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Module 5 DiscussionPreviousNext1. Summarize the events of a recent accounting scandal.2. Identifyhow the illegal/unethical act was detectedandthepunishmentsthat resulted (fines, prison terms, etc.).3. What could have been done todetectthis act earlier.4. What could have been done topreventthis from happening in the first place.Module 6 DiscussionPreviousNextThis week we learn about long-lived assets (Property Plant and Equipment – Chapter 9) and current liabilities and payroll (Chapter 11).This week’s discussion questions are as follows:1. How is the cost of a lump-sum purchase allocated to the individual assets acquired?Provide a simple example of how the allocation would be performed if your company paid $1,000,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,200,000 for the 3 asset components $400,000, $500,000, and $300,000, respectively.2. Does the balance in the Accumulated Depreciation – Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?3. Assume you work for a company in sales and therefore are entitled to not only hourly pay, but commission and bonus as well. You work 40 hours in a payroll week. Calculate your gross pay for your company if you make $x per hour (you select your rate!), earn a 5% bonus (of gross pay), and earn 10% commission (of gross pay).4. Unfortunately, you do not get to keep all your Gross Pay. Assuming you have the following withholding deductions taken out of your pay, nowcalculate your Net Pay. Withholding deductions: Employee income tax (20%) Employee OASDI tax (see book for how to calculate) Employee Medicare tax (1.45%) Employee health insurance 75 Employee contribution to United Way 20 Total withholdings: 1. Table of Contents2. Module 73. Module 7 DiscussionModule 7 DiscussionPreviousNextIn this Module, we learn about Stockholders’ Equity (Chapter 13). This week’s discussion questions are as follows:1). Discuss the difference between authorized shares and outstanding shares.2). Are there other classifications of shares that are important to consider?3). Whataretreasury stocks and why do companies engage in their purchase?Module 8 DiscussionPreviousNextThis week we learn about the Statement of Cash Flows (Chapter 14). This week’s discussion questions are as follows: 1). What is the reporting purpose of the statement of cash flows? Why is this important to investors? 2). Summarize the three types of cash flow activities, and describe at least 2 types of cash flows in EACH type of activity 3). Is depreciation a source of cash flow? Why or why not?