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ACC 543 Assignment New Donor Presentation (modality
of your choice)(New Syllabus)
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• 10- to 12-slide presentation using a modality of your choice. Your
boss request a presentation for new donors. You are to include the
following:What is the mission and purpose of your organization?
• Differentiate between private and government not-for-profit
organizations.
• What are the primary sources of funding for the organization? How
are the revenues classified? Be sure to include dollar amounts.
• What are the primary expenditures for the organization? In other
words, how do the organizations get and spend their money.
• What reports are required by FASB as far as reporting?
• What issues have not-for-profits faced as far as reporting and what
changes are being made in the new year?
• What are the differences between reporting for governments and
not-for-profit organizations?
• How successful has your entity been in terms of meeting its mission
and staying fiscally solvent?

• What reports or information will show the donors if a not-for-profit
entity is financially healthy?
The student should use four different sources. Each source should be
cited in the text on the slides and there should be a reference slide at
the end. All work submitted for grading should be original work of the
student that submitted the assignment in this class.
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ACC 543 Entire Course
ACC 543 Week 1 Individual Textbook 4.16, 4.18, 4.20
ACC 543 Week 2 Individual Textbook Exercise Ex-5.17, Case 6.55, Ex
7.21, Ex 8-25

ACC 543 Week 3 Individual Textbook Exercise (10.22, 11.16, 11.18,
15.16)
ACC 543 Week 3 Team Assignment Capital Budget Recommendation (2
Papers)
ACC 543 Week 4 Individual Textbook Exercise (22.1, 22.2, 22.5, 25.1,
25.2, 25.5)
ACC 543 Week 4 Team Assignment (26.1, 26.2, 26.3, 26.7, 27.1, 27.2,
27.4, 27.5, 27.7)
ACC 543 Week 5 Individual Textbook Exercise (47.2, 47.3, 47.6, 50.1,
50.6, 50.7, 45.2, 45.5, 45.6, 45.7)
ACC 543 Week 5 Team Aspects of Employment and Environment Paper
and PowerPoint River-Rafting Location
ACC 543 Week 6 Individual Textbook Exercise (29.1, 29.2, 29.4,
30.4,31.1, 31.3, 31.6, 33.3, 33.5, 33.6, 51.1, 51.2, 51.3, 51.4, 51.5 51.6)

ACC 543 Week 6 Team Assignment Flexible Budgets
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ACC 543 Exercise 18-17B: Process Cost System Cost of
Production Report(UOP)
Exercise 18-17B: Process Cost System Cost of Production Report At the
beginning of 2004, Dozier Company had 1,800 units of product in its
work in process inventory, and it started 19,200 additional units of
product during the year. At the end of the year, 6,000 units of product
were in the work in process inventory. The ending work in process
inventory was estimated to be 50 percent complete. The cost of work in
process inventory at the beginning of the period was $9,000, and
$108,000 of product costs was added during the period. Required
Prepare a cost of production report showing the following. a. The
number of equivalent units of production. b. The product cost per

equivalent unit. c. The total cost allocated between the ending Work in
Process Inventory and Finished Goods Inventory accounts.
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ACC 543 Week 1 Assignment Managerial Accounting for
Business Decision Making (New Syllabus)
Q1: Doughton Bearings produces ball bearings for industrial equipment.
In evaluating their financial data from the previous year, the accounting
manager has determined that their unit sales price is $25 per bearing
and their unit variable cost is $18 per bearing. What is the unit
contribution margin per unit?
Q 2: Felton Paper produces paper for textbooks. Felton plans to
produce 500,000 cases of paper next quarter to sell at a price of $100
per case. Each case costs the company $80 to produce. What is the
total contribution margin for next quarter?

Q 3: Ford Tops manufactures hats for baseball teams. For has fixed
costs of $175,000 per quarter and each hat sells for $20. If the variable
cost per hat is $10, how many hats must the company sell each quarter
to break even?
Q 4: The Cobb Clinic treats walk in patients for various illnesses. The
accounting manager has estimated they have $5,000 in monthly fixed
costs in addition to a $20 cost per patient. If the charge is $30 per visit,
ow many visits per month does the clinic need to breakeven?
Q 5: Oxicon, Inc. manufactures several different types of candy for
various retail stores. The accounting manager has requested that you
determine the sales dollars required to break even for next quarter
based on past financial data. Your research tells you that the total
variable cost will be $500,000, total sales will be $750,000, and fixed
costs will be $75,000. What is the breakeven point in sales dollars?
Q 6: Williams & Williams Co. produces plastic spray bottles and wants
to earn a profit of $200,000 next quarter and have variable costs of
$0.50 per bottle, fixed costs of $400,000, and sell the bottles for $1.00
each. How many bottles must they sell to meet this goal?
Q 7: Scott Power produces batteries. Scott has determined its
contribution margin to be $8 per battery and their contribution margin

ratio to be 0.4. What is the effect on operating profit from the sale of
one additional battery? One additional dollar of sales?
Q 8: ABC Audio sells headphones and would like to earn after tax profit
of $400 every week. Each set of headphones costs $5 and is sold for
$10. They also incur costs of $200 for rent and other fixed costs, and
their tax rate is 20%. How many headphones must they sell per week to
meet this goal?
Q 9: Franklin Cards sells greeting cards for $2 each, and plans to sell
100,000 cards every quarter. The accounting manager has determined
they must sell 80,000 cards to break even every quarter. What is the
margin of safety (MOS), in units and in sales dollars?
Q 10: May Clothing is a retail men’s clothing store. May's cost is $20 per
shirt. The sales price is $40 per shirt. They plan to sell 400,000 shirts
each year, which at this level would result in a before tax profit of
$2,500,000. What is their degree of operating leverage (DOL) at this
volume level?
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ACC 543 Week 1 Individual Textbook 4.16, 4.18, 4.20
Relevant Cost and Decision Making
4.16
Make or buy Yoklic Corporation currently manufactures a subassembly
for its main product. The costs per unit are as follows:
Regina Corp has contacted Yoklic with an offer to sell it 5,000
subassemblies for $55.00 each.
REQUIRED:
1. Should Yoklic make or buy the subassemblies? Create a schedule
that shows the total quantitative differences between the two
alternatives.
2. The accountant decided to investigate the fixed costs to
determine whether any incremental changes would occur if the
subassembly were no longer manufactured. The accountant
believes that Yoklic will eliminate $50,000 of fixed overhead if it
accepts the proposal. Does this new information change the
decision? Show your calculations.

3. Ignore the information in part (B). Now suppose Yoklic could use
the capacity released under the buy alternative to make a
different subassembly that it currently purchases from a vendor
for $20. The manufacturing engineer believes that the company
can use the existing equipment to manufacture the subassembly
for $13 each (direct materials, direct labor, and variable
overhead). The firm uses about 5,000 of these subassemblies.
Create a schedule that shows the difference between the two
alternatives.
4.18
Special order The Cone Head House sells ice cream cones in a variety of
flavors. Data for a recent week appear here:
The Cone Head’s manager received a call from a university student club
requesting a bid on 100 cones to be picked up in three days. The cones
could be produced in advance by the store attendant during slack
periods and then stored in the freezer. Each cone requires a special
plastic cover that costs $0.05.
REQUIRED:
4.20
Outsourcing, business risk Saguaro Systems produces and sells stereo
systems for MP3 players. The following information has been collected
about the costs related to the systems:

The managers are deciding whether to outsource production to a
Mexican company that has offered to produce these systems for $48
each. The managers estimate that $260,000 of Saguaro’s fixed costs
could be eliminated if they accept the offer. Direct labor employees are
guaranteed pay for 40
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ACC 543 Week 2 AssignmentTracking and Analyzing
Costs to Enhance Decision Making (New Syllabus)
1 Tasty Beverage Co. produces soft drinks, specializing in fruit drinks.
They produce 5,000 cans of product per batch. Setup cost for each
batch is $50 and each drink costs $0.10 to produce. What is the total
cost per batch? How much would it cost to fill an order for 100,000
cans?

2 Montross Lumber processes wood to be shipped to construction
companies. In order to keep their products uniform, they conduct
inspections on 20% of the boards produced. Inspections cost the
company $10 per hour and it takes 1 minute to inspect each board.
How much would it cost to fill an order for 30,000 boards
3 Orange Inc. grows cabbage. Each package shipped out contains 20
vegetables. It costs Orange $5 to put together each package and $0.10
to clean and process each vegetable. If they are discussing an order for
50 heads of cabbage, how much higher is the cost of producing 60
heads, considering package size?
4 Williams Performance Co. manufactures sports cars. After making a
sale, the salesperson sends the car to be detailed before the customer
takes it home. Detailing the car takes 30 minutes at a cost of $15 per
hour for direct labor and $5 per car for materials. If the average
salesperson sells 5 cars per day, what is the average cost per week for
detailing cars?
5 Stackhouse Computing produces high performance desktop
computers. Annual CGS data shows that the company spent $1,000,000
for 5,000 computers produced, and each computer requires 2
technician hours and 5 hours of direct labor. Direct labor is paid $10 per
hour by the company. What is the cost of 1 technician hour?

6 Haywood Printing is processing a job with the following activity rates:
Activity Cost Driver Driver Rate
Direct Labor Number of Hours $8
Copying Number of Copies $0.05
If this job requires 5 hours for the 1,000 copies, what is the activity
based cost of the job?
7 Locke Data Processing reported expenses of $5,000,000 for indirect
labor, of which $3,000,000 was for data analysis, and $2,000,000 was
for data entry. Locke recorded 30,000 hours of data analysis and
100,000 hours of data entry. What are the activity based rates for each
area of direct labor
8 The materials handling charge for ABC corp is $.50 per pound of
finished product. What is the materials handling charge for a job that
produced 10,000 units and the weight of each product was 6 pounds?
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ACC 543 Week 2 Individual Textbook Exercise Ex 5.17,
Case 6.55, Ex 7.21, Ex 825
5.17
Job costing, service sector Consider the following budgeted data for a
client job of Bob Crachit’s accounting firm. The client wants a fixed
price quotation.
Overhead is allocated at the rate of 100% of direct labor cost.
REQUIRED:
6.55
Costs of workplace health and safety Britain’s Health and Safety
Executive (HSE) is a national regulatory body overseeing workplace
health and safety. In its 2007 performance report, HSE reported the
following statistics:
• 241 workers were killed at work.
• 141,350 employees suffered serious injuries at work.

• 2 million people were suffering from an illness they believed
was caused or made worse by their current or past work. 646,000 of
these were new cases in the last 12 months.
• 36 million days were lost overall (1.5 days per worker), 30
million due to work-related ill health and 6 million due to workplace
injury.
• £20 billion (approximately 2% of GDP) is the estimated annual
cost to society of work-related accidents and ill health.
8.25
Step-down, direct, and reciprocal methods, accuracy of allocation
(Appendix 8A) Software Plus Corporation produces flight and driving
simulations and games for personal computers. The president has a
complaint about the accounting for support department costs. He
points to the following table describing the use of various support
departments in the company and says, “According to this table, every
department receives services from all the support departments. But I
understand that only some of the support departments are bearing
costs from the other support departments. Why is that?”
7.21
ABC, ABM (CMA) Applewood Electronics manufactures two large-
screen television models, the Monarch, which has been produced for
five years and sells for $900, and the Regal, a new model that sells for
$1,140. Applewood’s CEO, Harry Hazelwood, suggested that the
company should concentrate its marketing resources on the Regal

model and begin to phase out the Monarch model.
Applewood currently uses a traditional costing system. The following
cost information has been used as a basis for pricing decisions over the
past year.
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ACC 543 Week 3 Assignment Budgeting and Controlling
Costs (New Syllabus)
RTI Company's master budget calls for production and sales of 18,000
units for $81,000; variable costs of $30,600; and fixed costs of $20,000.
The company incurred $32,000 of variable costs to produce and sell
20,000 units for $85,000, and earned $25,000 operating income.
Master budget sales volume (units) 18,000
Budgeted total sales revenue $81,000

Budgeted total variable costs $30,600
Budgeted fixed costs $20,000
Actual variable costs incurred $32,000
Actual production/sales volume (units) 20,000
Actual total sales revenue $85,000
Actual operating income $25,000
1. Determine RTI Company’s
a. Flexible budget operating income.
b. Contribution margin flexible-budget variance.
c. Operating income flexible-budget variance.
d. Sales volume variance, in terms of contribution margin.
e. Sales volume variance, in terms of operating income.
2. Explain why the contribution margin sales volume variance and the
operating income sales volume variance for the same
period are likely to be identical.
3. Explain why the contribution margin flexible-budget variance is likely
to differ from the operating income flexible-budget
variance for the same period.

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ACC 543 Week 3 Exam (New Syllabus)
Which one of the following risks is least likely to be mitigated by project
diversification?
A graph of the relationship between financial risk and expected
financial reward would show a curve that has a:
Which one of the following identifies the rate of return required by
investors to compensate them for deferring current consumption when
making an investment?

As the perceived risk of an undertaking increases, what would be the
expected effect on the risk-free rate of return and the risk premium
rate of return?
Which one of the following approaches to capital project evaluation is
primarily concerned with the relative economic ranking of projects?
Major Corp. is considering the purchase of a new machine for $5,000
that will have an estimated useful life of five years and no salvage
value. The machine will increase Major's after-tax cash flow by $2,000
annually for five years. Major uses the straight-line method of
depreciation and has an incremental borrowing rate of 10%. The
present value factors for 10% are as follows:
Using the payback method, how many years will it take to pay back
Major's initial investment in the machine?
Which one of the following is a strength of the payback method of
evaluating an investment project?
What is the investment's payback period?

Capital budgeting is concerned with capital investments that have
which one of the following characteristics?
A company invested in a new machine that will generate revenues of
$35,000 annually for seven years. The company will have annual
operating expenses of $7,000 on the new machine. Depreciation
expense, included in the operating expenses, is $4,000 per year. The
expected payback period for the new machine is 5.2 years. What
amount did the company pay for the new machine?
Which one of the following is not a technique or approach for
evaluating capital budgeting opportunities?
Using the information above, which one of the following is the payback
period in years for this project? (Ignore income tax.)
Which of the following statements is correct regarding the payback
method as a capital budgeting technique?
Which of the following statements concerning the discounted payback
period approach to project evaluation is/are correct?
Which of the following statements concerning the discounted payback
period method of evaluating capital projects is/are correct?

Which one of the following is the capital budgeting evaluation approach
that determines the number of periods required for the discounted
cash inflows of a project to equal the discounted cash outflows?
The discounted payback period approach to project evaluation is better
than the payback period approach because
A company purchases an item for $43,000. The salvage value of the
item is $3,000. The cost of capital is 8%. Pertinent information related
to this purchase is as follows:
What is the discounted payback period in years?
Which one of the following methods of evaluating potential capital
projects would take into account depreciation expense that was non-
deductible for tax purposes?
Which of the following statements concerning the accounting rate of
return approach to evaluating capital projects is/are correct?
Lin Co. is buying machinery it expects will increase average annual
operating income by $40,000. The initial increase in the required
investment is $60,000, and the average increase in required investment

is $30,000. To compute the accrual accounting rate of return, what
amount should be used as the numerator in the ratio?
Phillips Company is considering the acquisition of a new machine that
would cost $66,000, has an expected life of 6 years, and an expected
salvage value of $16,000. The company expects the machine to provide
annual incremental income before taxes of $7,200. Phillips has a tax
rate of 30%. If Phillips uses average values in its calculations, which one
of the following will be the average accounting rate of return on the
machine?
Salem Co. is considering a project that yields annual net cash inflows of
$420,000 for years 1 through 5, and net cash inflow of $100,000 in year
6. The project will require an initial investment of $1,800,000. Salem's
cost of capital is 10%. Present value information is present below:
What was Salem's expected net present value for this project?
Yarrow Co. is considering the purchase of a new machine that costs
$450,000. The new machine will generate net cash flow of $150,000
per year and net income of $100,000 per year for five years. Yarrow's
desired rate of return is 6%. The present value factor for a five-year
annuity of $1, discounted at 6%, is 4.212. The present value factor of
$1, at compound interest of 6% due in five years, is 0.7473. What is the
new machine's net present value?

A corporation is considering purchasing a machine that costs $100,000
and has a $20,000 salvage value. The machine will provide net annual
cash inflows of $25,000 per year and has a six-year life. The corporation
uses a discount rate of 10%. The discount factor for the present value
of a single sum six years in the future is 0.564. The discount factor for
the present value of an annuity for six years is 4.355. What is the net
present value of the machine?
Which of the following is an advantage of net present value modeling?
A project should be accepted if the present value of cash flows from the
project is:
The following information pertains to Krel Co.'s computation of net
present value relating to a contemplated project:
Discounted expected cash inflows $1,000,000
Discounted expected cash outflows 700,000
Net present value is:
Tam Co. is negotiating for the purchase of equipment that would cost
$100,000, with the expectation that $20,000 per year could be saved in
after-tax cash costs if the equipment is acquired. The equipment's
estimated useful life is 10 years, with no residual value, and would be
depreciated by the straight-line method. Tam's predetermined

minimum desired rate of return is 12%. Present value of an annuity of 1
at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at
12% is .322.
Net present value is
A project's net present value, ignoring income tax considerations, is
normally affected by the
Smarti Co. has determined the following data in connection with its
evaluation of a capital investment project:
Smarti uses straight-line depreciation for capital investments of this
type. Excerpts from present value tables showed the following:
Using the above information, which one of the following is the present
value of total estimated future cash inflows and savings? (Ignore
income taxes.)
An investment in a new product will require an initial outlay of $20,000.
The cash inflow from the project will be $4,000 a year for the next six
years. The payment will be received at the end of each year. What is
the net present value of the investment at 8% using the correct factor
from below?
Oak Company bought a machine that they will depreciate on a straight-
line basis over an estimated life of seven years. The machine has no

salvage value. They expect the machine to generate after-tax net cash
inflows from operations of $110,000 in each of the seven years. Oak's
minimum rate of return is 12%. Information on present value factors is
as follows:
Assuming a positive net present value of $12,000, what was the cost of
the machine?
Which project would provide the largest after-tax cash inflow?
Net present value as used in investment decision-making is stated in
terms of which of the following options?
The calculation of depreciation is used in the determination of the net
present value of an investment for which of the following reasons?
The decline in the value of the investment should be reflected in the
determination of net present value.
Given a 10% discount rate with cash inflows of $3,000 at the end of
each year for five years and an initial investment of $11,000, what is
the net present value?
The discount rate is determined in advance for which of the following
capital budgeting techniques?

Which of the following metrics equates the present value of a project's
expected cash inflows to the present value of the project's expected
costs?
A client wants to know how many years it will take before the
accumulated cash flows from an investment exceeds the initial
investment, without taking the time value of money into account.
Which of the following financial models should be used?
Which of the following decision-making models equates the initial
investment with the present value of the future cash inflows?
Which of the following events would decrease the internal rate of
return of a proposed asset purchase?
Polo Co. requires higher rates of return for projects with a life span
greater than five years. Projects extending beyond five years must earn
a higher specified rate of return. Which of the following capital
budgeting techniques can readily accommodate this requirement?
Which of the following limitations is common to the calculations of
payback period, discounted cash flow, internal rate of return, and net
present value?

Which of the following rates is most commonly compared to the
internal rate of return to evaluate whether to make an investment?
If income taxes are ignored, which of the following methods of
evaluating capital investment projects includes the use of depreciation
expense?
Tam Co. is negotiating for the purchase of equipment that would cost
$100,000, with the expectation that $20,000 per year could be saved in
after-tax cash costs if the equipment is acquired. The equipment's
estimated useful life is 10 years, with no residual value, and it would be
depreciated by the straight-line method. Tam's predetermined
minimum desired rate of return is 12%. Present value of an annuity of 1
at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at
12% is .322.
In estimating the internal rate of return, the factors in the table of
present values of an annuity should be taken from the columns closest
to
In evaluating the economic feasibility of a capital project, the discount
rate (or hurdle rate of return) must be determined in advance when
using the:

Which of the following capital budgeting techniques, if any, implicitly
assumes that all cash inflows are immediately reinvested to earn a
return for the company?
Which of the following phrases defines the internal rate of return on a
project?
Neu Co. is considering the purchase of capital equipment that has a
positive net present value based on Neu's 12% hurdle rate.
The internal rate of return would be:
Which of the following characteristics represent an advantage of the
internal rate of return technique over the accounting rate of return
technique in evaluating a project?
I. Recognition of the project's salvage value.
II. Emphasis on cash flows.
III. Recognition of the time value of money.
How are the following used in the calculation of the internal rate of
return of a proposed project? Ignore income tax considerations.

Which of the following statements about investment decision models is
true?
When estimating cash flow for use in capital budgeting, depreciation is
What is an internal rate of return?
Which of the following is a limitation of the profitability index?
What is the formula for calculating the profitability index of a project?
If it is determined that a project investment is expected to generate
$1.20 in present value for each $1.00 invested, which one of the
following was most likely used to reach that conclusion?
Disco is considering three capital projects that have the following costs
and net present values (NPV):
Which one of the projects, if any, is not economically feasible?
Using the profitability index, which project, if any, would be ranked as
the most desirable?

Which one of the following represents the formula used to calculate
the profitability index for ranking projects?
Which one of the following methods of evaluating investment projects
is most likely to be least acceptable for making project ranking
decisions?
Which of the following methods should be used if capital rationing
needs to be considered when comparing capital projects?
Which of the following statements is correct regarding financial
decision making?
is most likely to be used to rank projects competing for limited capital
investment funds?
On August 31, Year 1, Ashe Corp. adopted a plan to accumulate
$1,000,000 by September 1, Year 5. Ashe plans to make four equal
annual deposits to a fund that will earn interest at 10% compounded
annually.

Ashe will make the first deposit on September 1, Year 1. Future value
and future amount factors are as follows:
Which one of the following would be the amount of annual deposits
Ashe should make (rounded)?
On November 1, Year 1, a company purchased a new machine that it
does not have to pay for until November 1, Year 3. The total payment
on November 1, Year 3 will include both principal and interest.
Assuming interest at a 10% rate, the cost of the machine would be the
total payment multiplied by what time value of money concept?
Which one of the following kinds of tables most likely would be used to
determine the current worth of five equal amounts to be received at
the end of each of the next five years.
Pole Co. is investing in a machine with a 3-year life. The machine is
expected to reduce annual cash operating costs by $30,000 in each of
the first 2 years and by $20,000 in year 3. Present values of an annuity
of $1 at 14% are:
Using a 14% cost of capital, what is the present value of these future
savings?
Which of the following changes would result in the highest present
value?

Which one of the following sets of interest (or discount) rates will give
the greater present value of $1.00 and greater future value of $1.00?
On June 30, 2012, a company is preparing the cash budget for the third
quarter. The collection pattern for credit sales has been 60% in the
month of sale, 30% in the first month after sale, and the rest in the
second month after sale. Uncollectible accounts are negligible. There
are cash sales each month equal to 25% of total sales. The total sales
for the quarter are estimated as follows: July, $30,000; August,
$15,000; September, $35,000. Accounts receivable on June 30, 2012,
were $10,000. What amount would be the projected cash collections
for September?
The regression analysis results for ABC Co. are shown as y = 90x + 45.
The standard error (S ) is 30 and coefficient of determination (r ) is
0.81. The budget calls for production of 100 units. What is ABC’s
estimate of total costs?
The difference between standard hours at standard wage rates and
actual hours at standard wage rates is referred to as which of the
following types of variances?
The production volume variance is due to

Which of the following scenarios would encourage a company to use
short-term loans to retire its ten-year bonds that have five years until
maturity?
Harvey Co. is evaluating a capital investment proposal for a new
machine. The investment proposal shows the following information:
If acquired, the machine will be depreciated using the straight-line
method. The payback period for this investment is
A company purchases an item for $43,000. The salvage value of the
item is $3,000. The cost of capital is 8%. Pertinent information related
to this purchase is as follows:
What is the discounted payback period in years?
The Bread Company is planning to purchase a new machine which it will
depreciate on a straight-line basis over a 10-year period. A full year’s
depreciation will be taken in the year of acquisition. The machine is
expected to produce cash flow from operations, net of income taxes, of
$3,000 in each of the 10 years.; The accounting (book value) rate of
return is expected to be 10% on the initial increase in required
investment. The cost of the new machine will be

Assume that Trayco’s marginal tax rate is 30% and all cash flows come
at the end of the year. In evaluating the decision how is the additional
investment in working capital considered?
Which of the following decision-making models equates the initial
investment with the present value of the future cash inflows?
The company has $2,000,000 of financing available for new investment
projects. The investment project with the highest excess profitability
index is
is most likely to be used to rank projects competing for limited capital
investment funds?
Axel Corp. is planning to buy a new machine with the expectation that
this investment should earn a discounted rate of return of at least 15%.
This machine, which costs $150,000, would yield an estimated net cash
flow of $30,000 a year for 10 years, after income taxes. In order to
determine the net present value of buying the new machine, Axel
should first multiply the $30,000 by which of the following factors?
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ACC 543 Week 3 Individual Textbook Exercise (10.22,
11.16, 11.18, 15.16)
Static and flexible budgets for decision making: Exercise 10.22
Standard costs and variance analysis: Exercise 11.16
Direct Material Variance Exercise 11.18
Agency theory and responsibility accounting: Exercise 15.16
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ACC 543 Week 3 Team Assignment Capital Budget
Recommendation (2 Papers)

This Tutorial contains 2 Papers
Capital Budget Recommendation Guillermo Furniture, a company that
manufactures midgrade and high-end sofas, has just hired you as an
accountant. The owner, Guillermo Navallez, has assigned you the tasks
of determining which decisions provide the greatest returns. Read the
Guillermo Furniture Scenario and review the Guillermo Furniture Data
Sheets on your student Web site. Enter your name in cell A3 of the
Income Information tab in the Guillermo Furniture Data Sheets. Submit
the exact name you entered to your instructor. Obtain the number that
is shown as a result for total assets on the Assets, Liabilities, and Equity
In tab. Submit the number for total assets to your instructor.
Differentiate among the various capital budget evaluation techniques.
Explain how these different techniques would help you make your
recommendation to Guillermo. Recommend a course of action based
on a capital budget evaluation technique and include present value
calculations as part of your recommendation. Submit your assignment
as an attachment of no more than 1,050 words.
==============================================
ACC 543 Week 3 Team Memo Managing earnings,
denominator capacity level and ethics (New Syllabus)

Explain how manufacturing overhead rates are constructed in
conventional cost accounting systems. Speak separately about fixed
versus variable overhead application rates. What key choices must be
made in establishing these rates? In answering this question, you might
want to discuss differences (if any) between current IRS (income tax)
requirements and internal reporting purposes, and between financial
reporting requirements, i.e., applicable GAAP (FASB ASC 330-10-30,
previously SFAS No. 151, available using the FASB link and internal
reporting purposes.
Your company uses a standard cost system. As such, at the end of each
period, it must "clean up" the accounts by disposing of any standard
cost variances that occurred for the period. You need to educate
members of the board about how the variances for fixed manufacturing
overhead are disposed of at the end of the period. In your answer, pay
particular attention to the following two financial-reporting issues: The
requirements of FAS151
How, under absorption costing, reported earnings can be "managed" by
choice of the denominator volume used to establish the fixed overhead
application rate.

Search the Internet for the Institute of Management Accountant's
Statement of Ethical Professional Practice. Which of the stated
"standards" relate directly to the issue of setting (fixed) overhead
application rates and the decision as to how any resulting production
volume variances are disposed of for financial-reporting purposes? Be
specific.
==============================================
On February 15, 1993, P.D. Stone obtained the following instrument
from Astor Co. for $1,000.Stone was aware that Helco, Inc., disputed
liability under the instrument because of an alleged breach by Astor of
the referenced computer purchase agreement. On March 1, 1993,
Willard Bank obtained the instrument from Stone for $3,900. Willard
had no knowledge that Helco disputed liability under the
instrument.The reverse side of the instrument is indorsed as
follows:The instrument is

Under the Negotiable Instruments Article of the UCC, an instrument will
be precluded from being negotiable if the instrument
Which of the following negotiable instruments is subject to the UCC
Negotiable Instruments Article?
from Astor Co. for $1,000. Stone was aware that Helco, Inc. disputed
follows:The instrument is a
Which of the following negotiable instruments is subject to the
provisions of the UCC Negotiable Instruments Article?
Below is a copy of a note Prestige Properties obtained from Tim Hart in
connection with Hart's purchase of land located in Hunter, MT. This
note is a
Which of the following conditions, if present on an otherwise
negotiable instrument, would affect the instrument's negotiability?
Under the Negotiable Instruments Article of the UCC, which of the
following instruments is classified as a promise to pay?

Under the Negotiable Instruments Article of the UCC, the proper party
to whom a check is presented for payment is
following documents would be considered an order to pay?
A $5,000 promissory note payable to the order of Neptune is
discounted to Bane by blank indorsement for $4,000. King steals the
note from Bane and sells it to Ott who promises to pay King
$4,500.After paying King $3,000,Ott learns that King stole the note. Ott
makes no further payment to King. Ott is
following circumstances would prevent a person from becoming a
holder in due course of an instrument?
following requirements must be met for a transferee of order paper to
become a holder?
Ashley needs to indorse a check that had been indorsed by two other
individuals prior to Ashley's receipt of the check. Ashley does not want
to have surety liability, so Ashley indorses the check "without
recourse." Under the Negotiable Instruments Article of the UCC, which
of the following types of indorsement did Ashley make?

from Astor Co. for $1,000.Stone was aware that Helco, Inc. disputed
Willard Bank obtained the instrument from Stone for $3,900.Willard
follows:Which of the following statements is correct?
Under the Negotiable Instruments Article of the UCC, when an
instrument is indorsed "Pay to John Doe" and signed "Faye Smith,"
which of the following statements is(are) correct?
Under the Negotiable Instruments Article of the UCC, an indorsement
of an instrument "for deposit only" is an example of what type of
indorsement?
The following note was executed by Elizabeth Quinton on April 17,
1990, and delivered to Ian Wolf:
In sequence, beginning with Wolf's receipt of the note, this note is
properly characterized as what type of commercial paper?

indorser's liabilities are disclaimed by a "without recourse"
indorsement?
Train issued a note payable to Blake in payment of contracted services
that Blake was to perform. Blake indorsed the note "pay to bearer" and
delivered it to Reed in satisfaction of a debt owed Reed. Train refused
to pay Reed on the note because Blake had not yet performed the
services. Under the Negotiable Instruments Article of the UCC, must
Train pay Reed?
Ball borrowed $10,000 from Link. Ball, unable to repay the debt on its
due date, fraudulently induced Park to purchase a piece of worthless
costume jewelry for $10,000. Ball had Park write a check for that
amount naming Link as the payee. Ball gave the check to Link in
satisfaction of the debt Ball owed Link. Unaware of Ball's fraud, Link
cashed the check. When Park discovered Ball's fraud, Park demanded
that Link repay the $10,000. Under the Negotiable Instruments Article
of the UCC, will Link be required to repay Park?
following requirements must be met for a person to be a holder in due
course of a promissory note?
The holder must be the payee of the note.

The following indorsements appear on the back of a negotiable
promissory note payable to Lake Corp.Which of the following
statements is correct?
Jacobs gave the check to his son as a gift, who transferred it to Anchor
for $78.00. Which of the following statements is correct?
Under the Negotiable Instruments Article of the UCC, what kind of
indorsement is made by the use of the words "Lee Louis"?
West Corp. received a check that was originally made payable to the
order of one of its customers, Ted Burns. The following indorsement
was written on the back of the check:Which of the following describes
the indorsement?
Janice owes Jake $120,000. Jake cashes the check 45 days after
receiving it. Janice's bank fails. The FDIC will cover $100,000. Janice
Horton wrote a check for $50,000 to Wallace who in turn indorsed it to
Halbert. When Halbert presented the check to the bank it was
dishonored because of insufficient funds. Which of the following

Bart presented a negotiable demand note supposedly signed by Alice as
maker to Alice for payment. Alice claimed the note was a forgery and
refused to pay it. Which of the following is correct?
following parties has secondary liability on an instrument?
Which of the following parties has (have) primary liability on a
negotiable instrument?
To the extent that a holder of a negotiable promissory note is a holder
in due course, the holder takes the note free of which of the following
defenses?
Cobb gave Garson a signed check with the amount payable left blank.
Garson was to fill in, as the amount, the price of fuel oil Garson was to
deliver to Cobb at a later date. Garson estimated the amount at $700,
but told Cobb it would be no more than $900. Garson did not deliver
the fuel oil, but filled in the amount of $1,000 on the check. Garson
then negotiated the check to Josephs in satisfaction of a $500 debt with
the $500 balance paid to Garson in cash. Cobb stopped payment and
Josephs is seeking to collect $1,000 from Cobb. Cobb's maximum
liability to Josephs will be

A maker of a note will have a valid defense against a holder in due
course as a result of any of the following conditions except
from Astor Co. for $1,000. Stone was aware that Helco, Inc., disputed
instrument.The reverse side of the instrument is indorsed as follows:If
Willard Bank demands payment from Helco and Helco refuses to pay
the instrument because of Astor's breach of the computer purchase
agreement, which of the following statements would be correct?
Robb, a minor, executed a promissory note payable to bearer and
delivered it to Dodsen in payment for a stereo system. Dodsen
negotiated the note for value to Mellon by delivery alone and without
indorsement. Mellon indorsed the note in blank and negotiated it to
Bloom for value. Bloom's demand for payment was refused by Robb
because the note was executed when Robb was a minor. Bloom gave
prompt notice of Robb's default to Dodsen and Mellon. None of the
holders of the note were aware of Robb's minority. Which of the
following parties will be liable to Bloom?
Under the Negotiable Instruments Article of the UCC, in a
nonconsumertransaction, which of the following are real defenses
available against a holder in due course?

A seller and buyer enter into an international contract for the sale of
goods involving a large amount of money. They agree to finance the
sale by a letter of credit. Which of the following is correct?
Which of the following statements concerning a letter of credit is
correct?
Under the Documents of Title Article of the UCC, which of the following
statements is(are) correct regarding a common carrier's duty to deliver
goods subject to a negotiable, bearer bill of lading?
Under a nonnegotiable bill of lading, a carrier who accepts goods for
shipment must deliver the goods to
Under the Documents of Title Article of the UCC, a negotiable
document of title is "duly negotiated" when it is negotiated to
Burke stole several negotiable warehouse receipts from Grove Co. The
receipts were deliverable to Grove's order. Burke indorsed Grove's
name and sold the warehouse receipts to Federated Wholesalers, a
bona fide purchaser.In an action by Federated against Grove,

Under the Documents of Title Article of the UCC, which of the following
terms must be contained in a warehouse receipt?
Which of the following statements is correct concerning a bill of lading
in the possession of Major Corp. that was issued by a common carrier
and provides that the goods are to be delivered "to bearer"?
Which of the following statements is correct concerning a common
carrier that issues a bill of lading stating that the goods are to be
delivered "to the order of Ajax"?
Creditor A agreed to loan Debtor D the money for the purchase of
inventory. Debtor D signed a security agreement on October 1. Creditor
A filed a financing statement on the goods on October 2. The inventory
was shipped FOB place of shipment on October 5. When did the
security interest attach?
Under the Secured Transactions Article of the UCC, all of the following
are needed to create enforceable security interest except
Under the Secured Transactions Article of the UCC, which of the
following security agreements does NOT need to be in writing to be
enforceable?

following statements is correct regarding a security interest that has
not attached?
Under the Secured Transactions article of the UCC, when does a
security interest become enforceable?
Under the UCC Secured Transactions Article, which of the following
events will always prevent a security interest from attaching?
Under the UCC Secured Transactions Article, when collateral is in a
secured party's possession, which of the following conditions must also
be satisfied to have attachment?
Under the Secured Transactions Article of the UCC, what secured
transaction document must be signed by the debtor?
following requirements is necessary to have a security interest attach?
Grey Corp. sells computers to the public. Grey sold and delivered a
computer to West on credit. West executed and delivered to Grey a
promissory note for the purchase price and a security agreement

covering the computer. West purchased the computer for personal use.
Grey did not file a financing statement.Is Grey's security interest
perfected?
Which of the following requires a filing for perfection?
Sun, Inc., manufactures and sells household appliances on credit
directly to wholesalers, retailers, and consumers.Sun can perfect its
security interest in the appliances without having to file a financing
statement or take possession of the appliances if the sale is made by
Sun to
Which of the following transactions would illustrate a secured party
perfecting its security interest by taking possession of the collateral?
must be included in the financing statement?
Mars, Inc., manufactures and sells VCRs on credit directly to
wholesalers, retailers, and consumers. Mars can perfect its security
interest in the VCRs it sells without having to file a financing statement
or take possession of the VCRs if the sale is made to

The Smiths are remodeling their kitchen and want to purchase new
appliances: a large refrigerator-freezer, microwave oven, dishwasher,
garbage disposal, and stove-oven. Z Bank has advertised a special
consumer loan rate, and AP Appliances has great discount rates on
appliances. The Smiths can only pay AP Appliances 20% of the purchase
price. AP Appliances' credit rates are higher than Z Bank's consumer
loan rates. The Smiths sign a security agreement putting up the to-be-
purchased listed appliances as security, and Z Bank issues a check for
the balance payable to AP Appliances and the Smiths. Which of the
following statements is correct?
following items can usually be excluded from a filed original financing
statement?
Jones lives in Oklahoma and is the owner of a large number of valuable
antiques. Treasures Delight, located in Arkansas, is a seller of antiques.
Treasures Delight is owned by Sally Delight. Delight offers to purchase
all of the antiques owned by Jones paying 60% of the agreed price and,
by agreement, signs a security agreement for the balance putting up
her entire inventory as security. The security agreement provides for
monthly payments. Which of the following is correct?
Under the UCC Secured Transactions Article, what is the order of
priority for the following security interests in store equipment?

after-acquired property may be attached to a security agreement given
to a secured lender?
On July 8, Ace, a refrigerator wholesaler, purchased 50 refrigerators.
This comprised Ace's entire inventory and was financed under an
agreement with Rome Bank that gave Rome a security interest in all
refrigerators on Ace's premises, all future acquired refrigerators, and
the proceeds of sales. On July 12, Rome filed a financing statement that
adequately identified the collateral. On August 15, Ace sold one
refrigerator to Cray for personal use and four refrigerators to Zone Co.
for its business.Which of the following statements is correct?
Under the UCC Secured Transaction Article, what is the effect of
perfecting a security interest by filing a financing statement?
Vista is a wholesale seller of microwave ovens. Vista sold 50 microwave
ovens to Davis Appliance for $20,000. Davis paid $5,000 down and
signed a promissory note for the balance. Davis also executed a security
agreement giving Vista a security interest in Davis' inventory, including
the ovens. Assuming Vista is a partnership, which of the following
Wine purchased a computer using the proceeds of a loan from MJC
Finance Company. Wine gave MJC a security interest in the computer.
Wine executed a security agreement and financing statement, which
was filed by MJC. Wine used the computer to monitor Wine's personal

investments. Later, Wine sold the computer to Jacobs for Jacobs' family
use. Jacobs was unaware of MJC's security interest. Wine now is in
default under the MJC loan.May MJC repossess the computer from
Jacobs?
Noninventory goods were purchased and delivered on June 15. Several
security interests exist in these goods.Which of the following security
interests has priority over the others?
A debtor purchased an LCD television from Best Buy for $1,000.
BestBuy financed the transaction. With finance charges, the total cost
of the financing is $1,200. After the debtor has paid $600, he defaults
on the payment and BestBuy repossesses the TV. BestBuy has decided
to keep the TV as a floor display model. The debtor believes it would be
best if BestBuy sold the TV.
A debtor is in default. The collateral consists of 100 cows described in
the security agreement. Thirty cows were stolen through no fault of the
debtor. Which of the following statements is correct concerning the
secured party's rights due to the debtor's default?
Under the UCC Secured Transactions Article, if a debtor is in default
under a payment obligation secured by goods, the secured party has
the right to

following remedies is available to a secured creditor when a debtor fails
to make a payment when due?
Drew bought a computer for personal use from Hale Corp. for $3,000.
Drew paid $2,000 in cash and signed a security agreement for the
balance. Hale properly filed the security agreement. Drew defaulted in
paying the balance of the purchase price. Hale asked Drew to pay the
balance. When Drew refused, Hale peacefully repossessed the
computer.Under the UCC Secured Transactions Article, which of the
following remedies will Hale have?
In what order are the following obligations paid after a secured creditor
rightfully sells the debtor's collateral after repossession?
statements is correct concerning the disposition of collateral by a
secured creditor after a debtor's default?
Edwards Corp. lent Lark $200,000. At Edwards' request, Lark entered
into an agreement with Owen and Ward for them to act as
compensated co-sureties on the loan in the amount of $200,000 each.If
Edwards releases Ward without Owen's or Lark's consent, and Lark
later defaults, which of the following statements is correct?
Mane Bank lent Eller $120,000 and received securities valued at
$30,000 as collateral. At Mane's request, Salem and Rey agreed to act

as uncompensated co-securities on the loan. The agreement provided
that Salem's and Rey's maximum liability would be $120,000 each.
Mane released Rey without Salem's consent. Eller later defaulted when
the collateral held by Mane was worthless and the loan balance was
$90,000.Salem's maximum liability is
Lane accepted the commitments of the sureties and made the loan to
Turner. After paying ten installments totaling $100,000, Turner
defaulted. Clark's debts, including the surety obligation to Lane on the
Turner loan, were discharged in bankruptcy. Later, Rivers properly paid
the entire outstanding debt of $140,000.What amount may Rivers
recover from Zane?
Which of the following rights does one cosurety generally have against
another cosurety?
Sorus and Ace have agreed, in writing, to act as guarantors of collection
on a debt owed by Pepper to Towns, Inc. The debt is evidenced by a
promissory note.If Pepper defaults, Towns will be entitled to recover
from Sorus and Ace unless
Ivor borrowed $420,000 from Lear Bank. At Lear's request, Ivor entered
into an agreement with Ash, Kane, and Queen for them to act as co-
sureties on the loan. The agreement between Ivor and the co-sureties
provided that the maximum liability of each co-surety was: Ash,
$84,000; Kane, $126,000; and Queen, $210,000. After making several
payments, Ivor defaulted on the loan. The balance was $280,000.If

Queen pays $210,000 and Ivor subsequently pays $70,000, what
amounts may Queen recover from Ash and Kane?
Camp orally guaranteed payment of a loan Camp's cousin Wilcox had
obtained from Camp's friend Main. The loan was to be repaid in 10
monthly payments. After making 6 payments, Wilcox defaulted on the
loan and Main demanded that Camp honor the guarantee. Regarding
Camp's liability to Main, Camp is
Nash, Owen, and Polk are co-sureties with maximum liabilities of
$40,000, $60,000, and $80,000, respectively. The amount of the loan on
which they have agreed to act as co-sureties is $180,000. The debtor
defaulted at a time when the loan balance was $180,000. Nash paid the
lender $36,000 in full settlement of all claims against Nash, Owen, and
Polk.The total amount that Nash may recover from Owen and Polk is
A party contracts to act as a surety for the collection of the debts of
another. As a result of the suretyship agreement, which of the following
Wright cosigned King's loan from Ace Bank. Which of the following
events would release Wright from the obligation to pay the loan?
State refused to renew the loan unless Green provided an acceptable
surety. Green asked Royal, a friend, to act as surety on the loan. To

induce Royal to agree to become a surety, Green fraudulently
represented Green's financial condition and promised Royal discounts
on merchandise sold at Green's store. Royal agreed to act as surety and
the loan was renewed. Later, Green's obligation to State was
discharged in Green's bankruptcy. State wants to hold Royal liable.
A distinction between a surety and a co-surety is that only a co-surety is
entitled to
Which of the following acts will always result in the total release of a
compensated surety?
Which of the following defenses would a surety be able to assert
successfully to limit the surety's liability to a creditor?
Ingot Corp. lent Flange $50,000. At Ingot's request, Flange entered into
an agreement with Quill and West for them to act as compensated co-
sureties on the loan in the amount of $100,000 each. Ingot released
West without Quill's or Flange's consent, and Flange later defaulted on
the loan.Which of the following statements is correct?
Which of the following rights does a surety have?

Batch Department store sold a refrigerator to Conrad for his home.
Conrad agreed to installment payments and Batch had him sign a
security agreement. Batch did not file a financing statement. After
having the refrigerator in his home for a time, Conrad quit making
payments and sold it to Backus for use in her home. Backus was
unaware that Conrad still owed Batch for the refrigerator. Batch is now
seeking to get paid for the balance owed or to repossess the
refrigerator. Which of the following statements is correct?
Under the Secured Transactions Article of the UCC, a secured party
generally must comply with each of the following duties except:
Acorn Marina, Inc. sells and services boat motors. On April 1, Acorn
financed the purchase of its entire inventory with GAC Finance
Company. GAC required Acorn to execute a security agreement and
financing statement covering the inventory and proceeds of sale. On
April 14, GAC properly filed the financing statement pursuant to the
UCC Secured Transactions Article. On April 27, Acorn sold one of the
motors to Wilks for use in his charter business. Wilks, who had once
worked for Acorn, knew that Acorn regularly financed its inventory with
GAC. Acorn has defaulted on its obligations to GAC. The motor
purchased by Wilks is
Under certain conditions, perfection of a security interest is
accomplished by completing attachment with no further steps
required. Which of the following qualify?

Hoover is a holder in due course of a check which was originally payable
to the order of Nelson or bearer and has the following endorsements
on its back:
Which of the following statements about the check is correct?
following statements is(are) correct regarding the requirements for an
instrument to be negotiable?
following defenses generally may be used against all holders of
negotiable instruments?
On November 10, Cutter, a dealer, purchased 100 lawnmowers. This
comprised Cutter’s entire inventory and was financed under an
agreement with Town Bank which gave the bank a security interest in
all lawnmowers on the premises, all future acquired lawnmowers, and
the proceeds of sales. On November 15, Town Bank filed a financing
statement that adequately identified the collateral. On December 20,
Cutter sold one lawnmower to Wills for family use and five
lawnmowers to Black for its gardening business. Which of the following
is correct?

Cara Fabricating Co. and Taso Corp. agreed orally that Taso would
custom manufacture a compressor for Cara at a price of $120,000.
After Taso completed the work at a cost of $90,000, Cara notified Taso
that the compressor was no longer needed. Taso is holding the
compressor and has requested payment from Cara. Taso has been
unable to resell the compressor for any price. Taso incurred storage
fees of $2,000.If Cara refuses to pay Taso and Taso sues Cara, the most
Taso will be entitled to recover is
On February 15, Mazur Corp. contracted to sell 1,000 bushels of wheat
to Good Bread, Inc., at $6.00 per bushel with delivery to be made on
June 23. On June 1, Good advised Mazur that it would not accept or pay
for the wheat. On June 2, Mazur sold the wheat to another customer at
the market price of $5.00 per bushel. Mazur had advised Good that it
intended to resell the wheat.Which of the following statements is
correct?
Under the UCC Sales Article, which of the following legal remedies
would a buyer not have when a seller fails to transfer and deliver goods
identified to the contract?
Gray Fabricating Co. and Pine Corp. agreed orally that Pine would
custom manufacture a processor for Gray at a price of $80,000.After
Pine completed the work at a cost of $60,000, Gray notified Pine that
the processor was no longer needed. Pine is holding the processor and
has requested payment from Gray. Pine has been unable to resell the
processor for any price. Pine incurred storage fees of $1,000.If Gray

refuses to pay Pine and Pine sues Gray, the most Pine will be entitled to
recover is
In an action for breach of contract, the statute of limitations time
period would be computed from the date of the
Under the Sales Article of the UCC, which of the following rights is
available to a seller when a buyer materially breaches a sales contract?
Under the Sales Article of the UCC, which of the following statements
regarding liquidated damages is(are) correct?
Eagle Corporation solicited bids for various parts it uses in the
manufacture of jet engines. Eagle received six offers and selected the
offer of Sky Corporation. The written contract specified a price for
100,000 units, delivery on June 1 at Sky's plant, with payment on July 1,
Sky refused to deliver claiming the contract price was too low. Eagle
was unable to cover in a reasonable time. Its production lines were in
danger of shutdown because the parts were not delivered.
==============================================

22.2, 22.5, 25.1, 25.2, 25.5)
22.1 Note
22.2 Negotiable Instrument
22.5 Order to Pay
25.1 Cashier’s Check
25.2 Overdraft
==============================================
ACC 543 Week 4 Team Assignment (26.1, 26.2, 26.3,
26.7, 27.1, 27.2, 27.4, 27.5, 27.7)

26.1 Mechanic’s Lien Ironwood Exploration, Inc.
26.2 Foreclosure Atlantic Ocean Kampgrounds, Inc.
26.3 Redemption
26.5 Consumer Leasing Joyce
26.7 Fair Debt Collection Stanley
27.1 Financing Statement C&H Trucking, Inc.
27.2 Priority of Security Agreements World Wide Tracers, Inc
27.4 Priority of Security Interests
27.5 Purchase Money Security Interest Prior Brothers, Inc
27.7 Buyer in the Ordinary Course of Business
26.1 Mechanic’s Lien Ironwood Exploration, Inc.
(Ironwood) owned a lease on oil and gas property located in Duchesne
County, Utah. Ironwood contracted to have Lantz Drilling and
Exploration Company, Inc. (Lantz), drill an oil well on the property.

Thereafter, Lantz rented equipment from Graco Fishing and Rental
Tools, Inc. (Graco), for use in drilling the well. Graco billed Lantz for
these rentals, but Lantz did not pay. Graco filed a notice of a mechanic’s
lien on the well in the amount of $19,766. Ironwood, which had paid
Lantz, refused to pay Graco. Graco sued to foreclose on its mechanic’s
lien. Who wins?
Graco Fishing and Rental Tools, Inc. v. Ironwood Exploration, Inc., 766
P.2d 1074, 98 Utah Adv. Rep. 28, Web 1988 Utah Lexis 125 (Supreme
Court of Utah)
26.2 Foreclosure Atlantic Ocean Kampgrounds, Inc. (Atlantic) borrowed
$60,000 from Camden National Bank (Camden National) and executed
a note and mortgage on property located in Camden, Maine, securing
that amount. Maine permits strict foreclosure. Atlantic defaulted on
the loan, and Camden commenced strict foreclosure proceedings
pursuant to state law. After the one-year period of redemption,
Camden National sold the property to a third party in an amount in
excess of the mortgage and costs of the foreclosure proceeding.
Atlantic sued to recover the surplus from Camden National. Who
wins? Atlantic Ocean Kampgrounds, Inc. v. Camden National Bank, 473
A.2d 884, Web 1984 Me. Lexis 666 (Supreme Judicial Court of Maine)
26.3 Redemption

Elmer and Arletta Hans, husband and wife, owned a parcel of real
property in Illinois. They borrowed $100,000 from First Illinois National
Bank (First Illinois) and executed a note and mortgage to First Illinois,
making the real estate security for the loan. The security agreement
authorized First Illinois to take possession of the property upon the
occurrence of a default and required the Hanses to execute a quitclaim
deed in favor of First Illinois. The state of Illinois recognizes the doctrine
of redemption. When the Hanses defaulted on the loan, First Illinois
filed a lawsuit, seeking an order requiring the Hanses to immediately
execute a quitclaim deed to the property. Must the Hanses execute the
quitclaim deed before the foreclosure sale? First Illinois National Bank
v. Hans, 143 Ill. App.3d 1033, 493 N.E.2d 1171, Web 1986 Ill. App. Lexis
2287 (Appellate Court of Illinois)
26.5 Consumer Leasing Joyce Givens entered into a rental agreement
with Rent-A-Center, Inc. (Rent-A-Center), whereby she rented a bar and
an entertainment center. The agreement provided that she must pay in
advance to keep the furniture for periods of one week or one month.
Givens could terminate the agreement at any time by making
arrangements for the furniture’s return. Givens made payments for
four months. After that, she failed to make any further payments but
continued to posses the property. When Rent-A-Center became aware
that Givens had moved and taken the furniture with her, in violation of
the rental agreement, it filed a criminal complaint against her.
Thereafter, Givens agreed to return the furniture, and Rent-A-Center
dropped the charges. After Rent-A-Center recovered the furniture,
Givens sued the company, claiming that the agreement she had signed
violated the Consumer Leasing Act. Who wins? Givens v. Rent-A-Center,

Inc., 720 F.Supp. 160, Web 1988 U.S. Dist. Lexis 16039 (United States
District Court for the Southern District of Alabama)
26.7 Fair Debt Collection Stanley M. Juras was a student at Montana
State University (MSU). During his four years at MSU, Juras took out
several student loans from the school under the National Direct
Student Loan program. By the time Juras left MSU, he owed the school
more than $5,000. Juras defaulted on these loans, and MSU assigned
the debt to Aman Collection Services, Inc. (Aman), for purposes of
collection. Aman obtained a judgment against Juras in a Montana state
court for $5,015 on the debt and $1,920 in interest and attorneys’ fees.
Juras, who at the time lived in California, still refused to pay these
amounts. Subsequently, a vice president of Aman, Mr. Gloss,
telephoned Juras twice in California before 8:00 A.M. Pacific Standard
Time. Gloss told Juras that if he did not pay the debt, he would not
receive a college transcript. Juras sued Aman, claiming that the
telephone calls violated the Fair Debt Collection Practices Act. Gloss
testified at trial that he made the calls before 8:00 A.M. because he had
forgotten the difference in time zones between California and Aman’s
offices in South Dakota. Who wins? Juras v. Aman Collection Services,
Inc., 829 F.2d 739, Web 1987 U.S. App. Lexis 12888 (United States Court
of Appeals for the Ninth Circuit)

27.1 Financing Statement C&H Trucking, Inc. (C&H), borrowed
$19,747.56 from S&D Petroleum Company, Inc. (S&D). S&D hired
Clifton M. Tamsett to prepare a security agreement naming C&H as the
debtor and giving S&D a security interest in a new Mack truck. The
security agreement prepared by Tamsett declared that the collateral
also secured:
any other indebtedness or liability of the debtor to the secured party
direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, including all future advances or loans
which may be made at the option of the secured party.
Tamsett failed to file a financing statement or the executed agreement
with the appropriate government office. C&H subsequently paid off the
original debt, and S&D continued to extend new credit to C&H. Two
years later, when C&H owed S&D more than $17,000, S&D learned that
(1) C&H was insolvent, (2) the Mack truck had been sold, and (3)
Tamsett had failed to file the security agreement. Does S&D have a
security interest in the Mack truck? Is Tamsett liable to S&D? S&D
Petroleum Company, Inc. v. Tamsett, 144 A.D.2d 849, 534 N.Y.S.2d
800, Web 1988 N.Y.App. Div. Lexis 11258 (Supreme Court of New York)
27.2 Priority of Security Agreements World Wide Tracers, Inc. (World
Wide), sold certain of its assets and properties, including equipment,
furniture, uniforms, accounts receivable, and contract rights, to
Metropolitan Protection, Inc. (Metropolitan). To secure payment of the
purchase price, Metropolitan executed a security agreement and
financing statement in favor of World Wide. The agreement, which was
filed with the Minnesota secretary of state, stated that “all of the
property listed on Exhibit A (equipment, furniture, and fixtures)

together with any property of the debtor acquired after” the
agreement was executed was collateral.
One and one-half years later, State Bank (Bank) loaned money to
Metropolitan, which executed a security agreement and financing
statement in favor of Bank. Bank filed the financing statement with the
Minnesota secretary of state’s office one month later. The financing
statement contained the following language describing the collateral:
“All accounts receivable and contract rights owned or hereafter
acquired. All equipment now owned and hereafter acquired, including
but not limited to, office furniture and uniforms.”
When Metropolitan defaulted on its agreement with World Wide six
months later, World Wide brought suit, asserting its alleged security
agreement in Metropolitan’s accounts receivable. Bank filed a
counterclaim, asserting its perfected security interest in Metropolitan’s
accounts receivable. Who wins? World Wide Tracers, Inc. v.
Metropolitan
27.4 Priority of Security Interests Paul High purchased various items of
personal property and livestock from William and Marilyn McGowen.
To secure the purchase price, High granted the Mc-Gowens a security
interest in the personal property and livestock. Two and one-half
months later, High borrowed $86,695 from Nebraska State Bank (Bank)
and signed a promissory note, granting Bank a security interest in all his
farm products, including but not limited to all his livestock. Bank
immediately perfected its security agreement by filing a financing
statement with the county clerk in Dakota County, Nebraska. The
McGowens perfected their security interest by filing a financing
statement and security agreement with the county clerk three months
after the Bank filed its financing statement. Three years later, High
defaulted on the obligations owed to the McGowens and Bank. Whose
security interest has priority? McGowen v. Nebraska State Bank, 229

Neb. 471, 427 N.W.2d 772, Web 1988 Neb. Lexis 290 (Supreme Court of
Nebraska)
27.5 Purchase Money Security Interest Prior Brothers, Inc. (PBI) began
financing its farming operations through Bank of California, N.A. (Bank).
Bank’s loans were secured by PBI’s equipment and after-acquired
property. Bank immediately filed a financing statement, perfecting its
security interest. Two years later, PBI contacted the International
Harvester dealership in Sunny-side, Washington, about the purchase of
a new tractor. A retail installment contract for a model 1066
International Harvester tractor was executed. PBI took delivery of the
tractor “on approval,” agreeing that if it decided to purchase the
tractor, it would inform the dealership of its intention and would send a
$6,000 down payment. The dealership received a $6,000 check. The
dealership immediately filed a financing statement concerning the
tractor. Subsequently, when PBI went into receivership, the dealership
filed a complaint, asking the court to declare that its purchase money
security interest in the tractor had priority over Bank’s security interest.
Does it? In the Matter of Prior Brothers, Inc., 29 Wn.App. 905, 632 P.2d
522, Web 1981 Wash.App. Lexis 2507 (Court of Appeals of Washington)
27.7 Buyer in the Ordinary Course of Business Heritage Ford Lincoln
Mercury, Inc. (Heritage) was in the business of selling new cars.
Heritage entered into an agreement with Ford Motor Credit Company
(Ford), whereby Ford extended a continuing line of credit to Heritage to
purchase vehicles. Heritage granted Ford a purchase money security
interest in all motor vehicles it owned and thereafter acquired and in all
proceeds from the sale of such motor vehicles. Ford immediately filed
its financing statement with the secretary of state. When the dealership
experienced financial trouble, two Heritage officers decided to double
finance certain new cars by issuing dealer papers to themselves and
obtaining financing for two new cars from First National Bank & Trust
Company of El Dorado (Bank). The loan proceeds were deposited in the

dealership’s account to help with its financial difficulties. The cars were
available for sale. When the dealership closed its doors and turned over
the car inventory to Ford, Bank alleged that it had priority over Ford
because the Heritage officers were buyers in the ordinary course of
business. Who wins? First National Bank and Trust Company of El
Dorado v. Ford Motor Credit Company, 231 Kan. 431, 646 P.2d
1057, Web 1982 Kan. Lexis 280 (Supreme Court of Kansas)
==============================================
Which of the following deeds will give a real property purchaser the
greatest protection?
Which of the following factors help determine whether an item of
personal property has become a fixture?
Sklar, Rich, and Cey own a building as joint tenants with the right of
survivorship. Sklar gave Sklar's interest in the building to Marsh by

executing and delivering a deed to Marsh. Neither Rich nor Cey
consented to this transfer. Rich and Cey subsequently died. After their
deaths, Marsh's interest in the building would consist of
Rich purchased property from Sklar for $200,000. Rich obtained a
$150,000 loan from Marsh Bank to finance the purchase, executing a
promissory note and a mortgage. By recording the mortgage, Marsh
protects its
On August 15, 1994, Tower, Nolan, and Oak were deeded a piece of
land as tenants in common. The deed provided that Tower owned 1/2
the property and Nolan and Oak owned 1/4 each. If Oak dies, the
property will be owned as follows:
A purchaser who obtains real estate title insurance will
Which of the following is a defect in marketable title to real property?
Which of the following interests in land conveys the greatest ownership
rights?
Which of the following provisions must be included in a residential
lease agreement?

Which of the following elements must be contained in a valid deed?
Which of the following can enforce the anti-trust laws?
A small computer software firm wishes to sue Microsoft for
monopolizing its market. What must the firm establish in order to win
the case?
What are examples of non-price predation that might be relevant in an
intent-to-monopolize case?
Which of the following are defenses to a Robinson-Patman Act price-
discrimination charge?
Which of the following is (are) true?
Carlos writes a novel about an accountant that is published on January
1, 2010. Carlos files his novel with the U.S. copyright office on January
1, 2015. Carlos dies on January 1, 2020. Carlos' family wishes to know
when the copyright will expire. It will expire immediately before:

The Accounting Syndicate Publishing Co. (ASPC) wants an accounting
textbook on IFRS for the university market. It hires Ed, a retired college
professor, to write the book, on the understanding that the copyright
would belong to ASPC. Ed finishes the book on January 1, 2010. ASPC is
unenthusiastic about the book and does not publish it until January 1,
2018. Meanwhile, Ed has died on January 1, 2011. When does ASPC's
copyright expire?
Tim is a songwriter. One morning, he is sitting in a coffee shop,
whistling some notes that he thinks might ultimately become part of a
song he was working on. He forgot about the notes, until he heard
them on the radio one day as part of a song written and recorded by
Julie. It turns out Julie had been in the coffee shop that day and really
liked what Tim was whistling. Tim sues Julie for copyright infringement.
What will happen?
Lanny files for a utility patent on January 1, 2011. The patent is granted
on January 1, 2015. The patent will expire just before January 1:
Sam patents a "rat zapper," a shoe-box-sized device that uses bait to
lure in a rat and then kills it with an electrical charge. Lon files a patent
application for a "gopher zapper," a slightly bigger device that uses bait
to lure in a gopher and then kills it with an electrical charge. What is
true regarding Lon's application?
A long-lost relative of Albert Einstein's recently filed for a patent for
Einstein's famous formula, E = MC2. Which of the following is true?

Money-laundering statutes forbid which of the following:
The Masonne company engages in the following activities. Which is
(are) an example of illicit money-laundering activity?
S, a CPA, conspires with P and others to file false individual federal
income-tax returns for P's mistress, Pam. These returns generate
$800,000 in undeserved tax refunds and Pam gives most of the money
to P. S, P, and others then prepared a $4.5mn loan application on Pam's
behalf to improve a 30,000-square-foot home. Pam receives $4.5mn
from one bank and $1.5mn from a second bank. She transfers the
money to P. P and S transfer more than $1mn back to Pam by disguising
the payments as payroll checks, rental payments and other
miscellaneous payments. Then P and his wife refinance the same
property and received a $12mn loan, which is used to pay off Pam's
obligations to the banks. Which of the following is true?
Green and Nunn own a 40-acre parcel of land as joint tenants with the
right of survivorship. Nunn wishes to sell the land to Ink. If Nunn alone
executes and delivers a deed to Ink, what will be the result?
Which of the following statements pertaining to a mortgage on a
building is incorrect?

Eddy Sun created a new solar power light bulb that was substantially
less expensive than any other light bulbs in the marketplace. As a result
of the low cost of the bulb and the low cost to use the bulb, Sun's bulb
soon gained 80% of the light bulb market. Sun's market share was a
direct result of consumers simply demanding Sun's light bulb because it
was the most cost efficient bulb available. Nevertheless, one of Sun's
competitors has sued Sun for engaging in monopolization, a violation of
Section 2 of the Sherman Act. What is the likely outcome of the
lawsuit?
Crudweiser Inc. and Borona Ltd. are two companies that produce beer.
Crudweiser wants to acquire Borona through a merger. The merger:
Brush is a professor of accounting at a large university. He wishes to
hand out copies of a two-page article that can be found both in a book
in the library and through some software purchased by the university.
Both are copyrighted. Which of the following is(are) correct?
Datam Corporation purchased some software for use in its business
from Softcompute Company. Softcompute claims that the software has
been legally copyrighted. Which of the following is correct?
Lanny files for a utility patent on January 1, 2011. The patent is granted
on January 1, 2015. The patent will expire just before January 1:

==============================================
47.3, 47.6, 50.1, 50.6, 50.7, 45.2, 45.5, 45.6, 45.7)
47.2 Mislaid
47.3 Bailment
47.6 Abandoned Property
50.1 Exclusion from Insurance
50.6 Malpractice Insurance
50.7 Duty to Defend
45.2 Clean Air Act
45.5 Hazardous Waste
45.6 Nuclear Waste

45.7 Endangered Species
47.2 Mislaid Property Alex Franks was a guest staying at a Comfort Inn
in Searcy, Arkansas, while he was working on a highway project. Franks
found a bundle of money in plain view in the left part of the left drawer
in the dresser in his room. Franks notified the hotel manager, who
notified the police. The police took custody of the money and
discovered that the carefully wrapped bundle contained $14,200 in
cash—46 $100 bills and 480 $20 bills. Franks sued to recover the cash.
J.K. Kazi, the owner of the hotel, joined the lawsuit, also claiming the
money. Franks argued that the money was lost property and therefore
he, as the finder, was entitled to the money. Kazi argued that the
money was mislaid property and that he, as the owner of the premises
on which the money was found, was entitled to the money. The trial
court held that the money had been mis-laid and awarded the money
to Kazi, the hotel owner. Franks appealed. Was the money mislaid or
lost property? Who receives the property? Franks v. Kazi, 88 Ark.App.
243, 197 S.W.3d 5, Web 2004 Ark. App. Lexis 771 (Court of Appeals of
Arkansas)
47.3 Bailment The Sisters of Charity of the Incarnate Word, d.b.a. St.
Elizabeth Hospital of Beaumont, operates a health and wellness center.
Phil Meaux was a paying member of the health center. The rules of the
center, which Meaux had been given, state, “The Health & Wellness
Center is not responsible for lost or stolen items.” A sign stating, “We
cannot assure the safety of your valuables” was posted at the check-in
desk. The wellness center furnished a lock and key to each member but
had a master key to open lockers in case a member forgot or lost his or
her key.
One day, Meaux went to the wellness center and placed his clothes, an
expensive Rolex watch, and a money clip with $400 cash in the locker
assigned him. Upon returning from swimming, Meaux discovered that

his locker had been pried open, and his watch and money had been
stolen by some unknown person. Meaux sued the Sisters of Charity,
alleging that a bailment had been created between him and the Sisters
and that the Sisters, as bailee, were negligent and therefore liable to
him for the value of his stolen property. The trial court held in favor of
Meaux and awarded him $19,500 as the value of the stolen property,
plus interest and attorneys’ fees. The Sisters of Charity appealed. Was a
bailment created between Meaux and the Sisters of Charity? Who
wins? Sisters of Charity of the Incarnate Word v. Meaux, 122 S.W.3d
428, Web 2003 Tex. App. Lexis 10189 (Court of Appeals of Texas)
47.6 Abandoned Property Police officers of the city of Miami, Florida,
responded to reports of a shooting at the apartment of Carlos Fuentes.
Fuentes had been shot in the neck and shoulder, and shortly after the
police arrived, he was removed to a hospital. In an ensuing search of
the apartment, the police found assorted drug paraphernalia, a gun,
and cash in the amount of $58,591. The property was seized, taken to
the police station, and placed in custody. About nine days later, the
police learned that Fuentes had been discharged from the hospital. All
efforts by police to locate Fuentes and his girlfriend, a co-occupant of
Fuentes’s apartment, were unsuccessful. Neither Fuentes nor his
girlfriend ever came forward to claim any of the items taken by the
police from his apartment. About four years later, James W. Green and
Walter J. Vogel, the owners of the apartment building in which Fuentes
was a tenant, sued the city of Miami to recover the cash found in
Fuentes’s apartment. The state of Florida intervened in the case, also
claiming an interest in the money. Who wins? State of Florida v. Green,
456 So.2d 1309, Web 1984 Fla.App. Lexis 15340 (Court of Appeal of
Florida)
50.1 Exclusion from Insurance Policy Richard Usher’s home was
protected by a homeowners’ policy issued by National American
Insurance Company of California. The policy included personal liability

insurance. A provision in the policy read: “Personal liability and
coverage do not apply to bodily injury or property damage arising out
of the ownership, maintenance, use, loading, or unloading of a motor
vehicle owned or operated by, or rented or loaned to any insured.”
Usher parked a Chevrolet van he owned in his driveway. He left the
van’s side door open while he loaded the van in preparation for a
camping trip. While Usher was inside his house, several children,
including 2-year-old Graham Coburn, began playing near the van. One
of the children climbed into the driver’s seat and moved the shift lever
from park to reverse. The van rolled backward, crushing Coburn and
killing him. Coburn’s parents sued Usher for negligence. Is the accident
covered by Usher’s homeowners’ policy? National American Insurance
Company of California v. Coburn, 209 Cal. App.3d 914, 257 Cal.Rptr.
591, Web 1989 Cal.App. Lexis 356 (Court of Appeal of California)
50.6 Malpractice Insurance Donald Barker, a wealthy Oregon resident,
went to the law firm Winokur, Schoenberg, Maier, Hamerman&
Knudson to have his estate planned. An attorney at the firm repeatedly
told Barker that he could convey half of his $20-million estate to his
wife tax free under Oregon’s marital deduction. Barker had his will
drawn based on the law firm’s advice. It was not until after Barker died
three years later that Barker’s family learned that Oregon does not
recognize the marital deduction. As a result, the will’s beneficiaries
were subject to significant estate taxes. The beneficiaries sued the law
firm for negligence, and the case was settled for $2 million. At the time
Barker was being advised by the law firm, it had a professional
malpractice insurance policy with the Travelers Insurance Company
(Travelers) that covered “all sums which the insured shall become
legally obligated to pay as damages because of any act or omission of
the insured arising out of the performance of professional services for
others in the insured’s capacity as a lawyer.” The policy expired one
year prior to Barker’s death. Is Travelers liable for the $2 million
settlement? Travelers Insurance Company v. National Union Fire

Insurance Company of Pittsburgh, 207 Cal. App.3d 1390, 255 Cal.Rptr.
727, Web 1989 Cal.App. Lexis 130 (Court of Appeal of California)
50.7 Duty to Defend When Michael A. Jaffe, a child psychiatrist
practicing in California, was accused of Medi–Cal fraud and theft, he
requested that his malpractice insurer, Cranford Insurance Company
(Cranford), provide his criminal defense. Cranford refused to defend
Jaffe, citing the terms of Jaffe’s malpractice insurance policy. The policy
describes the insured risk as “psychiatrist’s professional liability in
respect of insured’s practice of psychiatry.” Another clause of the policy
states that Cranford “agrees to pay such damages as may be awarded
in respect of professional services rendered by Jaffe, or which should
have been rendered by him, resulting from any claims or suits based
solely upon malpractice, error, or mistake.” After Cranford refused to
defend him, Jaffe hired his own criminal defense lawyer. The case went
to trial, and Jaffe was found innocent of all charges. After his acquittal,
Jaffe demanded that Cranford reimburse him for the expenses incurred
during trial. When Cranford refused this request, Jaffe sued. Who
wins? Jaffe v. Cranford Insurance Company, 168 Cal.App.3d 930, 214
Cal.Rptr. 567, Web 1985 Cal.App. Lexis 2153 (Court of Appeal of
California)
45.2 Clean Air Act Pilot Petroleum Associates, Inc., and various affiliated
companies distributed gasoline to retail gasoline stations in the state of
New York. Pilot owned some of these stations and leased them to
individual operators who were under contract to purchase gasoline
from Pilot. The EPA took samples of gasoline from five different service
stations to which Pilot had sold unleaded gasoline. These samples
showed that Pilot had delivered “unleaded gasoline that contained
amounts of lead in excess of that permitted by the Clean Air Act and
EPA regulations.” The United States brought criminal charges against
Pilot for violating the act and EPA regulations and sought fines from
Pilot. Who wins? United States v. Pilot Petroleum Associates, Inc., 712

F.Supp. 1077, Web 1989 U.S. Dist. Lexis 6119 (United States District
Court for the Eastern District of New York)
45.5 Hazardous Waste Douglas Hoflin was the director of the Public
Works Department for Ocean Shores, Washington. During a period of
seven years, the department purchased 3,500 gallons of paint for road
maintenance. As painting jobs were finished, the 55-gallon drums that
had contained the paint were returned to the department’s yard. Paint
contains hazardous substances such as lead. When fourteen of the
drums were discovered to still contain unused paint, Hoflin instructed
employees to haul the paint drums to the city’s sewage treatment plant
and bury them. The employees dug a hole on the grounds of the
treatment plant and dumped in the drums. Some of the drums were
rusted and leaking. The hole was not deep enough, so the employees
crushed the drums with a front-end loader to make them fit. The refuse
was then covered with sand. Almost two years later, one of the city’s
employees reported the incident to state authorities, who referred the
matter to the EPA. Investigation showed that the paint had
contaminated the soil. The United States brought criminal charges
against Hoflin for aiding and abetting the illegal dumping of hazardous
waste. Who wins? United States v. Hoflin, 880 F.2d 1033, Web 1989
U.S. App. Lexis 10169 (United States Court of Appeals for the Ninth
Circuit)
45.6 Nuclear Waste Metropolitan Edison Company owned and
operated two nuclear-fueled power plants at Three Mile Island near
Harrisburg, Pennsylvania. Both power plants were licensed by the NRC
after extensive proceedings and investigations, including the
preparation of the required environmental impact statements. When
one of the power plants was shut down for refueling, the other plant
suffered a serious accident that damaged the reactor. The governor of
Pennsylvania recommended an evacuation of all pregnant women and

small children, and many area residents did leave their homes for
several days. As it turned out, no dangerous radiation was released.
People Against Nuclear Energy (PANE), an association of area residents
who opposed further operation of the nuclear power plants at Three
Mile Island, sued to enjoin the plants from reopening. They argued that
the reopening of the plants would cause severe psychological health
damage to persons living in the vicinity and serious damage to the
stability and cohesiveness of the community. Are these reasons
sufficient to prevent the reopening of the nuclear power
plants? Metropolitan Edison Company v. People Against Nuclear
Energy, 460 U.S. 766, 103 S.Ct. 1556, 75 L.Ed.2d 534, Web 1983 U.S.
Lexis 21 (Supreme Court of the United States)
45.7 Endangered Species The red-cockaded woodpecker is a small bird
that lives almost exclusively in old pine forests throughout the southern
United States. Its survival depends on a very specialized habitat of pine
trees that are at least thirty, if not sixty, years old, in which they build
nests and forage for insects. The population of this bird decreased
substantially as pine forests were destroyed by clear-cutting. The U.S.
secretary of the interior has named the red-cockaded woodpecker an
endangered species. The U.S. Forest Service manages federal forests
and is charged with duties to provide recreation, protect wildlife, and
provide timber. To accomplish the charge of providing timber, the
Forest Service often leases national forest lands to private companies
for lumbering. When the Forest Service proposed to lease several
national forests in Texas, where the red-cockaded woodpecker lives, to
private companies for lumbering, the Sierra Club, an environmental
organization, sued. The Sierra Club sought to enjoin the Forest Service
from leasing these national forests for lumbering. Who wins? Sierra
Club v. Lyng, Secretary of Agriculture, 694 F.Supp. 1260, Web 1988 U.S.
Dist. Lexis 9203 (United States District Court for the Eastern District of
Texas)

==============================================
ACC 543 Week 5 Team Aspects of Employment and
Environment Paper and PowerPointRiver Rafting
Locations
Aspects of Employment and Environment Paper and PowerPoint You
are an accountant at a small accounting firm. One of your clients is
looking to open a small river-rafting business. Your client will run the
business operations from a mobile home office on a piece of land on
the riverbank. Your client must decide the best location to start this
business and has asked you to explain the accounting advantages of
choosing the best location. Your client is also wondering if the business
should build a permanent structure on the land, or use the mobile
home they already own. Additionally, your client wants to know the
insurance implications of this decision. How would the insurance
implications of the location decision change the company’s risks and
how might your client use insurance to better manage those risks? As a
team, conduct research on three locations and select a location that
your client will use to start this business. The locations should be in
states where your at least one of your team members lives Address the
following for each location, based on research of the three sites located
in three states: Evaluate the legal aspects of acquiring, holding, and
disposing of real property. Evaluate the legal aspects of acquiring,

holding, and disposing of personal property. Analyze the business use
of insurance for various risks. Identify environmental issues and
regulations related to the site. Discuss which location you will suggest
to your client to run the business from, and why this location is
advantageous relative to your discussion of real and personal property
and the use of insurance. Submit a paper of no more than 1,400 words
with your research results and recommendations for the client. Create
a 10- to 15-slide Microsoft® PowerPoint® presentation for the client
==============================================
ACC 543 Week 5 Team Project Analysis Sales Projection
(Hillside Furniture Company) (New Syllabus)
Hillside Furniture Company makes outdoor furniture from recycled
products, including plastics and wood by-products. Its three furniture
products are gliders, chairs with footstools, and tables. The products
appeal primarily to cost-conscious consumers and those who value the
recycling of materials. The company wholesales its products to retailers
and various mass merchandisers. Because of the seasonal nature of the
products, most orders are manufactured during the winter months for
delivery in the early spring. Michael Cain, founder and owner, is
dismayed that sales for two of the products are tracking below budget.

The following chart (in the Team Assignment 2 worksheet) shows
pertinent year-to-date data regarding the company's products.
Certain that the shortfall was caused by a lack of effort by the sales
force, Michael has suggested to Lisa Boyle, the sales manager, that the
company announce two contests to correct this situation before it
deteriorates. The first contest is a trip to Hawaii awarded to the top
salesperson if incremental glider sales are attained to close the budget
shortfall. The second contest is a golf weekend, complete with a new
set of golf clubs, awarded to the top salesperson if incremental sales of
chairs with footstools are attained to close the budget shortfall. The
Hawaiian vacation would cost $16,500 and the golf trip would cost
$12,500.
Explain whether either contest is desirable or not. Supplement your
analysis by determining the total contribution margin for Gliders and
for Table-and-Chair sets under each of the following assumptions:
actual sales volume at actual selling price, actual resource usage, and
actual costs; and, actual sales volume at budgeted selling prices,
budgeted resource usage, and budgeted costs.
Explain the strategic issues guiding your choice about these contests
Explain whether either contest is desirable or not.

Supplement your analysis by determining the total contribution margin
for Gliders and for Table-and-Chair sets under each of the following
assumptions:
2 - actual sales volume at actual selling price
3 - actual resource usage, and actual costs;
4 - actual sales volume at budgeted selling prices, budgeted resource
usage, and budgeted costs.
==============================================
29.2, 29.4, 30.4,31.1, 31.3, 31.6, 33.3, 33.5, 33.6, 51.1,
51.2, 51.3, 51.4, 51.5 51.6)
29.1 Creation of an Agency
29.2 Independent Contractor

29.4 Apparent Agency
30.4 Independent Contractor
31.1 Workers’ Compensation
31.3 Occupational Safety
31.6 Unemployment Benefits
33.3 Sex Discrimination
33.5 National Origin Discrimination
33.6 Religious Discrimination
51.1 Audit Opinion
51.2 Auditor’s Liability to Third Party
51.3 Auditor’s Liability
51.4 Accountant’s Liability to Third Party
51.5 Ultramares Doctrine
51.6 Section 10(b)

==============================================
ACC 543 Week 6 Team Assignment Flexible Budgets
Flexible Budgets Team Paper Write a paper of no more than 1,050
words in which you discuss flexible budgets. Explain the relationship
between fixed and variable costs used in a flexible budget. Discuss the
differences between static and flexible budgets and how a flexible
budget lends itself to a cost-volume-profit analysis. Format your paper
consistent with APA guidelines
==============================================

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