# Read: Chapter 5 of the textbook (Heisinger, K., & Hoyle, J. B. (2012). Manageri

Chapter 5 of the textbook (Heisinger, K., & Hoyle, J. B. (2012). Managerial Accounting. Creative Commons by-nc-sa 3.0. https://open.umn.edu/opentextbooks/textbooks/managerial-accounting)
For the Discussion Post, answer the following:
CyclePath Company produces two different products that have the following price and cost characteristics:
Bicycle
Tricycle
Selling price per unit
100
400
Variable cost per unit
40
240
Management believes that pushing sales of the Bicycle product would maximize company profits because of the high contribution margin per unit for this product. However, only 50,000 labor hours are available each year, and the Bicycle product requires 4 labor hours per unit while the Tricycle model requires 2 labor hours per unit. The company sells everything it produces.
Required:
(a) Calculate the contribution margin per unit of constrained resource for each model.
(b) Which model would CyclePath prefer to sell to maximize overall company profit? Explain.
Be sure to use in-text citation and provide references for your sources, including textbooks.

# Read: Chapter 5 of the textbook (Heisinger, K., & Hoyle, J. B. (2012). Manageri

Chapter 5 of the textbook (Heisinger, K., & Hoyle, J. B. (2012). Managerial Accounting. Creative Commons by-nc-sa 3.0. https://open.umn.edu/opentextbooks/textbooks/managerial-accounting)
For the Paper:
Write three complete and well-composed paragraphs (in your own words) explaining how to compute the answer to the following problem:
Phan Incorporated has annual fixed costs totaling \$6,000,000 and variable costs of \$350 per unit. Each unit of product is sold for \$500.
Required:
(a) Calculate the contribution margin per unit.
(b) Find the break-even point in units.
(c) How many units must be sold to earn an annual profit of \$750,000?
Be sure to use in-text citation and provide references for your sources, including textbooks.

Chapter 18: Cost-Volume-Profit and Business Scalability (Walther, L.M. (2012). Principles of Accounting. Logan, UT: Utah State University. Available at http://www.principlesofaccounting.com/)
For the Discussion Post:
The following are different categories of costs:
Variable,
Fixed (committed),
Fixed (discretionary),
and Mixed
Identify what type of cost is best represented by the following examples of costs and in your own words briefly explain why.
The answer to the first one, Rent, is provided as an example: Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease.
Property taxes on land and building
Raw materials used in the manufacturing process
Employee picnic with a band, food, and door prizes
Be sure to use in-text citation and provide references for your sources, including textbooks.

Chapter 18: Cost-Volume-Profit and Business Scalability (Walther, L.M. (2012). Principles of Accounting. Logan, UT: Utah State University. Available at http://www.principlesofaccounting.com/)
For the Paper:
Write three complete and well-composed paragraphs (in your own words) in which you use, as an example, a company that operates where you live.
Describe what business it is in and some of the costs the company incurs.
Categorize the costs you identified as fixed costs or variable costs.
Be sure to use in-text citation and provide references for your sources, including textbooks.

# Depreciation expense is related to assets that have useful lives and are activel

Depreciation expense is related to assets that have useful lives and are actively used in business operations. CPAs need to understand why impairment happens to depreciated assets. As the accounting manager at a manufacturing company:
Explain how to:
Determine whether an asset is impaired.
Account for the asset’s impairment.
Describe the effect impairments have on the company’s financial statements.
Note: Give specific examples to support your analysis.

# this is a group assignment, so I was assigned to research and answer to part of

this is a group assignment, so I was assigned to research and answer to part of question 2.
Please look at the KPMG Search Memo Example 1. Please format it same as the example.
We use FASB Codification to look up Authorities. Please list at least 1-2 authorities that you used for this memo, and write the analysis. DO NOT need to write the conclusion, fact or issue since this is a group assignment and I was not assigned to those.
HERE IS THE QUESTION #2: How should the holdings of cryptocurrency be initially and subsequently measured under U.S. GAAP and IFRS Standards?
My assigned portion is “ How should the holdings of cryptocurrency be initially and subsequently measured under U.S. GAAP?” NO NEED TO RESEARCH FOR IFRS (IFRS is assigned to someone else)
Please list at least 1-2 authorities to support the answer/analysis. LIST AUTHORITIES AND WRITE ANALYSIS (1-2 small paragraphs, no need to be long, as long as it support the Initially & Subsequently measured under GAAP).
I included a word doc from my professor, which will help with understand the case study and easy analysis.
Cryptocurrency is not yet recognize as Cash or Cash Equivalent on balance sheet. So basically, what should cryptocurrency be classified on the balance sheet? My professor has listed a few accounts for we to dig into.
Link to the case study 19-6:

# 1) Discuss how income smoothing can be achieved as it relates to the recording o

1) Discuss how income smoothing can be achieved as it relates to the recording of pensions.
2)You are in your third year as an internal auditor with VXI International, manufacturer of parts and supplies for jet aircraft. VXI began a defined contribution pension plan three years ago. The plan is a so-called 401(k) plan that permits voluntary contributions by employees. Employees’ contribution are matched with one dollar of employer contribution for every two dollars of employee contribution. Approximately \$500,000 of contributions is deducted from employee paychecks each month for investment in one of three employer-sponsored mutual funds. While performing some preliminary audit tests, you happen to notice that employee contributions to these plans usually do not show up on mutual fund statements for up to two months following the end of pay periods from which the deductions are drawn. On further investigation, you discover that when the plan was first begun, contribution were invested within one week of receipt of the funds. When you question the firm’s investment manager about the apparent change in the timing of investments, you are told, “Last year Mr. Maxwell (the CFO) directed me to initially deposit the contributions in the corporate investment account. At the close of each quarter, we add the employer matching contribution and deposit the combined amount in specific employee mutual funds.”
What is Mr. Maxwell’s apparent motivation for the change in the way contributions are handled? Do you perceive an ethical dilemma? Why or why not?

# Discuss how income smoothing can be achieved as it relates to the recording of p

Discuss how income smoothing can be achieved as it relates to the recording of pensions.
You are in your third year as an internal auditor with VXI International, manufacturer of parts and supplies for jet aircraft. VXI began a defined contribution pension plan three years ago. The plan is a so-called 401(k) plan that permits voluntary contributions by employees. Employees’ contribution are matched with one dollar of employer contribution for every two dollars of employee contribution. Approximately \$500,000 of contributions is deducted from employee paychecks each month for investment in one of three employer-sponsored mutual funds. While performing some preliminary audit tests, you happen to notice that employee contributions to these plans usually do not show up on mutual fund statements for up to two months following the end of pay periods from which the deductions are drawn. On further investigation, you discover that when the plan was first begun, contribution were invested within one week of receipt of the funds. When you question the firm’s investment manager about the apparent change in the timing of investments, you are told, “Last year Mr. Maxwell (the CFO) directed me to initially deposit the contributions in the corporate investment account. At the close of each quarter, we add the employer matching contribution and deposit the combined amount in specific employee mutual funds.”
What is Mr. Maxwell’s apparent motivation for the change in the way contributions are handled? Do you perceive an ethical dilemma? Why or why not?

# Constructive Dividends, Redemptions, and Related Party Losses Overview Suppose y

Constructive Dividends, Redemptions, and Related Party Losses
Overview
Suppose you are a CPA hired to represent
a client who is currently under examination by the IRS. The client is
the president and 95% shareholder of a building supply sales and
warehousing business. He also owns 50% of the stock of a construction
company. The client’s son owns the remaining 50% of the stock of the
construction company. The client has received a notice of proposed
adjustments (NPA) on three significant issues related to the building
supply business for the years under examination. The issues identified
in the NPA are unreasonable compensation, stock redemptions, and a
rental loss. Additional facts regarding the issues are reflected below:
Unreasonable compensation: The taxpayer receives a salary of \$10
million composed of a \$5 million base salary plus 5% of gross receipts
not to exceed \$5 million. The total gross receipts of the building
supply business are \$300 million. The NPA by the IRS disallows the
salary based on 5% of gross receipts as a constructive dividend.
Stock redemptions: During the audit period, the construction
company redeemed 50% of the outstanding stock owned by the client and
50% of the stock owned by the client’s son, leaving each with the same
ownership percentage of 50%. The IRS treated the redemption as a
distribution under IRC Section 301.
Rental loss: The rental loss results from a building leased to the construction company owned by the client and his son.
Instructions
Use the Internet and Strayer Library to
research the rules and income tax laws regarding unreasonable
compensation, stock redemptions treated as dividends, and related party
losses. Be sure to use the six-step tax research process in Chapter 1
that was demonstrated in Appendix A of your textbook as a guide for your
written response.
Write a 3–4 page paper in which you:
Based on your research and the facts stated in the scenario,
prepare a recommendation for the client in which you advise either
acceptance of the proposed adjustments or further appeal of the issue
based on the potential for prevailing on appeal.
Create a tax plan for the future redemption of the client’s stock
owned in the construction company that will not be taxed according to
Section 301 of the IRC.
Propose a strategy for the client to receive similar amounts in
compensation in the future and avoid the taxation as a constructive
dividend.
This course requires the use of Strayer
Writing Standards. For assistance and information, please refer to the