Why is an investment more attractive to management if it has a shorter payback period? Should this be the only consideration? Explain.

How did the TCJA alter the relative preferences in terms of organizational form? Illustrate this using a simple example where a business has pretax taxable income of $100 and operates:

a. A C corporation subject to a 21% tax rate, that pays out all after-tax earnings as dividends, and in which the shareholders are all taxable at 20% on qualified dividends and 37% on ordinary income

b. A pass-through that does not qualify for the QBI deduction

c. A pass-through that does qualify for the QBI deduction Tax-Planning Problems

1. What are the rules regarding an auditor's responsibility to detect fraud? In what situations could the auditor be liable?

Pearl Company sells one product. Presented below is information for January for Pearl Company. Jan. 1 Inventory 105 units at $4 each 4 Sale 83 units at $8 each 11 Purchase 162 units at $7 each 13 Sale 132 units at $9 each 20 Purchase 160 units at $7 each 27 Sale 97 units at $10 each Pearl uses the FIFO cost flow assumption. All purchases and sales are on account.

a. Assume Pearl uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

b. Compute gross profit using the perpetual system.

Gross profit= $

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2019. December 31, 2019 Unadjusted Trial Balance Cash $ 20,000 Accounts receivable 5,500 Allowance for doubtful accounts $ 858 Merchandise inventory 16,200 Trucks 47,000 Accum. depreciation—Trucks 0 Equipment 92,400 Accum. depreciation—Equipment 24,200 Accounts payable 5,750 Estimated warranty liability 2,150 Unearned services revenue 0 Interest payable 0 Long-term notes payable 30,000 Common stock 25,000 Retained earnings 68,800 Dividends 25,000 Extermination services revenue 90,000 Interest revenue 902 Sales (of merchandise) 109,826 Cost of goods sold 50,800 Depreciation expense—Trucks 0 Depreciation expense—Equipment 0 Wages expense 50,000 Interest expense 0 Rent expense 24,000 Bad debts expense 0 Miscellaneous expense 1,286 Repairs expense 15,500 Utilities expense 9,800 Warranty expense 0 Totals $ 357,486 $ 357,486 The following information in a through h applies to the company at the end of the current year. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank $ 16,600 Cash balance per books 20,000 Outstanding checks 2,550 Deposit in transit 3,200 Interest earned (on bank account) 82 Bank service charges (miscellaneous expense) 30 Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) An examination of customers’ accounts shows that accounts totaling $694 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $775. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 39,500 Expected salvage value $ 14,000 Useful life (years) 4 Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 39,000 $ 21,000 Expected salvage value $ 3,000 $ 4,000 Useful life (years) 8 5 On September 1, 2019, the company is paid $20,700 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $76,200 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account. The $22,500 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2019. The ending inventory of merchandise is counted and determined to have a cost of $16,200. Bug-Off uses a perpetual inventory system. Required: 1. Determine amounts for the following items: Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Depreciation expense for the truck used during year 2019. Depreciation expense for the two items of equipment used during year 2019. The adjusted 2019 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. 3. Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off’s adjusted balance for Merchandise Inventory matches the year-end physical count. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $25,000) for 2019. 4c. Prepare a classified balance sheet as at 2019.

An established corporation currently pays out 50% of earnings as dividends. The CFO asks you whether paying dividends to shareholders other than corporations is advantageous. How do you respond?

Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard costs for all of its products. The standard costs and actual costs per unit of product for a recent period are given below for one of the company's product lines: Materials Standard cost Actual cost Standard: 4m at $5.40 per m $21.60 Actual: 4.4m at $5.05 per m $22.22 Direct labour Standard: 1.6 hrs at $6.75/hr $10.80 Actual: 1.4 hrs at $7.30/hr $10.22 Variable overhead Standard: 1.6 hrs at $2.70/hr $4.32 Actual: 1.4 hrs at $3.25/hr $4.55 Total cost per unit of product $36.72 $36.99 During this period, the company produced 4,800 units of this product. a. Compute the materials price and quantity variance and give a possible reason for each variance. b. Compute the labour rate and efficiency variances and give a possible reason for each variance. c. Compute the variable overhead spending and efficiency variances and give a possible reason for each variance

