Fraud Case Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated , and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses. To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

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Answer 1

Question

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

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Answer 2

Question

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Answer 6

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

Answer 7

Chapter 9, Problem 9.1CTFC

1.

To determine

Fraud Case

Case Summary: J is the manager of a fleet of utility trucks for a county government and doing the job for 30 years. He knows that the residual value of the truckis set low when they are fully depreciated, and being replaced by new trucks. He knows people in the construction business who buys these trucks at a bargain price against some kickback for him. Recently a new commissioner with a business degree is elected and he is determined to cut down on expenses.

To explain: If a business recognizes gain or loss when it sells a fully depreciated asset for its residual value.

Answer 8

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

Answer 9

2.

To determine

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

Answer 10

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Answer 11

3.

To determine

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author explains that the business does not recognize any loss or gain on sale of a fully depreciated asset for its residual value.

To discuss: The method the business use to determine the residual values for their various assets. To ascertain if any ‘hard and fast’ rule exists for residual values.

To Identify: The methods to be used to prevent the kind of fraud show cased in this situation.

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Chapter 9 Solutions