Why is there so much variety in loan documentation among the various states? Would a uniform national system be useful? Explain why or why not.
What is to keep an unscrupulous seller under an installment contract from mortgaging the property after the installment contract has been negotiated, so that the buyer discovers a first mortgage lien on the property when the deed is eventually delivered?
There were very few successful mortgage loan innovations in this country during the 1950s and 1960s. Then, the following two decades witnessed a spate of innovations. What might have caused this abrupt shift in the rate of innovation?
In: Finance
Ivanka Trump after moving to Pakisatan and has purchase PC hotel Karachi in November 2020 and renamed it Ivayana. The hotel is a 5 star luxury hotel consisting of 100 single rooms 70 double rooms and 40 Suites. The average night stay in a single room costs Rs 8000. Double bed cost Rs 19000 and suite costs Rs 35000. On average 70 single rooms, 60 double rooms and 35 suites are occupied. Besides, there are 4 ball rooms. The ball rooms are always available for booking but they only get booked on Saturdays and Sundays. Each ball room has capacity of 300 people and rental charged for each booking is RS 130,000. 10 Rooms in each category are paid by credit card. The payment is received a week later. 50% amount related to ball room are received in same month and 50% in next month. The rental charge for ball rooms was Rs 100,000 in 2020. The charge for rooms has not changes since last year and have remained same. The hotel is charged local tax of Rs 5000 each week which is paid in the same month. The hotel has a staff of 150 people. 30 kitchen staff which receive 18% of the amount received againts the bill charged for the meals. On average the kitchen staff receive 90 orders for meal with the average billing of Rs 8000 per meal. the amount of meals billed is immediately collected and the kitchen staff is paid in the 1st week of next month. The room service and the janitorial satff are 40 which are paid Rs 18000/month at last day of same month. 10 is the num of other lower staff for misc services and they are paid 15000/month at last day of same month. The remainig 20 are the senior executive staff, their remuniration details are not shared. The hotel is powered by solar panels and the, its maintenance is outsourced to a company solarex, they charge Rs 200,000 quarterly, which is paid in 2 installments. 50% is paid in the 1st month of quarter and the rest is paid in the last month of quarter. The opening cash in hand was Rs 100,000.
Prepare Cash budget for the 1st quarter of 2021. (PLO 2.1, CLO 1) 13 marks
Hint: Consider reviewing the actual calendar for 2021.
In: Finance
Ivanka Trump after moving to Pakisatan and has purchase PC hotel Karachi in November 2020 and renamed it Ivayana. The hotel is a 5 star luxury hotel consisting of 100 single rooms 70 double rooms and 40 Suites. The average night stay in a single room costs Rs 8000. Double bed cost Rs 19000 and suite costs Rs 35000. On average 70 single rooms, 60 double rooms and 35 suites are occupied. Besides, there are 4 ball rooms. The ball rooms are always available for booking but they only get booked on Saturdays and Sundays. Each ball room has capacity of 300 people and rental charged for each booking is RS 130,000. 10 Rooms in each category are paid by credit card. The payment is received a week later. 50% amount related to ball room are received in same month and 50% in next month. The rental charge for ball rooms was Rs 100,000 in 2020. The charge for rooms has not changes since last year and have remained same. The hotel is charged local tax of Rs 5000 each week which is paid in the same month. The hotel has a staff of 150 people. 30 kitchen staff which receive 18% of the amount received againts the bill charged for the meals. On average the kitchen staff receive 90 orders for meal with the average billing of Rs 8000 per meal. the amount of meals billed is immediately collected and the kitchen staff is paid in the 1st week of next month. The room service and the janitorial staff are 40 which are paid Rs 18000/month at last day of same month. 10 is the number of other lower staff for misc services and they are paid 15000/month at last day of same month. The remainig 20 are the senior executive staff, their remuniration details are not shared. The hotel is powered by solar panels and the, its maintenance is outsourced to a company solarex, they charge Rs 200,000 quarterly, which is paid in 2 installments. 50% is paid in the 1st month of quarter and the rest is paid in the last month of quarter. The opening cash in hand was Rs 100,000.
Prepare Cash budget for the 1st quarter of 2021.
Hint: Consider reviewing the actual calendar for 2021.
In: Accounting
In January 2020, A Co. announced plans to acquire T Co. After a careful valuation process, the directors of A Co. have projected that the present value of the takeover synergies will be US$1.52 million.
In addition, the following information is available.
Use this information to answer the following questions related to a A Co.'s financially feasible offer. Use 2 decimal places to express your answer.
In: Finance
In: Finance
In: Finance
Stellar Company reports pretax financial income of $66,100 for
2020. The following items cause taxable income to be different than
pretax financial income.
| 1. | Depreciation on the tax return is greater than depreciation on the income statement by $14,800. | |
| 2. | Rent collected on the tax return is greater than rent recognized on the income statement by $23,900. | |
| 3. | Fines for pollution appear as an expense of $10,600 on the income statement. |
Stellar’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.
Compute taxable income and income taxes payable for
2020.
|
Taxable income |
$enter a dollar amount | |
|---|---|---|
|
Income taxes payable |
$enter a dollar amount |
Prepare the journal entry to record income tax expense, deferred
income taxes, and income taxes payable for 2020.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
Prepare the income tax expense section of the income statement
for 2020, beginning with the line “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
| Stellar Company Income Statement (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 |
||
|---|---|---|
| select an income statement item
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
$enter a dollar amount | |
| select an opening section name
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
||
| select an income statement item
Current Deferred Dividends Expenses Income before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues |
$enter a dollar amount | |
| select an income statement item
Current Deferred Dividends Expenses Income before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues |
enter a dollar amount | |
| enter a subtotal of the two previous amounts | ||
| select a closing name for this statement
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
$enter a total net income or loss amount | |
Compute the effective income tax rate for 2020.
(Round answer to 1 decimal places, e.g.
25.5%.)
| Effective income tax rate | enter the Effective income tax rate in percentages rounded to 1 decimal place | % |
In: Accounting
On January 8, 2017, Whitewater Riders purchased a van to transport rafters back to the point of departure after completing the on-the-water portion of the rafting adventures they operate. The cost of the van is $44,000 and Whitewater Rider expects to use the van for four years or 60,000 miles. The estimated selling price after four years is $2,000. The van was driven 12,000 miles in 2017, 18,000 miles in 2018, 21,000 miles in 2019, and 10,000 miles in 2020.
Required:
On the following Whitewater Riders worksheet, compute the annual depreciation expense and ending book value of the van using straight-line, double-declining, and units-of-production methods. In addition, answer the three questions below:
1. Which method results in the highest net income for Whitewater Riders?
a. 2017 b. 2018 c. 2019. d. 2020
2. Which method results in the lowest income tax liability for Whitewater Riders?
a. 2017 b. 2018 c. 2019. d. 2020
3. Which method would you recommend Whitewater Riders use and why?
Whitewater Riders
Schedule of Van Depreciation for years 2017- 2020
Depreciation Method Year Depreciation expense Ending Book Value
Straight-line 2017
Straight-line 2018
Straight-line 2019
Straight-line 2020
Double-declining 2017
Double-declining 2018
Double-declining 2019
Double-declining 2020
Units-of-production 2017
Units-of-production 2018
Units-of-production 2019
Units-of-production 2020
In: Accounting
In: Accounting
Shanghai Enterprises has asked for your assistance in preparing a cash budget for the month
of December 2020 and has provided projected sales revenue data
below
Projected sales:
October 2020
$144,000
November 2020
$205,000
December 2020
$220,000
All sales are on credit with 65% collected during the month of sale, 18% collected during the
month following the sale, 15% during the second month after the sale and 2% uncollectable.
Required:
a) Prepare the cash receipts section of a cash budget for Shanghai Enterprises for the
month of December 2020.
b) Explain how Shanghai Enterprises would go about constructing a cash budget for the first
three months of 2021. Note that Shanghai plans to purchase a major piece of equipment
costing $500,000 in February 2021.
In: Accounting