The accountant preparing the income statement for Smith, Inc. had some doubts about the appropriate accounting treatment of the five items listed below during the fiscal year ending December 31, 2016. Assume a tax rate of 38 percent.

Office equipment purchased June 1, 2016 for $72,000 was incorrectly charged to Supplies Expense at the time of purchase. The office equipment has an estimated six-year service life with no expected salvage value. Smith uses the straight-line method to depreciate office equipment for financial reporting purposes.
The corporation disposed of its sporting goods division during 2016. This disposal meets the criteria for discontinued operations. Smith, Inc correctly calculated loss from operating this division of $150,000 before taxes and a loss of $230,000 before taxes on the disposal of the division. All of these events occurred in 2016 and have not been recorded.
The company recorded advances of $15,000 to employees made in December 31, 2016 as Salaries and Wages Expense.
Dividends of $30,000 during 2016 were recorded as an operating expense.
In 2016, Smith changed its method of accounting for inventory from the first-in-first-out method to the average cost method. Inventory in 2016 was correctly recorded using the average cost method. The effect of this change on prior years is to increase 2014 cost of goods sold by $80,000 (before taxes) and increase 2015 cost of good sold by $30,000 (before taxes). Assume Smith, Inc. began operations on January 1, 2014.
Instructions

For each item, explain the impact of the corrections on the income from continuing operations, if any. (7.5 points)
State where the items that do not affect income from continuing operations should be shown. (4.5 points)

This problem has been solved! see the answerchapter 19 problem #8. quality and financial control (connect, perform)part one: geometrica designs and builds domes and space frames for large buildings. while the company had developed quality standards over time to respond to different client problems and training needs, it lacked a unified quality system, and its global client base wanted assurance that geometrica met an established international standard for quality. which of the following was an appropriate step for this company to take? a) reform its accounting and financial reporting systems to comply with sarbanes-oxleyb) establish and document a quality management system to comply with iso 9000management at workyou are the new fleet manager at xpressship, a package delivery company. as your first project, your boss has asked that you to look into implementing an electronic monitoring system for the fleet of 2,000 trucks your company owns. a recent internal audit on maintenance and repair costs on the company’s vehicles revealed while maintenance was performed regularly on the trucks, mileage or use had not been taken into account. this resulted in approximately $20,000 of unneeded repairs. you know that telematics have been used by other companies with fleets of cars or trucks and it will allow your company to not only track mileage and use, but also part replacement needs, vehicle oil pressure, and drivers’ speed and real time location. tracking these items can reduce maintenance costs while improving efficiency. you find that a simple computer can be installed in each vehicle. when the drivers return at the end of the day, the telematics information from each vehicle will be uploaded to a master computer where a software program will generate a report with results on the variables you have selected.early one morning as you are getting a cup of coffee, a few drivers that have been with the company for many years approach you with some concerns. eldon, the most senior driver says, “i heard you’re installing some type of computer to track our driving. my buddy works over at parcel and post package delivery and he said they’ve got these computers, too. he said managers are writing people up and firing drivers for speeding or not wearing seat belts. are you going to do that to us, too? ”part two: as a manager, which of the following statements would be effective in maintaining a positive relationship with company drivers? check all that apply.a) at this time, xpressship will be using telematics to monitor maintenance and repair needs, not drivers’ motoring habitsb) although the company isn’t doing so now, when xpressship begins to monitor driver motoring habits, the company will encourage them to keep a separate daily log where they can document any unusual circumstancesc) while xpressship could monitor things like speed, location, and idle time, the company trusts their drivers and will not be using that data in disciplinary decisionsd) xpressship executives are happy with their technology and believe that implementation is ideal for your organization

If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution, you are using your car as collateral. true false

Match the vocabulary word to the correct definition. 1. compensation 2. corporate social responsibility 3. discrimination 4. benefits 5. biodegradable a. a business’s obligation to the community and the environment b. the ability to naturally break down or decompose c. treating someone differently because of his or her race, religion,gender, sexual orientation, or disabilities d. indirect and non-cash compensation paid to employees e. the salary and other benefits for doing a job