During 2020, GR Engineering Company constructed a building for its own use at a total cost of $14,700,000.

The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,200,000. The company had the following debt outstanding at December 31, 2020: 1. 10%, 5-year note to finance construction of this building, dated January 1, 2020, with interest payable annually on January 1 $6,300,000 2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31 7,000,000 3. 9%, 4-year note payable, dated January 1, 2019, with interest payable annually on January 1 3,500,000 Compute the amounts of each of the following (show computations). 1. Avoidable interest 2. Actual interest 3. Total interest to be capitalized during 2020  

CEO of your firm has just announced that the organization is considering two diverse strategies to increase business: marketing healthcare services to the mature healthcare consumer, or marketing healthcare services to international consumers. Read the following two articles: Fell, D. (2002). Taking the U.S. health services overseas. Marketing Health Services, 22(2), 21-23. Click here to read the article. Marsh, D. (2010). Marketing to the mature marketplace. Marketing Health Services, 30(1), 12%u201317. Click here to read the article. Compile two marketing proposals based on the marketing strategies outlined inWeek 2 assignment. Would either of the two marketing opportunities compliment the marketing strategy expressed in your proposal? Submit a 6- to 7- page Microsoft Word document detailing your views about including either, both, or neither of the two proposals in your marketing proposal. Specifically address the following: The opportunities available to the organization by marketing healthcare services to the mature marketplace and the opportunities available to the organization by marketing healthcare services to the international consumer. How either or both of the opportunities compliment or conflict with the organization%u2019s current marketing strategy. What recommendations you would make to the CEO concerning the two proposals.

do you think that if a CFO is risk taking by nature she or he would do differently for capital investment programs and financial reporting behaviors? How a MBA-educated CFO vs. accounting-educated CFO would behave differently?

Roden Ltd. has a December 31 year end. The Company leases its office space under a lease that was signed on January 1, 2016. The lease term is 5 years, with an option to renew at an increased rent for an additional 2 years. In 2016, the Company spent $74,000 renovating the premises. In 2020, changing needs require the Company to spend another $16,000 renovating the space. Determine the maximum amount of Class 13 CCA that the Company can deduct for 2020 and 2021.

with a card.

Required :

1.In a tabular format give at least 5 internal control weakness in Buck Phyz, the impact of these weaknesses in the organization, and associated control to mitigate the weakness.

2. A detailed review of the benefits and potential risk with the introduction of the corporate credit card.

A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm’s only options were-

• Manufacture the product at home and let foreign sales agents handle marketing.
• Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.
• Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50–50 joint venture and marketed by the European firm.

.

Required

Question 01: You are the assistant to the CEO of a small textile firm that manufactures quality, premium-priced, stylish clothing. The CEO has decided to see what the opportunities are for exporting and has asked you for advice as to the steps the company should take. What advice would you give to the CEO?

1). Canner Co., organized on January 2, 2020, had pretax accounting income of $960,000 and taxable income of $3,120,000 for the year ended                                               
December 31, 2020. The only temporary difference is accrued product warranty costs which are expected to be paid as follows:                                              
                                              
   2021       $720,000                                   
   2022       360,000                                  
   2023       360,000                                  
   2024       720,000                                  
                                              
The enacted income tax rates are 35% for 2020, 30% for 2021 through 2023, and 25% for 2024. If Canner expects taxable income in future years,                                               
the deferred tax asset in Canner's December 31, 2020 balance sheet should be                                              
a.   $432,000                                           
b.   $504,000                                           
c.   $612,000                                           
d.   $756,000

2). Ames Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020:                                          
                                          
   Book income before income taxes                               2,700,000       
   Add temporary difference                                      
       Construction contract revenue which will reverse in 2021                           240,000       
   Deduct temporary difference                                      
       Depreciation expense which will reverse in equal amounts in                                  
       each of the next four years                           (960,000)      
   Taxable income                               1,980,000       
                                          
The enacted income tax rate is 21% in 2020. How should Ames report deferred taxes?                                          
a.   DTA (current) 50,400; DTL (noncurrent) 201,600.                                      
b.   DTL (noncurrent) 201,600                                      
c.   DTL (noncurrent) 151,200                                      
d.   DTL (noncurrent 100,800  

3). Baker Corp.'s 2020 income statement had pretax financial income of $500,000 in its first year of operations. Baker uses an accelerated cost                                           
recovery method on its tax return and straight-line depreciation for financial reporting. The differences between the book and tax deductions                                           
for depreciation over the five-year life of the assets acquired in 2020, and the enacted tax rates for 2020 to 2024 are as follows:                                          
                                          
       Book Depreciation                                   
       Over (Under) Tax           Tax Rates                      
   2020       (100,000)       35%                      
   2021       (130,000)       30%                      
   2022       (30,000)       30%                      
   2023       120,000       30%                      
   2024       140,000       30%                      
                                          
There are no other temporary differences. In Baker's December 31, 2020 balance sheet, the noncurrent deferred income tax liability and                                           
the income taxes currently payable should be                                          
                                          
   Deferred Income       Income Taxes                              
   Tax Liability       Currently Payable                              
a.   $78,000        $100,000                               
b.   $78,000        $140,000                               
c.   $30,000        $120,000                               
d.   $30,000        $140,000                                                                                                               
                          

On December 31, 2019, Novak Inc. has taxable temporary differences of $2.21 million and a deferred tax liability of $618,800. These temporary differences are due to Novak having claimed CCA in excess of book depreciation in prior years. Novak’s year end is December 31. At the end of December 2020, Novak’s substantively enacted tax rate for 2020 and future years was changed to 30%. For the year ended December 31, 2020, Novak’s accounting loss before tax was $494,500. The following data are also available. 1. Pension expense was $87,600 while pension plan contributions were $111,000 for the year. (Only actual pension contributions are deductible for tax.) 2. Business meals and entertainment were $38,000. (They are one-half deductible for tax purposes.) 3. For the three years ended December 31, 2019, Novak had cumulative, total taxable income of $123,300 and total income current tax expense/income tax payable of $34,524. 4. During 2020, the company booked estimated warranty costs of $31,300 and these costs are not likely to be incurred until 2024. 5. In 2020, the company incurred $150,000 of development costs (only 50% of which are deductible for tax purposes). 6. Company management has determined that it is probable that only one half of any loss carryforward at the end of 2020 will be realized. 7. In 2020, the amount claimed for depreciation was equal to the amount claimed for CCA.

Prepare income tax reconciliation statement Prepare the journal entries to record income taxes for the year ended December 31, 2020, and the income tax reconciliation note.