ATD Corporation starts its business in January 1, 2010 in Buford, GA to produce and sell mobile homes. On January 1, 2010, ATD Corporation issued $1,200,000 of ten-year, 7% bonds at an effective interest rate of 8% at a discount for 1,119,479.03. Interest on the bonds is payable annually on December 31. The fiscal year of the company is the calendar year. 1. Based on the above information, prepare the initial journal entry by ATD Corporation to record the issuance of bonds on January 1, 2010. Please show supporting computations in Excel for your journal entry. 2. Suppose ATD Corporation uses straight-line method for bond amortization, prepare a bond amortization table on the worksheet for ATD. Print the amortization table in good format. 3. Based on the table in (2), prepare journal necessary journal entry(ies) for ATD for the following dates: a. 12/31/2010 b. 1/1/2011 c. 12/31/2014 d. 12/31/2019 e. 1/1/2020 when ATD paid off its bonds payable. 4. Based on the table in (2), suppose ATD retires half of its bonds on October 1, 2015 at 102, prepare necessary journal entry(ies) for ATD for the following dates: a. 9/30/2015 b. 10/1/2015 c. 12/31/2019 d. 1/1/2020 when ATD paid off its bonds payable. 5. Suppose ATD Corporation uses effective-interest method for bond amortization, prepare a bond amortization table on the worksheet for ATD. Print the amortization table in goof format. 6. Based on the table in (5), prepare journal necessary journal entry(ies) for ATD for the following dates: a. 12/31/2010 b. 1/1/2011 c. 12/31/2014 d. 12/31/2019 e. 1/1/2020 when ATD paid off its bonds payable. 7. Based on the table in (5), suppose ATD retires half of its bonds on October 1, 2015 at 102, prepare necessary journal entry(ies) for ATD for the following dates: a. 9/30/2015 b. 10/1/2015 c. 12/31/2019 d. 1/1/2020 when ATD paid off its bonds payable. Required: Turn in printouts from Steps 1-7 in good format. Save the results as Exercise9.xls.

Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $20,000:

The holders of note payable B want to collect at least $129,000.

To achieve this goal, how much does the company have to receive in the liquidation of its equipment?

Pronghorn Equipment Co. closes its books regularly on December 31, but at the end of 2017 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.

1. January cash receipts recorded in the December cash book totaled $53,800, of which $37,800 represents cash sales, and $16,000 represents collections on account for which cash discounts of $324 were given.

2. January cash disbursements recorded in the December check register liquidated accounts payable of $21,325 on which discounts of $232 were taken.

3. The ledger has not been closed for 2017.

4. The amount shown as inventory was determined by physical count on December 31, 2017. The company uses the periodic method of inventory.

Prepare any entries you consider necessary to correct Pronghorn’s accounts at December 31.

To what extent was Pronghorn Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts: (Round ratios to 2 decimal place, e.g. 4.56.)

                                                                  Dr.                                                  Cr.

Cash                                                 $38,740

Accounts receivable                        38,650

Inventory                                           66,480

Accounts payable                                                                                           $45,210

Other current liabilities                                                                                    13,733

                                                                      Per Balance Sheet                                          After Adjustment

Working capital                                             $                                                                        $

Current ratio                                                                              to 1                                                                       to 1

How do we find working capital and current ratio              per balance sheet and         After adjustment

That is all information that I have

Please review the following six ratios for Simpson Company and ABC Inc. for the year ended 2014, then address the two questions below.

Instructions: This is a two-part question. (1) Explain the meaning of each of the Simpson Company ratios above. (18 points) (2) State which company performed better for each ratio. (18 points)

would like to use apple for my company below is the question thank you no plagiarism please

financial ratios help to analyze the company’s financial health. Go to Yahoo Finance and select a company. Then, calculate at least one of the financial ratios that was discussed in your textbook for that company please help and stated I would like to use Apple Inc. as my example as my company please help thank you

Do parent corporations generally prefer to file consolidated tax returns with their subsidiaries as opposed to filing separate returns? Why or why not?

Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $316,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $828,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden's share purchase.

Sheffield reported net income of $162,000 in 2017 and $224,000 of net income during 2018. Dividends of $86,000 and $94,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method.

1. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield?

2. If Belden sells its entire investment in Sheffield on January 1, 2019, for $422,000 cash, what is the impact on Belden's income?

3. Assume that Belden sells inventory to Sheffield during 2017 and 2018 as follows. What amount of equity income should Belden recognize for the year 2018?

   Year	Cost to Belden	Price to Sheffield	Year-End Balance (at Transfer Price)
   2017	$31,860	$54,000	$18,000 (sold in following year)
   2018	31,860	59,000	40,000 (sold in following year)

A. Equity income 2017 _________

Equity income 2018 ____________

B. Gain or Loss on sale of investment ___________

C. Equity income