Crystal Corporation earned net income of $750,000 in 2016. It has a complex capital structure as follows: 10,000 shares outstanding of 10%, $100 preferred stock, and 150,000 shares issued of $5 common stock. There is also 20,000 common stock in the treasury. The preferred stock can be converted into 25,000 shares of common. In addition Crystal has Bonds Payable of $250,000 that pay interest of 8% and can be converted into 10,000 shares of common stock. The applicable federal income tax rate is 40%.

Calculate the basic earnings per share for 2016.

Calculate the diluted earnings per share for 2016.

During 2015, Nilsen Company started a construction job with a contract price of $3,200,000. The job was completed in 2017. The following information is available:
2015 2016 2017
Costs incurred to date $ 800,000 $1,650,000 $2,140,000
Estimated costs to complete 1,200,000 550,000 -0-
Billings to date 600,000 1,800,000 3,200,000
Collections to date 540,000 1,620,000 2,850,000
Required:
a. Prepare all the necessary accounting entries for 2015, 2016 &2017, assuming the percentage-of-completion method is used.
b. Prepare all the necessary accounting entries for 2015, 2016 &2017, assuming the cost-recovery method is used.

Martin Inc., a U.S. multinational, began operations in 2016. Martin had pretax U.S. source income and foreign source income as follows:

Income earned in the US            $900,000

Income earned in Country E 200,000

   Total global income                   $1,100,000

  

Martin paid $135,000 income tax to Country E.

Compute the amount that Martin would owe the U.S. Federal government for 2016 if it takes the foreign tax credit.

Assume that Martin's U.S. tax rate is 37% for 2016.

* make sure you read LO 13-5 before answering this question.

Depreciation Methods

Winsey Company purchased equipment on January 2, 2016, for $700,000. The equipment has the following characteristics:

During 2016 and 2017, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.

The following information was available from the inventory records of Anderson Corp. for January:

                                                     Units                 Unit Cost                        

Balance at March 1                      3,100                    9.75                                

Purchases:
03/05/2016                                  2,000                   10.50                                
03/25/2015                                   2,500                   10.70                               

Sales:
03/08/2016                                   -2,750
03/30/2016                                   -3,500

Balance at March 31                    1,350

Assuming that Anderson maintains perpetual inventory records, what should be the inventory at March 31, using the moving-average inventory method, rounded to the nearest dollar?

Select one:

A. $13,851

B. $13,928

C. $14,016

D. $14,224

On March 1, 2015, a company bought equipment for 900.000. The estimated salvage value of the equipment after 5 years of useful life is 50.000. The estimated productive capacity of the equipment during its useful life is 1.000.000 units.

1) Calculate the depreciation for the year 2015, using the straight-line method.

2) If 180.000 units are produced in the year 2015 and 240.000 are produced in the year 2016, what is the book value of the equipment on December 31, 2016, using the activity method?

3) If the declining-balance depreciation method is used, what is the accumulated depreciation on December 31, 2016?

3. Below is financial information extracted from financial statements for KHLED Inc. for 2016.

Required: Prepare cash flow statement for KHALED Inc. for 2016 using the indirect method.

The answer should not be photo or handwriting.

On January 1, 2016, Calvert Company issues 9%, $100,000 face value bonds for $103,673.08, a price to yield 7%. The bonds mature on December 31, 2017. Interest is paid semiannually on June 30 and December 31.

Required: