AUDITING RMU
AUDITING RMU
11th Edition
ISBN: 9781260934830
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 21, Problem 21.35P

a.

To determine

Concept Introduction:

In the era of computer technologies and the internet, everything has come up online from studying to getting the material home but, there are pros and cons to all the things that happen and thus, it is observed that there are still some people who always find it difficult to do business with a new online business.

The reason for customer reluctance with the online business.

b.

To determine

Concept Introduction:

It’s becoming increasingly difficult to get people to trust your website to make purchases on it and the trust of the customers is the most important part for any organization to survive in long run. It can be built by providing them with various services.

The type of trust service report which will be useful for the P company.

c.

To determine

Concept Introduction:

It is necessary to meet up the customer’s demand and manage the business with proper planning. As the world is developing with lots of technologies and the internet, it is also important to make people aware of the presence of the business in the market.

Assurance related to the service provided to the company concerning the company’s website.

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What are the five management assertions that serve as basis for financial statements audit programs?
PROBLEM 2 On July 1, 2022, LTU Contracting, Inc. purchased a new Peiner SK575 Tower Crane for a total cost of $875,000. The crane has an estimated useful life of five (5) years. For financial reporting (book) purposes, the company utilizes straight line depreciation. For tax purposes, the equipment is depreciated over five years utilizing the 200% declining balance method. A. Prepare a table that computes the book and tax depreciation for each year of the useful life and determine the difference in book value between each method at the end of each year. B. On July 1st, 2025, the company is considering selling the crane for $500,000. Compute what the gain or loss would have been at that time for both book and tax purposes.
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