Mario, 35, is single and lives with his girlfriend, Huyen, also 35. Mario has a 6-year-old son, Manpreet, who lived with him for all of 2018. Mario provided more than 50% of the support for both Manpreet and Huyen in 2018.

In 2018, Mario earned a salary of $76,000. In addition to his salary, Mario also received alimony of $1,000 per month and child support payments of $500 per month from his ex-spouse. Mario contributed $2,500 to an individual retirement account in 2018. Mario paid $13,000 of expenditures that qualify as itemized deductions and childcare costs of $6,000 to allow Mario to work. Mario had a total of $6,500 in federal income taxes withheld from his paychecks during 2018.

Huyen worked on and off in 2018 and earned wages of $4,000. Huyen paid no expenses that qualify as deductions. Huyen had a total of $400 in federal income taxes withheld from her paychecks during 2018.

1. What is Mario’s federal gross income for 2018?

2. What is Mario’s federal adjusted gross income for 2018?

3. What is the total amount of Mario’s deductions from AGI for 2018?

4. What is Mario’s federal taxable income for 2018?

5. What is Mario’s federal taxes payable or refund due for 2018?

6. Mario is upset because he received a large federal income tax refund last year (tax year 2017). Mario thinks that the tax reform enacted at the end of 2017 resulted in higher taxes for him this year. Briefly explain to Mario why that is not necessarily the case just because he did not receive a large refund again this year.

Arndt, Inc., reported the following for 2018 and 2019 ($ in millions):

1. Expenses each year include $20 million from a two-year casualty insurance policy purchased in 2018 for $40 million. The cost is tax deductible in 2018.
2. Expenses include $2 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $26 million and $31 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $18 million ($7 million collected in 2017 but not recognized as revenue until 2018) and $26 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018.
4. 2018 expenses included a $15 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $4 million and no deferred tax liability.

4. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Butch's Pool Service & Supply, Inc. (BPSS) is completing the accounting process for the year just ended, December 31, 2018. The transactions during 2018 have been journalized and posted. The following data with respect to adjusting entries are available:

1. BPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2019.
2. On October 1, 2018, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2018.
3. The company received a $520 utility bill for December utility usage. It will be paid in January 2018.
4. BPSS borrowed $30,000 from a local bank on May 1, 2018, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2019.
5. On December 31, 2018, BPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on December 31.
6. On August 1, 2018, BPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
7. On December 31, 2018, BPSS had $3,100 of pool cleaning supplies on hand. During 2018, BPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2017.
8. BPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
9. At December 31, 2018, $110 of interest on investments was earned that will be received in 2019.

Prepare adjusting entries for Butch's Pool Service & Supply, Inc., on December 31, 2018.

On 1/1/2015 ABC received $300,000 in cash for issuing 10,000 shares of $9.000 par common stock. ABC received $600,000 cash for issuing 2000 shares of 200/par preferred stock.

ABC purchased 15% of CDC stock for $25,000 cash. ABC is not intending to sell it anytime in the future and definatelly not in 2016. The value of the stock at the 12/31/20015 was $24,000. CDE paid ABC $1000 in dividends.

ABC purchased (cash) DEF debt for $10,800. (10,000 face, 10%, 5year) that intends to hold until maturity. Interest is paid annually on 1/1. Market rate is 8%. Use effective interest rate to amortize. Bond value at 12/31/2015 was 10,500.

ABC purchased GHJ 5 year bond that is not sure if it will sell or hold until maturity for $25,000. Face of the note is $20,000. It pays 10% interest annually(1/1). fair value of the bond at year-end was $24,500. Straight line

ABC purchases 2 widget producing machines at a total cost of $200,000 on credit. The book life of the asset is 5 years. No salvage.

Durning the year 2015: ABC receives a refundable deposit for $100,000 to sell widgets to WTH company in 2/2016. Purchases $40,000(at cost of $1.00 per unit)of inventory on credit. ABC enters into agreement to sell 50,000 widgets to ASAP Company for $400,000. They deliver half of the widgets. ABC receives $200,000 in cash durning the current year and the remaining $200,000 will be paid in 2016. The credit portion of the sale will not be consider revenues for tax purposes until the cash is received. Prior to delivery, ABC purchases (credit) 40,000 of inventory-cost $2.00/unit. ABC uses LIFO. ABC enters into an agreement to provide FYI services in November of 2015 for $500,000. The agreements are signed in November 2015. The cash is received in November. ABC pays in cash: a tax-non decuctible fineof $10,000, salaries of $20,000, rent $2000. The depreciation for the year is $65,000. The tax rate is 40%. ABC declares $10,000 of dividends, $5,000 each to its common stock and its preferred. Payment is not until 2016. Prepare all journal entries (including closing, Income statement and Balance Sheet.

What changes are occurring in the non-disposable razor category? Assess Paramount’s competitive position.  

