Assume that on January 1, 2020, Kroger Corp. signs a 6-year, non-cancelable lease agreement to lease a storage building from Trancoso Company. The following information pertains to this lease agreement:

1. The agreement requires equal rental payments of $35,000 beginning on December 31, 2020.

2. The fair value of the building on January 1, 2020, is $195,000.

3. The building has an estimated economic life of 12 years, an unguaranteed residual value of $5,000, and an expected residual value of $1,000. Kroger depreciates similar buildings on the straight-line method.

4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.

5. The lessor's implicit rate is 6%, which is known by Kroger.

questions: (1) Determine whether this is a finance or operating lease. Clearly document your rationale and show all necessary calculations. (2) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020, 2021, and 2022. Kroger's fiscal year-end is December 31.

Samson plc is registered for VAT.

The following information relates to the company’s VAT return for the quarter ended 31 March 2020:

1. Sales invoices totalling £330,000 were issued to VAT registered customers, of which £240,000 were for standard-rated sales and £90,000 were for zero-rated sales.

2. Samson plc offers its standard-rated customers a 5% discount for prompt payment. This discount was taken by 1/3 of the customers.

3. Purchase invoices totalling £154,000 were received from VAT registered suppliers, of which £136,000 were for standard-rated purchases and £18,000 for zero-rated purchases.

4. Standard-rated expenses amounted to £28,000. This includes £3,900 for entertaining UK customers.

5. On 15 March 2020, the company wrote off irrecoverable receivables of £4,000 and £1,680 in respect of invoices that were due for payment on 10 August 2019 and 5 November 2019 respectively.

6. On 11 January 2020, Samson plc purchased machinery for £24,000 and sold office fittings for £8,000. Input VAT had been claimed when the office fittings were originally purchased.
7. On 1 March 2020, Samson plc purchased a motor car costing £28,400 for the use of its finance director. The finance director is provided with free petrol for private mileage, and the cost of this is included in the standard-rated expenses in note (iv). The relevant quarterly scale charge is £432. Both figures are inclusive of VAT.

Unless stated otherwise, all of the figures above are exclusive of VAT.

YOU ARE REQUIRED TO:

1. Calculate the VAT payable by Samson plc for the quarter ended 31 March 2020 and state the payment due date.

2. Samson plc is experiencing cash-flow difficulties. The company submitted its VAT return and paid the VAT due for the quarter ended 31 December 2019 on 15 March 2020.

State the consequences if Samson plc does not submit the return for the quarter ended 31 March 2020 until 25 May 2020.

(maximum word count 80 words)

TOTAL 20 MARKS

UK TAX

Identify one (1) Sukuk issues by any company/ government. Explain in detail, include:

a)Sukuk Profile

b)Purpose of the Sukuk

c)Contract involve

d)Performance of the Sukuk

Conduct a descriptive analysis on Shariah Stock Malaysia from November 2010 until May 2020.

a)General/ Overall Performance by year

b)Analysis by sectors over years

(Marketing in Healthcare)

You have just been hired as the Executive Vice President of Sales and Marketing for a national HMO company that until recently was very successful (both revenue and profit growth) selling traditional HMO plans as its only product. During the last two years, revenue and profits declined, and new sales have slowed dramatically. The Board and CEO of the company recruited you to help the company achieve a strategic goal of 15% growth in revenue and profits each year for the next five years.

a.What stage of the product life cycle are HMO products experiencing in

b. Given the answer to (1) above, name three strategies, with specific examples, that you could suggest modifying the HMO’s life cycle for your new company.

c. Given your answer to (1) above, what is the appropriate marketing mix strategy, by each component, for the company to follow with its HMO product?

d. One of the first things the Board and CEO want you to do is to revise the company’s strategic plan. The Board’s directive is to develop strategies to meet the revenue and profit goals. In order to do this you must develop a SWOT analysis. Outline all the factors you will assess in order to develop the proper SWOT.

Konica Company acquires 40% of the voting stock of Lexmark Corporation on January 1, 2017, for $60,000,000, and treats it as an equity method investment. There were no basis differences. Lexmark reports total net income of $20,000,000 for the period 2017 - 2020, and $5,000,000 for 2021. Lexmark paid no dividends during the period 2017 – 2020 but paid $1,000,000 in dividends in 2021. The accounting year for both companies ends December 31. Lexmark sells merchandise to Konica at a markup of 30% on cost. The inventory balances held by Konica, purchased from Lexmark, are as follows.

Required:

a.         Calculate equity in net income of Lexmark, reported on Konica’s 2021 income statement.

b.         Calculate investment in Lexmark, reported on Konica’s December 31, 2021 balance sheet

In issuing the final audit report the auditor must faithfully execute his/her responsibilities to a number of parties whose interests may be in conflict, especially if the report is qualified or adverse. The auditor has a duty to the owners, management, and creditors of the organization being audited as well as the auditor’s employer and himself/herself. Enormous pressure may be brought to bear on the auditor including threats, accusations of incompetence, legal action, and intimidation. Assume you are about to issue an adverse report on a company that has an openly hostile CEO (management), a creditor (Bank) that has considerable money at risk, an owner who is in another state and your employer (a partner in a CPA Firm) is a friend of the controller. Describe your duties to each and what you might say to the CEO.

