also buy a 1-year or 2-year extended warranty for an additional charge. Required: 1. Does the sale of the extended warranty represent a loss contingency? 2. Provide journal entries for the extended warranty sales and revenue recognition. 137. In its 2011 annual report to shareholders, Hyer Aviation Group Inc. ncluded the following disclosure: On October 6, 2010, the company's subsidiary, Pyro Aeroplex, filed suit against Syntex, an unincorporated division of Bright American Corporation, for breach of contract and fraud with regard to the supply of deficient wire rope that is installed as aircraft flight control cables on WD-50 aircraft. The case, filed in the circuit court of Bell County, Arkansas, was brought to trial and on September 20, 2011, a jury returned with a verdict in favor of the company in the amount of $17. 5 million. The Court, upon a postjudgment motion filed by Pyro, reduced the judgment to $4. million. Pyro has appealed that Order to the Supreme Court of Arkansas. The company believes the appeal is without merit and will continue to pursue final judgment on the Order. The company, pending appeal, has no t recorded the $4. 5 million favorable judgment. Required: What journal entries, if any, has Hyer recorded regarding this contingency? Explain its rationale. The following facts apply to TinyPart Toy Company's pending litigation as of December 31, 2011: a. TinyPart is defending against a lawsuit and believes there is a 51% chance it will lose in court.If they lose, TinyPart estimates that damages will be $100,000. b. TinyPart is defending against another lawsuit for which management believes it is virtually certain to lose in court. If it loses the lawsuit, management estimates damages will fall somewhere in the range of $30,000 – $50,000, with each amount in that range equally likely to occur. c. TinyPart is defending against another lawsuit that is identical to item (b), but the relevant losses will only occur far into the future. The present values of the endpoints of the range are $15,000 and $25,000.TinyPart's management believes the effects of time value of money on the se amounts are material, but also believes the timing of these amounts is uncertain. d. TinyPart is defending against a fourth lawsuit and believes there is only a 25% chance it will lose in court. If TinyPart loses, it believes damages will fall somewhere in the range of $35,000 – $40,000, with each amount in that range equally likely to occur. 138. Required: Indicate how TinyPart would disclose or account for the lawsuit described in part (a) under U. S. GAAP and under IFRS in the financial statements for the year ended December 31, 2011. 39. Required: Indicate how TinyPart would disclose or account for the lawsuit described in part (b) under U. S. GAAP and under IFRS in the financial statements for the year ended December 31, 2011. 140. Required: Indicate how TinyPart would disclose or account for the lawsuit described in part (c) under U. S. GAAP and under IFRS in the financial statements for the year ended December 31, 2011. 141. Required: Indicate how TinyPart would dis close or account for the lawsuit described in part (d) under U. S. GAAP and under IFRS in the financial statements for the year ended December 31, 2011. 142.In 2011, Cap City Inc. introduced a new line of televisions that carry a two-year warranty against manufacturer's defects. Based on past experience with similar products, warranty costs are expected to be approximately 1% of sales during the first year of the warranty and approximately an additional 3% of sales during the second year of the warranty. Sales were $6,000,000 for the first year of the product's life and actual warranty expenditures were $29,000. Assume that all sales are on credit. Required: 1. Prep