On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $313,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $23,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $8,000 in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Note: Parentheses indicate a credit balance.

In Marshall’s appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary’s books: Inventory by $7,650, Land by $28,800, and Buildings by $37,000. Marshall plans to maintain Tucker’s separate legal identity and to operate Tucker as a wholly owned subsidiary.

a) Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall’s retained earnings. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition.

b) To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2018.

Which statement is correct with respect to marginal and average tax rates under a progressive tax structure?

Multiple Choice

Generalizations cannot be made. The question can only be answered with reference to the tax situation of a specific taxpayer.

At very low levels of taxable income, a taxpayer's marginal and average tax rates will be the same.

At very high levels of taxable income, a taxpayer's marginal and average tax rates will be the same.

For most taxpayers, the average tax rate is larger than the marginal tax rate.

.

.

Jordan and Paul, a married couple, have taxable income of $46,625, which is taxed as follows:

Their marginal tax rate is:

Multiple Choice

13%.

10%.

15%.

12.5%.

.

.

Which of the following trial courts hear tax cases?

Multiple Choice

U.S. Tax Court.

All of these.

U.S. Court of Federal Claims.

U.S. District Court.

Todd has been working on a tax research question for a client. He knows he will be referring the issue to the client’s CPA and attorney, but he wanted to give the client some general information about how the issue could be handled and they wanted to discuss it together. Todd has found several private letter rulings, one court case, and a revenue ruling, all from 1980 or earlier that are contrary to what his client is trying to do. He has found three appeals court rulings more recent than 1980 that somewhat support what his client wants to do. He also found a Temporary Regulation that is similar to his situation, but not exactly, and provides some support. Finally, Todd found a Technical Advice Memorandum very similar to his position which supports his position. Which documents should Todd place the greatest reliance on? In general, should Todd tell his client that tax law appears to support or not support the client’s position? (3pts)

For company Exxon Mobil stock symbol XOM

Liquidity (current ratio, quick ratio, and net working capital-to-sales ratio)

Operating performance ratio (Days of Sales in Inventory, Days of Sales in Receivables), turnovers

Profitability ratios (Gross Profit Margin, Operating Profit Margin, Net Profit Margin)

Return on Investment ratios: (Basic Earning Power ratio, ROA, ROE)

You can find financial ratios for the company for the last 3-5 years in the Internet (www.morningstar.com)

a) Present the ratios as the table(s) in your project. Create graphs for some ratios on your choice over three years to show trends.

Using the KU library, find an article that discusses the use of accounting software in the managerial decision-making process. Please make sure your sources are noted in APA format.

Bonds and corporations are two different concepts, explain how these concepts provided the most value to you.

Indicate how these two (2) new areas of knowledge will benefit you in your job or future career.

Discuss the modern day accountant’s role in the current technologically dominated business environment. Explain your answer.

In 1990 Bridgeton Industries produced three products at its Automotive Component & Fabrication (ACF) Plant: Fuel Tanks, Manifolds, and Doors. Use the information below to respond to the following:

A.Complete the 1990 pro-forma by-product income statement, given the existing cost system in the case.

B. For each product, calculate the budgeted sales price per unit, full-absorption cost per unit, contribution margin (revenues minus variable costs) per unit, and profit per-unit.

C. Assuming no other changes, evaluate the following statement about Bridgeton’s cost system: “We should switch to machine hours as our cost driver for factory overhead to reduce RUCAG.”

D.Calculate the percentage of each activity driver in the Activity Analysis Table that each cost object consumes. Using the results, determine the number of indirect cost pools you think is needed for a multiple-allocation-base system.

E. Calculate the reported unit cost for each product using a multiple-allocation-base cost approach. Identify all important components of your system (cost pools, cost objects, cost drivers, etc.) and explain the design choices (e.g., number of cost pools, cost drivers) that you make.

1990 Pro-Forma Income Statement, by Product

Bridgeton Industries Automotive Component & Fabrication Plant

*Allocated based on budgeted direct labor dollars.

Other 1990 Information

Available machine hours:                                   15,000

Activity Analysis Data

The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $80,000. It had an expected life of 10 years when it was bought and its remaining depreciation is $8,000 per year for each year of its remaining life. As older flange-lippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life.

A new high-efficiency digital-controlled flange-lipper can be purchased for $140,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $50,000 per year, although it will not affect sales. At the end of its useful life, the high-efficiency machine is estimated to be worthless. MACRS depreciation will be used, and the machine will be depreciated over its 3-year class life rather than its 5-year economic life, so the applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%.

The old machine can be sold today for $55,000. The firm's tax rate is 35%, and the appropriate cost of capital is 16%.

1. If the new flange-lipper is purchased, what is the amount of the initial cash flow at Year 0? Round your answer to the nearest whole dollar.
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2. 
   
3. 
   
4. 
   
5. What are the incremental net cash flows that will occur at the end of Years 1 through 5? Do not round intermediate calculations. Round your answers to the nearest whole dollar.

   CF1	$
   CF2	$
   CF3	$
   CF4	$
   CF5	$

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7. What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest whole dollar.

Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.

Problem 15-2A Recording, adjusting, and reporting short-term available-for-sale securities LO P3

[The following information applies to the questions displayed below.]

Rose Company had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.

3. Prepare an adjusting entry, if necessary, to record the year-end fair value adjustment for the portfolio of short-term investments in available-for-sale securities. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a table to compare the year-end cost and fair values of Rose's short-term investments in available-for-sale securities. The year-end fair values per share are: Gem Co., $25.00; PepsiCo, $45.25; and Xerox, $13.00.

Prior to 1983, hospitals received reimbursement from governmental programs such as Medicare and Medicaid on a cost-plus basis. That is, if the hospital reported total costs of $100 to provide care for Medicare/Medicaid patients, it received $135 from the government (given a 35% cost-plus mark-up).

After 1983, hospitals received reimbursement from governmental programs such as Medicare and Medicaid on a fixed-fee basis. That is, every time the hospital provided a particular type of care (for example, diagnosis and treatment of an ear infection) to a Medicare/Medicaid patient, it received the same payment from the government (e.g., $65 for every ear infection diagnosis and treatment).

Explain why hospitals are likely to have increased their investment in accounting information systems after 1983, given the descriptions of the two reimbursement plans. Be explicit about the costs and benefits involved.

On January 1, 2012, P Company purchased 95% of the outstanding common stock of S Company for $160,000. At that time, Sessions' stockholders' equity consisted of common stock, $120,000; other contributed capital, $10,000; and retained earnings, $23,000. Any difference between the implied value of the company and the book value is attributable to goodwill. On December 31, 2012, the two companies' trial balances were as follows:

PERFORM USING COST METHOD, THEN PERFORM USING EQUITY METHOD

Step 1.Prepare a T-Account to keep track of P's Investment in S. Record the date of acquisision entry.

Step 2:Prepare the Computation and Allocation of Difference Schedule.

Step 3: Prepare the investment elimination entries as of the date of acquisition and year after acquisition.

Step 4: Prepare the consolidating financial statement workpaper.