On January 1, 2020, the company signed on a lease contract which qualifies as finance lease. It calls for annual payments of $52,538 at 1/1/2020 for the first payments, and 12/31 of each year thereafter over a six-year lease term. The present value of total lease payment is $280,000 under 5% annual interest rate. Make journal entries for each of following dates, including any interest or amortization expenses.

January 1, 2020, signs the lease contract and makes the first payment of $52,538:

December 31, 2020, fiscal year-end, the second payment of $52,538:

December 31, 2021, fiscal year-end, the third payment of $52,538:

On March 1, 2020, Crane Company sold goods to Goosen Inc. for $702,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,182,911 (an inputed rate of 11%). The goods have an inventory cost on Crane’s books of $395,000.

(a) Prepare the journal entries for Crane on March 1, 2020. (Credit account titles are automatically indented when the 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.)

(b) Prepare the journal entries for Crane on December 31, 2020.

The Lehman Brothers' case

1. What do you think was the cause for the bankruptcy of the former 4th largest investment bank in the US?
2. Why was the SEC unable to prove that they violated accounting practices?

3. Acquired lmmunity

A) Discuss immunity acquired by vaccination

B) Discuss immunity acquired by disease exposure

C) Discuss. Acquired immunity Deficiency syndrome

D) Discuss the function of T-Cells

In this scenario, imagine that you are the financial manager of a major corporation. The CEO has asked you to explain the reasons to consider different types of business combinations, and ways to structure them (joint ventures, mergers, strategic alliances, and more). You, as the financial manager, should compose an email with this explanation. Assume the CEO is not a finance expert.

In your email to the CEO, address the following points:

1. Explain the reasons to consider different types of business combinations.

2. Describe different ways to structure business combinations.

VI. Communication: For this part of the assessment, you will prepare memorandums to upper management addressing certain scenarios or situations.

A. As the controller of Target Corporation, compose a memo to the CEO addressing the advantages and disadvantages of transitioning from GAAP to IFRS.

B. As the controller of Target Corporation, compose a memo to the CEO addressing the following scenario: Your biggest customer has just gone bankrupt, and you must inform the CEO how this will affect your accounts receivable. Assume that the accounts receivable balance is at least $100,000.

At one of their regular executive meeting, the Startco's CEO was reviewing the Company's financials and ask the CEO (which is you) the following question. "I noticed our capital structure Debt/Equity ratio is 0.33. What may happen if we double our borrowing and use the extra cash from the loan to buy back some our shares? I see doing is as a simple way to improve profitability."

Briefly explain whether you agree with the CEO statement and why (why not).

ABC company acquires and places in service two assets in March 2020: a forklift (7-year class asset) at a cost of 5000, and a truck (5-year class asset) at a cost of $12000. What is ABC's cost recovery deduction in 2020? Assume ABC is a calendar year taxpayer and does not take Sec.179 expense or first-year bonus depreciation.