Roger Company completed the following transactions during Year 1. Roger’s fiscal year ends on December 31.

1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31.        Balance sheet (partial)

One year ago you purchased a 8-year, 8% coupon bond. Today, you sold the bond at a YTM of 8%. If the current yield was 6.96%, what was your total return on this investment?

Par value is $1000

Convers Corporation (calendar-year-end) acquired and placed in service the following assets during the current tax year:

1. Machinery: original basis = $84,000; placed in service on October 25
2. Computer equipment: original basis = $24,000; placed in service on February 3
3. Used delivery truck*: original basis = $37,000; placed in service on March 17
4. Furniture: original basis = $164,000; placed in service on December 22

*The delivery truck is not a luxury automobile.

What is the applicable depreciation convention for the assets Convers placed in service this year assuming Convers elects out of bonus depreciation and does not take §179 expense?

Multiple Choice

• Half-year convention

• Full-month convention

• 200% declining balance

• Mid-quarter convention

• Mid-month convention

COPD Case Study

Andy Portal is a 68-year-old retired construction worker with a 12-year history of COPD after a 35-pack-year history of smoking. He has not smoked in 9 years. He presents in the emergency department complaining of a sharp pain and redness at his posterior left calf, which is also hot and tender to the touch. The medical diagnosis of deep-vein thrombosis (DVT) is made by contrast venography. The nursing diagnosis is ineffective tissue perfusion: peripheral related to decreased venous circulation in the right leg.

When Andy’s wife asks, “What happens now?”, the nurse explains to them both that the goal is to prevent further clot formation and preventing the clot traveling as in pulmonary emboli. This is accomplished by anticoagulants, anti-embolitic stockings, and warm compresses. The nurse discusses the possible pharmacological treatments and side effects. When Andy’s wife asks, “Why did this happen?”, the nurse explains to them that COPD is one of the risk factors for DVT (Vesa et al., 2009).

Questions. Please answer with APA citations

What is the relationship between COPD and vascular effects?

Describe how COPD can cause pulmonary hypertension.

Describe a pulmonary function test (PFT). What finding is indicative of COPD?

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

The loss on the cash sale of equipment was $8,125 (details in b).

Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.

Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance.

Borrowed $4,300 cash by signing a short-term note payable.

Paid $51,625 cash to reduce the long-term notes payable.

Issued 2,800 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $50,700.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method.

1. Emily, a single mother of twins, receives both child support ($8,000/year) and alimony ($10,000/year) as family support payments from her ex-husband. How should she report these payments on her California tax return?

   1. a) She doesn’t need to include the family support payments of $18,000 on her California tax return.

   2. b) She must include the family support payments of $18,000 on her California tax return.

   3. c) She must include the child support payments of $8,000 on her California tax return.

   4. d) She must include the alimony payments of $10,000 on her California tax return.

2. Conan already knows he will not owe any tax for the taxable year, but he has not had time to complete his California tax return. He knows he will need an extension of time to file Form 540. What is he required to do to obtain an automatic extension?

   1. a) He is not required to do anything.

   2. b) He must file Form FTB 3519.

   3. c) If a federal extension was filed, he must mail a copy to the FTB.

   4. d) He must contact the FTB directly to request an extension.

6. Stuart wishes to contribute $400 to the State Parks Protection Fund/Parks Pass Purchase on his 2017 tax return. He would like to include the donation amount on his return as a charitable contribution. What amount and when can he deduct this as an itemized deduction on his tax return?

1. a) $400; deductible on his 2017 return

2. b) $205; deductible on his 2018 return

3. c) $400; deductible on his 2018 return

4. d) $205; deductible on his 2017 return

Elakin Inc., a calendar year taxpayer, paid $1,339,000 for new machinery (seven-year recovery property) placed in service on August 29, 2017. The machinery was Elakin’s only asset purchase during 2017, and Elakin’s taxable income before any Section 179 deduction was $14 million.

1. Compute Elakin’s 2017 cost recovery deduction with respect to the machinery.

1. How would your answer change if the cost of the machinery was $2,150,000 instead of $1,339,000?

1. How would your answer to a. change if Elakin’s taxable income before any Section 179 deduction was $281,400 instead of $14 million?

On January 1, Year 1, Willette Company sold $240,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $180,181, priced to yield 10%. Using the straight-line method, what is the amount of interest expense that Willette will report for the six months ended June 30, Year 1?

Assume the following information:

1-year interest rate on U.S. dollars = 11.4%
1-year interest rate on Singapore dollars = 9.1%
Spot rate of Singapore dollar = 0.4 USD/SGD
1-year forward premium on Singapore dollars = 3.79%

Given this information, how much profit can be made with covered interest arbitrage, by borrowing 1 million USD?

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $24,125 (details in b).
2. Sold equipment costing $103,875, with accumulated depreciation of $49,125, for $30,625 cash.
3. Purchased equipment costing $115,375 by paying $68,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,900 cash by signing a short-term note payable.
5. Paid $59,625 cash to reduce the long-term notes payable.
6. Issued 4,400 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $53,900.

Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)