Elastigirl owns a piece of real property with an adjusted basis of $480,000 and a fair market value of $1,000,000 and which is subject to a $400,000 mortgage. She exchanges the real property for an office building owned by Screenslaver. The building has an adjusted basis of $400,000 and a fair market value of $500,000. Screenslaver assumes Elastigirl’s mortgage on the land and transfers stock with an adjusted basis of $150,000 and a fair market value of $100,000 to Elastigirl as part of the exchange.

a. What is Elastigirl’s realized and recognized gain or loss on the exchange?

b. What is Screenslaver’s realized and recognized gain or loss on the exchange?

c. What are the parties’ adjusted bases for each piece of property received?

Exercise 3-21

On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances:

During January 2018, the following transactions occur:
  

The following information is available on January 31, 2018.

Rent for the month of January has expired.

Supplies remaining at the end of January total $4,800.

By the end of January, $4,700 of services has been provided to customers who paid in advance on January 17.

Unpaid salaries at the end of January are $4,400.

Badgersize Company has the following information for its Forming Department for the month of August.

Assume materials are added at the start of processing.

Required:

a. Calculate the equivalent units for the Forming Department for the month of August.

b. Find the cost per equivalent unit of input resource. (Round your answers to 2 decimal places.)

Northwest Building Projects manufactures two lumber products from a joint milling process: residential building lumber and commerical building lumber. A standard production run incurs joint costs of $350,000 and results in 120,000 units of residential building lumber and 120,000 units of commercial building lumber. Each residential building lumber sells for $12 per unit and each commerical building lumber sells for $8 per unit.

1) Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $220,000 per production run. During this process, 10,000 units are unavoidably lost and have no value. The remaining units of CBL are salable at $10 per unit. The RBL, although salable immediately at the split-off point, is coated with a tarlike preservative that costs $250,000 per production run. The RBL is then sold for $13 each. Using the net realizable value basis, how much of the completion costs should be assigned to each unit of CBL?

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 7,000 pools and incurred the following costs:

a. Purchased 33,000 pounds of materials at a cost of $2.85 per pound.

b. Used 27,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

c. Worked 2,700 direct labor-hours at a cost of $6.70 per hour.

d. Incurred variable manufacturing overhead cost totaling $4,930 for the month. A total of 1,700 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b. Labor rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

c. Variable overhead rate and efficiency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (Input all values as positive amounts. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a. Analyze the following Graph and the breakeven point and discuss how this analysis is used for decision making?

b- If fixed costs are $400,000, selling price per unit is $150, and variable cost per unit is $100, how many units must the company sell in order to earn a profit of $ 100,000?

In the Customer and Vendors Centers, you were introduced to several features that QuickBooks uses in place of ledgers. Features and give examples on how a company might use them. Specifically, I am referring to the following features: Enter Bills, Pay Bills, Create Sales Receipt, Create Invoices, Jobs, Make Deposits, Undeposited Funds, and Receive Payment. What accounting is going on in the background of these features?

It has been said that advances in information technology have made in both easier and more challenging to conduct. Please explain what is meant by this statement and provide examples of each point.

what are an accountants Social Responsibilities and Diversity

1. Determine Cash Flows

   Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,000 units at $18 each. The new manufacturing equipment will cost $120,000 and is expected to have a 10-year life and a $17,000 residual value. Selling expenses related to the new product are expected to be 3% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:

   Direct labor	$ 2.50
   Direct materials	3.20
   Fixed factory overhead—depreciation	2.40
   Variable factory overhead	0.90
   Total	$9.00

   Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar.

   Natural Foods Inc.
   Net Cash Flows
   	Year 1	Years 2-9	Last Year
   Initial investment	$
   Operating cash flows:
   Annual revenues	$	$	$
   Selling expenses
   Cost to manufacture
   Net operating cash flows	$	$	$
   Total for Year 1	$
   Total for Years 2–9 (operating cash flow)		$
   Residual value
   Total for last year			$

   Feedback

   For Year 1, subtract the amount to be invested from the operating cash flows (annual revenues less selling expenses less cost to manufacture). For Years 2-10, subtract the selling expenses and the costs to manufacture from the annual revenues. For Year 10 only, add the residual value.

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Compute the amount that a $20,000 investment today would

accumulate to at the end of 10 years, 8% interest compounded quarterly.

$ __________

   Part (b) Fran wants to retire at the end of this year (2020). Her

life expectancy is 35 years from her retirement. She has

come to you, her CPA, to learn how much she should deposit

on December 31, 2020 to be able to withdraw $100,000 at the

end of each year for the next 35 years, assuming the amount

on deposit will earn 8% interest annually.

$ __________

Running Data began operations on February 1. The company produces GPS watches designed for runners. On February 15, the company purchased 1,600 DVD discs to include with each running watch it sells. The DVD is preloaded with product setup information, an instruction manual including video examples, and warranty details. Each disc cost Running Data $7.

During February, 500 discs were taken from the raw materials inventory. Of these, 80 were taken by the sales manager to sales meetings with prospective retailers to carry the watches and handed out as advertising. The remaining discs were included with the GPS watches that were being manufactured in February. Of the watches that were bundled with the discs during May, 75% were completed and transferred from work in process to finished goods. Of the watches completed during the month, 60% were sold and shipped to customers.

1. Determine the cost of discs that would be in each of the following accounts at February 28:

raw material

work in process

finihed goods'

COGS

advertising expense

2. Specify whether each of the above accounts would appear on the balance sheet or on the income statement at February 28.

raw material

work in process

finished goods

COGS

advertising exp

what are an accountants global issues?

Sunland Steel Corporation, as lessee, signed a lease agreement for equipment for five years, beginning January 31, 2020. Annual rental payments of $50,000 are to be made at the beginning of each lease year (January 31). The insurance and repairs and maintenance costs are the lessee’s obligation. The interest rate used by the lessor in setting the payment schedule is 9%; Sunland’s incremental borrowing rate is 10%. Sunland is unaware of the rate being used by the lessor. At the end of the lease, Sunland has the option to buy the equipment for $3,900, which is considerably below its estimated fair value at that time. The equipment has an estimated useful life of seven years with no residual value. Sunland uses straight-line depreciation on similar equipment that it owns, and follows IFRS 16.

Using time value of money tables, a financial calculator, or Excel functions, calculate the PV of the lease obligation. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)

Eli Fish Corp. (EFI), a passive investor, owns various investments in debt and equity securities.

EFI’s policy is to prepare journal entries for adjustments and accruals at year end. The company elects to reclassify reserves (accumulated other comprehensive income) to retained earnings upon derecognition of investments in equity securities at FVOCI-elect.

EFI engaged in various investment-related transactions as detailed below. All interest and dividend payments were received on the scheduled payment dates. While the resulting journal entries will all be entered to the nearest dollar, EFI rounds all dollar-based calculations to the nearest whole cent (for example, $50.22) and percentages to four decimal places (for example, 11.9876%). You should do likewise in your supporting calculations.

January 1, 20X1

i) EFI paid $17,500 for 500 common shares of Zoe Corp. and classified this investment at fair value through profit or loss (FVPL).
ii) EFI paid $24,700 for 100 preferred shares of Meeks Inc. and irrevocably classified this investment at fair value through other comprehensive income (FVOCI-elect). The preferred shares each pay a dividend of $1.00 ($100 total) annually on June 30.
iii) EFI paid $102,974 for a $100,000, 5.0% coupon bond issued by Zachary Ltd. that pays interest on June 30 and December 31 each year. The bond matures on December 31, 20X9. EFI classified this investment at FVPL.
iv) EFI paid $176,618 for a $200,000, 3.0% coupon bond issued by Belle Inc. that paysinterest on June 30 and December 31 each year. The bond matures on December 31, 20X7. EFI classified this investment at fair value through other comprehensive income (FVOCI).
v) EFI paid $292,189 for a $300,000, 4.0% coupon bond issued by Canaan Corp. that pays interest on June 30 and December 31 each year. The bond matures on December 31, 20X6. EFI classified this investment at amortized cost.

December 31, 20X1

vi) The market values of the investments were as follows:
Zoe Corp. $17,100
Meeks Inc. $25,200
Zachary Ltd. $101,500
Belle Inc. $183,500
Canaan Corp. $287,600

January 1, 20X2

vii) EFI reclassified its investment in Zachary’s bonds from FVPL to amortized cost.
viii) EFI reclassified its investments in Belle’s bonds from FVOCI to amortized cost.

January 2, 20X2

ix) EFI sold some of its investments for the prices set out below:
Zoe Corp. $17,400
Meeks Inc. $24,600
Canaan Corp. $288,000

Record all journal entries pertaining to the purchase, income recognition, revaluation, reclassification, and derecognition of EFI’s investments. Separate the journal entries into those required in 20X1 and those required up to and including June 30, 20X2.

Ensure that the journal entries are dated and include a brief description of the pertinent details. Prepare a separate journal entry for each event and for each investment; supporting calculations are to be referenced or included in the description.

Edit: This was all the information that was provided - no further coupon description or balance sheet