ACC551 Midterm INTERMEDIATE ACCOUNTING II

Question: #629

Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Search the Internet or the Strayer Library to locate a story in the news that depicts an accounting ethical breach. You may select from any type of organization about which you have information or a curiosity.

Write a four to five (4-5) page paper in which you:
1.Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer.
2.Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach.
3.Determine how the organizational ethical issue was detected and how management failed to create an ethical environment.
4.Analyze the accounts impacted and / or accounting guidelines violated and the resulting impact to the business operation.
5.As a CFO, recommend which measures could have been taken to prevent this ethical breach and how each measure should be implemented in the future.
•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions

Solution: #647

ACC551 Midterm INTERMEDIATE ACCOUNTING II

1. Question : (TCO C) Under current accounting practice, intangible assets are classified as

amortizable or unamortizable.

limited-life or indefinite-life.

specifically identifiable or goodwill-type.

legally restricted or goodwill-type.

2. Question : (TCO C) Which of the following intangible assets should not be amortized?

Copyrights

Customer lists

Perpetual franchises

All of these intangible assets should be amortized.

3. Question : (TCO C) The intangible asset goodwill may be

capitalized only when purchased.

capitalized either when purchased or created internally.

capitalized only when created internally.

written off directly to retained earnings.

4. Question : (TCO C) ELO Corporation purchased a patent for $90,000 on September 1, 2008. It had a useful life of ten years. On January 1, 2010, ELO spent $22,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is five

years. What amount should be reported for patent amortization expense for 2010?

$20,600.

$20,000.

$18,800.

$15,600.

5. Question : (TCO C) During 2011, Bond Company purchased the net assets of May Corporation for $1,000,000. On the date of the transaction, May had $300,000 of liabilities. The fair value of May's assets when acquired were as follows: How should the $500,000 difference between the fair value of the net assets acquired ($1,500,000) and the cos...