In January 1, 2015, Springfield Company acquired an 80% interest in Lincoln Company for a purchase price that was $350,000 over the book value of Lincoln’s Stockholders’ Equity on the acquisition date. Spring uses the equity method to account for its investment in Lincoln. Springfield assigned the acquisition-date AAP as follows:

Lincoln sells inventory to Springfield (upstream) which includes that inventory in products that it (Springfield), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2020 and 2021:

The inventory not remaining at the end of the year has been sold outside of the controlled group.

Springfield and Lincoln report the following financial statements at December 31, 2021:

Required:

a.   Compute the EOY non-controlling interest equity balance.

b.   Prepare the consolidation spreadsheet on the acquisition date.

K Company acquired 80 percent of the outstanding shares of Duo Company by paying $420,000 in cash. The fair value of Duo’s identifiable assets is $630,000, and the liabilities assumed by K Co. in this business combination are $205,000.

a. Please calculate the total amount of goodwill on the B/S this year. Also indicate the amount of goodwill that belongs to the noncontrolling interest account on B/S.

b. K Co. must conduct an impairment test of the goodwill related to the acquisition of Duo. The assets of Duo are the smallest group of assets that generate cash inflows, and it is a separate cash generating unit. K. Co estimated the following items:

Fair value less costs to sell is $ 370,000

Present value of future cash flows is $350,000

Please calculate the impairment loss that should be recorded on I/S.

On July 1, 2016, Killearn Company acquired 136,000 of the outstanding shares of Shaun Company for $15 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions.

As of July 1, 2016, the investee had assets with a book value of $7 million and liabilities of $456,800. At the time, Shaun held equipment appraised at $319,200 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $980,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.

Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $579,000 in 2016, $619,400 in 2017, and $675,200 in 2018.

In addition, Killearn sold inventory costing $111,000 to Shaun for $185,000 during 2017. Shaun resold $82,500 of this inventory during 2017 and the remaining $102,500 during 2018.

Determine the equity income to be recognized by Killearn during each of these years.

Compute Killearn's investment in Shaun Company's balance as of December 31, 2018

On July 1, 2016, Killearn Company acquired 142,000 of the outstanding shares of Shaun Company for $15 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions.

As of July 1, 2016, the investee had assets with a book value of $5 million and liabilities of $890,000. At the time, Shaun held equipment appraised at $245,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $800,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.

Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $614,000 in 2016, $654,600 in 2017, and $704,200 in 2018.

In addition, Killearn sold inventory costing $145,800 to Shaun for $243,000 during 2017. Shaun resold $102,000 of this inventory during 2017 and the remaining $141,000 during 2018.

1. Determine the equity income to be recognized by Killearn during each of these years.

2. Compute Killearn's investment in Shaun Company's balance as of December 31, 2018.

(For all requirements, enter your answers in whole dollars and not in millions.)

I have always been a firm believer in the saying "it's all about who you know." In the business world especially, this statement is proved true more times than not. An argument for why CEOs get paid too much is the inconsistency of compensation. "...it is reasonable to assume that the people who become CEOs because corporations offer $8 million per year, on average, more talented than the people who would become CEOs if corporations offered $1 million per year. But there are two reasons to think that they are not that much more talented, and so not worth the extra pay." I do agree with the argument that the CEO making $8 million a year isn't always more talented than a CEO making $1 million a year, but the CEO that is making $8 million had to go through the work to get that job. Whether they knew someone that got them into a very good position in order to acquire the job or not doesn't matter. There a lot of very bright people who are not making as much money as someone who is not as bright as them, even in the same line of work. People get much different opportunities to succeed than others. There is a stat that states a CEO on average makes 301 times the amount of a factory worker for that same company; I do believe that the CEO is not doing 301 times the amount of work as the factory worker nor that the CEO is actually working for all of that money; however, they still worked hard enough to get themselves into that position. So with me stating that I would say that no, CEOs are not making too much money. Their job is very important, and I would assume that along with that large compensation comes with much stress and timely work. Have any of you ever had a job where you were doing the same amount and kind of work as someone but making a significant less amount of money? Are you doing things now that will set you up for success or failure in the future?

Would like a detailed response to this

1. Scores on an MBA placement exam are reported to have a normal distribution with standard deviation 18. The exam officials stated that the average score for all students was 70. You take a random sample of 50 students and find their average score is 67. Use your data to estimate the mean score for all students taking the MBA placement exam -Verify your answer using calculations and show your work.

2. Students at the union want to estimate the average number of ounces of coffee in a cup. They take a random sample of 40 cups and find the mean is 5.2 ounces. Assume amount dispensed has a normal distribution and that the standard deviation is set at 0.24 ounces per cup. Find your best estimate for the average amount of coffee being dispensed by this machine. Verify your answer using calculations and show your work.

Exercise 240 On January 1, 2020, the Oriole Company had $2,990,000 of $10 par value common stock outstanding that was issued at par and Retained Earnings of $1,150,000. The company issued 146,000 shares of common stock at $16 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Oriole Company stock was $17 per share on December 15 and $17 per share on December 31. Net income for 2020 was $580,000. Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date Prepare the stockholders' equity section of the balance sheet for Oriole Company at December 31, 2020. ORIOLE COMPANY Balance Sheet (Partial) December 31, 2020 select an opening section name select an opening section name select an opening section name select an opening section name $enter a dollar amount select an opening section name enter a dollar amount select an opening section name enter a subtotal of the two previous amounts select an opening section name enter a dollar amount select an opening section name enter a total amount for this subsection select an opening section name enter a dollar amount select an opening section name $enter a total amount for this section Need this part please. Prepare the stockholders' equity section of the balance sheet for Oriole Company at December 31, 2020.

How should a U.S. company with an international subsidiary decide whether to use remeasurement or translation to convert the accounts of the subsidiary to U.S. dollars?

Sorocaba Ltda. sold a building to Banco Janeiro on January 1, 2017, for 224,000 reais and then leased it back under a 10-year lease agreement, which is accounted for as an operating lease. The building had a carrying amount of 183,100 reais and a fair value of 224,000 reais on the date of sale.

Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required:

a. Prepare journal entries for this sale and leaseback for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP.

(1) Record the entry for the gain on sale of building as per IFRS

(2) Record the entry for the gain on sale of building as per U.S. GAAP

(3) Record the entry for recognizing amortized deferred gain on sale of building in Profit and Loss account under U.S. GAAP

(4) Record the entry for the gain on sale of building as per IFRS

(5) Record the entry for recognizing amortized deferred gain on sale of building in Profit and Loss account under U.S. GAAP

b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.

(1) Record the conversion entry needed for 12/31/17

(2) Record the conversion entry needed for 12/31/18

IBM and Its Human Resources It had been a very bad morning for John Ross, the general manager of MMC’s Chinese joint venture. He had just gotten off the phone with his boss in St. Louis, Phil Smith, who was demanding to know why the joint ven- ture’s return on investment was still in the low single dig- its four years after Ross had taken over the top post in the operation. “We had expected much better performance by now,” Smith said, “particularly given your record of achievement; you need to fix this John! Our patience is not infinite. You know the corporate goal is for a 20 percent return on investment for operating units, and your unit is not even close to that.” Ross had a very bad feeling that Smith had just fired a warning shot across his bow. There was an implicit threat underlying Smith’s demands for improved performance. For the first time in his 20-year career at MMC, Ross felt that his job was on the line. Back in the early 2000s IBM’s CEO at the time, Sam Palmisano, set out to recreate IBM as a globallyintegrated enterprise that would provide its customers IBM products and services—software, hardware, busi- ness processing, consulting, and more—wherever and whenever they needed it. Underpinning Palmisano’s vi- sion was a realization that globalization was proceed- ing rapidly, and that many of IBM’s customers were themselves increasingly global enterprises. Global customers wanted to deal with one IBM, not many different national units. Palmisano also understood that for IBM to build a sustained competitive advantage in this new world, it would have to have world-class human capital. People and their acquired skills, he realized, were the foundation of competitive advantage. Companies that rely on technological or manufacturing innovations alone cannot be expected to dominate their markets indefi- nitely. Competitors can and do catch up. In Palmisano’s view, the quality and strategic deployment of human capital is what separates winners from also-rans. This was particularly true for a company like IBM, which increasingly relied on its people to build and deliver world-class services. To execute his strategy, Palmisano created global prod- uct divisions, but that alone was not enough. He realized that IBM’s existing human resource systems were not aligned with the new strategy. Much of the hiring, train- ing, and staffing functions of HR were still based in na- tional units. The company lacked a global approach to managing and deploying its human capital, and execut- ing Palmisano’s vision required this. That insight was the genesis for what became known as the Workforce Management Initiative (WMI) at IBM. Established by the global human resource group, the purpose of this initiative was to create for the first time a single, integrated approach to hiring, managing, and de- ploying IBM’s global workforce. The ultimate goal was to enable the company to find and deploy the best people within the company to help solve client problems or respond to their requests. For this to work, HR had to become intimately involved in understanding the busi- ness strategy of different IBM units and the implications that business strategy holds for human resource deploy- ment. Unless HR had a seat at the strategy table, it could not properly identify and provide the right people to exe- cute a unit’s strategy. As it progressed, the WMI involved investing more than $100 million to create a companywide database to document the skills of more than 400,000 employees at IBM, measure the supply and demand for different skills and capabilities, and seek to match human capital with specific projects. The goal was to get the right person, with the right skills, at the right time, place, and cost. For example, when a health care client needed a consultant with a clinical background, a search using the WMI data- base immediately targeted a former registered nurse who was now an IBM consultant. By improving the efficiency of its internal labor market and leveraging its global workforce, IBM estimates that the WMI database saved the company as much as $1.4 billion in its first four years in operation. The WMI database has a number of other benefits. It helps employees make career decisions, as by accessing it they can see which skills are in demand. Moreover, by identifying potential mismatches between the supply and demand of skills, it drives decisions about internal man- agement development and training programs, enabling IBM to identify with precision which skills its employ- ees need to acquire for the company to maintain its com- petitive edge going forward. In 2013, under the watch of new CEO Virginia “Ginni” Rometty, IBM continued the workforce devel- opment offerings by launching its Smarter Workforce Initiative, bringing together the products and services of Kenexa with IBM. Kenexa was acquired by IBM for $1.3 billion in late 2012, and it brought together vari- ous solutions within IBM such as employee assess- ment and psychology, employee engagement tools and offerings, employee branding and recruitment out- sourcing, and talent management software. The Smarter Workforce Initiative was IBM’s venture into a highly competitive space of HR solutions and soft- ware, with Oracle, SAP, and others having been in the market for a long time. With its internal Workforce Management Initiative and its externally focused Smarter Workforce Initiative, IBM was positioning it- self to be a major force in global human resource management.

Please write a summary of the case.