2. Tonka Industries sold inventory to customers on account totaling $90,000 during 2019. The inventory cost Tonka Industries $42,000.

3. During 2019, Tonka Industries collected $53,600 from customers who previously charged on account.

4. On December 31, 2019, Tonka Industries recorded its uncollectible accounts estimate. Tonka Industries estimates that $1,350 will be uncollectible.

5. On February 19, 2020, Tonka Industries received notification that Jan Levinson, who owes Tonka Industries $900, has filed for bankruptcy. Tonka Industries writes off Ms. Levinson’s account.

7. After invoicing the customer for more than one year, Tonka Industries decides to write-off the $200 accounts receivable balance of David Wallace.

8. Tonka Industries Corporation’s 2020 sales on account totaled $213,600. Inventory sold during 2020 cost Tonka Industries $103,000.

9. During 2020, Tonka Industries collected $80,000 from customers on open accounts receivable.

10. At the end of 2020, Tonka Industries estimates uncollectible accounts of $6,890

Summary Questions:

1. How much uncollectible accounts expense will appear on Tonka Industries Corporation income statement for the year ended December 31, 2019?

2. Calculate the net realizable value of receivables that will appear in the December 31, 2019 balance sheet.

- Accounts Receivable from #2

- Accounts Receivable collected from #3

= Ending Accounts Receivable Balance on December 31, 2019

- Allowance for Doubtful Accounts in #4

= Net Realizable Value of Receivables as of December 31, 2019

3. How much uncollectible accounts expense will appear on Tonka Industries Corporation income statement for the year ended December 31, 2020?

4. Calculate the net realizable value of receivables that will appear in the December 31, 2020 balance sheet. Hint: Remember that Accounts Receivable and Allowance for Doubtful Accounts are both balance sheet accounts, and their balances carry forward from year-to-year.

Beginning Accounts Receivable balance (ending balance on 12/31/19 calculated in #2 above)

+ Sales on account from #8

- Accounts Receivable collected from #9

- Write-offs during 2020 (from #5 and #7)

= Ending Accounts Receivable Balance as of December 31, 2020 ;

Beginning Allowance for Doubtful Accounts balance (ending balance on 12/31/19)

- Write-offs during 2020 (from #5 and #7)

+ 2020 uncollectible accounts estimate in #10

= Ending Allowance for Doubtful Accounts Balance as of December 31, 2020 Accounts Receivable

- Allowance for Doubtful Accounts

= Net Realizable Value of Receivables as of December 31, 2020

Introduction

The course project is a series of elements where you will examine the current standing of an organization’s compensation system. In the final element of the training program, you will provide recommendations to the organization on how the compensation program can be improved.

Directions

Students will conduct an analysis on the current state of the compensation system and address the current pay structure used. Reference should be made to job-based and person-based structure. Analysis should reference sources of information for job analysis, job evaluation, pay design, and pay levels.

The body of the paper will be 4-5 pages. This does not include extraneous pages like title page, reference page, appendices. APA formatting standards are required. A minimum of 5 scholarly resources need to be used. An example of a scholarly resource can be an interview with an HR professional or a peer reviewed article from a Park University Library Journal Database. Course materials and personal experience do not count. A formal third person tone is required.

Supplemental information (e.g. worksheets that are currently being used) can be presented in Appendices but do not count toward the body of the paper.

Note: Recommendations should not be made at this point – you will make these in Unit 8. This is an analysis of current standing. Keep in mind however, if an organization doesn’t have a set structure, the paper doesn’t end at that point. Student needs to include a discussion of the different methods that could be used. Again, recommendations will be made

Please also include at least 5 references

Corporation purchased 4,000 of the 400,000 outstanding shares of I-Water Company. Boom Beverage accounts for the investment using the FAIR VALUE method.  

• On April 4, 2018, Corporation purchased 4,000 shares of Water Company common stock for $60 per share.
• During 2018, Water Company’s net income was $1,200,000, and the company declared and paid a $1.00 per share cash dividend.
• On December 31, 2018, Water Company stock was trading at $57 per share.
• During 2019, Water Company’s net income was $1,400,000, and the company declared and paid a $1.20 per share cash dividend.
• On December 31, 2019, Water Company stock was trading at $62 per share.
• On October 19, 2020, Corporation sold its entire investment in Water Company for $65 per share.

Balance Sheet - Investments:

As of December 31, 2018: __________________

As of December 31, 2019: __________________

As of December 31, 2020: __________________

Income Statements - Investment Income/(Loss),net:

Year Ended December 31, 2018: __________________

Year Ended December 31, 2019: __________________

Year Ended December 31, 2020: __________________

. You are the accountant for Auxerre, and you have to prepare the journal for income taxes. You have gathered the following information for 2020:

1. Deferred tax liability, January 1, 2020, $40,000.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $127,000.
4. Cumulative temporary difference on December 31, 2020, giving rise to future taxable amounts, $220,000.
5. Cumulative temporary difference on December 31, 2020, giving rise to future deductible amounts, $35,000.
6. There is one permanent difference between taxable and pretax financial income due to a $5,000 fine imposed by OSHA.
7. The tax rate is 40% for all years.
8. The company is expected to operate profitably in the future.

Prepare the journal entry to record income taxes for 2012.