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2 years ago

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What are other ethical concerns that Stilton may be facing?

1 answer:

Agata [3.3K]2 years ago

5 0

Complete Question:

James Stilton is the chief executive officer (CEO) of RightLiving, Inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. RightLiving pays the terminally ill patients a percentage of the future death benefit (usually 65%) and then sells the policies to investors for 85% of the value of the future benefit. The patients receive the cash to use for medical and other expenses, and the investors are "guaranteed" a positive return on their investment. The difference between the purchase and sale prices is RightLiving's profit.

Stilton is aware that some sick patients may obtain insurance policies through fraud (by not revealing their illness on the insurance application). An insurance company that discovers such fraud will cancel the policy and refuse to pay. Stilton believes that most of the policies he has purchased are legitimate, but he knows that some are probably not.

Requirement:

What are other ethical concerns that Stilton may be facing?

Answer with Explanation:

The ethical concerns of Stilton are as under:

Should he tell the investors about the fraud about the policies before making sales?
What policies must be implemented so that the legitimate people can easily sell the policies and if not implemented it would not be fair for the RightLiving, Inc.
Stilton will also be facing ethical concerns because the business wishes that the customer dies early so that they can benefit from increased deaths of policy holders.

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How has globalization contributed to the need for diversity awareness in our organizations?

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Answer and explanation:

Globalization has lowered barriers among countries. From a computer, people in remote parts of the world can access to information about attracting countries that offer job positions matching their skills. Some of them are qualified employees that contribute to foreign entities to improve thanks to their diverse experience. Of course, firms have noticed this fact and are more conscious nowadays that overseas employees can play a key role in achieving their objectives. That is the reason why they have started to open up positions especially for qualified immigrants.

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1 year ago

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received

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Answer:

a. What is the after-tax cost if she pays the $39,000 bill in December?

= $23,000 x (1 - 32%) = $15,640

b. What is the after-tax cost if she pays the $39,000 bill in January? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

total after tax cost (including investment revenue):

= $23,000 x (1 - 37%) = $14,490

= -$23,000 x 7% x 1/12 x (1 - 37%) = -$84.53

= $14,405.47

c. Should Reese pay the $23,000 bill'in December or January?

January , since the after tax cost is lower

d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $23,000 bill in January?

= $23,000 x (1 - 24%) = $17,480

= -$23,000 x 7% x 1/12 x (1 - 24%) = -$101.97

= $17,378.03

e. Should Reese pay the $23,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?

December, since the after tax cost is lower

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1 year ago

PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, buil

umka2103 [35]

Answer:

$4235350.

Explanation:

Given: Estimated fair value of the equipment= $1000000.

Estimated fair value of the building= $7000000.

Estimated fair value of the land= $2000000.

One Purchase price of equipment, building and land= $6050500.

First finding the allocated percentage share of building.

Total amount shared by building, land and equipments= $\$ 1000000+\$7000000+\$ 2000000$

∴ Total amount shared by building, land and equipments= $\$ 10000000$

Allocated percentage share of building= $\frac{Estimated\ fair\ price\ of\ building}{Total\ amount\ shared} \times 100$

⇒ Allocated percentage share of building= $\frac{7000000}{10000000}\times 100$

∴ Allocated percentage share of building= $70\%$

Now, calculating amount would the company record the building.

Amount recorded for the building= $70\% \times \$ 6050500$

⇒ Amount recorded for the building= $\frac{70}{100} \times 6050500$

∴ Amount recorded for the building= $\$ 4235350$ .

Hence, amount that company would record for building is $4235350.

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1 year ago

Exercise 21-15 Direct materials and direct labor variances LO P2 The following information describes production activities of Me

Molodets [167]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Actual direct materials used 16,000 lbs. at $4.05 per lb.

Actual units produced 30,000

Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.00 per pound.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4 - 4.05)*16,000

Direct material price variance= $800 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 30,000*0.5= 15,000

Direct material quantity variance= (15,000 - 16,000)*4

Direct material quantity variance= $4,000 unfavorable

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2 years ago

Read 2 more answers

Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o

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Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

= $4,000 + 24,000 + 16,000 + 12,800 - 48,000

= $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

= $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

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1 year ago