Hamilton Ltd. was organized on January 2, 2017. The following investment transactions and events occurred during the following months:

Assume that Hamilton has a significant influence over Wong with its 20% share.

Required:
1. Prepare the entries to record the preceding transactions in Hamilton’s books. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)



2. Calculate the carrying value per share of Hamilton’s investment as reflected in the investment account on January 4, 2019. (Round your answer to 2 decimal places.)



3. Calculate the change in Hamilton’s equity from January 2, 2017, through January 5, 2019, resulting from its investment in Wong.

Green Mountain Coffee Roasters is a specialty coffee roaster and manufacturer of coffee makers. Using the following information, class notes, and the posted PowerPoint slides as resources complete the following:

I. Constructing a Balance Sheet 1. Use the information below to construct and balance sheet and a common sized balance sheet for the corporation (note the information here is not necessarily provided in the order in which it should appear on a balance statement. a. Gross fixed assets: $110,000 b. Cash $100,000 c. Accounts payable: $43,000 d. Retained earnings: $25,000 e. Accumulated depreciation $42,000 f. Accounts receivable $75,000 g. Long-term bank loan $29,000; $15,000 of which will be due within the next 12 months. h. Mortgage (long-term) $50,000 i. Common Stock $105,000 j. Inventories $36,000 k. Notes payable (short-term) $27,000 2. What is the firm's net working capital? (the difference between current assets and current liabilities). 3. Does the firm use more equity or debt (as a percent of total assets) to finance its business? • A common-sized balance sheet is a balance sheet in which a firm's assets and sources of debt and equity are expressed as a percentage of its total assets. • The debt ratio- is a firm's total liabilities divided by its total assets. It is a ratio that measures the extent to which a firm has been financed with debt. Use the following to answer questions 29-37:

Use the information and your calculations from the Balance Sheet and Statement of Cash Flows exercise posted on Canvas to answer the following questions:

34. The corporation had cash flow from operating activities of: A) $9,000 B) $21,000 C) $33,000 D) $59,000

35. The corporation had cash outflow from investing activities of: A) $38,000 B) $35,000 C) $3,000 D) $0

36. The corporation had cash flow from financing activities of: A) $35,000 B) $32,000 C) $3,000 D) $49,000 Page 8

37. The corporation's cash _______________ by __________________. A) increased, $30,000 B) increased, $18,000 C) decreased, $30,000 D) decreased $18,000

identify three factors that would discourage you from selecting a target company to acquire or partner with and why these factors are likely to work against a merger or acquisition.

The Lippert Company uses the perpetual inventory system. The following July data are for an item in Lippert's inventory:

Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Round your final answers to the nearest dollar. For weighted-average cost, do not round the weighted-average unit cost

Class: ACCT-301 --> WEEK 7: TRANSFER PRICING AND CAREER RESEARCH TASK

How is transfer pricing used to assess performance? Have you ever worked with transfer pricing before? What kinds of companies would benefit the most by using this properly? How could they hurt themselves without using it or without applying it properly?

You are about to start working at car dealership that is currently reporting losses due to flooding but will be profitable in a few years. Assume you’re your risk adverse and your supervisor cannot fully monitor your actions. The key metrics at this dealership include both financial data (number of sales, margin on sales) as well as qualitative data (survey of experience). You are tasked with designing a compensation contract.

1. Define in your own terms moral hazard and adverse-selection Describe how the firm may want to establish a compensation contract for you given moral hazard and adverse selection issues.

2. Does this change depending on your level of risk aversion?

3. Discuss both tax and nontax factors from both the employee and employers perspective.

4. Suppose a firm has a tax loss in the current period of $200, which when added to prior tax losses gives it an NOL carryforward of $300. The top statutory tax rate is 21%. Assume an after-tax discount rate of 10% and future taxable income of $50 per year. What is the firm’s marginal explicit tax rate?

5. Create the compensation contract with points 1-4 in mind. Keep this contract to a single page. You will be graded on creativity, presentation, and writing clarity.

Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows.

(a1)

Compute the physical units of production.

b. For each plant compute equivalent units of production for materials and for conversion costs.

c). For each plant determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 5.25.)
d). For each plant show the assignment of costs to units transferred out and in process.

This semester, we learned that Congress designed the Code to include deductions that can be taken for losses that a taxpayer may experience. Two such deductions are (1) the bad debt deduction and (2) the deduction for casualty losses and theft. How does the IRS generally interpret deductions (i.e., broadly or narrowly)? How do we determine whether a taxpayer is entitled to each of these two deductions? What is the purpose of each of these two deductions? Are there any limits on the deduction at issue? Finally, what generally governs when a taxpayer may take each of these two deductions?

Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

(a)

Prepare a schedule showing physical units of production.

b) Determine the equivalent units of production for materials and conversion costs

c) Compute the unit costs of production

d) Determine the costs to be assigned to the units transferred out and in process for June

e) Prepare a production cost report for the Molding Department for the month of June

Baden Company has gathered the following information.

(a)

Compute equivalent units of production for materials and for conversion costs.

(b)  

Determine the unit costs of production.

(c)  

Show the assignment of costs to units transferred out and in process.

1. What are the assumptions behind the Pure (Unbiased) Expectations Theory and to what conclusion do those assumptions lead?

2. What is the difference (in words, not numbers) between the Federal Funds market and the market for Discount Window loans?

The Blending Department of Luongo Company has the following cost and production data for the month of April.

Units transferred out totaled  20,740. Ending work in process was  1,220 units that are 100% complete as to materials and 40% complete as to conversion costs.

(a)

Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April.

(b) Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. $25.)

Unit cost for the month

(c) Determine the costs to be assigned to the units transferred out and in ending work in process.

Transferred out$
Work in process
Materials$
Conversion costs
Total costs$

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 100,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 95,000 units. In its third year, O’Brien produced 83,000 units and sold 78,000 units. The selling price of the company’s product is $77 per unit.

Required:

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and T_e = 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.

The PW for alternative X is determined to be____ $ .

The PW for alternative Y is determined to be____ $ .

Alternative (Click to select)XY is selected.