How is the non-disposable razor market segmented? Examine consumer behavior for non-disposable razors.

Would you recommend launching Clean Edge as a niche or a mainstream brand? Why? What are the strategic implications of your recommendation?

A computer operations department decided to study the effect of the connection media used (either cable or fiber). The team designed a study in which a total of 30 subscribers were chosen. The subscribers were randomly assigned to one of the 3 messaging systems and measurements were taken on the updated time (in seconds). The data are shown below.

(With excel functions can you help in solving these questions)

a. State the null and alternate hypotheses that would be used to test whether there is a significant difference in the average update times for the three different messaging systems. Express symbolically if possible.

b. What type of study is this and what type of hypothesis test would be used to conduct the hypothesis test?

c. What is the p-value corresponding to this hypothesis test? (use cell reference to show answer and where it is found).

d. Conduct a hypothesis test to test whether there is a significant differencewhether there is a significant difference in the average update times for the three different messaging systems. Give a complete summary.

e. State the null and alternate hypotheses that would be used to test whether there is a significant difference in the mean update times of the messaging systems using the 2 different connection media. Express symbolically if possible.

f. What is the p-value corresponding to this hypothesis test? (use cell reference to show answer and where it is found).

g. Conduct a hypothesis test to test whether there is a significant effect due to messaging system used. Give a complete summary.

h. State the null and alternate hypotheses that would be used to test whether there is an interaction between the connection media and the messaging system. Express symbolically if possible.

i. What is the p-value corresponding to this hypothesis test? (use cell reference to show answer and where it is found).

j. Conduct a hypothesis test to determine whether there is an interaction between interaction between the connection media and the messaging system. State complete conclusions.

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the following pension-related data were available:

  
Required:
1. to 3. Prepare the 2018 journal entry to record pension expense, to record any 2018 gains and losses and the contribution to plan assets and benefit payments to retirees.
4. Determine the balances at December 31, 2018, in the PBO, plan assets, the net gain–AOCI, and prior service cost–AOCI [Hint: You might find T-accounts useful.]
5. What amount will Beale report in its 2018 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2018 (the end of Beale's fiscal year), the following pension-related data were available:

  
Required:
1. to 3. Prepare the 2018 journal entry to record pension expense, to record any 2018 gains and losses and the contribution to plan assets and benefit payments to retirees.
4. Determine the balances at December 31, 2018, in the PBO, plan assets, the net gain–AOCI, and prior service cost–AOCI [Hint: You might find T-accounts useful.]
5. What amount will Beale report in its 2018 balance sheet as a net pension asset or net pension liability for the funded status of the plan?

On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 6%. The contract calls for four rent payments of $12,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $94,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-annually.

Prepare the appropriate enteries for both the lessee and the lessor from the beginning of the lease through the end of 2018

1. Jan 1 2018 Record the beginning of the lease for Nath-Langstorm Services

2. June 30 2018 Record the lease payment and interest expense for Nath-Langstrom Services

3. June 30 2018 Record the amortization expense for Nath-Langstrom Services

4. December 31 2018 Record the lease payment and interest expense for Nath-Langstrom Services

5. December 31 2018 Record the amortization expense for Nath-Langstrom Services

6. June 30 2018 Record the lease revenue received by ComputerWorld Leasing

7. June 30 2018 Record the Depreciation expense for ComputerWorld Leasing

8. December 31 2018 Record the lease revenue received by ComputerWorld Leasing

9. December 31 2018 Record the Depreciatino for ComputerWorld Leasing

Tia and Colton graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.

On July 1, 2018, Tia and Colton organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 30,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tia and Colton will act as co-presidents of the company. The following transactions occur from July 1 through December 31.

The following information relates to year-end adjusting entries as of December 31, 2018.

1. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,820.
2. Six months’ worth of insurance has expired.
3. Four months’ worth of rent has expired.
4. Of the $1,900 of office supplies purchased on July 4, $370 remains.
5. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded.
6. Of the $2,900 of racing supplies purchased on December 12, $190 remains.
7. Colton calculates that the company owes $13,200 in income taxes.

REQUIREMENTS:

1. Record each of the transactions listed above in the ‘General Journal’ tab (these are shown as items 1-27). From those transactions, populate the ‘General Ledger’ and review the ‘Trial Balance’ tab to see the effect of the transactions on the account balances.
2. Record the adjusting entries in the ‘General Journal’ tab (these are shown as items 28-34). Update your ‘General Ledger’.
3. Review the adjusted ‘Trial Balance’ as of December 31, 2018.
4. Prepare an income statement for the period ended December 31, 2018, in the ‘Income Statement’ tab.
5. Prepare a classified balance sheet as of December 31, 2018, in the ‘Balance Sheet’ tab.
6. Record the closing entries in the ‘General Journal’ tab (these are shown as items 35-37). Update your ‘General Ledger’.