Jeremy Moon, the founder of Icebreaker, is committed to having his company embrace "ethical business practices". Identify some of those ethical business practices. Are you surprised that they produce their products in China?

John files a return as a single taxpayer. In 2019, he had the following items: ∙ Salary of $30,000. ∙ Loss of $65,000 on the sale of Section 1244 stock acquired two years ago. ∙ Interest income of $6,000. In 2020, John again files a return as a single taxpayer and had the following items: Salary of $114,000 Loss of $55,000 on the sale of Section 1244 stock acquired three years ago. Capital gain of $22,000 on the sale of publicly traded stock purchased one year ago. Determine John’s AGI for 2019 and 2020 (assume these are the only transactions, no other carryovers etc...)

Ahmad Wazir is 34 years old, married with a three-year-old child and another on the way. He lives in a town of about 100,000 people outside Kuala Lumpur, Malaysia. After graduating with a BBA in marketing and later with an MBA in Islamic Finance, he joined one of the biggest Takaful operators, Takaful Ehsan (TE) where he built a sizeable business marketing in general and family Takaful products. But with changes in the organization and having no control over client services made him realize that his prospects for growth at TE is limited. With some savings accumulated over the years to carry him through, Wazir left his position as a senior marketing manager to become an independent Takaful advisor. Instead of targeting everyone, Wazir realized that he needed to focus on specific client segments. Hence, he decided to put his limited resources behind the most viable prospects. Many of his clients acquired during his former job had been close families in his town. Several of them had been regulars at the local mosque as well as members of the community and sports club. Wazir is of the view that one of the best approaches to screen the prospects is to conduct a geo-demographic segmentation of his own as part of the targeting and segmenting process. i) What is geo-demographic segmentation and how is it different from psychographic segmentation? ii) In conducting the geo-demographic segmentation, what are among the actions that Wazir may take in order to ensure that the prospects will fit into his target segment? iii) Why do you think that Wazir has chosen this approach?

The company provides some details for the period 2020 for preparing necessary budgets:

(a) Sales Details

The Company estimates that it can get maximum profits if it charges $ 200 (selling price) for one of its products. The marketing manager of the company had indicated that at $ 200 selling price, the company would be able to sell 1,000 units in the first quarter of 2020. The company also expects that sales would go up by 100 units over previous quarter sales (like 1000, 1100 and so on….) Selling price is expected to be same throughout the year.

(b) Inventory details

Alwyn Industries maintains at the end of each quarter an inventory of 10% of the next quarter’s sales. This allows the company to better meet its customers’ needs in case the customers experience a sudden surge in demand. The opening inventory for first quarter 2020 has been estimated to be 200 units

(c) Divisional Performance

Alwyn Industries has to divisions (A & B) working within the company. The CEO of the company is wondering whether divisional performance evaluation will be fruitful for them since the company has two divisions operating with certain targets. The head of those divisions report the following results for the quarter ending 2019, which is given below:

Question : Evaluate the divisional performance (A & B) using ROI for the quarter ending 2019 stating which product is better and why

n January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,155,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $840,000, retained earnings of $390,000, and a noncontrolling interest fair value of $495,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

Net Income   Dividends Declared.   Inventory Purchases from Corgan

Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 40 percent of the current year purchases remain in Smashing's inventory.

1. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing.

1. Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing.

On January 1, 2020, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video, Inc., for $758,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.8 million and $750,000, respectively. A customer list compiled by Q-Video had an appraised value of $268,000, although it was not recorded on its books. The expected remaining life of the customer list was eight years with straight-line amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill.

Q-Video generated net income of $288,000 in 2020 and a net loss of $136,000 in 2021. In each of these two years, Q-Video declared and paid a cash dividend of $10,000 to its stockholders.

During 2020, Q-Video sold inventory that had an original cost of $94,080 to Stream for $168,000. Of this balance, $84,000 was resold to outsiders during 2020, and the remainder was sold during 2021. In 2021, Q-Video sold inventory to Stream for $184,000. This inventory had cost only $138,000. Stream resold $92,000 of the inventory during 2021 and the rest during 2022.

For 2020 and then for 2021, compute the amount that Stream should report as income from its investment in Q-Video in its external financial statements under the equity method. (Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.)

On January 1, 2020, Canyon Creek Company acquired Smoltz Corporation by issuing 50,000 shares of its $1 par common stock with a market value of $12 per share. A building on Smoltz’s books was undervalued by $50,000, resulting in annual amortization of $5,000. Also, there was an unrecorded patent valued at $80,000, resulting in annual amortization of $8,000. The separate 2020 financial statements for Canyon Creek and Smuckerman are presented below.

Required: Prepare Consolidated Spreadsheet

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $76,000. The equipment was expected to have a useful life of six years and a residual value of $10,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $70,200, a salvage value of $10,000, and a remaining useful life of five years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

1. Record the entry for depreciation expense as per U.S. GAAP.

2. Record the entry for depreciation expense as per IFRS.

3. Record the entry of the revaluation of equipment as per U.S. GAAP.

4. Record the entry of the revaluation of equipment as per IFRS.

5. Record the entry for depreciation expense as per U.S. GAAP.

6. Record the entry for depreciation expense as per IFRS.

Prepare the entry(ies) that Parnell would make on the December 31, 2018 conversion worksheet to convert U.S. GAAP balances to IFRS.

1. Record the entry for recording profit on revaluation of equipment due to conversion from U.S. GAAP to IFRS.

2. Record the entry for additional depreciation expense on revaluation of equipment due to conversion from U.S. GAAP to IFRS.

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $72,700. The equipment was expected to have a useful life of five years and a residual value of $12,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $67,800, a salvage value of $12,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1. Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

- Record the entry for depreciation expense as per U.S. GAAP.

- Record the entry for depreciation expense as per IFRS.

- Record the entry for the revaluation of equipment as per U.S. GAAP.

- Record the entry for the revaluation of equipment as per IFRS.

- Record the entry for depreciation expense as per U.S. GAAP.

- Record the entry for depreciation expense as per IFRS.

2. Prepare the entry(ies) that Parnell would make on the December 31, 2018 conversion worksheet to convert U.S. GAAP balances to IFRS.

- Record the entry for recording profit on revaluation of equipment due to conversion from U.S. GAAP to IFRS.

- Record the entry for additional depreciation expense on revaluation of equipment due to conversion from U.S. GAAP to IFRS.

Parnell Company acquired construction equipment on January 1, 2017, at a cost of $75,000. The equipment was expected to have a useful life of five years and a residual value of $13,000 and is being depreciated on a straight-line basis. On January 1, 2018, the equipment was appraised and determined to have a fair value of $69,300, a salvage value of $13,000, and a remaining useful life of four years. In measuring property, plant, and equipment subsequent to acquisition under IFRS, Parnell would opt to use the revaluation model in IAS 16.

Assume that a U.S.- based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

a. Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S, GAAP and (2) IFRS

(1) Record the entry for depreciation expense as per U.S. GAAP

(2) Record the entry for depreciation expense as per IFRS

(3) Record the entry for the revaluation of equipment as per U.S. GAAP

(4) Record the entry for the revaluation of equipment as per IFRS

(5) Record the entry for depreciation expense as per U.S. GAAP

(6) Record the entry for depreciation expense as per IFRS

b. Prepare the entry(ies) that Parnell would make on the December 31, 2018 conversion worksheet to convert U.S. GAAP balances to IFRS

(1) Record the entry for recording profit on revaluation of equipment due to conversion from U.S. GAAP to IFRS

(2) Record the entry for additional depreciation expense on revaluation of equipment due to conversion from U.S. GAAP to IFRS