windows forms Application using Visual Basic

use visual basic 2012

Part 1: Programming – Income Tax Application

1.1 Problem Statement

Due to upcoming end of financial year, you are being called in to write a program which will read in a file and produce reports as outlined.

Inputs:

The input file called IncomeRecord.txt contains a list of Annual income records of employees in a firm. Each record is on a single line and the fields are separated by spaces. The names of the fields are:

Employee ID number - Integer 

Employee Last name - String 

Employee First Name - String 

Annual Income - Double

An example record may have the following form:

10001 Smith Will 30000

10002 Sivo Maika 100000

10003 Deo Amit 25000

Note: This is just sample data, there will be more records for the other employees.

1.2 Program Specifications:

Your program should be able to process the following commands. i.e. Program should provide user with the following menu

. I. Read employee data. (from file IncomeRecord.txt)

II. Print all employees’ data. (on a new Window/Form)

III. Calculate the income tax for all and store it in an array.

IV. Display the employee data including the income tax. (on a new Window/Form)

V. Exit program.

1.2.1 Explanation of each menu item.

1. Read employee data You must create and use appropriate arrays to retrieve all the information about employees from the file IncomeRecord.txt

2. Print all employees’ data. This menu item should open a new window/form and simply print the contents of the arrays created in suitable format on the screen. You must display all fields and records.

3. Calculate the income tax for all and store it in an array. For this assignment, to calculate income tax, a 5% tax rate applies across the board to all income amount. A message should be displayed at the end to indicate that the calculation was completed successfully.

4. Display employee data including Income Tax. Display the ID, last name, first name, annual income, and the income tax calculated for all employees. This information should be displayed in a new window/form.

Sample output based on the data provided above:

10001 Smith Will 30000 1500

10002 Sivo Maika 100000 5000

10003 Deo Amit 25000 1250

5. Exit program This is when program should end.

2. In answering the questions below, refer only to Reimels v. Comm., 2006-1 USTC ¶50,147, 97 AFTR2d 2006-820, 436 F.3d 344 (CA-2, 2006). This question is designed to develop your ability to find a given judicial tax law source and enhance your skills in interpreting judicial authorities that you locate while doing research.

Required:

After reading the case, write a clear, succinct but complete, grammatically correct, response to each of the questions posed below. The response should be a complete sentence or two (but no more than a short paragraph). Responses that are close, but not fully accurate or complete, will not get full credit. Also, be sure that your responses are labeled to correspond to the question numbers below. You must limit your response to no more than approximately one-half page. (If you fail to adhere to this limit, you will lose points.)

Your responses should be similar to item 2 on page 4.

(a) What are the names of the two petitioners-appellants?

(b) What is the relationship between the two petitioners-appellants (i.e., brother-sister, cousins, friends, etc.)?

(c) What is the name of the attorney representing the petitioners-appellants?

(d) What is the name of the specific appellate court that heard the case?

(e) What is the name of the trial court that originally heard the case?

(f) What is the name of the judge that wrote the opinion of the appellate court?

(g) What was the key issue/question that was presented to the appellate court? (Your response must quote the issue as

stated by the Court. In other words, your answer must be something like: The issue that the Court had to decide was

“whether [take quote straight from case].”)

(h) What did the appellate court hold with regard to the issue identified in (g)? (Your response must quote the holding as

Page 2 of 4

stated by the Court. In other words, your answer must be something like: The Court held that “[take quote straight from case].” Also, quote only from the Court’s opinion, not the “Headnote,” as this latter section is not technically part of the Court’s opinion. Finally, there is no need to explain the basis for the Court’s holding.)

(i) Did the appellate court affirm or reverse the decision of the trial court?

(j) Based on the appellate court’s opinion, who won the case, the petitioners-appellants or the respondent-appellee

Splish Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Splish Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

Prepare journal entries to record transactions related to compensated absences during 2016 and 2017.

ABC Inc. borrowed funds from its bank. Details are as follows.
Four year term loan, U.S. $500,000
Funds borrowed 1 January 2016; due 31 December 2019
Exchange rates:

Required:

Prepare the journal entries as follows to record:
A) Receipt of loan proceeds for January 2016.
B) The adjustment to spot rate for December 2016.
C) The adjustment to spot rate December 2017
D) The adjustment to spot rate December 2018
E) The adjustment to spot rate December 2019
F) Repayment of loan December 2019

7. Based on the above information calculate the total accounting recognition of loss.

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,385,000, $137,000 in the common stock account, and $2,620,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,550,000, $147,000 in the common stock account, and $2,920,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $92,500 and the company paid out $142,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $930,000, and the firm reduced its net working capital investment by $122,000.
  
