A financier whose specialty is investing in movie productions has observed that, in general, movies with "big-name" stars seem to generate more revenue than those movies whose stars are less well known. To examine his belief, he recorded the gross revenue and the payment (in $ millions) given to the two highest-paid performers in each movie for ten recently released movies

Movie Cost of Two highest paid performers    Gross Revenue

1    5.3 48

2 7.2    65

3 1.3    18

4 1.8 20

5 3.5 31

6 2.6 26

7 8.0 73   

8 2.4 23

9 4.5 39

10 6.7    58

a) Determine the standard error of estimate and describe what this statistic tells you about the regression line.

b) Determine the coefficient of determination and discuss what its value tells you about the two variables.

c) Calculate the Pearson correlation coefficient. What sign does it have? Why?

The adjusted trial balance shown below is for Gordon Real Estate at the end of its reporting period 30 June 2019.

Required

a)     Prepare the required closing entries for Gordon Real Estate for the year ended 30 June 2019. Narrations are required.

b)    Prepare Gordon’s Capital account using the T-account provided below.   (Total 15 Marks)

  Gordon, Capital

The adjusted trial balance shown below is for Greenwood Real Estate at the end of its reporting period 30 June 2019.

Required

a)     Prepare the required closing entries for Greenwood Real Estate for the year ended 30 June 2019. Narrations are required.

b)    Prepare Greenwood’s Capital account using the T-account provided below. (Total 15 Marks)

  Greenwood, Capital

The adjusted trial balance shown below is for Gordon Real Estate at the end of its reporting period 30 June 2019.

Required

a)     Prepare the required closing entries for Gordon Real Estate for the year ended 30 June 2019. Narrations are required.

b)    Prepare Gordon’s Capital account using the T-account provided below.

  Gordon, Capital

The adjusted trial balance shown below is for Gordon Real Estate at the end of its reporting period 30 June 2019.

Required

a)     Prepare the required closing entries for Gordon Real Estate for the year ended 30 June 2019. Narrations are required.

b)    Prepare Gordon’s Capital account using the T-account provided below.

  Gordon, Capital

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in August. The company’s flexible budget for August appears below:

The actual results for August were as follows:

Required:

Calculate the company’s revenue and spending variances for August.

The quantity, q, of a certain skateboard sold depends on the selling price, p, in dollars, so we write q = f(p). You are given that f(100) = 15200 and f '(100) = −90.

(a) What does f(100) = 15200 tell you about the sales of skateboards?

When the price of the skateboard is $_________ , then ______ skateboards will be sold.

What does f '(100) = −90 tell you about the sales of skateboards?

If the price increases from $100 to $101, the number of skateboards sold would _______ (increase/decrease) by roughly________ skateboards

(b) The total revenue, R, earned by the sale of skateboards is given by R = pq. Find R '(p).(chose)

-R '(p) = p 'q

-R '(p) = pf '(p) + f(p)   

- R '(p) = p + q

-R '(p) = q

-R '(p) = f '(p) + f(p)

(c) If the skateboards are currently selling for $100, what happens to revenue if the price is increased to $101?
The revenue  ---Select--- (increases/decreases) by roughly $ _______.

1. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 20% for all years. Pretax accounting income $800,000 Excess tax depreciation (480,000) Litigation accrual 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Interest income from New York municipal bonds (20,000) Taxable income $430,000

1. Excess tax depreciation will reverse equally over a four-year period, 2021-2024.

2. It is estimated that the litigation liability will be paid in 2024.

3. Rent revenue will be recognized during the last year of the lease, 2024.

4. Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2024.

(a)   Prepare a schedule of future taxable and (deductible) amounts.

(b)   Prepare a schedule of the deferred tax (asset) and liability at the end of 2020.

Go to the IRS Web site (www.irs.gov) and find the 2016 edition of the IRS Publication 538 (PDF file), Accounting Periods and Methods. Find the pages on Inventories. What are the revenue procedures that permit qualifying taxpayers and qualifying small business taxpayers to use the cash method for accounting for inventories?

Answer the following questions.

1. What page of the publication does the discussion of inventory start? ___________

2. The qualifying taxpayer under Revenue Procedure(a. 2001-2 b. 2001-10 c. irb02-02) and a qualifying small business taxpayer under Revenue Procedure (a. 2002-18 b. irb02-18 c. 2002-28) can use the cash method of accounting even if they produce, purchase, or sell merchandise.

3. The gross receipts test for a qualifying small business taxpayer is determined (a. by election b. each period tax year ending on after 12/31/2000 c. over a three period). The average annual gross receipts must be __________$ million or less for each test year listed.

McCombs Contractors received a contract to construct a mental health facility for $2,500,000. Construction was begun in 2020 and completed in 2021. Cost and other data are presented below:

2020 2021

Costs incurred during the year $1,500,000 $1,300,000

Estimated costs to complete 1,200,000 0

Billings during the year 1,200,000 1,300,000

Cash collections during the year 1,000,000 1,500,000

Part 1: Assume that McCombs recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2020 and 2021.

Part 2: Assume that McCombs recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit (loss) recognition. Round your answers to the nearest whole dollar.

Part 3: Assume that McCombs recognizes revenue upon project completion. Required: Compute the amount of gross profit recognized by McCombs during 2020 and 2021.