Wayne was a bona fide resident of Brazil for all of 2018 and 2019. He reports his income on the cash basis. In 2018, he was paid $88,900 for work he did in Brazil during that year. He excluded all of the $88,900 from his income in 2018. In 2019, Wayne was paid $117,300 for his work in Brazil. $18,800 was for work he did in 2018 and $98,500 was for work he did in 2019. What amount of the 2018 income received in 2019 can Wayne exclude from his 2019 income tax return?

A. $0

B. $10,900

C. $15,000

D. $18,800

Now that the financial operations for 2018 are nearly complete, Mark has requested a meeting with you to review Metro Group’s 2018 federal income tax liabilities and discuss Metro Group’s future federal income tax strategies in the wake of current tax reform. Mark has read many news articles about the 2018 Tax Cut and Jobs Act (2018 tax reform) and has asked you to highlight significant changes you believe Metro Group should consider in 2018. What key tax reform changes will you discuss with Mark? (10 points)

Rajbir Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2018 and was completed in 2019. Data relating to the construction are: 2018 2019 Costs incurred during the year $3,300,000 $2,750,000 Estimated costs to complete 2,700,000 — Raj uses the percentage-of-completion method. Instructions (a) How much revenue should be reported for 2018? Show your computation. (b) Make the entry to record progress billings of $4,100,000 during 2018. (c) Make the entry to record the revenue and gross profit for 2018. (d) How much gross profit should be reported for 2019? Show your computation.

In February 2018, Gemstone Industries purchased the Opal Mine at a cost of $20,000,000. The mine is estimated to contain 500,000 carats of stone and to have a residual value of $1,000,000 after mining operations are completed. During 2018, 50,000 carats of stone were removed from the mine and sold. In this situation:

A. The book value of the mine is $19,000,000 at the end of 2018.

B. The amount of depletion deducted from revenue during 2018 is $1,900,000.

C. The amount of depletion deducted from revenue during 2018 is $1,000,000.

D. The mine is classified as an intangible asset and amortized over a period not to exceed 40 years.

Hawkins Corporation began construction on a motel on March 31, 2018. The project was completed on April 30, 2019. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction periods:

$4,000,000 6% note

$16,000,000 10% bonds

Construction expenditures incurred were as follows:

March 31, 2018 $4,000,000

June 30, 2018 6,000,000

November 30, 2018 1,800,000

February 28, 2019 3,000,000

The company's fiscal year-end is December 31.

Calculate the amount of interest capitalized for 2018 and 2019.

You (US company) imported Earth Moving Equipment (EME) from Australia. You imported EME at US$ 300 (with Cash) on Dec 1, 2018. On Dec 15, 2018, you sold EME to Australia at A$400 (Australian $) in AR. The exchange rate on Dec 15, 2018 was 2 A$/US$. The exchange rate on Dec 31, 2018 was 4 A$/US$. On Feb 1, 2019, your customer paid you in full. The exchange rate on Feb 1 was 1 A$/US$. What were NI in 2018 and 2019, respectively? 100, 200 -100, 300 -200, 200 100, 100

  On March 1, 2018, Greenway Corporation issued 5% bonds dated January 1, 2018 with a par value of $1,000,000. The bonds were sold for the present value of the bonds on March 1, 2018 plus two-month accrued interest. The bonds mature on December 31, 2023. Interest is paid semiannually on Jun 30 and December 31. Greenway's fiscal year ends on December 31 each year. The effective interest rate is 7%.

​​

​Required:

a. Determine the present value the bonds on March 1, 2018 and the amount of accrued interest that was included in the proceeds received from the bond sale. Show calculations.

​b. Prepare the journal entry for the issuance of the bonds on March 1, 2018.

c. Prepare the journal entry for the interest payment on June 30, 2018.

Keesha Co. borrows $155,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $155,000.

1. On what date does this note mature? (Assume that February has 28 days)

April 25, 2018.

April 26, 2018.

April 27, 2018.

April 28, 2018.

April 30, 2018.

2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.)



4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.)

19. On June 30, 2016, Mobley Corporation acquired a patent for $4.10 million. The patent was estimated to have an eight-year life and no residual value. Mobley uses the straight-line method of amortization for intangible assets. At the beginning of January 2018, Mobley successfully defended its patent against infringement. Litigation costs totaled $660,000.

Required: 1. Calculate patent amortization for 2016 and 2017.

2. Prepare the journal entry to record the 2018 litigation costs.

3. Calculate amortization for 2018.

4-a. Prepare the journal entry to record the 2018 litigation costs and calculate amortization for 2018, assuming that Mobley prepares its financial statements according to International Financial Reporting Standards (IFRS).

4-b. Calculate amortization for 2018 under IFRS.

Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $310,000 net income during 2018, paid $21,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,031,000.

Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo

(1) lacks significant influence

a.Record the entry for investment in Sonny Enterprises.

b.Record the entry for cash dividend received.

c.Record the net unrealized holding gain or loss for an available-for-sale investment.

Required :(2) Has significant influence over the operating and financial policies of the investee.

a.Record the entry for investment in Sonny Enterprises.

b. Record the revenue from Sonny Enterprise during 2018.

c. Record the receipt of dividend during 2018