Brooke, a single taxpayer, works for Company A for all of 2020, earning a salary of $50,000.

b. Assume Brooke works for Company A for half of 2020, earning $50,000 in salary, and she works for Company B for the second half of 2020, earning $90,000 in salary. What is Brooke’s FICA tax obligation for the year? (Round your intermediate calculations to the nearest whole dollar amount.)

FICA Tax Obligation ______________________

Dutch Bakers has a $100,000 deferred tax liability that will create taxable income in 2020. Dutch established the deferred tax liability in 2017 when the tax rate was 40%, and in 2018 the tax rate enacted for 2020 was increased to 50%.
Part 2: In 2018, the year the tax rate change for 2020 is enacted, the effect of the change on tax expense will be a:

1. Debit of $50,000

2. Debit of $40,000

3. Debitof25,000

4. $0

Tai Corp discontinued their tea division in 2020. The division made an operational loss of $2 million in 2020, and their assets were sold at a net loss of $1 million. The firm incurred a $500,000 cost on severance pay and retraining their employees for different functions. Tai Corp included the $500,000 cost on their 2020 income statement as part of their operational expenses. Are they acting in accordance of US GAAP? Why or why not?

Domino Inc. has the following plant, property, and equipment assets on its balance sheet for 2021 and 2020:

Determine what percent of the company’s depreciable assets are depreciated at the end of 2020 and 2021.

• On October 1, 2020, Philly Company purchased inventory from a German supplier for 80,000 Euros due on January 31, 2021.
• Simultaneously, Philly entered into a forward contract for 80,000 Euros for delivery on January 31, 2020.
• Payment was made to the foreign supplier on 1/31/2021.
• Spot rates on October 1, December 31, and January 31, were $1.62, $1.51, and $1.45, respectively.
• Forward rates on October 1 and December 31 were $1.33 and $1.39 respectively.

Required: Prepare all journal entries related to the above transactions on October 1, 2020, December 31, 2020, and January 31, 2021.

(a)
Explain when a revaluation decrement should be shown as a negative item in ‘Other Comprehensive Income’, rather than being debited to the profit or loss?

(b)
ChopChop Pty. Limited purchased a block of land in Melton, VIC, on 1 December 2019. The land was purchased for $500,000 in cash. Since then, the value of the land has increased due to rapid development in public transport in the area. On the 30th of March 2020, the land had market value of $750,000. On the 4th of April 2020, the land was sold for $825,000. ChopChop is NOT registered for GST.
Required:
Prepare journal entries for:
(1) 30 March 2020
(2) 4 April 2020

Rupert Ltd is preparing a Cash Flow Statement for the year ended 30 June 2020. The following information is available:

The Income Statement contained the following data as at 30 June:

Required:

Using the direct method, prepare the Operating Activities section of the Cash Flow Statement for the year ended 30 June 2020. Show workings.

Michael Jordan Earned $30,100,000 playing for the Chicago Bulls in 1997. In 1997 the CPI was equal to 1.60. In 2020 LeBron James earned $37,400,000 playing for the Los Angeles Lakers. The CPI in 2020 is equal to 2.58. Calculate the real wage for Micheal Jordan in 1997 and Lebron James in 2020.

Please enter your answers as numeric answers rounded to the nearest dollar with no decimals (ie. 15,553,342 or $10,432,675 not $15,553,341.73 or $10,432,675.2). Because these will be large numbers it is a good idea to use commas to separate millions, thousands, and hundreds.

What was the real wage for Michael Jordan in 1997?  

What is the real wage for LeBron James in 2020?  

Question)

Mikakos Ltd is an Australian company that purchases inventories (PPE) from Shultz AG, which is a German company. The most recent acquisition involved the acquisition of inventories for 150,000 pounds with contract terms including FOB shipping point. Credit dates are:

Date                          Event                                   Exchange Rate

1 May 2020              Inventories Ordered              A$1= 0.55 pounds

11 May 2020            Inventories shipped              A$1= 0.58 pounds

30 June 2020 End of reporting period       A$1= 0.60 pounds

31 July 2020             Payment                           A$1= 0.64 pounds

Required: Prepare the journal entries for Mikakos Ltd to record this transaction.

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020:

Sheffield also had the following account balances as at January 1, 2020:

As at January 1, 2020, Sheffield had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $246,240. In January 2020, the piece of land was sold for proceeds of $246,240. In applying the revaluation model, Sheffield maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of.

In 2015, Sheffield purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Sheffield records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio’s carrying amount on December 31, 2019, was $125,400. The entire portfolio was sold in November 2020 for proceeds of $143,640.

Sheffield’s income tax expense for 2020 was $112,860. Sheffield prepares financial statements in accordance with IFRS.

Calculate net income for the year ended December 31, 2020.

Calculate retained earnings as at December 31, 2020.

Calculate net income for the year ended December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Sheffield’s income tax expense would not change.

Calculate retained earnings as at December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Assume that under ASPE, Sheffield’s retained earnings at January 1, 2020, would be $530,100.

Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer.

The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows: