Business question 765rt

Case study 6565; Additionally, the manager of the facility will receive $50,000 in a lump sum benefit when the facility is closed. The business line will be terminated by January 31, 20X2. The company will also incur relocation costs of $500,000 and training costs of $1.5 million. In this case study, I will analyze how Targa should account for these charges according to the FASB Codification. Targa needs to properly account for the one-time termination benefit of $2.5 million. Section 420-10-25-4 describes the criteria that must be met in order for the cost to be considered a one-time termination benefit, all of which Targa's benefit meets. According to 420-10-25-5 of the codification, the liability for the one-time employee termination benefits is recognized at the communication date, when employees are notified of the termination plan. In Targa's case, the liability will be created and recognized as of December 27, 20X1. According to 410-10-25-14, "costs to ... close facilities and relocate employees" are considered to be associated with the exit or disposal activity. Therefore, Targa's relocation costs of $500,000 and retraining costs of $1.5 million are considered other disposal costs. Section 420-10-25-15 describes how to recognize such associated costs as follows: "a liability for other costs associated with and exit or disposal activity shall be recognized in the period in which the liability is incurred." Therefore, these costs 35 will be recognized as as both a liability and an expense kin the same period as the onetime termination benefits above. The $500,000, two weeks' severance for affected employees, is accounted for according to section 712-10-25-2 of the codification. This section states that the employer "shall recognize a liability and a loss when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated." These benefits are considered contractual termination benefits and are not paid out of a retirement or pension plan. This benefit should be recognized at the communication date as well, as the amount is reasonably estimated and the employees are entitled to the benefits. The final cost, a $50,000 lump-sum benefit paid to the facility manager upon closing the facility, should also be accounted for according to section 712-10-25-2. Targa should recognize this amount as a loss on its financial statements, in accordance with the codification. This $50,000 benefit is the only restructuring charge incurred by Targa in this process that is not considered a liability on the financial statements. Unlike the other costs, which will appear on the balance sheet, this benefit will appear as a loss on the income statement. These restructuring charges are material for the company and should be treated as such in the preparation of the financial statements. The company's liabilities will increase due to the one-time termination benefits, relocation and retraining costs, and $500,000 of two weeks' severance to affected employees. Targa's losses will also increase because of the $50,000 lump-sum benefit paid to the facility manager. These restructuring charges will impact the balance sheet, income statement, and statement of retained earnings, but 36 should not be too deeply considered as the company chose to terminate the business line for legitimate purposes. 37 Case 8: Examination of Equity on the Balance Sheet 38 a. Merck's common shares i. Merck is authorized to issue 5,400,000,000 shares of common stock. ii. As of December 31, 2007, Merck had issued 2,983,508,675 shares of common stock. iii. The common stock has a par value of $0.01 per share, so 2,983,508,675 shares multiplied by $0.01 each equals $29,835086.75. Merck has listed this as $29.8 million on its balance sheet. iv. Merck owns 811,005,791 shares of treasury stock as of December 31, 2007. v. Issued shares are 2,983508,675 and treasury stock is 811,005,791. The difference between these is shares outstanding: 2,172,502,884 shares. vi. Market capitalization is Merck's closing stock price multiplied by shares outstanding. So, 2,172,502,884 times $57.61, which is more than $125 billion. b. c. Companies pay dividends for many reasons. For example, a company may pay dividends because they have excess profits and have extra cash to pay to their shareholders. This is a positive sign from the company that they care about their shareholders and are sharing profits with them. Alternatively, a company may pay dividends instead of using the extra money to invest, which can indicate that they are not growing. This reason, however, is a negative sign from the company, as it signals that the company is no longer growing. When dividends are paid, the company's share price will typically decrease. d. Companies will repurchase their own shares for multiple reasons. One reason is that the shares are undervalued in the market. The company can repurchase undervalued shares as treasury stock and reissue them when the market price per share is closer to 39 the actual value of the stock. Another reason is that the company wants to take back some of the ownership of the company. Companies sell shares to raise capital to use for operations and other purposes; however, when the company is in a position that it does not require capital, it may buy back some of the shares it had previously sold in order to control the ownership of the company. e. f. g. Merck's treasury stock transactions i. Merck is using the cost method to account for its treasury stock transactions. ii. During the year 2007, Merck purchased 26.5 million shares of treasury stock. iii. To purchase the treasury stock, Merck paid $1,429.7 million in total and $53.95 per share on average. This represents a cash outflow for Merck. iv. Treasury stock is not considered an asset because there is no income generated from owning treasury stock. Assets are typically used in operations or other income-generating activities. Instead, it is classified as equity with a debit balance.

1.On the condition that the________ setting is applied, the implementation context links to the Windows login user account IUSER_servername on the server.

2.What is expressed in a strategic plan to guarantee everybody within the venture is executing having the same knowledge?

3.From business law intelligence concepts, _______ executes an all-inclusive dais, empowering ______. What does it inspire the concealed identity to do?

4. ______ frequently is associated with application of technology to ______, automate and ______ sales, publicizing, customer ______ and ______ sustenance. Define the mechanism comprehensively.

5.From data warehousing in business law, ______refers to a sort of apps and techniques for

6.What is the essence of particularizing the translation /conversion sort in business law?

7. Scooping knowledge from business law concepts, mention and describe a trait that guarantees Analysis Services to use a faster algorithm for string hashing and comparison.

8.Highlight the three indices strategic planning aids in gauging.

unveiling and assessing commercial and external knowledge.

9.Determine the scheme where performances like data retrieval, translation and loading operations are conducted.

10.Determine the exact count of sorts of currency translation sustained by Business Wizard.