Jaguar Ltd purchased a machine on 1 July 2016 at a cost of $640,000. The machine is expected to have a useful life of 5 years (straight line basis) and no residual value. For taxation purposes, the ATO allows the company to depreciate the asset over 4 years. The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the company has deducted $60,000 entertainment expense, and $80,000 salary expense that has not yet been paid. Also the company has included $70,000 interest as income that the company has not yet received. The tax rate is 30%. Required: (i) Calculate the company’s taxable profit and hence its tax payable for 2017. (ii) Determine the deferred tax liability and/or deferred tax asset that will result. Prepare the necessary journal entries at 30 June 2017.

QUESTION 9

1. A comparison of “forum non conveniens” and “forum shopping” demonstrates how the courts look at many of the same characteristics, such as why is one forum favored over another

   True

   False

1 points   

QUESTION 10

1. 10. Licensing intellectual property to foreign manufacturers is the simplest and   least risky way to enter the foreign markets

   True

   False

1 points   

QUESTION 11

1. An important requirement for success in International Business is a long term commitment by top management

   True

   False

1 points   

QUESTION 12

1. In the case Russian Entertainment v. Close Up, the issue was whether the franchisee violated the terms and conditions of the franchise requirement

   True

   False

1 points   

QUESTION 13

1. The above referenced case in question 12, also stands for the proposition that the intellectual property license agreements should be construed narrowly

   True

   False

1, One feature of a monopoly is that the monopolist is:

A, a producer of products with many close substitutes

B, a price maker

C, a price taker

D, one of several producers of a product

2, Which of the following is true?

A, For a perfectly competitive seller marginal revenue is always constant, but for a monopolist marginal revenue increases as it sells more output

B, Marginal revenue is always constant for both, a monopolist and a perfectly competitive seller

C, For a monopolist marginal revenue is always constant, but for a perfectly competitive seller marginal revenue decreases as it sells more output

D, For a perfectly competitive seller marginal revenue is always constant, but for a monopolist marginal revenue decreases as it sells more output

3, Monopolists may obtain economic profits in the long run because:

A, of increased competition

B, there are barriers to entry.

C, of rising average fixed costs

D, there are no barriers to entry

1. Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods?

a. accrual basis accounting

b. cash basis accounting

c. tax basis accounting

d. revenue basis accounting

2. Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period?

a. accrual

b. deferral

c. estimate

d. cull

3. Rent collected in advance is an example of which of the following?

a. deferred revenue (unearned revenue)

b. accrued expense

c. accrued revenue

d. deferred expense (prepaid expense)

4. Rent paid in advance is an example of which of the following?

a. deferred expense (prepaid expense)

b. accrued expense

c. accrued revenue

d. deferred revenue (unearned revenue)

Prepare a statement of operations: (only 1 year)

Revenue from patients: $5,000,000, Medical services $ 600,000; Therapy services $100,000; support services $200,000, General services $ 300,000, Depreciation $150,000, Interest $ 50,000; interest income $1,000

------------------------------------------

Revenue:

Net Patient Service Revenue

Total Operating Revenue

Operating Expense:

....

Total Operating Expenses:

Income from operations:

Nonoperating Gains (Losses)

Interest Income:

Net Nonoperating Gains:

Revenue and Gains in Excess of Expenses and Losses:

Increase in Unrestricted Fund Balance:

Green​ Forever, a manufacturer of lawn​ equipment, has preliminary drawings for two grass trimmer designs. Charla​ Fraley's job is to determine which is better environmentally.​ Specifically, she is to use the following data to help the company determine the following items. LOADING...

​a) Determine the revenue retrieval for the GF Deluxe. The revenue retrieval for the GF Deluxe is ​$ ___. ​(Round your response to two decimal​ places.) ​

b) Determine the revenue retrieval for the Premium Mate. The revenue retrieval for the Premium Mate is ​$ ___. ​(Round your response to two decimal​ places.) ​

c) Determine which model is the better design alternative based on revenue retrieval. (Premium mate or GF Deluxe) is the better design alternative based on revenue retrieval.

Fedora’s Vases experienced all of the following events during the month of September 2020. For each transaction, give the correct amount of revenue and expense to be recognized. If nothing should be recognized, enter 0 for your answer.

a) Sold vases for $288,000 on credit. The cost of the vases was $160,000.

Revenue recognized ______

Expense recognized ______

b) Paid employees $96,000 for work performed during the months of August and September. Half of the work relates to September 2020.

Revenue recognized   ______

Expense recognized ______

c) Purchased $6,400 of shipping bubble wrap on account.

Revenue recognized   ______

Expense recognized ______

d) Used half the bubble wrap purchased above.

Revenue recognized    ______

Expense recognized ______

e) Received a $3,000 utility bill that relates to the month of September 2020. The bill will not be paid until October 15, 2020.

Revenue recognized ______

Expense recognized ______

f) Paid $6,400 to the supplier of the bubble wrap.

Revenue recognized    ______

g) Expense recognized ______

Collected $176,000 worth of receivables that relate to August 2020 credit sales.

Revenue recognized    ______

Expense recognized ______

h) Received $112,000 in advance payments for vases not yet shipped.

Revenue recognized    ______

Expense recognized ______

i) Sold vases for $80,000 on credit. The vases cost $48,000.

Revenue recognized    ______

Expense recognized ______

What was the net income for Fedora's Vases for the month of September considering only the transactions above?

Fedora's net income for September ______

1. What journal entry would be recorded if a company received a $12,000 payment from a customer for maintenance services to be provided over the next two months:

1. Describe the FASB’s rules or standard on revenue recognition. Where do we find the FASB’s revenue recognition standard? Why is it important for an auditor that will audit sales to understand the revenue recognition standard?