College accounting, chapters 1-9
23rd Edition
ISBN: 9781337794787
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Question
Chapter 7A, Problem 1RQ
To determine
State the requirement of the Sarbanes-Oxley Act under section 404.
Expert Solution & Answer
Explanation of Solution
Sarbanes-Oxley Act of 2002:
- The Sarbanes-Oxley Act (also known as SOX) was introduced in 2002 to restore the investors’ interest in public companies. This act established accounting regulations and norms that most large businesses have to follow.
- This act requires company CEOs and CFOs to assume responsibility for the financial statements and disclosures. They also need to assume responsibility for establishing an adequate internal control structure and procedure for financial reporting.
The requirement of the Sarbanes-Oxley Act under section 404 is explained as follows:
Section 404 of the Sarbanes Oxley Act (SOX) requires the management of the publicly traded companies to have an effective internal control over the financial reporting. It requires auditors of the publicly traded companies to attest and report on the management assessment of its internal control.
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Students have asked these similar questions
I need help solving this general accounting question with the proper methodology.
Henderson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2024:
• Asset #1: 7-year property; $940,000 cost; placed into service on January 20.
Asset #2: 5-year property; $410,000 cost; placed into service on August 1.
View the MACRS half-year convention rates.
Read the requirements.
Calculate Henderson's depreciation deductions for 2024. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.)
2024 Depreciation
Asset #1
Asset #2
Total depreciation
134,326
82,000
216,326
Calculate Henderson's depreciation deductions for 2025. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.)
2025 Depreciation
Asset #1
Asset #2
Total depreciation
230,206
131,200
361,406
b. What are Henderson's depreciation deductions for 2024 and 2025 if this is the only property it places into service in those years and Henderson elects Sec. 179 expensing for…
Please explain the solution to this general accounting problem with accurate principles.
Chapter 7A Solutions
College accounting, chapters 1-9
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