Bracy Company acquired a new piece of construction equipment on January 1, 2015, at a cost of $92,300. The equipment was expected to have a useful life of 7 years and a residual value of $16,000 and is being depreciated on a straight-line basis.

On January 1, 2016, the equipment was appraised and determine to have a fair value of $92,920, a salvage value of $16,000, and a remaining useful life of six years.

a. Determine the amount of depreciation expense that Bracy should recognize in determining net income in 2015, 2016, and 2017 and the amount at which equipment should be carried on December 31, 2015, 2016, and 2017 balance sheets using (1) U.S. GAAP and (2) IFRS. In measuring property, plant, and equipment subsequent to the acquisition, Bracy used the revaluation model in IAS16.

b. Determine the adjustments that Bracy would make in 2015, 2016, and 2017 to reconcile net income and stockholders' equity under U.S. GAAP to IFRS.

Suppose that the British economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2015 and 2016 are shown in the table below:

Instructions: Round your answer to two decimal places.

a. Let’s assume that the base year was 2015, so that real GDP in 2015 equals nominal GDP in 2015.     

If the real GDP in Britain was $20,000 in 2015, the price of books was

.

Instructions: Round your answer to the nearest whole number.

b. Using your answer from part (a), if the growth rate in nominal GDP was 10 percent,  books must have been produced in 2016.

Instructions: Round your answer to one decimal place.

c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2015 and 2016 was

AFN EQUATION

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.

$

Now assume the company's assets totaled $3 million at the end of 2016. Is the company's "capital intensity" the same or different comparing to initial situation?
-Select-DifferentThe same

Use multiple regression with dummies, since the data is seasonal for the regression model.

PLEASE ANSWER STEP 2 ONLY

Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to Danbury Co’s manufacturing activities for the month of July 2016. Ending Balance Beginning Balance Materials Inventory $7,500 $ 6,000 Goods in Process Inventory 11,000 2,000 Finished Goods Inventory 10,000 9,000 During July 2016, Danbury Company purchased $20,000 of raw materials and incurred direct labor costs of $14,160. The company applies overhead at a rate of 50% of direct labor cost. General, selling and administrative costs amounted to $6,550, and the company sold 10,372 units of its product at a price of $5 each.  

A) Prepare Danbury’s schedule of cost of finished goods manufactured for July 2016.

B) Determine Danbury’s cost of goods sold during July 2016.

C) Prepare Danbury’s income statement for the month ended July 31, 2018 (ignoring interest expense and income taxes)

Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and profits from prior years. On June 30, 2016 Betta paid a dividend of 35 per share to all shareholders. Bob and his three brothers each owned 25 shares of Betta. Each invested $10,000 to start the company and made no further investment in Betta. In November 2016 Bob and his wife got divorced and he needed money to pay her settlement. To raise the cash needed bob sold 10 shares of Betta back to Betta as treasury stock. Betta gave Bob $65,000 in cash and the car he was driving, cost 62,000, fair market value, 38,000, basis $20,000.

On December 31, 2016 when Betta closed its books for the year there was a profit of $10,000.

Compute Bob’s treatment of the money he received and his basis in the remaining shares he owned.

E19-20.  

(Two Differences, One Rate, First Year)

(LO 1, 2, 4) The differences between the book basis and tax basis of the assets and liabilities of Castle Corporation at the end of 2016 are presented below.

It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $30,000 in 2017 and $20,000 in 2018. The company has taxable income of $350,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years.

Instructions

(a)  

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016.

(b)  

Indicate how deferred income taxes will be reported on the balance sheet at the end of 2016.

1. Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s year –end adjusted trail balance dated December 31, 2016, appears below.

Prepare an income statement for the year ended December 31, 2016. Also prepare Winners industries balance sheet dated December 31, 2016.  Also prepare Winners industries balance sheet dated December 31, 2016.

1. On January 1, 2016, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million. The difference was attributable to the fair value of Lake’s buildings exceeding book value. Lake's net income for the year ended December 31, 2016, was $150 million. During 2016, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 10 years. Cameron’s investment in Lake will affect Cameron’s 2016 net income by:

A. Increase net income by $30 million.

B. Increase net income by $28 million.

C. Increase net income by $18 million.

D. Increase net income by $12 million.

E.   There is no effect on net income.

** please show all the works **