Q 4.1

In the 2020 fiscal year, Company A recognized $10 of bad-debt expense (as well as the same amount of bad-debt allowance) for its Accounts receivable. There was no bad-debt written-off in the same year. The corporate tax rate is 30%.

Required: Assuming all else equal, discuss the effect of the recognition of the $10 bad-debt expense on the following two tax-related accounts:

• Current tax liability
• Deferred tax asset (or deferred tax liability)

You need to relate your discussions to the current tax worksheet as well as deferred tax worksheet.

Q.4.2

In the 2020 fiscal year, Company B reported an accounting profit of $1,000. In the same year, the accounting depreciation expense for plant was $150, while the tax deduction for plant depreciation was $200. There was no other difference between accounting and tax in the year. In the 2019 fiscal year, the company recorded a tax loss ($300) and recognized a deferred tax asset in respect of this tax loss. In the 2020 fiscal year, the company reduced the taxable profit by recouping the tax losses carried forward. The company does not set off deferred tax liabilities and assets. The corporate tax rate is 30%.

1. Required: Provide the journal entries for the current tax adjustment. Workings (or narrations) are not required.

2. Now assume that Company B’s accounting profit in the 2020 fiscal year includes $55 of government grant which is exempt from tax. Also, assume that tax losses carried forward must be offset against any exempt income before being used to reduce taxable profit.

Required: Under these additional assumptions, provide the journal entries for the current tax adjustment. Workings (or explanations) are not required.

The financial statements for Waverley Ltd are provided below:

Waverley Ltd

Comparative Balance Sheet

As at 30 June 2019 and 2020

Waverley Ltd

Income Statement

For the Year Ended at 30 June 2020

Required:

Prepare an extract of the Cash Flow Statement (Direct Method) for the year ended 30 June 2020 showing Cash Flows from Operating Activities AND Cash Flows from Financing Activities. Show all workings.

If possible, in workings for the cash flow, please use ledgers to show your calculations. For example, ‘Accounts Receivable’ Ledger to get the value of ‘Cash flow from Customers’

Ledger Templet

*Please upload the solution as soon as you can finish it. Thanks for your help

The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.)

Compute the following ratios for 2020 and 2019. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.)

A .25 kg ball is dropped and has a speed of 5m/s just before impacting the ground. The ball is contact with the ground for .3 s before bouncing up with a velocity of 5 m/s.

a. Is the momentum of the ball conserved as it falls? Explain your answer

b. Is the momentum of the ball conserved from before it hits the ground until just after it leaves the ground? Explain your answer.

c. What impulse is applied to the ball?

d. Assuming a constant acceleration of the ball, what was the average force applied by the ground?

A car initially traveling at 40 m/s runs out of gas while traveling up a slope. It coasts for a distance of 500 m before it starts to roll back down.

a. What is the acceleration of the car?

b. What is the angle (incline) of the slope?

c. How long does it take after the car runs out of gas before it starts to roll back down?

d. Once the car starts rolling backwards, how long does it take before it passes its starting point, 500m down the slope?

A 25.00 mL of 0.0500 M imidazole (B) solution was titrated with 0.1250 M HNO3. The pKa of the imidazolium chloride (BH+) is 6.993.

(a) what is the pH of the solution before adding any HNO3?

(b) What is the pH of the solution after adding 5.00 mL of HNO3?

(c) What is the pH of the solution after adding 10.00 mL of HNO3?

(d) What is the pH of the solution after adding 12.00 mL of HNO3?

Do students reduce study time in classes where they achieve a higher midterm score? In a Journal of Economic Education article (Winter 2005), Gregory Krohn and Catherine O’Connor studied student effort and performance in a class over a semester. In an intermediate macroeconomics course, they found that “students respond to higher midterm scores by reducing the number of hours they subsequently allocate to studying for the course.” Suppose that a random sample of n = 8 students who performed well on the midterm exam was taken and weekly study times before and after the exam were compared. The resulting data are given in Table 10.6. Assume that the population of all possible paired differences is normally distributed. Table 10.6 Weekly Study Time Data for Students Who Perform Well on the MidTerm Students 1 2 3 4 5 6 7 8 Before 15 19 12 17 16 15 11 16 After 11 18 9 10 8 9 11 10 Paired T-Test and CI: Study Before, Study After Paired T for Study Before - Study After N Mean StDev SE Mean StudyBefore 8 15.1250 2.5877 .9149 StudyAfter 8 10.7500 3.1053 1.0979 Difference 8 4.37500 2.87539 1.01660 95% CI for mean difference: (1.97112, 6.77888) T-Test of mean difference = 0 (vs not = 0): T-Value = 4.30, P-Value = .0036 (a) Set up the null and alternative hypotheses to test whether there is a difference in the true mean study time before and after the midterm exam. H0: µd = versus Ha: µd ≠ (b) Above we present the MINITAB output for the paired differences test. Use the output and critical values to test the hypotheses at the .10, .05, and .01 level of significance. Has the true mean study time changed? (Round your answer to 2 decimal places.) t = We have evidence. (c) Use the p-value to test the hypotheses at the .10, .05, and .01 level of significance. How much evidence is there against the null hypothesis? There is against the null hypothesis. 02_16_2018_QC_CS-118501

Do students reduce study time in classes where they achieve a higher midterm score? In a Journal of Economic Education article (Winter 2005), Gregory Krohn and Catherine O’Connor studied student effort and performance in a class over a semester. In an intermediate macroeconomics course, they found that “students respond to higher midterm scores by reducing the number of hours they subsequently allocate to studying for the course.” Suppose that a random sample of n = 8 students who performed well on the midterm exam was taken and weekly study times before and after the exam were compared. The resulting data are given in Table 10.6. Assume that the population of all possible paired differences is normally distributed. Table 10.6 Weekly Study Time Data for Students Who Perform Well on the MidTerm Students 1 2 3 4 5 6 7 8 Before 16 13 11 17 17 13 15 17 After 8 8 12 9 5 10 7 8 Paired T-Test and CI: Study Before, Study After Paired T for Study Before - Study After N Mean StDev SE Mean StudyBefore 8 14.8750 2.2952 .8115 StudyAfter 8 8.3750 2.0659 .7304 Difference 8 6.50000 4.03556 1.42678 95% CI for mean difference: (3.12619, 9.87381) T-Test of mean difference = 0 (vs not = 0): T-Value = 4.56, P-Value = .0026 (a) Set up the null and alternative hypotheses to test whether there is a difference in the true mean study time before and after the midterm exam. H0: µd = versus Ha: µd ≠ (b) Above we present the MINITAB output for the paired differences test. Use the output and critical values to test the hypotheses at the .10, .05, and .01 level of significance. Has the true mean study time changed? (Round your answer to 2 decimal places.) t = We have evidence. (c) Use the p-value to test the hypotheses at the .10, .05, and .01 level of significance. How much evidence is there against the null hypothesis? There is against the null hypothesis.

Becky, 25 years old, is a single taxpayer who uses the standard deduction. Her AGI is $61,000. After she finished her accounting degree at Minnesota, she decided to enroll in a local community college to take one class in art history as a part time student. The cost of the course was $1500.   Compute the amount of education tax credits available to her in 2020 and specify the name of the tax credit that she is eligible for.