The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $570,000. At the acquisition date, the fair value of the noncontrolling interest was $380,000 and Keller’s book value was $850,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $100,000. This intangible asset is being amortized over 20 years. Gibson sold Keller land with a book value of $60,000 on January 2, 2017, for $100,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $100,000 to Gibson at a price of $150,000. During 2018, intra-entity shipments totaled $200,000, although the original cost to Keller was only $140,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $40,000 at the end of 2018.

Gibson Company Keller Company

Sales $   (800,000) $   (500,000) Cost of goods sold 500,000   300,000   Operating expenses 100,000   60,000   Equity in earnings of Keller     (84,000)      –0–   Net income $    (284,000) $    (140,000) Retained earnings, 1/1/18 $(1,116,000) $    (620,000) Net income (above) (284,000) (140,000) Dividends declared     115,000         60,000   Retained earnings, 12/31/18 $(1,285,000) $    (700,000) Cash $  177,000   $   90,000   Accounts receivable 356,000   410,000   Inventory 440,000   320,000   Investment in Keller 726,000   –0–   Land 180,000   390,000   Buildings and equipment (net)    496,000      300,000   Total assets $  2,375,000   $ 1,510,000   Liabilities $   (480,000) $   (400,000) Common stock (610,000) (320,000) Additional paid-in capital –0–   (90,000) Retained earnings, 12/31/18   (1,285,000)    (700,000) Total liabilities and equities $(2,375,000) $(1,510,000)

a) Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

b) How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $60,000 book value (cost of $140,000) to Keller for $100,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Short explanation for this one please.

The individual financial statements for Union Company and Essex Company for the year ending December 31, 2018, follow. Union acquired a 60 percent interest in Essex on January 1, 2017, in exchange for various considerations totaling $510,000. At the acquisition date, the fair value of the noncontrolling interest was $340,000 and Essex’s book value was $670,000. Essex had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $180,000. This intangible asset is being amortized over 20 years. Union sold Essex land with a book value of $85,000 on January 2, 2017, for $170,000. Essex still holds this land at the end of the current year. Essex regularly transfers inventory to Union. In 2017, it shipped inventory costing $149,500 to Union at a price of $230,000. During 2018, intra-entity shipments totaled $280,000, although the original cost to Essex was only $168,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Union owes Essex $45,000 at the end of 2018. Union Company Essex Company 12/31/2018 12/31/2018 Sales $ -880,000 $ -580,000 Cost of goods sold 580,000 380,000 Operating expenses 180,000 65,000 Equity in earnings of Essex -81,000 0 Net income $ -201,000 $ -135,000 Retained earnings, 1/1/18 $ -1,196,000 $ -660,000 Net income (above) -201,000 -135,000 Dividends declared 110,000 65,000 Retained earnings, 12/31/18 $ -1,287,000 $ -730,000 Cash $ 177,000 $ 90,000 Accounts receivable 372,000 490,000 Inventory 470,000 400,000 Investment in Essex 834,000 0 Land 190,000 470,000 Buildings and equipment (net) 504,000 380,000 Total assets $ 2,547,000 $ 1,830,000 Liabilities $ -590,000 $ -620,000 Common stock -670,000 -400,000 Additional paid-in capital 0 -80,000 Retained earnings, 12/31/18 -1,287,000 -730,000 Total liabilities and equities $ -2,547,000 $ -1,830,000 (Note: Negative number indicate a credit balance.)

a. Prepare a worksheet to consolidate the separate 2018 financial statements for Fairleigh andDickinson.

b. Prepare US GAAP compliant Balance Sheet and Income Statement as of December 31, 2018, and for the year then ended.

c. How would the consolidation entries in requirement (a) have differed if Union had sold a building with a $100,000 book value (cost of $220,000) to Essex for $180,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Prepare journal entries; do not make a new worksheet or FS.

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $900,000. At the acquisition date, the fair value of the noncontrolling interest was $600,000 and Keller’s book value was $1,200,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $300,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $55,000 on January 2, 2017, for $130,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $227,500 to Gibson at a price of $350,000. During 2018, intra-entity shipments totaled $400,000, although the original cost to Keller was only $240,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $60,000 at the end of 2018.

(Note: Parentheses indicate a credit balance.)

Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $160,000 book value (cost of $340,000) to Keller for $300,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller. (Do not round intermediate calculations. For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $160,000 book value (cost of $340,000) to Keller for $300,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $900,000. At the acquisition date, the fair value of the noncontrolling interest was $600,000 and Keller’s book value was $1,200,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $300,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $55,000 on January 2, 2017, for $130,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $227,500 to Gibson at a price of $350,000. During 2018, intra-entity shipments totaled $400,000, although the original cost to Keller was only $240,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $60,000 at the end of 2018.

(Note: Parentheses indicate a credit balance.)

Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $160,000 book value (cost of $340,000) to Keller for $300,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $600,000. At the acquisition date, the fair value of the noncontrolling interest was $400,000 and Keller’s book value was $800,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $200,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $50,000 on January 2, 2017, for $110,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $175,000 to Gibson at a price of $250,000. During 2018, intra-entity shipments totaled $300,000, although the original cost to Keller was only $195,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $55,000 at the end of 2018.

(Note: Parentheses indicate a credit balance.)

1. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

2. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $110,000 book value (cost of $240,000) to Keller for $200,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

The Office Supplies account started the year with a $3,875 balance. During 2015, the company purchased supplies for $16,004, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2015, totaled $3,410.

Record the adjusting entry related to the company's insurance.

The company has 15 employees, who earn a total of $2,650 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2015, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2016.

The company purchased a building on January 1, 2015. It cost $875,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $27,667.

Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,500 per month, starting on November 1, 2015. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.

On November 1, the company rented space to another tenant for $2,265 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.

Note: Enter debits before credits.

+

Office supplies expense

Question One: Compare:

In a work interview for the position of Tax Accountant, the general manager of the company asked you to explain the difference between individual income tax and business income tax.

Required:

Compare briefly between the individual income tax and business income tax as it is shown in the table below.

the party-identification model
the sociological model
the rational-choice model
the dominant-ideology model.

Party-identification model
The earliest theory of voting behaviour, the party-identification model, is based on the sense of psychological attachment that people have to parties. Electors are seen as people who identify with a party, in the sense of being long-term supporters who regard the party as ‘their’ party. Voting is therefore a manifestation of partisanship, not a product of calculation influenced by factors such as policies, personalities, campaigning and media coverage. This model places heavy stress on early political socialization (see p. 178), seeing the family as the principal means through which political loyalties are forged. These are then, in most cases, reinforced by group membership and later social experiences.

Sociological model

The sociological model links voting behaviour to group membership, suggesting that electors tend to adopt a voting pattern that reflects the economic and social position of the group to which they belong. Rather than developing a psychological attachment to a party on the basis of family influence, this model highlights the importance of a social alignment, reflecting the various divisions and tensions within society. The most significant of these divisions are class, gender, ethnicity, religion and region. Although the impact of socialization is not irrelevant to this model, social-base ex planations allow for rationality insofar as group interests may help to shape party allegiances. For many analysts, the sociological model is best understood as an ‘interest plus socialization’ approach to voting (Denver, 2012). This has perhaps been clearest in relation to social class.

Rational-choice model
Rational-choice models of voting shift attention onto the individual, and away from socialization and the behaviour of social groups. In this view, voting is seen as a rational act, in the sense that individual electors are believed to decide their party pre ference on the basis of personal self-interest. Rather than being habitual, a manifestation of broader attachments and allegiances, voting is seen as essentially instrumental; that is, as a means to an end. Rational-choice models differ in that some, following the example of V. O. Key (1966), see voting as a retrospective comment on the party in power and how its performance has influenced citizen’s choice. Others, such as Himmelveit et al., (1985), portray.

Dominant-ideology model

Radical theories of voting tend to highlight the degree to which individual choices are shaped by a process of ideological manipulation and control. In some respects, such theories resemble the sociological model, in that voting is seen to reflect a person’s position in a social hierarchy. Where these theories differ from
the sociological model, however, is in emphasizing that how groups and individuals interpret their position depends on how it has been presented to them through education, by the government and, above all, by the mass media. (The influence of the media on political debate and party competition is examined in greater detail in Chapter 8.) voters as active, in the sense that they behave like consumers expressing a choice
amongst the available policy options.

7) . How, do you think, the killing of African-American George Floyd and the following violent demonstrations will affect the decisions of US citizens in the coming Presidential elections in November according to determinants of voting behavior?

QUESTION 2 [Total = 15 marks]

Sports-R-Us Ltd runs a highly successful retail sporting business with stores in major shopping centres in metropolitan areas throughout Australia. It has come to the attention of Hannah, a substantial shareholder in Sports-R-Us that the company is sourcing merchandise produced in Erewhon, a developing country recovering from a civil war. She also learns that labour practice relied on in Erewhon is low wages, forced labour and low standards of workplace health and safety, but that there are otherwise limited employment opportunities. Nonetheless, she would like a members’ meeting to be held and a resolution to be passed by the shareholders at that meeting instructing the Board of Sports-R-Us to cancel any contracts they have for the purchase of merchandise produced in Erewhon.

(a) Can Hannah call such a meeting and can the shareholders pass such a resolution?

(b) Would you answer be different if the resolution was to remove the directors?

Balancing the marketing mix through creative and innovative strategies

W.K. Kellogg and his brother, Dr. John Harvey Kellogg, founded the Kellogg Company in 1898. Through experimentation with flaked corn, W.K. Kellogg created the recipe for Corn Flakes. In 1906, he opened the “Battle Creek Toasted Corn Flake Company” and recruited his first 44 employees. Together with these employees he developed the initial batch of Kellogg's Corn Flakes bringing to life his vision for great-tasting, ‘better-for-you’ breakfast foods.

Kellogg embraced every opportunity to make a difference in peoples’ lives and was motivated by his passion to help people improve their health. Today, over a hundred years since it was first founded, the Kellogg Company still upholds his original values. The company is the world’s leading producer of cereals and a market leader in health and nutrition. Kellogg’s was one of the first companies to print nutrition labels on its packaging and, in 2007, was amongst the first companies to print Guideline Daily Amounts (GDA) on its products to inform the public about the food they are eating. This has helped the company to engage with a market more concerned with healthy living

A marketing strategy determines what a company is going to produce in terms of products or deliver in terms of services, how much it is going to charge for these products or services, how it will deliver these products or services to the customer, and how it is going to tell its customers about its products and services. This is known as the marketing mix and is often referred to as the 4Ps of marketing. The mix involves creating the right product, sold at the right price, in the right place, using the most suitable methods of promotion. Although the marketing mix will vary from business to business and market sector, its purpose is to assist a business to balance these four key factors to meet the needs of the customer

Kellogg’s balances the 4Ps by Offering a wide range of popular products and regularly introducing exciting new products to the market. Pricing its products to ensure that customers receive the best possible product for their money. Help ensuring its products are available wherever shoppers are, from supermarkets, to the internet or on-the-go, and by understanding shopper behaviors. Delivering engaging and exciting marketing communications.

Getting the right product or service to the customer, at the right price, in the right place and at the right time is fundamental to business success. Understanding and balancing the marketing mix enables an organization to uniquely position its brand to drive sales of its products and services. To remain as a market leader a business needs to continually look at new ways of engaging and exciting customers in its products and services.

Please answer the following questions:

1-Discuss how Kellogg succeeded in differentiating and positioning its products for maximum competitive advantage in the marketplace?

2-Identify any one of Kellogg's competitor to discuss the differences in marketing strategies between the two.