Assume that the following data relative to Kane Company for 2020 is available:

Net Income                                                                                                                                                                                                                $2,100,000

8% Cumulative Convertible Preferred Stock

Sold at par, convertible into 200,000 shares of common

(adjusted for split).    $1,000,000

Stock Options

Exercisable at the option price of $25 per share. The average

market price in 2020, $30 (market price and option price

adjusted for split). 60,000 shares

Instructions

(a)   Compute the basic earnings per share for 2020 (Round to the nearest penny).

(b)   Compute the diluted earnings per share for 2020 (Round to the nearest penny).

Exercise 20-13 Indigo Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,650 $1,750 Accumulated benefit obligation 1,750 2,750 Projected benefit obligation 2,250 2,770 Plan assets (fair value) 1,730 2,640 Settlement rate and expected rate of return 10 % Pension asset/liability 520 ? Service cost for the year 2020 440 Contributions (funding in 2020) 750 Benefits paid in 202- 210

(a) Compute the actual return on the plan assets in 2020.

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).

(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).

(d) Compute pension expense for 2020.

In the green cells calculate total Gross Profit (i.e., Sales - COGS) using the condition(s) as specified and without creating a helper column, using Filters, or Pivot Tables.

The following information was taken from the accounting
records of JBD Company as of December 31, 2020:

Inventory .................   $17,000
Accounts Payable ..........   $36,000
Common Stock ..............   $78,000
Accounts Receivable .......   $11,000
Retained Earnings .........   $24,000 (at January 1, 2020)
Copyright .................   $20,000
Salaries Expense ..........   $28,000
Supplies ..................   $12,000
Mortgage payable ..........   $80,000 (due March 1, 2040)
Land ......................   $93,000
Notes Payable .............   $17,000 (due November 1, 2022) 
Trademark .................   $37,000
Sales Revenue .............   $97,000
Equipment .................   $85,000
Income Tax Expense ........   $10,000
Cost of Goods Sold ........   $45,000
Salaries Payable ..........      ?
Cash ......................      ?
Accumulated Depreciation ..      ?
Dividends .................      ?
Interest revenue ..........      ?

Additional information:
1)  Total current assets at December 31, 2020 are equal to
    30% of the total assets at December 31, 2020.

2)  20% of JBD’s 2020 net income was paid to stockholders
    as dividends.

3)  Total long-term liabilities at December 31, 2020 are
    equal to total current liabilities at December 31, 2020.

4)  Total equity at December 31, 2020 is equal to 35% of the
    total liabilities at December 31, 2020.

Calculate the balance in the accumulated depreciation account
at December 31, 2020.

Mayberry Investment Ltd. Price History

Question 1

Kindly calculate the Price Weighted Index for Mayberry Investment Ltd. and Value Weighted Index for Mayberry Investment Ltd ( Jamaica )

EFG Industries began operations with no beginning inventory on 10/1/2020. EFG adopted a Periodic inventory system and a FIFO cost flow assumption.
The following events occurred:
10/1/2020 Purchased 100 units @ $10/unit
10/15/2020 Returned 10 units for full refund
10/30/2020 Sold 60 units @ $14/unit FOB Shipping Point (shipped same day)
11/15/2020 Purchased 200 units @ $12/unit
11/18/2020 Sold 210 units @ $15/unit FOB Destination (arrived at customer 12/15)
12/12/2020 Purchased 100 units @ $14/unit
12/18/2020 Obtained $50 discount on 12/12 purchase
12/30/2020 Sold 50 units @ $16 FOB Destination (in transit at year end)
Based on this information,
1. What is the value of Ending Inventory?
2. What is the value of Cost of Goods Sold?
3. Prepare the adjusting journal enties that would be used to record Cost of Goods Sold on 12/31/2020.

On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of
inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge
accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9).
Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August
2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes
the payment. The spot and forward rates are as follows.

Required:
a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a
hedge
5 Marks
b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks
i. On 1 June 2020
ii. On 30 June 2020
iii. On 1 August 2020
c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks
i. On 1 June 2020
ii. On 30 June 2020
iii. On 1 August 2020

1. “The Long Tail”:
   1. A phenomenon whereby firms can make money by offering a limited selection
   2. Refers to the large number of products available through conventional retail stores
   3. A phenomenon heavily leveraged by Blockbuster in its competitive battles with Netflix.
   4. A phenomenon that leverages the fact that selection attracts customers, and that the Internet allows large-selection inventory efficiencies.                                                                                    
2. Which of the following statements is false?
   1. From an innovation standpoint, Netflix is considered an “early mover” in leveraging Internet technology to establish best-in-class brand strength.
   2. Collaborative filtering is a classification of software that monitors trends among customers, and then uses this data to personalize an individual customer’s experience.
   3. It is not possible to achieve scale in the streaming industry.
   4. Scale economies are achieved by firms that leverage the cost of an investment across increasing units of production.                                                                                                                                  
3. Which of the following statements about costs is true?
   1. Marginal costs are costs that do not vary according to the production volume.
   2. Fixed costs are costs associated with each additional unit produced.
   3. The marginal costs of digital goods are zero.
   4. There are some costs associated with digital distribution.                                                                              
4. Disintermediation:
   1. Removing an organization from a firm’s distribution channel.
   2. Expands the path between supplier and customer.
   3. Illustrated by the purchase of Comcast by NBC/Universal.
   4. In the video industry, it results in studios having to share revenue with third parties.                                        
5. Which of the following is not true of Netflix relative to most pay channels?
   1. Netflix is generally more expensive than pay channels.
   2. Netflix offers more programming than pay channels.
   3. Netflix is available in more countries worldwide than pay channels
   4. Netflix can stream to customers who do not have a cable TV subscription.