Impro company operates in a state where corporate taxes and

Assignment Help Accounting Basics
Reference no: EM13598553

Impro Company operates in a state where corporate taxes and workers' compensation insurance raes have recently doubled. Impro's president has just assigned you the task of preparing an economic analysis and making a recommendation relative to moving the entire operation to Missouri. The president is slightly in favor of such a move because Missouri is his boyhood home and he also owns a fishing lodge there.

You have just completed building your dream house, moved in, and sodded the lawn. Your children are all doing well in school and sports and along with your spouse, want no part of a move to Missouri. If the company does move, so will you because the town is a one-industry community and you and your spouse will have to move to have employment. Moving when everyone else does will cause you take a big loss on the sale of your house. The same hardships will be suffered by your coworkers, and the town will be devastated.

In compiling the costs of moving versus not moving, you have latitude in the assumptions you make, the estimates you compute, and the discount rates and time periods you project. You are in a position to influence the decision single handedly.

Instructions
(a) Who are the stakeholders in this situation?
(b) What are the ethical issues in this situation?
(c) What would you do in this situation?

 

Reference no: EM13598553

Questions Cloud

On september 1 2011 fast track inc was started with 30000 : on september 1 2011 fast track inc. was started with 30000 invested by the owners as contributed capital. on
A mining concern sells a foreign subsidiary engaged in : a retail outlet changed its computation for bad debt expense from 1 to frac12 of 1 of sales because of changes in its
A few years ago the chariot manufacturing company installed : a few years ago the chariot manufacturing company installed automated robots worth billions of dollars in its auto
Cost estimates on a long-term contract may indicate that a : cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. in
Impro company operates in a state where corporate taxes and : impro company operates in a state where corporate taxes and workers compensation insurance raes have recently doubled.
Assume the company has 50 units left over from last year : the following are the wyeth companys unit costs of making and selling an item at a volume of 10000 units per month
Merchandise costing 8700 was purchased on account with : merchandise costing 8700 was purchased on account with credit terms of .515 n45. two days later merchandise costing
Accounting for a long-term construction-type contract : accounting for a long-term construction-type contract using the percentage-of completion method the gross profit
Construct the direct labor budget for the next two months : kindschuh corporation is working on its direct labor budget for the next two months. each unit of output requires 0.07

Reviews

Write a Review

Accounting Basics Questions & Answers

  How to minimize the tax consequences

John is attorney earns a fee $500,000 plus the recovery of expenses paid up front in the amount of $30,000. He is thinking about buying the building that he currently lease his office space in. His current lease is $5,000 per month. How to minimiz..

  When he receives a customers cheque for less than the full

advanced radio repairs make all sales on account. cash receipts arrive by mail. james opens the envelopes and separates

  Interest revenue should baxter record

Assume that the present value at January 1, 2002, of all rent payments over the lease term discounted at a 10 percent interest rate was $5,280,000. What amount of interest revenue should Baxter record in 2003 (the second year of the lease period) ..

  Nancy gave her grandson sean twenty acres of land her tax

. nancy gave her grandson sean twenty acres of land. her tax basis in the land was 25000. nancyamp39s marginal tax rate

  Prepare harley-davidson statement of cash flows

Prepare Harley-Davidson's statement of cash flows for the year ended December 31, 2004.

  Process of calculating depreciation

A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a:

  Performance reporting-flexible budgeting

Analyze the budget variance by calculating the direct labor efficiency and rate variances for June. What alternatives to the preceding monthly report could improve control over the stamping department's direct labor?

  Discussing factors-choosing accounting soft

Prepare a 350-word memo discussing the factors to consider when choosing accounting software. Analyze why each factor is important and the risks of not considering each factor.

  Ekman company issued 1400000 13-year bonds and agreed to

1. ekman company issued 1400000 13-year bonds and agreed to make annual sinking fund deposits of 70700. the deposits

  Determining per-unit conversion cost

At Frank Company, there are 800 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. If the unit cost of materials is $4 and the costs assigned to the 800 units is $6,000, what is the per-..

  In early july mike gottfried purchased a 70 ticket to the

in early july mike gottfried purchased a 70 ticket to the december 15 game of the chicago titans. the titans belong to

  What was the cost of raw materials

Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,200 of this balance is direct materials cost, how much of it is direct labor cost? Manufacturi..

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!

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