Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,730,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2020 and 2021.

Mourinho Company is indebted to Guardiola Bank under a $550,000, 12%, three-year note dated December 31, 2018. Because of Morinho's financial difficulties developing in 2020, Mourinho owed accrued interest of $65,000 on the note at December 31, 2020. Under a troubled debt restructuring, on December 31, 2020, Guardiola agreed to settle the note and accrued interest for a building having a fair value of $410,000. The building has a cost of $820,000 and accumulated depreciation of $308,000. How much gain/loss on the disposition of land and on restructuring of debt should Mourinho record, respectively?

During 2020, Sandhill Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.

Part 1

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

, believes that the mean number of hours per day all male students at the University use cell/mobile phones exceeds the mean number of hours per day all female students at the University use cell/mobile phones. To test President Loh’s belief, you analyze data from 29 male students enrolled in BMGT 230/230B this semester and 13 female students enrolled in BMGT 230/230B this semester.

a. Assuming equal population variances, if the level of significance equals 0.05 and the one-tail p-VALUE equals 0.0242, determine the following, in order: the one-tail critical value, the two-tails p-VALUE, and the two-tails critical value (again, order matters)

b. Assuming equal population variances and the level of significance equals 0.05, if the calculated value for the associated test statistic equals 1.8333 (where males are group 1), can you conclude the mean number of hours per day all male students at the University use cell/mobile phones exceeds the mean number of hours per day all female students at the University use cell/mobile phones?

There are many times that debt can be advantageous for a company. Provide an example of a company that took on too much debt and what eventually happened. Attach an article and introduce us to why they took on the debt and what happened.

In which way(s) does urbanization increase genetic drift (select all that apply)?

Environmental changes leading to an increase in genome-wide mutation rates

New populations establishing themselves in the urban environment leading to a founder effect

High number of roads in urban environment, cutting habitats in smaller fragments

Novel selective pressures in the environment such as pollutants leading to bottlenecks

Herald company, a jacket selling company, prepares its master budget for the year 2020 on a quarterly basis. The budget officer has gathered the following data:

1. Estimated Sales for each quarter is $230,000. All sales are on credit and all sales are collected in the following quarter.

2. Cost of goods sold for each quarter is $100,000.

3. Variable selling and administrative expenses for each jacket are 10% sales commission.

4. Fixed selling and administrative (S&A) expenses for the year are:

5. The company expects to borrow $80,000 on April, 1, 2020. No principal will be repaid during the year; Interest rate at an annual rate of 10% is due quarterly.

6. The company will declare $3,000 dividend in December 2020, which will be paid in January 2021.

The company's expected total cash receipt from sales is $690,000 and expected cash disbursements from manufacturing costs is $90,000 during the year 2020. If the year's beginning balance of cash is $25,000, what is the ending balance of cash in the year 2020?

Lebaum Corporation uses the weighted-average method in its process costing system. Data concerning the second processing department for the most recent month are listed below:

What is the cost of units completed and transferred out? (Choose the closest answer).

Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities: Machine Setups, Special Processing, Factory Supervision, and Customer Relation.

The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHs) are given below for one unit of the product, as well as the total units produced and sold.

The company collected the data for ABC as follows:

The company has two major customers (A and B), who buy their products in the amounts in the table below.

How much is the ABC customer margin of customer B? (Choose the closest amount.)

Tomy is a key customer of Rubber (Pty) Ltd (hereafter Rubber), a well-established South
African shoe sole provider. The two companies share the same year-end.
When Tomy experienced the sudden increase in sales, Rubber extended an interest-free loan
of R2 050 000 on 1 February 2020 in order to enable Tomy to cater for the increase in supply.
Tomy used the loan immediately as follows:
 Purchase of land – R350 000
 Construction of factory building on land purchased (completed 1 July 2020 and brought
into use immediately after completion) – R1 200 000
 Purchase of Machine B (new) – R800 000 (brought into use on 1 July 2020)
 Deductible expenditure – R200 000
 Purchase of Trading Stock – R500 000 ( R50 000 still on hand on 31 December 2020)
Tomy was able to justify the loan and repayments of the loan as the company signed a contract
with a local customer on 15 December 2019 and delivered R1 200 000 of takkies on
1 February 2020. The local customer informed Tomy during August 2020 that they were
liquidated and that Tomy will not receive any further payment from them. Tomy has written off
the outstanding debt as bad debts at the end of the financial year.
In an attempt to raise cash reserves, Tomy issued 100 000 ordinary shares on
18 August 2020, of which Rubber purchased 88 000 shares. Rubber did not own any of Tomy’s
shares before this date. Tomy now has 120 000 ordinary shares in issue.
Tomy approached Rubber as Tomy was not able to repay the amount due on the outstanding
loan. The total amount was still due. Rubber acknowledged that Tomy’s financial situation was
due to unforeseen circumstances and agreed to write off 80% of each of the balances owing
by Tomy, except for the land that Rubber agreed to write off the full amount owing on
30 December 2020.

REQUIRED
Calculate and motivate the income tax consequences of the above transactions and events
for Tomy for the year of assessment ended on 31 December 2020

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

QUESTIONS:

1. Classify the cost items in the table into cost-of-quality (COQ) categories. Calculate the ratio of each COQ category to revenues in each of the 2 years.

2. Calculate the percentage change in each COQ category and total COQ and comment on the results: