Suppose General Electric paid its line workers $10 per hour in 2015 when the Consumer Price Index was 100. Suppose that deflation occurred and the aggregate price level fell to 88 in 2016.

Instructions: Round your answers to two decimal places.

    a. GE needed to pay its workers $ in 2016 in order to keep the real wage fixed at $10.

    b. GE needed to pay its workers $ in 2016 if it wanted to increase the real wage by 6 percent.

    c. If GE kept the wage fixed at $10 per hour in 2016, in real terms, its workers got a  % increase in wages.

In​ 2016, the Allen Corporation had sales of $ 60 ​million, total assets of $ 45 ​million, and total liabilities of $ 23 million. The interest rate on the​ company's debt is 5.9 ​percent, and its tax rate is 35 percent. The operating profit margin is 14 percent.

a. Compute the​ firm's 2016 net operating income and net income.

b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​ firm's liabilities.)

a. Compute the​ firm's 2016 net operating income and net income.

The​ firm's 2016 net operating income is ​$ ____ million. ​ (Round to two decimal​ places.)

For the year ended December 31, 2016, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2015 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2016. Dividends on the cumulative preferred shares were not declared in 2015. On December 15, 2016, Harvest declared and paid $24,000 in dividends on the 3% cumulative shares including the arrears. Harvest also declared and paid the $10,000 dividends on the non-cumulative shares.

Required:

Determine the net income available to ordinary shareholders for the year ended December 31, 2016.

HairNeat Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2016 and 2017 was 3,000 units. There was no beginning inventory in 2016. The following data summarized the 2016 and 2017 operations:

Absorption costing operating income for 2017 is calculated to be:

Georgia, Inc. bought 30% of Carolina Company on January 1, 2016 for $225,000. The equity method was used. No amortization was required. In 2016, Carolina shipped to Georgia merchandise with a cost of $12,000 and a selling price of $15,600. One-third of the merchandise remained in Georgia's inventory at year-end and was sold in 2017. In 2017, Carolina received merchandise from Georgia, who recorded a gross profit of $18,000 on the sale. One-fourth of the merchandise remainded in ending inventory, Carolina reported net income of $50,000 in 2016 and $62,000 in 2017. Dividends of $8,000 were paid to Georgia each year. Prepare all equity method entries for 2016 and 2017.

You purchased XYZ stock at the closing price on December 31, 2015, and sold it after the dividend had been paid at the closing price on January 26, 2016. Given the following Price and Dividend data for XYZ, your dividend yield for this period is closest to ______________ and your capital gains rate (yield) for this period is closest to _______________________.

On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000.

a. Is the equipment impaired at July 1, 2016?

b. If the equipment is impaired at July 1, 2016, calculate the amount of the impairment loss.
Impairment loss = $

c. If the equipment is impaired at July 1, 2016, prepare the journal entry to record the impairment loss.

During 2017​, Grant receives a $45,000 salary and has no deductions for AGI. In 2016​, Grant had a $5,500 STCL available and no other capital losses or capital gains. Consider the following sales. An automobile purchased in 2012 for $11,200 and held for personal use is sold for $8,000. On April​ 10, 2017​, stock held for investment is sold for $32,000. The stock was acquired on November​ 20, 2016​, for $16,000. Salary? Net short-term capital gain (loss)? Net long-term capital gain (loss)? and total AGI? Assume that the 2016 STCL of $5,500 is before Grant has taken any capital loss deduction in 2016.

Simon Company owns 40% of the outstanding voting common stock of Nixon Corp. and has the ability to significantly influence Nixon Corp.’s operations. During 2016 Simon had sold inventory costing $35,000 to Nixon for $50,000. All but 25% of that inventory had been sold to outsiders by Nixon Corp. by then end of fiscal year 2016. What amount of unrealized intra-entity inventory profit should be deferred by Simon Company in 2016? What is the journal entry that Simon company would make to record this deferral of profit? What journal entry does Simon Company make when the remaining inventory is sold in 2016?

Aiello, Inc. had the following inventory in fiscal 2016.

Beginning Inventory, January 1, 2016: 130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75

Total units sold during the month is 370.

a) Compute the company’s cost of goods sold and ending inventory for fiscal 2016 assuming the company used FIFO

b) Compute the company’s cost of goods sold and ending inventory for fiscal 2016 assuming the company used LIFO methods of accounting for inventory

c) Calculate the LIFO reserve that would be reported in the company's books if using LIFO.