The LMN Partnership has the following assets and liabilities before any reduction for year-end principal payments on the liabilities. Assume the book basis and tax basis are the same amount. Assets Basis=$300,000 Value= $400,000.   Nonrecourse debt = Basis $500,000 and Value = $500,000. If the partners have a deficit in their capital accounts of ($100,000), what is the amount of minimum gain chargeback if partnership loss for the year is ($20,000) and the liabilities are reduced by $250,000? Please explain answer. A. $0 B. $20,000 C. $50,000   D. $100,000.   Please show explanation and math.

The stock in Black Corporation is owned by Sam and Susan, who are unrelated. Sam owns 70% and Susan owns 30% of the stock in Black Corporation. The following assets are to be distributed in complete liquidation of Black Corporation: Adjusted Fair Market Basis Value Cash $100,000 $100,000 Inventory 120,000 140,000 Equipment 220,000 180,000 Land 150,000 180,000

a. What gain or loss would Black Corporation recognize if it distributes the cash, inventory, and equipment to Sam and the land to Susan?

b. What gain or loss would Black Corporation recognize if it distributes the cash, inventory, and land to Sam and the equipment to Susan?

FIFO and LIFO. Analyze the following scenario:

The Hospital for Ordinary Surgery uses pharmaceuticals for its patients. It started the year on January 1, with an inventory of 1,000 doses of an antibiotic drug that cost $17 per dose. On January 2, it purchased another 300 does for $21 each. From January 3 through June 30 it used 800 doses. On July 1, it bought 500 more doses at $23 each. From July 2 through the end of the year it used 400 doses. What is the inventory value at the end of the year, assuming FIFO? What is the value assuming LIFO? Clearly label the calculations of the inventory amounts using Excel. Use formulas to calculate the FIFO and LIFO inventories and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number.

Explain the advantages and disadvantages of FIFO and LIFO inventory methods and evaluate the best inventory method is best for this scenario.

On March I, 2009, the Miranda Company purchased 2,000 shares of its common stock for $25 per share for
the treasury. On July I, 2009, 1,000 of the treasury shares were sold for $30 per share. On October I, 2009, 1,000 of the treasury shares were sold at $15 per share.

On January I, 2009, Miranda's balance in Retained Earnings was $100,000. During the year, the company
had net income of $20,000 and paid dividends of $5,000

43. Refer to question #56. By what amount did Treasury Stock change, if at all? (If the account  
balance or amount did not change, state your answer as "$0.")

44. Refer to question #56. By what amount did Total Equity change, if at all? (If the account
balance or amount did not change, state your answer as "$0.")

45. Which of the following is true regarding the sale of treasury stock on October I?
a. Treasury stock decreased and Total Equity decreased
b. Treasury stock decreased and Total Equity increased
c. Treasury stock increased and Total Equity decreased
d. Treasury stock increased and Total Equity increased
e. None of the above

46. Refer to question #59. By what amount did Treasury Stock change, if at all? (If the account
balance or amount did not change, state your answer as "$0.")

47 Refer to question #59. By what amount did Total Equity change, if at all? (If the account  
balance or amount did not change, state your answer as "$0.")

48. What is the balance in Retained Earnings at the end of the year?

Use the following information to answer the next 10 questions:
A company with I 00,000 authorized shares of $4 par common stock issued 50,000 shares at $9 per share Subsequently, the company declared and issued a I0% stock dividend. The market price of the shares is $20 per share.

49. What is the effect of the dividend on Retained Earnings?
a. Retained earnings decreased
b. Retained earnings increased
c. Retained earnings remained the same
d. None of the above

50. Refer to the previous question. By what amount did Retained Earnings change, if at all? (If the account balance or
amount did not change,_ state your answer·as "$0.")

51. What is the effect of the dividend on Common Stock?
a. Common Stock decreased
b. Common Stock increased
c. Common Stock remained the same
d. None of the above

54. Refer to the previous question. By what amount did Paid-in Capital change, if at all? (If the account balance or amount did not change, state your answer as "$0.")

