David Bash's Landscaping Company has the following list of assets, liabilities, revenues and expenses on December 31, 2016, which is the end of its first year of operations:

Common stock $40,400

Accounts payable 5,000

Salary expense 15,000

Repairs expense     2,200

Dividends       10,000

Truck    24,000

Equipment     22,200

Notes payable 12,800

Cash   60,400

Supplies expense 5,400

Service revenue 77,200

Gasoline expense 2,200

The stockholders' equity for David Bash's Landscaping on December 31, 2016 is:

Cobe Company has already manufactured 18,000 units of Product A at a cost of $20 per unit. The 18,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $104 and for Product C is $55.

1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not.

You recently read an article in your school newspaper about Professor Rodney Taylor, one of your favorite professors in the religious studies department. According the article, he and the university have been negotiating an early retirement package and are reached a stumbling block. Under the agreement, Professor Taylor is to receive a lump-sum payment equal to one year's salary in exchange for his retirement and the release of any and all rights associated with his tenure status. While recognizing that the payment would be subject to income tax, Taylor contends that the amount is not earned income and thus should not be subject to the FICA tax. The university negotiators say that they are not aware of any authority that supports Taylor's view. In fact, they have learned that other universities in the state system have been withholding amounts for FICA for years in situations involving early retirement buyout packages for high-level administrators. The university's position is that lacking the authority to not withhold for FICA and given the precedent set in similar early retirement packages at other universities, they are obligated to withhold FICA from the payment. You want to come to the aid of Professor Taylor. Obviously, if the payments are considered wages subject to the FICA tax, the value of the offer to Professor Taylor will be significantly reduced. Can you find any authority for his position? Evaluate the position of the university and of the professor. Do the following: (1) Give your opinion. In it, show authorities, citing law, regulations, interpretations and decisions applicable. (2) Enumerate and explain every step you take in reaching your result. These are extremely important - just as important as the conclusion itself.

E2-19 Calculating Missing Amounts and Cost of Goods Manufactured and Sold [LO 2-3, 2-4, 2-5, 2-6]

For each of the following independent cases (1–4), compute the missing values. (Enter all amounts as positive values.)

if i can see the work on how to do it thatd be cool too!

ABC Construction has the following contract: Contract price 1,000,000 Cost incurred cost to complete Dec 31 2017 200,000 600,000 Dec 31 2018 350,000 250,000 Dec 31 2019 300,000 850,000 Billings Cash Received Dec 31 2017 250,000 200,000 Dec 31 2018 400,000 350,000 Dec 31 2019 350,000 450,000 1,000,000 1,000,000 A. Prepare a % of completion schedule for the three years B. Prepare journal entries for 3 years

In 20X7, Troy, a resident of Connecticut, wins the Connecticut LOTTO grand prize of $15 million.

The LOTTO contest is governed by the following rules.

The prize is to be paid in 20 equal installments ( in this case, $750,000 per year) with no interest provided for.

The rights to the prize award are not assignable. If a winner dies during the payout period, however, the remaining installment payments are to be made to the winner’s duly appointed executor.

The prize award is not specifically funded or guaranteed by any state agency. It constitutes a general obligation of the state of Connecticut.

Troy dies in 20X9 after having received two payments of $750,000 each. Troy’s estate includes the present value of the remaining $13.5 million prize award in the estate at $4.86 million. This is determined by using the IRS table amount of $6.75 million and discounting it for absence of security ( ie., no separate funding or guarantee of payment by a state agency) and lack of marketability (ie., the award cannot be assigned). The table is be used in valuing, among other income interests, private (ie., noncommercial) annuity contracts.

Upon audit of the estate tax return, the IRS disputes the deviation from the table amount. The IRS argues that the absence-of-security discount is inappropriate because the state of Connecticut has never defaulted on any of its LOTTO obligations. Furthermore, the lack-of-marketability discount is inappropriate applied to annuity-type situations. Unlike stocks and bonds and other ownership interests, private annuities are not subject to marketplace valuation procedures.

Who should prevail? The taxpayer or the IRS.

Do the following:

(1)      Give your opinion. In it, show authorities, citing law, regulations, interpretations and decisions applicable.

(2)      Enumerate and explain every step you take in reaching your result. These are extremely important - just as important as the conclusion itself.

Access the FASB Standards Codification at the FASB website (www.fasb.org).

Required:

Determine the specific citation for accounting for each of the following items:

1. On what basis is a contract’s transaction price allocated to its performance obligations?
2. What are indicators that a promised good or service is separately identifiable from other goods and services promised in the contract?
3. Under what circumstances is an option viewed as a performance obligation?

Debella Corporation's contribution format income statement for July follows:

Problem 5-19A Break-Even Analysis; Pricing [LO5-1, LO5-4, LO5-5] Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $97 selling price) is 25,200 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

[The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Beginning Inventory Ending Inventory Raw materials inventory $ 62,000 $ 136,500 Work in process inventory 400,500 549,000 Finished goods inventory 618,000 579,000 The following additional information describes the company's production activities for May. Raw materials purchases (on credit) $ 290,000 Factory wages cost (paid in cash) 1,574,000 Other overhead cost (Other Accounts credited) 64,500 Materials used Direct $ 155,500 Indirect 60,000 Labor used Direct $ 790,000 Indirect 784,000 Overhead rate as a percent of direct labor 115 % Sales (on credit) $ 3,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. rev: 09_05_2017_QC_CS-97362 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.

A general partner in a partnership has unlimited legal liability but also has managerial control over the partnership. A limited partner has limited liability but does not exercise control over the day-to-day operations. John, your client, owns a machine shop operated as a sole proprietorship. The business is worth $10,000,000. He would like to transfer a portion of ownership to his two adult children, Cindy and Luke, by converting the business into a partnership. How would you structure a partial transfer of ownership in the business to Cindy and Luke to achieve a fair market value of the transfer that is less than Cindy and Luke’s proportionate share of the $10,000,000 value? Are there any penalty concerns associated with the valuation discounts that your proposed transfer takes advantage of, especially if the valuation is found to be inaccurate?

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2017:

During 2018, several events and transactions affected the retained earnings of Consolidated Paper.

Required:
1. Prepare the appropriate entries for these events.

1. On March 3 the board of directors declared a property dividend of 260,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $498,000). The investment shares had a fair value of $2 per share and were distributed March 31 to shareholders of record March 15.
2. On May 3 a 5-for-4 stock split was declared and distributed. The stock split was effected in the form of a 25% stock dividend. The market value of the $1 par common stock was $11 per share.
3. On July 5 a 1% common stock dividend was declared and distributed. The market value of the common stock was $11 per share.
4. On December 1 the board of directors declared the 7.5% cash dividend on the 92,000 preferred shares, payable on December 28 to shareholders of record December 20.
5. On December 1 the board of directors declared a cash dividend of $0.60 per share on its common shares, payable on December 28 to shareholders of record December 20.

2. Prepare the shareholders' equity section of the balance sheet for Consolidated Paper, Inc., at December 31, 2018. Net income for the year was $820,000.

Propose basic estate planning strategy (without considering trusts) applying the final project fact pattern. Consider valuation, family limited partnerships, unified credit, and annual exclusion to accomplish long-term minimization of the client’s tax liability. Cite relevant legal authority for your answer. This milestone covers Section I Parts A and B (excluding trusts).

A. Create an estate planning strategy, showing versatility of thought, that will minimize estate and gift tax liability over the course of the client’s life span, potentially another 30 years. Assure that as little future tax liability as possible accrues to his children.

B. Utilize family limited partnerships to accomplish long-term minimization of the client’s tax liability. Consider the mechanics of these estate planning vehicles and the appropriate authority to cite.

2. Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $620.(Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620. (Round your answers to the nearest whole dollar amount.)

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield’s operating information for the first six months of the year follows:

Required:
3. Using the high-low method, calculate Garfield’s total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number.)



4. Perform a least-squares regression analysis on Garfield’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.)

5. Determine how well this regression analysis explains the data. (Round you regression statistics to three decimal places and your percentage answer to the nearest whole number.)

6. Using the regression output, create a linear cost equation (y = a + bx) for estimating Garfield’s operating costs. (Round your answers to 3 decimal places.)