. Complete the required tasks utilizing excel and label everything. All work must be shown

FKG Inc. carries the following debt and equity securities on its books at December 31, 2020. All securities were purchased during 2020.

Trading Securities

Company                                                                   Cost                            Fair Value, 12/31/20        Fair Value, 12/31/21

Company A Investment                                      $ 25,000                $ 13,000                                  $ 20,000

Company B Investment                                      $ 13,000                $ 20,000                                  $ 20,000

Company C Investment                                      $ 35,000                $30,000                                   $ 25,000

Available-for-Sale Securities

Company                                                                     Cost                          Fair Value, 12/31/20        Fair Value, 12/31/21

Company X Investment                                      $210,000              $130,000                                $ 50,000

Company Y Investment                                       $ 50,000                $60,000                                   $ 70,000

Interview Notes

Martin is married, but did not live with or have contact with his spouse in 2017. He does not know where she is. He indicated on the intake sheet that he is not legally separated.

Martin does not have children or any other dependents.

Martin worked as a clerk and earned $36,000 in wages. He had no other income.

In 2017, he took a computer class at the local university to improve his job skills.

Martin has a receipt showing he paid $1,200 for tuition. He paid for all his educational expenses and did not receive any assistance or reimbursement.

He paid $400 for course books from an online bookseller.

Martin paid $150 for a parking permit. It was not a requirement of enrollment.

Martin does not have enough deductions to itemize.

He is a U.S. citizen with a valid Social Security number.

8. What is Martin's most advantageous allowable filing status?  

A.            Married Filing Separately             

B.            Head of Household        

C.            Single   

D.            Qualifying Widower

9. Considering Martin's filing status and using Publication 4012, Tab J, Education Benefits, which education benefit is Martin eligible to claim?               

A.            American opportunity credit      

B.            He does not qualify for any education benefit   

C.            Lifetime learning credit

D.            Tuition and fees deduction   

Bonita Company purchased machinery on January 1, 2020, for $87,200. The machinery is estimated to have a salvage value of $8,720 after a useful life of 8 years.

Compute 2020 depreciation expense using the double-declining-balance method.

Compute 2020 depreciation expense using the double-declining-method method assuming the machinery was purchased on September 1, 2020.

Hook's Boat Supplies Limited has planned the following sales and inventory purchases for the next three months: July August September Budgeted sales un 75,000 $ 60,000 S 80,000 Inventory purchases $ 35,000 $ 28,000 $ 40,000 Sales are made 20% for cash & 80% on account. From experience the company has learned that a month's sales on account are collected according to the following: Month of sale First month following sale Second month following sale Uncollectible 60% 30% 596 5% I The company requires a minimum cash balance of $5,000 at the end of each month The beginning cash balance is budgeted to be $10,000 on September 1, 2020, The company purchases all inventory on account and 50% are paid for in the month of purchases; the remainder are paid in the following month. Additional information for September, 2020: Operating expenses (all paid in September) Depreciation expense included in above operating expenses Dividends paid in September Fquipment to be purchased in September 36,000 6,000 8,000 25,000 The company has an agreement with the local bank that allows the company to borrow up to $40,000. The budgeted balance of loans at August 31 is $0. All borrowing is done at the beginning of the month and the interest rate on the loan is 8% per year, Required: Prepare a cash budget for the month of September 2020 only.

1. During the first four months of 2020 the spot price of crude oil has collapsed, while the price of natural gas has remained relatively stable. In this question I want you to discuss the pattern of prices for natural gas, paying attention to these elements:

a) Describe the nature of the domestic natural gas market in the US: what regulatory features are important, how do you think they influence the market?

1. During the first four months of 2020 the spot price of crude oil has collapsed, while the price of natural gas has remained relatively stable. In this question I want you to discuss the pattern of prices for natural gas, paying attention to these elements:

a) What effects, if any, do you think the policy response to COVID-19 has had on the demand for and supply of natural gas in the US?

PART I-- Peak, Inc. acquired a machine that involved the following expenditures and related factors:

PART II-- On January 1, 2019, Ivey Company purchased a bottle-capping machine for $160,000.  During its useful life, the company expects that the machine will cap 1,500,000 bottles.  The machine’s expected salvage value is $10,000.  During 2019, the machine capped 250,000 bottles and during 2020, the machine capped 300,000 bottles.  

Required:  Assuming units-of-production depreciation, 2020 depreciation expense is what amount?

PART III-- The cost of an asset is $1,020,000, and its residual value is $160,000. Estimated useful life of the asset is five years.

Required:   
                 1.  Compute first –year depreciation using the straight-line method.
               2.  Compute first-year and second –year depreciation using double-declining-balance method.

PART IV-- An asset was purchased for $37,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $9,000. The straight-line method of depreciation was used.

The asset was sold on December 31, 2019.

Required:  Compute the gain or loss on the sale of the asset and prepare the required journal entry
                   under both of the following assumptions:

                        1.  The selling price was $19,000.

                        2.  The selling price was $37,000.

PART V-- Saul Company purchased a tractor at a cost of $120,000 on January 1, 2019.  The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years.

Required:  If Saul uses the straight-line method, what is the book value at January 1, 2023?

PART VI-- Steve Company purchased a tractor at a cost of $180,000.  The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 10,000 hours of operation.  The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,100 hours in 2020.  On January 1, 2021, the company decided to sell the tractor for $70,000.  Steve uses the units-of-production method to account for the depreciation on the tractor.  

Required:  

            1.  Compute the book value of the tractor on January 1, 2021.

            2.  Compute the gain or loss on sale.

            3.  Prepare the journal entry to record the sale.

QUESTION 7 - Relevant costing on a special order

The following financial data apply to the USB production plant of the Drill Company for May 2015:
Budgeted Manufacturing Cost per USB:
Direct materials $3.20
Direct manufacturing labour 1.80
Variable manufacturing overhead 1.40
Fixed manufacturing overhead 2.00
Total manufacturing cost $8.40

Variable manufacturing overhead varies with the number of USB’s produced. Fixed manufacturing overhead of $2 per USB is based on budgeted fixed manufacturing overhead of $300,000 per month and budgeted production of 150,000 USB’s per month.

The Drill Company sells each USB for $10.
Marketing costs have two components:

Variable marketing costs (sales commissions) of 5% of revenues
Fixed monthly costs of $130,000

During May 2015, Lyn Randell, a Drill Company salesperson, asked the CEO for permission to sell 1,000 USB’s at $8.00 per pack to a customer not in Dill's normal marketing channels. The CEO refused this special order because the selling price was below the total budgeted manufacturing cost.

Required:
(i) What would have been the effect on monthly operating income of accepting the special order?
(ii) Comment on the CEO’s "below manufacturing costs" reasoning for rejecting the special order.
(iii)What other factors should the CEO consider before accepting or rejecting the special order?

What are the pros and cons of a blind interview process?

What are the advantages and disadvantages of mall intercept interview?