Keener Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2020 through June 30, 2021.

Three (3) units of raw material are needed to produce each unit of finished product.
If 450,000 finished units were to be manufactured during the 2020-2021 fiscal year by Keener Company, the units of raw material needed to be purchased would be

1. Identify and discuss the key macro and micro environmental factors affecting TOYS R US Company. How has the company responded to these challenges?

1. A researcher has gathered information from a survey of 25 randomly selected university campuses. From this data, it was reported that the average number of reported sexual assaults on these campuses in the last year was 12 with a standard deviation of 3. Calculate a 95% confidence interval to estimate the average number of sexual assaults on Canadian university campuses as a whole. Remember to report your confidence interval in a complete sentence and describe what it means. (15%)

2. A survey was conducted at Acadia on attitudes toward the campus alcohol policy against drinking games in residence with 262 randomly selected residence students. In response to the question, “Are you in favour of the drinking games policy?” 25% were in favour. What is the 99% confidence interval to estimate the percentage of all Acadia residence students regarding the drinking game policy? Remember to report your confidence interval in a complete sentence and describe what it means. (15%)

3. School boards in Nova Scotia, on average receive a budget of $623.00 per student from the provincial government. A random sample of 45 rural schools report that they received on average $605 per student with a standard deviation of $74. Is there a significant difference in the budgets between rural schools and the whole province? (20%)

This question is an example of statistical research using hypothesis testing. You will need to use the 5 step model of hypothesis testing to test for significance at a=.05.

• State assumptions

• State the null hypothesis and the alternative hypothesis
• State the appropriate hypothesis test for each question and determine your critical scores for testing significance at .05
• Calculate your test statistic making sure you show your formulas
• Interpret your results using complete sentences indicating is significance was determined

4. Nationally, the unemployment rate for teenage males is 18%. A random sample of 323 teenage males in your area reveals an unemployment rate of 21.7%. Are our local teens more likely to be unemployed?   (20%) This question is an example of statistical research using hypothesis testing. You will need to use the 5 step model of hypothesis testing to test for significance at a=.01.

• State assumptions

• State the null hypothesis and the alternative hypothesis
• State the appropriate hypothesis test for each question and determine your critical scores for testing significance at .01
• Calculate your test statistic making sure you show your formulas
• Interpret your results using complete sentences indicating is significance was determined

USING SPSS

5. What is the 99% confidence interval for the proportion of Canadians that have more than a high-school education? For this question you will need to use your data (your sample of Canadian) from the Canadian Community Health Survey. Use the variable (EDUDH04), create a new variable where 1=more than high school, and 0= every other VALID response. Calculate the statistics you need to construct your confidence internal, and then calculate the interval by hand by using the appropriate formula. (20%)

Copy and past a frequency table of your dummy variable (make sure your new variable is labelled) into your assignment. Copy and paste your statistics box. Write your answer in a complete sentence and describe what it means.

Identify the tax issues associated with the following scenarios concerning transfer prices.

Compania de Minerale is an Argentianian company which has 100% of its stock owned by U.S. Minerals, a domestic company. Compania recently discovered a huge supply of iron ore based on a mine it developed in Argentina. Compania is subject to an Argentinian income tax rate of 10% on its mining profits. Compania is required under Argentinian law to sell 20% of its mining output (the iron ore) to the Argentinian national steel company at $400/per ton. The price was set by the government without reference to market iron ore price. Compania also has a contract to sell 30% of its iron ore output to a private steelmaker in Brazil for $900/ton. The Brazilian purchaser will take ownership of the iron ore at the output of the mine in Argentina. The remining 50% of the output will be sold to its parent company, US Minerals for US Minerals to use in its US steel making operations. The iron ore will be transported via truck to plants in. Texas.

Identify some of considerations that should be taken into account in setting the transfer price with US Minerals.

Your firm has a client who has been a management accountant for many years and is now also teaching part-time at TAFE and has recently acquired a rental property. We prepared his Tax Return, sent it out for signature. He has sent the Tax Return back to us unsigned, saying that we had made an error in claiming a tax deduction for the interest and expenses for the first four months that he owned the rental property, as it was not earning income at the time, as it runs counter to the matching principle. Required: Your manager has asked you to prepare an essay exploring this issue. Explaining to the client diplomatically that he is in error

Joe mason acquired land on which he will construct a new restaurant. A chemical plan had once occupied the site. Government regulations require Mason to clean up the chemical residue before building. The cost of clean-up is material.

Required:

a. Under current US GAAP, an asset is charged with historical cost, which includes the purchase price and all costs incident to getting the asset ready for its intended use. Defend the historical cost principles. Use the conceptual framework concepts and definitions in your defense.

b. How should Joe treat the cost of clean-up? Is it land cost, a building cost, or an expense? Explain.

The largest magazine publisher in the U.S., Pressworks Inc., acquired a cloud-based data science marketing company FlowData Stream for $220 million in January 2020. Pressworks Inc. is a legacy paper-based magazine publisher that has been in business for more than 50 years. Over the years, the company has been able to manage through the digital transformation of traditional print business, but it has not been easy. Over the last 8 years, Pressworks Inc. has downsized its print operations to manage expenses, while maintaining some major global fashion magazine brands. Several of Pressworks Inc’s print magazine customers have also begun to scale-back their print circulations while ramping up their digital transformations. Many of Pressworks Inc.’s traditional customers have questioned the company’s ability to skillfully transition from print to digital. FlowData Stream helps businesses of all sizes manage ad spend and maximize their online advertising budget on platforms including Google Ads, Bing, and Facebook. They develop complex, customized algorithms that provide several different data points that allow customers to better understand targeted buyers’ behavior. FlowData Stream has a strong computer science and engineering team that have consistently changed the way advertisers reach desired target markets. The company manages approximately one billion dollars in advertising spend for tens of thousands of companies across the world. FlowData Stream is estimated to generate $85 million in revenue and $25 million in earnings this year.

Given this information, answer the following question. Describe four different reasons why Pressworks Inc. would purchase FlowData Stream. Please discuss why these four reasons are of interest to Pressworks Inc

Sherrod, Inc., reported pretax accounting income of $92 million for 2021. The following information relates to differences between pretax accounting income and taxable income:

1. Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $6 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023.
2. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022.
3. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $104 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

4. For tax purposes, warranty expense is deducted when costs are incurred. The balance of the warranty liability was $1 million at the end of 2020. Warranty expense of $3 million is recognized in the income statement in 2021. $2 million of cost is incurred in 2021, and another $3 million of cost anticipated in 2022. At December 31, 2021, the warranty liability is $2 million (after adjusting entries).
5. In 2021, Sherrod accrued an expense and related liability for estimated paid future absences of $13 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($7 million in 2022; $6 million in 2023).
6. During 2020, accounting income included an estimated loss of $6 million from having accrued a loss contingency. The loss is paid in 2021, at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2021, were $1.8 million and $2.5 million, respectively. The enacted tax rate is 25% each year.

Required:
1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.
2. What is the 2021 net income?
3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

Sherrod, Inc., reported pretax accounting income of $72 million for 2021. The following information relates to differences between pretax accounting income and taxable income:

1. Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end 2021 had a balance of $4 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023.
2. Sherrod was assessed a penalty of $2 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022.
3. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $64 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

4. For tax purposes, warranty expense is deducted when costs are incurred. The balance of the warranty liability was $1 million at the end of 2020. Warranty expense of $3 million is recognized in the income statement in 2021. $2 million of cost is incurred in 2021, and another $3 million of cost anticipated in 2022. At December 31, 2021, the warranty liability is $2 million (after adjusting entries).
5. In 2021, Sherrod accrued an expense and related liability for estimated paid future absences of $14 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($11 million in 2022; $3 million in 2023).
6. During 2020, accounting income included an estimated loss of $6 million from having accrued a loss contingency. The loss is paid in 2021, at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2021, were $1.8 million and $1.5 million, respectively. The enacted tax rate is 25% each year.

Required:
1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.
2. What is the 2021 net income?
3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.

Sherrod, Inc., reported pretax accounting income of $68 million for 2021. The following information relates to differences between pretax accounting income and taxable income:

1. Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $6 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023.
2. Sherrod was assessed a penalty of $4 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022.
3. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $56 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

4. For tax purposes, warranty expense is deducted when costs are incurred. The balance of the warranty liability was $3 million at the end of 2020. Warranty expense of $5 million is recognized in the income statement in 2021. $4 million of cost is incurred in 2021, and another $3 million of cost anticipated in 2022. At December 31, 2021, the warranty liability is $4 million (after adjusting entries).
5. In 2021, Sherrod accrued an expense and related liability for estimated paid future absences of $14 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($8 million in 2022; $6 million in 2023).
6. During 2020, accounting income included an estimated loss of $2 million from having accrued a loss contingency. The loss is paid in 2021, at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2021, were $1.3 million and $1.5 million, respectively. The enacted tax rate is 25% each year.

Required:
1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.
2. What is the 2021 net income?
3. Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet.