The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following:

The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $31,000 for the building is anticipated.

The equipment is comprised of the following three machines:

The straight-line method is used to determine depreciation on the equipment. On March 31, 2021, Machine 102 was sold for $39,000. Early in 2021, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero.

Required:

1. Calculate the accumulated depreciation on the equipment at December 31, 2020.
2. Prepare the journal entry to record 2021 depreciation on machine 102 up to the date of sale.
3. Calculate the gain or loss on the sale of machine 102.
4. Prepare the journal entry for the sale of machine 102.
5. Prepare the 2021 year-end journal entries to record depreciation on the building and remaining equipment.

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and accumulated depreciation

e) Present a statement of cash flow for Maybe Ltd for the year ended 30 june 2020

2. What if the U.S. tax structure moved away from taxing income to taxing the value a company added? Do you think Apple would prefer:

(a) tax on income (at 2018 rate)

(b) a Value Add Tax (VAT) (enacted in other countries and being considered for the U.S.)

and/or (c) goods and services taxes (GST)?

Investment in Trading and AFS Securities

In 2019, a company purchases debt securities at a par value of $500,000. Their year-end value is $520,000. In 2020, these securities are sold for $525,000 and new securities are purchased for $700,000. At the end of 2020, the securities have not yet been sold, and have a value of $600,000.

Required
Prepare the journal entries to record the above information for 2019 and 2020, assuming that:

a. The securities are categorized as trading securities.

The following information is available for Ivanhoe Company. 1. Purchased a copyright on January 1, 2020 for $62,400. It is estimated to have a 10-year life. 2. On July 1, 2020, legal fees for successful defense of the copyright purchased on January 1, 2020, were $17,784.

Prepare the journal entries to record all the events related to the copyright during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Jan 1st 2020, July 1st, 2020, Dec 31st, 2020

At December 31, 2021, an impairment test is performed on the copyright purchased in 2020.

It is estimated that the net cash flows to be received from the copyright will be $62,400, and its fair value is $59,280. The accumulated amortization at the end of 2021 was $15,288. Compute the amount of impairment, if any, to be recorded on December 31, 2021. (If there is a loss on impairment, then enter amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Bobcat Company.  Bobcat​ Company, U.S.-based manufacturer of industrial​ equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won7,900 million.​ Won1,000 million has already been​ paid, and the remaining Won6,900 million is due in six months. The current spot rate is Won1,103​/$, and the​ 6-month forward rate is Won1,163​/$. The​ 6-month Korean won interest rate is 17​% per​ annum, the​ 6-month U.S. dollar rate is 4.5​% per annum. Bobcat can invest at these interest​ rates, or borrow at​ 2% per annum above those rates. A​ 6-month call option on won with a Won1,200​/$ strike rate has a 4.1​% ​premium, while the​ 6-month put option at the same strike rate has a 3.4​% premium.

Bobcat can invest at the rates given​ above, or borrow at​ 2% per annum above those rates.​ Bobcat's weighted average cost of capital is 12​%. Compare alternate ways below that Bobcat might deal with its foreign exchange exposure.  

a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,103​/$? Won1,163​/$?

b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market​ hedge?

c. How much in U.S. dollars will Bobcat pay in 6 months with a money market​ hedge?

d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200​/$? To be Won1,300​/$?

e. What do you​ recommend?

Bobcat Company.  Bobcat​ Company, U.S.-based manufacturer of industrial​ equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won 7,800 million.​ Won1,000 million has already been​paid, and the remaining Won 6,800 million is due in six months. The current spot rate is Won 1,105​/$, and the​ 6-month forward rate is Won1,106​/$. The​ 6-month Korean won interest rate is 16.5​% per​annum, the​ 6-month U.S. dollar rate is 3% per annum. Bobcat can invest at these interest​ rates, or borrow at​ 2% per annum above those rates. A​ 6-month call option on won with a Won1,200​/$ strike rate has a 3.3% premium, while the​ 6-month put option at the same strike rate has a 2.7%premium.

Bobcat can invest at the rates given​ above, or borrow at​ 2% per annum above those rates.​ Bobcat's weighted average cost of capital is10​%.Compare alternate ways below that Bobcat might deal with its foreign exchange exposure.  

a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,105​/$? Won1,160​/$?

b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market​ hedge?

c. How much in U.S. dollars will Bobcat pay in 6 months with a money market​ hedge?

d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200/$? To be Won 1,300​/$?

e. What do you​ recommend?

Bobcat Company. Bobcat Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won 7,800 million. Won 1,000 million has already been paid, and the remaining Won 6,800 million is due in six months. The current spot rate is Won 1,113 /$, and the 6-month forward rate is Won1,162 /$. The 6-month Korean won interest rate is 16 % per annum, the 6-month U.S. dollar rate is 4 % per annum. Bobcat can invest at these interest rates, or borrow at 2% per annum above those rates. A 6-month call option on won with a Won 1,200 /$ strike rate has a 4.1 % premium, while the 6-month put option at the same strike rate has a 3.4 % premium. Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 10.5 %. Compare alternate ways below that Bobcat might deal with its foreign exchange exposure. a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,113 /$? Won1,162 /$? b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge? c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge? d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200 /$? To be Won1,300 /$?

Bobcat Company. Bobcat Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won 7,800 million. Won 1,000 million has already been paid, and the remaining Won 6,800 million is due in six months. The current spot rate is Won 1,113 /$, and the 6-month forward rate is Won1,162 /$. The 6-month Korean won interest rate is 16 % per annum, the 6-month U.S. dollar rate is 4 % per annum. Bobcat can invest at these interest rates, or borrow at 2% per annum above those rates. A 6-month call option on won with a Won 1,200 /$ strike rate has a 4.1 % premium, while the 6-month put option at the same strike rate has a 3.4 % premium. Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 10.5 %. Compare alternate ways below that Bobcat might deal with its foreign exchange exposure.

a. How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,113 /$? Won1,162 /$?

b. How much in U.S. dollars will Bobcat pay in 6 months with a forward market hedge?

c. How much in U.S. dollars will Bobcat pay in 6 months with a money market hedge?

d. How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than Won1,200 /$? To be Won1,300 /$?