Cardinal Corporation is a trucking firm that operates in the Mid-Atlantic States. One of Cardinal's major customers

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Cardinal Corporation is a trucking firm that operates in the Mid-Atlantic States. One of Cardinal's major customers frequently ships goods between Charlotte and Baltimore. Occasionally, the customer sends last-minute shipments that are outbound for Europe on a freighter sailing from Baltimore. To satisfy the delivery schedule in these cases, Cardinal's drivers must substantially exceed the speed limit. Cardinal pays for any related speeding tickets. During the past year, two drivers had their licenses suspended for 30 days each for driving at such excessive speeds. Cardinal continues to pay each driver's salary during the suspension periods.
Cardinal believes that it is necessary to conduct its business in this manner if it is to be profitable, maintain the support of the drivers, and maintain the goodwill of customers. Evaluate Cardinal's business practices.
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781337386173

21st Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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