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Operating cash flow            $

QUIZ (MUST BE TYPED)

With the information given below, construct Pedro Inc.’s Balance Sheet, Income Statement and Retained Earnings Statement for 2016 (NO PREFERRED STOCK).

(In 000’s)

December 31, 2016

Cash                                                    $          ?

Notes Payable                                     500,000

Sales                                                   10,000,000

Accounts Receivable                          850,000

Accounts Payable                               1,200,000

Long-term Debt                                  18,000,000

Common Stock (10,000 shares)         10,000

Additional Capital                              4,990,000

Retained Earnings (2015)                 5,050,000

Gross Fixed Assets                             32,350,000

Cost of Goods Sold                            4,000,000

Other Operating Expenses                 1,450,000

Inventory                                            1,980,000

Interest Expense                                 2,500,000

Tax Rate 50%

Depreciation Expense                        50,000

Accumulated Depreciation                6,050,000

Dividends                                           5,000

Pedro’s

INCOME STATEMENT

2016 (in 000’s)

Pedro’s

STATEMENT OF RETAINED EARNINGS

2016 (in 000’s)

Pedro’s

BALANCE SHEET

2016 (in 000’s)

Cash & MS                             $___________            Accounts Payable       $___________

Accounts Receivable             

1. On January 1, 2015 Costco began construction of a new warehouse in Redmond, WA. The building was completed on June 30, 2016. Cash outlays for the $5 million project were as follows:

2015

January 1                        $1,000,000

March 1                          $600,000

June 30                           $800,000

September 30               $750,000

December 1                   $600,000

2016

March 31                        $800,000

June 30                           $450,000 (final payment)

Total payments             $5,000,000

On January 1, 2015 Costco obtained a $3 million dollar construction loan with a 5% interest rate. Costco’s other long-term debt consisted of $30 million 6% bonds and $20 million of 8% bonds. All debt was outstanding throughout 2015 and 2016.

1. Calculate the amount of interest to be capitalized in 2015.

2. Calculate the amount of interest to be capitalized in 2016.

3. What is the final total capitalized cost of the warehouse?

4. How much interest expense is reported in Costco’s Income Statement for both 2015 and 2016?

Marie Inc. and Nick Inc. formed a joint venture on January 1, 2016 to produce and sell custom-fit earphones and earplugs. Marie invested plant and equipment with a book value of $250,000 and a fair value of $400,000 for a 25% interest in the venture which was to be called Jola Inc. Nick Inc. contributed raw materials (i.e. silicone and packing materials) with a fair value of $650,000 and cash of $550,000 for its 75% stake in Jola Inc. Jola Inc. reported net income of $2,200,000 for 2016. Marie Inc.’s plant and equipment has a 5 year remaining life as of January 1, 2016. Ignore income taxes.

What is the amount of the gain or loss that Marie Inc. can recognize on January 1, 2016 arising from the transfer of its assets to Jola Inc.? Provide the journal entry that Marie Inc. will record for 2016 to reflect its share of Jola Inc.’s net income

1.

Consider the following data for the following economy,

where there only two goods: wine and cheese. In the

following table are data for three different years. Use the

first year, 2016, as the base year in calculating real

GDP, the GDP deflator, and the CPI.

2016

2017

2018

P

Q

P

Q

P

Q

Wine

$2.50

25

$3.50

30

$ 4.00

35

Cheese

$7.00

20

$9.00

20

$ 10.00

25

a.

Calculate the inflation rate b

etween 2016

and 2017 and then between 2017 and 2018

using

a Laspeyres

index (call it the CPI

).

b. Calculate

the inflation rate between 201

6 and 2017 and then

between 2017 and 2018

using

a Paasche index

(call it the

GDP deflator

).

c.

Calculate the growth rate of

nominal GDP between 2016 and 2017

and then between 2017 and 2018.

d. Calculate the grow

th rate of real GDP between 2016 and 2017

and then between 201

7 and 2018.

On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, Yielding a market ( yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.

a) Confirm the bond issue price.

b) Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate method.

c) Post the Journal entries from part b) to their respective T-accounts

d) Trueman elected to report these bonds in its financial statements at fair value.

On December 31, 2016, these bonds were listed in the bond market at a price of 101 ( or 1015 of par value)

What entry is required to adjust the reported value of these bonds to fair value?

e) Prepare a table summarizing the effect of these bonds on earnings for 2016