55. What is the effect of the dividend on the number of shares outstanding?
a. The number decreased
b. The number increased
c. The number remained·the same
d. None of the above

56. Refer to the previous question. By what amount did the number of shares outstanding change, if at all? (If the account
balance or amount did not change, state your answer as "$0.")

57. What is the effect of the dividend on total equity and total assets?
a. Total equity decreased and total assets decreased
b. Total equity decreased and total assets increased
c. Total equity increased and total assets decreased
d. Total equity increased and total assets increased
e. None of the above

On May I. Sam Company sold $5,000 of inventory to Bob Company. The sale was made on account and Sam granted Bob credit terms of 2/10. n/30. The inventory cost Sam Company $3,000. On May 3, Bob returned $1,000 of the inventory to Sam. (The inventory returned by Bob cost Sam $600.) On May 9, Bob paid Sam in full for the amount due.

1. What journal entry will Sam record on May 3 if the perpetual inventory system is used?

A) debit Merchandise Inventory, $600; credit Cost of Goods Sold, $600.

B) debit Sales, $1,000; credit Accounts Receivable, $1,000.

C) debit Sales, $1,000; credit Cash, $1,000.

D) debit Sales Returns and Allowances, $1,000; credit Accounts Receivable, $1,000.

E) debit Sales Returns and Allowances, $1,000; credit Cash, $1,000.

2. What journal entry will Bob record on May 9 if the periodic inventory system is used?

A) debit Accounts Payable, $4,000; credit Cash, $4,000.

B) debit Accounts Payable, $5,000; credit Cash, $5,000.

C) debit Accounts Payable, $4,000; credit Merchandise Inventory, $80; credit Cash, $3,920.

D) debit Accounts Payable, $4,000; credit Purchase Discounts; $80, credit Cash, $3,920

E) debit Accounts Payable, $4,000; credit Purchase Returns and Allowances, $80; credit Cash, $3,920.

3. What journal entry will Bob record on May 9 if the perpetual inventory system is used?

A) debit Accounts Payable, $4,000; credit Cash, $4,000.

B) debit Accounts Payable, $5,000; credit Cash, $5,000.

C) debit Accounts Payable, $4,000; credit Merchandise Inventory, $80; credit Cash, $3,920.

D) debit Accounts Payable, $4,000; credit Purchase Discounts; $80, credit Cash, $3,920

E) debit Accounts Payable, $4,000; credit Purchase Returns and Allowances, $80; credit Cash, $3,920.

4. What journal entry will Sam record on May 9?

A) debit Cash, $4,000; credit Accounts Receivable; $4,000.

B) debit Cash, $5,000; credit Accounts Receivable, $5,000.

C) debit Cash, $3,920; debit Sales, $80; credit Accounts Receivable, $4,000.

D) debit Cash, $3,920; debit Sales Discounts, $80; credit Accounts Receivable, $4,000.

E) debit Cash, $3,920; debit Sales Returns and Allowances, $80; credit Accounts Receivable, $4,000.

Use the following information to answer the next 6 questions:

The following selected information is taken from the books of the Rick Company

5. Net Sales for the period is:

6. Cost of net purchases for the period is:

7. Cost of Goods Available for Sale for the period is:

8. Cost of Goods Sold for the period is:

9. Gross Profit for the period is:

10. Net Income for the period is:

58. Refer to the previous question. By what amount did total equity and total assets change, if at all? (If the account balance
or amount did not change, state your answer as "$0.")

Use the following information to answer the next 10 questions:
A company with 50,000 authorized shares of$! par common stock issued 10,000 shares at $10 per share. Subsequently, the company declared and paid a $3 cash dividend per share. On the date, the company declared the dividend, the market price of the shares was $30 per share.

59. What is the effect of the dividend on Retained Earnings?
a. Retained earnings decreased
b. Retained earnings increased
c. Retained earnings remained the same
d. None of the above

60. Refer to the previous question. By what amount did Retained Earnings change, if at all? (If the account balance or amount did not change, state your answer as "$0.")

61. What is the effect of the dividend on Common Stock?
a. Common Stock decreased
b. Common Stock increased
c. Common Stock remained the same
d. None of the above

62. Refer to the previous question. By what amount did Common Stock change, if at all? (If the account balance or amount
did not change, state your answer as "$0")

63. What is the effect of the dividend on Paid-in Capital?
a. Paid-in Capital decreased
b. Paid-in Capital increased
c. Paid-in Capital remained the same
d. None of the above

64. Refer to the previous question. By what amount did Paid-in Capital change, if at all? (If the account balance or amount
did not change, state your answer as "$0.")

65. What is the effect of the dividend on the number of shares outstanding?
a. The number decreased
b. The number increased
c. The number remained the same
d. None of the above

66. Refer to the previous question. By what amount did the number of shares outstanding change, if at all? (If the account
balance or amount did not change, state your answer as "O.")

67. What is the effect of the dividend on total equity and total assets?
a. Total equity decreased and total assets decreased
b. Total equity decreased and total assets increased
c. Total equity increased and total assets decreased
d. Total equity increased and total assets increased
e. None of the above

68. Refer to the previous question. By what amount did total equity and total assets change, if at all? (If the account balance
or amount did not change, state your answer as "$0.")

Martin Corp. applies overhead based on machine hours. Budgeted factory overhead is $275,000 and budgeted machine hours were 19,000. Actual factory overhead was $270,000 and actual machine hours were 19,100. Before disposition of under/overapplied overhead, cost of goods sold was $500,000 and ending inventories were as follows:

Direct materials50,000

WIP200,000

Finished Goods300,000

Total550,000

Determine the budgeted factory overhead rate per machine hour

Compute the over/underapplied overhead

Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach

Prepare the journal entry to dispose of the variance using the proration approach.

The following financial statements and additional information are reported.

Additional Information

1. A $33,200 note payable is retired at its $33,200 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $61,600 cash.
4. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

The payments department at Slick Sales has issued a cheque for an invoice it has received from Office Supplies Ltd. The payables clerk has three documents, (1) a receipted purchase order, (2) a receiving report, and (3) an invoice. The clerk has prepared the accompanying cheque and its signed, ready for sending. b) Explain how the purchase order, receiving report and invoice play an important role in the authorisation of payments to accounts payable. __________________________________________________________________

Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,200,000 investment in equipment with a useful life of five years and no salvage value. Holston Company’s discount rate is 18%. The project would provide net operating income each year for five years as follows:

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. Compute the project's net present value.

2. Compute the project's simple rate of return.

3a. Would the company want Derrick to pursue this investment opportunity?

3b. Would Derrick be inclined to pursue this investment opportunity?

Describe 2-3 reasons for a favorable direct manufacturing labor variance

Solomon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

October sales are estimated to be $310,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $13,300. Assume that all purchases are made on account. Prepare an inventory purchases budget.

The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases.

Budgeted selling and administrative expenses per month follow:

*The capital expenditures budget indicates that Solomon will spend $160,200 on October 1 for store fixtures, which are expected to have a $33,000 salvage value and a two-year (24-month) useful life.

Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Prepare a pro forma income statement for the quarter.

Prepare a pro forma balance sheet at the end of the quarter.

Prepare a pro forma statement of cash flows for the quarter.

Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.)

Please build the answer in your own words based on flowing text from studding book (provide the example):

text from book:

Group Term Life Insurance Plans.

Many employers offer group term life insurance as part of their employee benefit package. Life insurance coverage is normally calculated as a multiple of the employee’s annual salary, rounded up to the nearest thousand ($1,000.00). The premiums paid by the employer for coverage under a group term life insurance policy are considered a taxable benefit to the employee. If the employer shares the premium cost with the employee, for example, the employer pays half and the employee pays half, then the taxable benefit would only be the portion of the premiums the employer pays, or 50%. Group term life insurance taxable benefit calculations are based on the premium rates and sales taxes the employer pays and the amount of coverage provided. Premium rates are expressed per $1,000.00 of coverage on a monthly basis. The taxable benefit must be calculated on a pay period basis for inclusion in the employee’s taxable income.

The following formula calculates the employee’s monthly taxable benefit:

Coverage amount = Annual salary x coverage multiplier Round coverage amount up to nearest $1,000.00 Monthly taxable benefit = Coverage amount x premium rate $1,000.00 To ensure that the benefit is included in the employee’s income as it is earned or enjoyed, the monthly benefit must be annualized and then prorated on a pay period basis, as follows: Pay period taxable benefit = Monthly taxable benefit x 12 Pay period frequency

"Example: Rhonda Gold’s life insurance coverage, through her employer’s group plan is two times her annual salary of $30,300.00. Her employer pays the insurer 100% of the cost of her life insurance coverage at a premium rate of $1.00 per $1,000.00 of coverage per month. Rhonda is paid on a weekly basis; her taxable benefit is calculated as follows: Coverage amount = Annual salary x coverage multiplier Round coverage amount up to nearest $1,000.00 = ($30,300 x 2) = $60,600.00 = $61,000.00 (rounded) Monthly taxable benefit = coverage amount x premium rate $1,000.00 = $61,000 x $1.00 $1,000.00 = $61.00"

Group Sickness and Accident Insurance Plans.

These are group plans that provide employees with income for a period of time, should the employee be away from work for reasons of sickness or accident. A group plan is generally one that provides coverage to a class or association of employees. There can also be multiple plans for a group of employees, for example, one plan for clerical staff and one for management staff. The types of sickness and accident insurance plans considered in this category include:

? short term disability plans (wage loss replacement, weekly indemnity)

? long term disability plans

? accident insurance plans (accidental death and dismemberment)

If an employer pays the premiums for group short-term or long-term disability plans there is no taxable benefit implication for the employee, however employer-paid accidental death and dismemberment (AD&D) premiums are considered a non-cash taxable benefit. As a result, employer-paid AD&D premiums, plus the 8% RST (Manitoba and Ontario), the 9% tax on insurance premiums (Québec) and the 6% PST (Saskatchewan) as applicable, are considered pensionable for C/QPP contributions and taxable for federal and provincial income taxes. Employer-paid premiums for a non-group plan are considered a non-cash taxable benefit in all jurisdictions. A non-group plan is one that generally does not cover a group or association of employees. For example, if the organization pays the premiums for a long-term disability plan for only the president of the organization, this would be considered a non-cash taxable benefit to the president. When the benefit is taxable it is also pensionable for C/QPP contributions; however, as it is a non-cash benefit, it is not insurable, and no EI or QPIP premiums are deducted. GST and HST are not included in the value of this type of benefit, but the provinces of Manitoba, Ontario, Québec and Saskatchewan assess sales tax on AD&D insurance premiums.

Question : Your organization, located in Manitoba, will be enhancing the group benefits plan offered to employees in two months by adding accidental death and dismemberment (AD&D) coverage and vision care coverage. The organization will pay 50% of the cost of the AD&D premiums and 50% of the cost of the vision care premiums, with the employees paying the other 50% of each premium. The Manager of Finance, Laura Bruce, has requested that you, as the Payroll Supervisor, prepare a communication for the employees, explaining how these new benefits will impact their net pay.

(200 – 350 words)

On 1 July 2018, ABC Ltd purchased and recorded equipment at its cost of acquisition of $320 000. The equipment is expected to have a useful life for seven years and an estimated residual value of $10 000. ABC Ltd depreciates the asset using the straight-line method. ABC Ltd uses the revaluation model to equipment and records accumulated depreciation using the net method. The reporting period end of ABC Ltd is 30 June. ABC Ltd revalued the equipment on 30 June 2020, when the fair value of the equipment was $250 000. On 1 July 2020, the useful life of the equipment is reassessed: it is expected to have a remaining useful life of 6 years. The estimated residual value remains unchanged. ABC Ltd revalued the equipment on 30 June 2021, when the fair value of the equipment was $180 000. On 30 June 2022 the equipment was sold for $200 000

REQUIRED: (1) Prepare journal entries to account for the revaluation of the equipment of 30 June 2020. Show all working steps. (2) Prepare journal entries to account for the revaluation of the equipment of 30 June 2021. Show all working steps. (3) Prepare journal entries to account for the sale of the equipment of 30 June 2022. Show all working steps