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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:
8 0
Answer:
c. No, because the prohibited non-audit services were performed during
Explanation:
5 0
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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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
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
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'.
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,
Therefore, the original price of the book is $45.
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.