Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

EMPIRE COMPANY
Income Statement
For the Month Ended October 31, 2020
Sales revenue               $795,000   
Less:   Operating expenses                  
Raw materials purchases       $264,600           
Direct labor cost       190,200           
Advertising expense       91,000           
Selling and administrative salaries       77,800           
Rent on factory facilities       61,000           
Depreciation on sales equipment       45,800           
Depreciation on factory equipment       32,500           
Indirect labor cost       28,200           
Utilities expense       11,600           
Insurance expense       8,300        811,000   
Net loss               $(16,000)  

Prior to October 2020, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

October 1
October 31
Raw materials       $19,700       $36,000
Work in process       19,400       14,700
Finished goods       29,900       53,500

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.
(a)
Prepare a schedule of cost of goods manufactured for October 2020.

EMPIRE COMPANY
Cost of Goods Manufactured Schedule

On January 1, 2020, Sandhill Ltd. had 570,000 common shares outstanding. During 2020, it had the following transactions that affected the common share account:

The company’s year end is December 31.

QUESTIONS:

A) Determine the weighted average number of shares outstanding as at December 31, 2020.

B) Assume that Sandhill earned net income of $3,227,000 during 2020. In addition, it had 100,000 of 8%, $100 par, non-convertible, non–cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020.

Calculate earnings per share for 2020, using the weighted average number of shares determined above.

C) Assume that Sandhill earned net income of $3,227,000 during 2020. In addition, it had 100,000 of 8%, $100 par, non-convertible, cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020.

Calculate earnings per share for 2020, using the weighted average number of shares determined above.

D) Assume that Sandhill earned net income of $3,227,000 during 2020. In addition, it had 100,000 of 8%, $100 par, non-convertible, non–cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020. Assume that net income included a loss from discontinued operations of $405,000, net of applicable income taxes.

Calculate earnings per share for 2020.

You are a Health & safety Specialist. The date is March 12th 2020 and the world Health Organization has just announced that COVID-19 is a world pandemic the day before. The CEO of the company you work at has called you into her office and requested that you come up with a plan to deal with this issue. She has been hearing about staff complaining that the company is not doing enough to protect them. She asks you to come up with a policy to take care of these trouble makers . She wants you to have something in place to deal with the virus problem and with the complaints. You go back to your office and ponder what to do. State what your course of action would be. How would you go about addressing this request? What are the issues you need to think about as you come up with your policy recommendation? Do not create the policy; just state all the factors you need to consider. Keep in mind that you have CHRP and CRSP designations. The CEO does not.

500 words for this case study.

On 1 July 2018 Fraser Ltd acquired an item of equipment with an acquisition cost of $400,000. The equipment can be used for 8 years. On 30 June 2019, the end of financial year, the fair value of the equipment was $357,000. The equipment was sold for $330,000 on 1 January 2020. Non-current asset is depreciated evenly over the useful life and has no residual value. The company uses the revaluation model to record non-current asset. The income tax rate is 30%. Ignore GST.

Required: Prepare relevant journal entries to record non-current asset in 2018/2019 and 2019/2020 financial years in accordance with AASB 116 and AASB 136. (Narrations are required, tax effect entries are required.)

Which of the following are included in calculating this year's GDP?

a. Interest received on a security of the U.S. government

b. The purchases of a new automobile

c. The services of a gardener in weeding her garden

d. The purchase of a life insurance poliy

e. The money received by John when he sells his computer to Mary

f. The purchases of new office equipment by the U.S government

g. Unempolyment compensation benefits received by a former autoworker

h. A new apartment building built by a construction firm

i. Travel by people in Canada to the United States to visit Disneyland

Why do economics prefer to compare real GDP figures for different years instead of nominal GDP figures?

Pearl Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pearl’ financial records indicated the following information related to the company’s defined benefit pension plan:

On July 1, 2020, Pearl acquired the operations of Trap Ltd. As one of the conditions of the purchase, Pearl agreed that Trap’s employees would be included in Pearl’s defined benefit pension plan, and would be granted credit for the past service of Trap’s employees. The actuary estimated the value of the prior service amount granted on July 1, 2020 to be $193,000.

Pearl’ actuary provided the following information on December 31, 2020:

Prepare a pension worksheet for Pearl Corporation for the year ending December 31, 2020.
Prepare the journal entry to record the pension expense for 2020.

AC312 – Tax Research Memo #2 You provide tax consulting services for Oh Gnome You Didn’t, Inc. (“Gnome”), a C-corporation that designs and constructs whimsical gnome gardens for its clientele. On May 25th, 2018, Gnome acquired substantially all the business assets of an unrelated company named You Better Duck, Inc. (“Duck”). Duck bathed and groomed pet ducks prior to Gnome’s acquisition of its assets. It is well-known that 75% of duck aficionados own a gnome garden because ducks love to quack up at the funny-looking gnomes, so this was a very strategic business decision for Gnome. The transition was seamless, and no duck was forced to stay unkempt for a moment. Gnome paid $1,725,000 to acquire Duck’s assets, of which $690,000 was allocated to tangible assets and the remaining $1,035,000 of the purchase price related to Duck’s intangible assets. Your friend Millie who also happens to be Gnome’s CFO has provided the following table for you to reference that itemizes the purchase and computes the 2018 GAAP expense associated with the acquired assets: Asset Description Adjusted Basis Cost Allocation Method – GAAP 2018 GAAP Expense Duck bathing and grooming equipment $690,000 Depreciate over 48 months, beginning with June 2018 $690,000/48 months * 7 months in 2018 = 100,625 3-year exclusive supplier agreement with Ducks ‘R Us 93,000 Amortize over 36 months, beginning with June 2018 $93,000/36 months * 7 months in 2018 = 18,083 Patent for the Clean “Bill” of Health bathing process invented by Donald, Duck’s founder (expires in 16 years) 25,000 Amortize over 192 months, beginning with June 2018 $25,000/192 months * 7 months in 2018 = 911 2-year Employment Agreement with the #1 duck whisperer in the known universe 260,000 Amortize over 24 months, beginning with June 2018 $260,000/24 months * 7 months in 2018 = 75,833 Goodwill 657,000 Not amortizable Not Applicable Total Cost of Acquired Assets $1,725,000 2018 GAAP Depreciation & Amortization Expense for Acquired Assets $195,452 Continued next page… AC312 – Tax Research Memo #2 (continued) Millie would like to know the 2018 tax expense amount that will be reported on Gnome’s income tax return with respect to the acquired assets. She has asked you to compute the allowable 2018 tax depreciation and tax amortization expense amounts and would like you to summarize your results using the partially completed table below. Millie believes that Gnome’s 2018 income tax return is likely to be audited by the IRS, so she has requested you document your findings in a professional tax research memo using proper citations to substantiate your cost allocation method conclusions for each type of asset. Asset Description Adjusted Basis Cost Allocation Method – Tax 2018 Tax Expense Duck bathing and grooming equipment $690,000 3-year exclusive supplier agreement with Ducks ‘R Us 93,000 Patent for the Clean “Bill” of Health bathing process invented by Donald, Duck’s founder (expires in 16 years) 25,000 2-year Employment Agreement with the #1 duck whisperer in the known universe 260,000 Goodwill 657,000 Total Cost of Acquired Assets $1,725,000 2018 Tax Depreciation & Amortization Expense for Acquired Assets $??? Expert Answer

The IQ scores of MBA students follow a normal distribution with a population mean of 120 points and a population standard deviation of 12. A random sample of 36 MBA students is chosen.

1. What is the probability that a randomly chosen sample of 36 MBA students has an average IQ less than 115?

2. What is the 91st percentile of sample average IQ’s of size 36 taken from the population of MBA students?

3. Calculate the bounds that determine the middle 72% of sample average IQ’s of size 36 taken from the population of MBA students?

1. 120 + 0.5284
2. 120 + 0.72
3. 120 + 1.28
4. 120 + 2.16
5. 120 + 12.96

*Please do not answer if you've already did. I'm getting a second opinion on this.

MBA Inc is expected to have dividend distribution policies as below:
- MBA Inc will pay out cash dividend £1 per share per year in the next two years
- In the end of the 3rd year, MBA Inc will pay out cash dividend £2 per share
- From the end of the 3rd year, MBA Inc will continuously pay cash divided at 5% constant growth rate per annum.

What is the theoretical price of stock of MBA Inc if the required rate of return is 10% per annum? Please show your working.

Mahesh graduated from college six years ago with a finance undergraduate degree. Although he is
satisfied with his current job, his goal is to become a banker. He feels that MBA degree would allow
him to achieve this goal. After examining business schools, he has narrowed his choice to Kathmandu
University, school of management, one of the renowned University in Nepal. Although internships are
encouraged by the school, to get class credit for the internship, no salary can be paid. Other than
internship, neither school will allow its students to work while enrolled in its MBA program. Assume
it is now January 1, 2020 and he is planning to accumulate Rs 710,000 including college fees and other
stationery expenses for an MBA in January 2025. Today he is thinking for a deposit in a bank that pays
11 per cent nominal interest rate. The source of income that he received quarterly from his current job
is Rs 65,000. Out of his quarterly income he spends 65 per cent amount for his living. His mother has
also deposited Rs 200,000 in his account to facilitate his MBA degree. In order to attain his goal, you
are required to answer the following: [1+2+2+2+1+2=10]
a. How much must he deposit in lump sum on January 1, 2020 to accumulate a university fees along
with stationery expenses of Rs 710,000 on January 1, 2025?
b. If Mahesh wants to make equal installments on each January 1 from 2021 through 2025, how large
must each payment be?
c. If he wants to invest his quarterly salary net saving in the bank, the first payment being made at the
end of first quarter from now, how much he could accumulate in January 1, 2025? Assuming that
interest is compounded on quarterly basis.
d. What is the effective annual rate if interest is compounded monthly? Explain the difference
between annual percentage rate and effective annual rate.
e. If his bank balance of Rs 200,000 today pays 9 per cent annual interest compounded monthly, to
which value it will grow on January 1, 2025?
f. A dollar in hand today is worth more than a dollar to receive next year. Give your arguments.