User Account

All Pages

Briefly describe any other steps gyi would take

Assignment Help Accounting Basics
Reference no: EM131008500

George Young Industries (GYI) acquired industrial robots at the beginning of 2008 and added them to the company's assembly process. During 2011, management became aware that the $1 million cost of the machinery was inadvertently recorded as repair expense on GYI's books and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property (cost deducted over 7 years by the modified accelerated recovery system as follows):
The tax rate is 40% for all years involved.

Required:

1. Prepare any journal entry necessary as a direct result of the error described.

2. Briefly describe any other steps GYI would take to appropriately report the situation.

3. Prepare the adjusting entry for 2011 depreciation.

Reference no: EM131008500

Questions Cloud

Problem regarding the quality control : Production managers on an assembly line must monitor the output to be sure that the level of defective products remains small. They periodically inspect a random sample of the items produced. If they find a significant increase in the proportion o..
At what rate is angle between the line and water changing : Angle of Elevation A fish is reeled in at a rate of l foot per second from a point 10 feet above the water (see figure). At what rate is the angle between the line and the water changing when there is a total of 25 feet of line out?
What extraneous variables are identi?ed in given statement : What extraneous variables are identi?ed in the given statement, and what strategy did the researchers use to deal with them? Do you think it was important that the men participating in the experiment were not told whether they were receivin..
The law of diminishing marginal returns hold : The law of diminishing marginal returns hold
Briefly describe any other steps gyi would take : Briefly describe any other steps GYI would take to appropriately report the situation.
Type of error might environmentalists consider : a) In this context, what is a Type I error? b) In this context, what is a Type II error? c) Which type of error would the shop's owner consider more serious? d) Which type of error might environmentalists consider more serious?
Do ethnic group and gender in?uence the type of care : Researchers asked 720 primary care doctors at meetings of the American College of Physicians or the American Academy of Family Physicians to watch a tape and recommend care. The doctors thought the study focused on clinical decision making.
Find the z-score of the observed proportion : a) Find the z-score of the observed proportion. b) Compare the z-score to the critical value for a 0.1% significance level using a one-sided alternative. c) Explain your conclusion.
Describe how the change should have been reported : Describe how the change should have been reported in Webster's 2011 financial statements.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the variable cost per unit and the fixed cost

zeta inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components

  Would a tna be needed in the situation

Would a TNA be needed in this situation? Why or why not? If yes, who would you want to talk to?

  Makita company manufactures a fast-bonding glue in its

makita company manufactures a fast-bonding glue in its northwest plant. the company normally produces and sells 48000

  If the beginning and ending goods in process inventories

if the beginning and ending goods in process inventories are 5600 and 14500 respectively and cost of goods manufactured

  Determining audit judgments

Determine sample size based on the following audit judgments.

  Determine the amount to be paid in full settlement of each

determine the amount to be paid in full settlement ofeach of the following invoices assuming that credit for returnsand

  Convergence and concept framework project

Give an explanation of how the convergence and the Concept Framework Project impacts accountants. Explain at least one benefit and one drawback of the convergence of IASB and FASB.

  Kaighn corporation has two divisions the west division and

kaighn corporation has two divisions the west division and the east division. the corporations net operating income is

  Determine potential shares should be included

Determine if these potential shares should be included in diluted EPS for 2007 - contractually commits itself to issue 2,000 additional common shares on December 31, 2009.

  Journalize the selected transactions

Journalize the following selected transactions completed during the current fiscal year:

  Problem on straight line method of depreciation

Abbey Ltd purchased machinery on 1 October 2010 for $80 000. The estimated useful life of the machinery is 5 years, with an estimated residual of $5000. The entity's balance date is 30 June, and it uses the straight line method of depreciation. On..

  A manufacturing has prepared the following income

a manufacturing has prepared the following income statementsales 450000cogs 200000gross margin 250000operating expenses

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd