72 Revenue Recognition and Ethics. The following article was published in Newsday on February 9, 2009: Call for Probe of Ticket Sales Bruce Springsteen fans were victims of a "classic bait and switch" scam by the nation's largest concert ticket seller, Senator Charles Schumer said yesterday, as he called for a federal investiga- tion into the company, Ticketmaster. Schumer wants the Federal Trade Commission to look into whether the Ticketmaster website withheld the best tickets from the public and then shuttled fans to TicketsNow, a fully owned subsidiary. TicketsNow had the best seats available immediately at sky-high prices-after Springsteen tickets went on sales at 10 a.m. on February 2. A federal investigation would look into whether Ticketmaster was instantly scalping the tick- ets, never giving fans a chance to buy them at face value, Schumer said. Customers who tried to buy tickets originally priced at $95 on Ticketmaster's website were directed to TicketsNow where they were priced at more than $2,000 Since buying TicketsNow in February, Ticketmaster has faced similar criticism for its handling

72 Revenue Recognition and Ethics. The following article was published in Newsday on February 9, 2009: Call for Probe of Ticket Sales Bruce Springsteen fans were victims of a "classic bait and switch" scam by the nation's largest concert ticket seller, Senator Charles Schumer said yesterday, as he called for a federal investiga- tion into the company, Ticketmaster. Schumer wants the Federal Trade Commission to look into whether the Ticketmaster website withheld the best tickets from the public and then shuttled fans to TicketsNow, a fully owned subsidiary. TicketsNow had the best seats available immediately at sky-high prices-after Springsteen tickets went on sales at 10 a.m. on February 2. A federal investigation would look into whether Ticketmaster was instantly scalping the tick- ets, never giving fans a chance to buy them at face value, Schumer said. Customers who tried to buy tickets originally priced at $95 on Ticketmaster's website were directed to TicketsNow where they were priced at more than $2,000 Since buying TicketsNow in February, Ticketmaster has faced similar criticism for its handling

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following items pertain to possible provisions: a. A company uses a part manufactured in Germany in its automobile manufacturing plant. There has been a concern about the failure of this part in cars manufactured in Germany. No failures have occurred to date in Canada. The company decided to do a voluntary recall of all cars manufactured with this part. The recall is 40% complete and has cost $1,250,000 to date. b. A company self-insures for floods. That is, it pays no insurance but is liable to replace assets lost through flood damage. No losses have been incurred this year, but there have been $225,000 of losses in most other years, and the company is concerned that there might well be $450,000 of losses next year, evening out the pattern. c. A company offers a three-year guarantee over parts and labour for products sold to ensure that parts work as expected. There were no payments this year, and only 5% of products sold this year are expected to need repairs in the next year.…
Its a standard practice question I am struggling with
Scenario: Joe Babbitt, a former executive of T-Mart, just started a term as mayor of Saulk Center. For the past several days, he has been looking for a way to keep his campaign promise to increase services without raising taxes or service charges. While lunching at the country club with the treasurer of T-Mart, the subject of a recent sale and leaseback of one of T-Mart’s stores came up. Following a common practice in retailing, T-Mart had erected a building and sold it to an investor. It then signed a long-term lease on the building. “Bingo! That’s it,” thought Mayor Babbitt. “We can sell several of the city’s buildings—as well as police cars, fire engines, and other vehicles—to investors and lease them back. That will give us the revenues we desperately need. Now I can concentrate on fighting crime.” Question: Do you agree with Mayor Babbitt?
This is a repost. Please read questions carefully as original response was entirely incorrect
Walmart is suing Elon Musk’s electric vehicle and clean energy company after Tesla solar panels atop seven of the retailer’s stores allegedly caught fire, according a court filing. The Walmart suit alleges breach of contract, gross negligence and failure to live up to industry standards. Walmart is asking Tesla to remove solar panels from more than 240 Walmart locations where they have been installed, and to pay damages related to all the fires Walmart says that Tesla caused. The Walmart suit, filed in the state of New York, alleges that: “As of November 2018, no fewer than seven Walmart stores had experienced fires due to Tesla’s solar systems - including the four fires described above and three others that had occurred earlier.” The filing details evacuations, damaged property and inventory. Tesla’s stock dropped more than 1% after hours on the news. Walmart claimed, among myriad complaints, that “Tesla routinely deployed individuals to inspect the solar systems who lacked basic…
Help please... also for 2b.) $(41,000)
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The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 2013. The store was closed for four months (Sept – Dec 2013) and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: The amount of sales Carlson would have made if the hurricane had not struck; and Whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses. The table below shows the sales data for the 48 months preceding the storm. The following table reports total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Management…
Opening CaseGLAXOSMITHKLINE INC. V HER MAJESTY THE QUEEN: A BAD CASEOF HEARTBURNThe Tax Court of Canada delivered a long-awaited decision on May 30, 2008, in Canada’s first major transfer pricing court case. The decision (which the taxpayer may appeal) illustrates the court’s endorsement of the hierarchy of methods set out in the OECD Guidelines, where transactional methods trump profit-based analysis. The Minister of National Revenue (“MNR”) reassessed GlaxoSmithKlineInc.’s (“GSK Canada”) 1990 to 1993 taxation years (or “years under audit”)by increasing its income in each taxation year on the basis that GSK Canadaoverpaid its related party supplier for the purchase of ranitidine hydrochloride(“ranitidine”).Ranitidine is the active pharmaceutical ingredient in a drug that is used torelieve stomach ulcers and heartburn. The drug is sold by GSK Canada under the brand name Zantac. During the years under audit, GSK Canada purchased ranitidine from Adechsa S.A. (“Adechsa”), a related party…
The U.S. General Accounting Office (GAO) Office of Special Investigations was responsible for investigating a potential purchase fraud case. The man who allegedly committed the fraud was Mark J. Krenik, a former civilian employee of the U.S. Air Force. Mr. Krenik was the Air Force's technical representative on contracts with Hughes STX. Hughes STX provided hardware, software maintenance, technical support, and training to the Air Force. Part of Mr. Krenik's alleged fraud included opening accounts under his control at banks in Maryland. The accounts were opened under the names Hughes STX and ST Systems Corporation. A section of the GAO report on this fraud investigation reads as follows: On December 15, 1992, Mr. Krenik opened post office box 215 in Vienna, Virginia, in his own name. On December 24, 1992, Mr. Krenik delivered to the Air Force Finance Office 11 bogus invoices totaling $504,941.19. Accompanying the invoices were the respective DD‐250s, on which Mr. Krenik had falsely…
Horizon Corporation manufactues personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020's income statement reported a loss of $20 million. Just before the end of 2021 fiscal year, a memo from the company's chief financial officer (CFO) to Jim Fielding, the company controller, included the following comments: "If we dont do something about the large amount of unsold computers already manufactured, our auditors will require us to record a write-down. The resulting loss for 2021 will cause a violation of our debt convenants and force the company into bankruptcy. I suggest that you ship half of out inventory to J.B. Sales, Inc., in Oklahoma City. I know the company's presdient, and he will accept the inventory and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost our loss to a profit. Then J.B. Sales will simply return…