discuss the increase importance that is being placed on data analysis in the accounting field. Do you agree or disagree with the panel in the podcast that technology will impact the auditing profession.   Be sure to provide detailed examples to support your opinion.

https://www.journalofaccountancy.com/podcast/ai-blockchain-automation-reinventing-accounting.html

Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $44,000. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. At December 31, 2015, the truck had a book value of $11,200. Required: 1. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for: a. $10,600 b. $7,600 2. How should the gain or loss on disposal be reported on the income statement? 3. Assume that Swann uses IFRS and sold the truck for $10,600. In addition, Swann had previously recorded a revaluation surplus related to this machine of $5,000. What journal entries are required to record the sale?

Prepare the necessary journal entries on April 1, 2016 to record:

What are the initial steps in the accounting cycle and what happens in each step ? Explain in detail.

Required: a. Use Excel to create an unadjusted trial balance for Post Plumbing, Inc. at January 31, 2019. b. Prepare the adjusting journal entries for the month of January. Create additional accounts as necessary. c. Post all adjusting journal entries necessary to your Excel trial balance. d. Use Excel to create the adjusted trial balance. e. Prepare an unclassified balance sheet at January 31, 2019.The following account balances are provided for Post Plumbing, Inc. at January 31, 2019:

Cash $ 372,100

Accounts Receivable 359,000

Investments 30,000

Spare parts and supplies 38,000

Prepaid salaries expense 9,000

Prepaid rent 36,000

Equipment 721,850

Accounts payable 18,200

Interest payable 280

Unearned Revenue 22,000

Notes payable 35,000

Bank loan 426,000

Common Stock 625,000

Retained Earnings 99,150

Service Revenue 413,000

Interest Revenue 300

Parts and supplies expense 16,000

Loss on sale of investments 2,980

Salaries expense 50,000

Utilities expense 1,200

Advertising expense 2,800

The following additional information is provided for the month ending January 31, 2019:

1. Rent is paid through March 31, 2019.

2. Depreciation expense for the month was $9,950.

3. $3,800 of services paid for in December were rendered during January.

4. A physical count showed $29,000 of supplies on hand on January 31, 2019.

5. $3,500 of wages earned from January 27-31 will be paid in February.

6. The interest rate on the $35,000 note payable is 5%.

7. Received a January phone bill for $480 on February 4.

8. The investment balance includes an $18,000 note receivable with an interest rate of 2%.

9. Company purchases long-term disability insurance for its employees. The monthly premium is .25% of salaries expense and is payable quarterly.

10. The income tax rate is 21%

TAX 502 - Lesson Assignment #6: Penalty Taxes on Undistributed Corporate Income, Dividends and Other Nonliquidating Distributions

Reading

Text: Study Chapters 7 and 8 of the Bittker & Eustice text.

Assignments

The following Assignments should be completed and submitted to the course faculty via the learning platform for evaluation and grading. Submit your responses to these questions in one WORD document. List the question first, and then your response.

Copy the question, and then provide your answer on all of the following:

LESSON 6, PROBLEM #1

In not less than 1,000 words discuss "earnings and profits". Your discussion should include major differences between computing current earnings and profits and current taxable income as well as why earnings and profits should be calculated before a corporation decides to make a distribution to its shareholders.

LESSON 6, PROBLEM #2

Allan owns all of the stock of CadyCo. The stock’s basis is $100,000. CadyCo has a total of current and accumulated earnings and profits of $50,000. CadyCo distributes $200,000 cash to Allan “with respect to his stock” (i.e., as a state law “dividend”). How is the $200,000 taxed? What is Allan’s stock basis after the distribution? Alternatively, CadyCo distributes to Allan his note to CadyCo for $200,000 borrowed from CadyCo.

LESSON 6, PROBLEM #3

Assumptions: The stock of ChadCo is owned equally by two shareholders: SecondCo (a corporation) and Arnold (an individual). ChadCo and SecondCo use the accrual method, Arnold uses the cash method. All use a calendar taxable year. Assume § 1059 does not apply. Use a 34 percent corporate tax rate in this problem. During the current year, ChadCo accrued income and expenses as follows:

On December 24 of the preceding year, SecondCo and Arnold incorporated ChadCo and capitalized ChadCo with cash of $100,000 each. On December 31 of that preceding year, SecondCo and Arnold received distributions from ChadCo of $5,000 each; ChadCo did not earn any income for that year. In addition, SecondCo and Arnold received distributions of $5,000 each, in the current year.

Which distributions should be gross income to SecondCo and Arnold, in what amounts, and why? What does E&P have to do with this?

Alternative: Arnold just bought the ChadCo shares on December 30 of the current year from another shareholder for FMV of $145,000, before the declaration and payment of a

$5,000 distribution to Arnold on December 31 of the current year.

Should the distribution be taxable income to Arnold? Why?

Now assume that SecondCo’s basis in its ChadCo stock is $100,000 and Arnold’s basis in his ChadCo stock is $40,000. On January 2 of the current taxable year, ChadCo distributes $100,000 in cash to SecondCo and $100,000 in cash to Arnold. As of the end of the preceding taxable year, ChadCo’s accumulated E&P was zero.

What are the tax consequences of this distribution to ChadCo, SecondCo, and Arnold? [Hint: First compute ChadCo’s current-year taxable income and then compute current- year E&P before reducing the E&P for the distribution (“interim E&P”); after reducing for the distribution, compute final accumulated E&P.]

Variation: Assume Arnold’s shares were owned by a different shareholder every quarter and $50,000 was distributed ratably to all shareholders quarterly?

How much dividend would SecondCo and the holders of Arnold’s shares receive?

Suppose under the basic facts in (3) above that ChadCo had an accumulated deficit of

$100,000 in its E&P account as of December 31 of the preceding taxable year.

If, on December 1 of the current year (the declaration date), ChadCo’s board of directors voted to pay the $200,000 distribution by mailing the checks on December 31 of the current taxable year (the payment date, the identification of which is a practice generally used only by widely held corporations) to shareholders of record on December l5 of the current taxable year (the record date), such checks actually being received by SecondCo and Arnold in the mail on January 2 of the next year? Assume that SecondCo and Arnold are the public and that they are the only shareholders (as in the basic facts).

How would your answer to (3) above change?

Suppose that SecondCo is an individual and that ChadCo has always been an S corporation.

What is ChadCo’s E&P‘? How is each shareholder’s personal income tax return affected for the current year by the tax items of ChadCo?   How will ChadCo distribution of

$100,000 to each shareholder in the current year affect shareholders?

The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms. Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:

1. Currently, the farm is paying an average of $200,000 per year to transient workers to pick the cherries.
2. The cherry picker would cost $480,000. It would be depreciated using the straight-line method and it would have no salvage value at the end of its 8-year useful life.
3. Annual out-of-pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $94,000; insurance, $3,000; fuel, $11,000; and a maintenance contract, $14,000.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables.

Required:

1. Determine the annual savings in cash operating costs that would be realized if the cherry picker were purchased.

2a. Compute the simple rate of return expected from the cherry picker.

2b. Would the cherry picker be purchased if Elberta Fruit Farm’s required rate of return is 8%?

3a. Compute the payback period on the cherry picker.

3b. The Elberta Fruit Farm will not purchase equipment unless it has a payback period of seven years or less. Would the cherry picker be purchased?

4a. Compute the internal rate of return promised by the cherry picker.

4b. Based on this computation, does it appear that the simple rate of return is an accurate guide in investment decisions?

Springfield Manufacturing Co. is considering the investment of $60,000 in a new machine. The machine will generate cash flow of $7,500 per year for each year of its 15 year life and will have a salvage value of $4,000 at the end of its life. Springfield's cost of capital is 10%.

(a.) Calculate the net present value of the proposed investment. Ignore income taxes, and round all answers to the nearest $1.
(b.) Calculate the present value ratio of the investment.
(c.) What will the internal rate of return on this investment be relative to the cost of capital? Explain your answer.
(d.) Calculate the payback period of the investment.

John is interested in tax planning and saving for his children’s education. He needs some further information on the topics below:

He has several long- and short-term investments that he would like to sell to put his children through college, and he does not know the tax consequences associated with them if he sells.

He is considering taking a second mortgage or home equity loan on the house in order to increase funds available for his children's tuition. He would like to understand the deductibility of the interest and any limitations that exist.

He is considering contributing to his IRA or converting to a Roth, but maybe he can wait a couple years before doing this as he believes there are severe tax consequences to this. He would also like to know about the income limitations to convert from an IRA to a Roth.

He asks about any credits that he could get for paying for his children's tuition, room, and housing.

John is married and has a combined adjusted gross income of $135,000; he currently has a mortgage of $500,000.

discuss this topic Interest deduction and explain the tax consequences associated with his or her topic and how it relates to John’s situation.

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000.

What was net operating working capital for 2015 and 2016?

What was Arlington's 2016 free cash flow?

$    million

Construct Arlington's 2016 statement of stockholders' equity.

What was Arlington's 2016 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to two decimal places.

$    million

What was Arlington's MVA at year-end 2016? Assume that its stock price at December 31, 2016 was $25.

Problem 23-4

Crane Company had the following information available at the end of 2017.

Prepare a statement of cash flows for Crane Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

the chair of the FASB at one time noted that "the flow of standards can only be slowed if (1) producers focus less on quarterly earning per share and tax benefitd and more on quality products and (2) accountants and lawyers rely less on rules and law and more on proffessional judgment and conduct." explain his comment.

What are the sources of pressure that change and influence the development of GAAP?

I know this is a broad question. I believe it would be organizations like the SEC, FASB, or AICPA that influence GAAP's development. I just wanted to hear an experts take on the answer. I really appreciate if the answer can be as detailed and specific as possible. Thanks!

Shaghai Tea Products has an exclusive contract with British Distributors. Calamine and Shanghai are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March: Actual Budget Calamine Shanghai Calamine Shanghai Sales in pounds 3,400 lbs. 3,600 lbs. 4,000 lbs. 3,000 lbs Price per pound $2.50 $2.50 $2.00 $3.00 Variable cost per pound 1.00 2.00 1.00 1.50 Contribution margin $1.50 $0.50 $1.00 $1.50 Budgeted and actual fixed corporate-sustaining costs are $1,750 and $2,000, respectively. For the contribution margin, what is the total flexible-budget variance? $300 favorable $1,900 unfavorable $500 favorable $800 unfavorable

Alpine Luggage has a capacity to produce 360,000 suitcases per year. The company is currently producing and selling 280,000 units per year at a selling price of $395 per case. The cost of producing and selling one case follows:

The company has received a special order for 20,000 suitcases at a price of $251 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $50 per suitcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:

Required:

a. What is the impact on profit for the year if Alpine accepts the special order? (Enter your answers in thousands of dollars. Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

*************PLEASE SHOW ME HOW YOU GET EACH NUMBER IN THE BOXES. I HAVE THOSE TWO NUMBERS FILLED IN AND I DON'T REMEBER HOW I GOT THEM.*****************************************************************

Using the Payback Method, IRR, and NPV Problems Purpose of Assignment The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. Assignment Steps Resources: Corporate Finance Calculate the following time value of money problems in Microsoft Excel or Word document. You must show all of your calculations. If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%? What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%? What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years? If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase? What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period. Calculate the project cash flow generated for Project A and Project B using the NPV method. Which project would you select, and why? Which project would you select under the payback method? The discount rate is 10% for both projects. Use Microsoft® Excel® to prepare your answer. Note that a similar problem is in the textbook in Section 5.1. Sample Template for Project A and Project B: Show all work. Submit the all calcluations. Click the Assignment Files tab to submit your assignment.