Rocky Point Brewery filed an initial

Rocky Point Brewery filed an initial

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3 to keep the books and prepare monthly and annual financial statements (while the company was privately-held), and terminated those services in December 2015. Under SEC and PCAOB rules, could RPB engage O&A to be their auditors now that it is a public company?
A.) Yes, but only if O&a rescinds any indemnification language existing in their non-audit engagement letters.B.) No, but only if the fees O&A received from these engagements exceeded five percent of the firm's annual revenues.C.) Yes, because the prohibited non-audit services were performed before the period of professional engagement.D.) No, because the prohibited non-audit services were performed during the period covered by the financial statements.

2 answers:

Rocky Point Brewery filed an initial

8 0

Answer:

c. No, because the prohibited non-audit services were performed during

Explanation:

Rocky Point Brewery filed an initial

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Answer:

The answer is: D.) No, because the prohibited non-audit services were performed during the period covered by the financial statements.

Explanation:

The SEC states that auditors can not perform certain non audit services to an audit client:

  • Bookkeeping
  • Financial information systems design and implementation
  • Appraisal or valuation services, fairness opinions, or contribution-in-kind reports.

Between 2013 and 2015, O&A performed the following services; bookkeeping  and preparing monthly and annual financial statements. When RPB goes public in January 2016, it presented financial statements provided by O&A, so O&A can not be RPB's auditors.

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Rocky Point Brewery filed an initial

Answer:

Total dollar return = 2400 + 8040 = $10440

Option d is the correct answer

Explanation:

To calculate the total dollar return on the investment, we will calculate the value of dividend received from the shares and the capital gain made on this investment. The capital gain is the appreciation in value less the initial cost paid for the investment.

First we calculate the value of dividend received on the investment.

Dividend received = 3000 * 0.8 = $2400

Now we calculate the value of capital gain.

Capital gain = (Sale price - Initial cost) * Number of shares

Capital gain = (49.74 - 47.06) * 3000

Capital gain = $8040

Total dollar return = 2400 + 8040 = $10440

Rocky Point Brewery filed an initial

Answer:

2018:

building:                       296,400

Furniture and fixtures: 270,000

Office Equipment:        340,000  

Total:                             906,400

Explanation:

11,700,000 1/3 to land:                3,900,000

11,700,000 2/3 to building:         7,800,000

Office Equipment:                         204,000  

Total:                                           11,904,000

Building depreciation:

(historic cost - salvage value)/useful life

(7,800,000 - 7,800,000 x 5%)/25 = 296,400

As this is straight-line depreciation will be constant for both years.

Furniture and fixtures: double-declining

the assets depreciate at a rate double of straight line of the carrying value

carring value: 2/useful life

2018:          1,350,000         x 1/10 x 2 = 270,000

2019: (1,350,000-270,000) x 1/10 x 2 = 216,000

Office Equipment: double-declining

2018:           850,000          x 2/5 =  340,000

2019: (850,000 - 340,000) x 2/5 = 204,000

Rocky Point Brewery filed an initial

Answer:

The larger the number of substitutes and the greater the price elasticity of demand.

Explanation:

Price elasticity of demand can be used to explain a case of this type where it shows the relationship between price and quantity demanded and provides a precise calculation of the effect of a change in price on quantity demanded.

The degree of response of quantity demanded to a change in price can vary considerably. The key benchmark for measuring elasticity is whether the co-efficient is greater or less than proportionate. If quantity demanded changes proportionately, then the value of PED is 1, which is called ‘unit elasticity'.

Rocky Point Brewery filed an initial

Given:

Discount percentage = 40%

Sale price of the book = $18

To find:

Original price of the book

Solution:

Let us assume that the original price of the book as x. As per the question, there was 40% discount and the price of the book has been reduced to $18 which is 40% of the original price. That is,

Rocky Point Brewery filed an initial

Therefore, the original price of the book is $45.

Rocky Point Brewery filed an initial

The taxable income for that person is $47,810 and the tax liability can be found by multiplying the taxable income by the tax rate. The person does not have any adjustment to his/her salary, therefore all of his salary amounts becomes the taxable income. The tax liability can be found by multiplying the $47,810 with a specific tax rate.