Marjorie corporation acquired a building on January 1st 2018 for $660,000 the building had an estimated useful life of 15 years and had an estimated residual value of $60,000. on January 1st 2020 Marjorie corporation determined that the building could only be used for a total of 12 years and there would be no residual value. compute depreciation expense for the year ending December 31st 2020 if Marjorie corporation uses straight line depreciation

P18.1  Anthony Ltd. began business on January 1, 2019. At December 31, 2019, it had a $58,500 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $900,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8—20% asset for tax purposes. Anthony's income before income tax for 2020 was $60,000. Anthony Ltd. follows IFRS.

The following items caused the only differences between accounting income before income tax and taxable income in 2020.

1. In 2020, the company paid $56,250 for rent; of this amount, $18,750 was expensed in 2020. The other $37,500 will be expensed equally over the 2021 and 2022 accounting periods. The full $56,250 was deducted for tax purposes in 2020.
2. Anthony Ltd. pays $9,000 a year for a membership in a local golf club for the company's president.
3. Anthony Ltd. now offers a one-year warranty on all its merchandise sold. Warranty expenses for 2020 were $9,000. Cash payments in 2020 for warranty repairs were $4,500.
4. Meals and entertainment expenses (only 50% of which are ever tax deductible) were $12,000 for 2020.
5. The maximum allowable CCA was taken in 2020. There were no asset disposals for 2020. Assume the PPE is considered “eligible equipment” for purposes of the Accelerated Investment Incentive (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate).

Income tax rates have not changed since the company began operations.

Instructions

a. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020.

b. Calculate income tax payable for 2020.

c. Prepare the journal entries to record income taxes for 2020.

d. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income tax.”

e. Indicate how deferred taxes should be presented on the December 31, 2020 SFP.

f. How would your response to parts (a) to (e) change if Anthony reported under ASPE?

1. survey of the MBA students at a university in the United States classified the country of origin of the students as seen in the table.

1. What percent of all MBA students were from North America?

2. What percent of the Two-year MBA students were from North America?

3. What percent of the evening MBA students were from North America?

4. What is the marginal distribution of origin?

1. Using the table below, calculate the variance of X, variance of Y, standard deviation of X, standard deviation of Y, the covariance between X and Y, the correlation coefficient between X and Y, and find the regression line assuming X is the independent variable (find the slope and the intercept). Show your work.

Watching Amazon Flows

Seattle- Market gurus warn us of companies with losses and rising debt. one of those companies, however, is Amazon.com the largest U.S. Internet retailer. Jeff Bezos, founder and CEO of Amazon, started the company in his garage. "The first initial start-up capital for Amazon.com came primarily from my parents, and they invested a large fraction of their life savings," recalls Jeff. "My dad's first question was, 'What's the Internet?'... He wasn't making a bet on this company or this concept. He was making a bet on his son."
Jeff has grown Amazon from an online bookstore into one of the world's largest online retail stores to compete with the likes of Walmart and Target. Amazon's income and liabilities for the past four years follow:

($ millions) 2011 2012 2013 2014
Net Income $631 $(39) $274 $(241)
Liabilities 17,521 24,363 30,413 43,764

Interestingly, while Amazon reports negative income and rising debt, the market sees the company in a positive light. Financial publications such as Forbes named Amazon the 6th "Most Innovative Company in the World" and ranked it as the 13th "World's Most Valuable Brand."
Given Amazon's losses and debt levels, is the market failing to incorporate this? Is there something else that the market is focusing on?
Lets dig a bit deeper. Amazon's financial statement reveal rising sales, narly doubling over the past four years. Although costs exceed slaes in two of the recent four years, the growth in revenues foretells a positive future. Further, Amazon has pursued sizeable investments in research and development --to the tune of $9 billion in 2014 alone, which could yield large future payoffs. Finally, there are its cash flows, which are depicted here:

($ millions) 2011 2012 2013 2014
Operating CF $3903 $4180 $5475 $6842
Investing CF (1930) (3595) (4276) (5065)
Financing CF (482) 2259 (539) 4432

Akey here is its operating cash flows, which have increased 75% over the past four years... an impressive trend! In addition, its large investing cash outflows are what we expect from a growth company. Also, its relatively small financing cash inflows suggest that much of its expansion is self-funded (a positive finding).
It is clear that analysis of Amazon requires examination and interpretation of its cash flows. Moreover, while there is risk in investing in a company with high research and development outlays, the market often sees such outlays as a precursor to sales and income growth. While only the future can reveal the success or failure of such cash outlays, it is clear that the market utilizes cash flow numbers in predicting the future and for stock valuation. "We earn trust with customers over time," insists Jeff. "And that actually does mazimize free cash flow over the long term."

Review the chapter's opener involving Amazon.com and its founder, Jeff Bezos. (UP ABOVE)

Requred

1. In a business such as Amazon, monitoring cash flow is always a priority. Even though Amazon now has billions in annual sales and sometimes earns a positive net income, explain how cash flow can lag behind net income.

2. Amazon is a publicly traded corporation. What are potential sources of financing for its future expansion?

Watching Amazon Flows

Seattle- Market gurus warn us of companies with losses and rising debt. one of those companies, however, is Amazon.com the largest U.S. Internet retailer. Jeff Bezos, founder and CEO of Amazon, started the company in his garage. "The first initial start-up capital for Amazon.com came primarily from my parents, and they invested a large fraction of their life savings," recalls Jeff. "My dad's first question was, 'What's the Internet?'... He wasn't making a bet on this company or this concept. He was making a bet on his son."

Jeff has grown Amazon from an online bookstore into one of the world's largest online retail stores to compete with the likes of Walmart and Target. Amazon's income and liabilities for the past four years follow:

($ millions) 2011 2012 2013 2014
Net Income $631 $(39) $274 $(241)
Liabilities 17,521 24,363 30,413 43,764

Interestingly, while Amazon reports negative income and rising debt, the market sees the company in a positive light. Financial publications such as Forbes named Amazon the 6th "Most Innovative Company in the World" and ranked it as the 13th "World's Most Valuable Brand."

Given Amazon's losses and debt levels, is the market failing to incorporate this? Is there something else that the market is focusing on?

Lets dig a bit deeper. Amazon's financial statement reveal rising sales, narly doubling over the past four years. Although costs exceed slaes in two of the recent four years, the growth in revenues foretells a positive future. Further, Amazon has pursued sizeable investments in research and development --to the tune of $9 billion in 2014 alone, which could yield large future payoffs. Finally, there are its cash flows, which are depicted here:

($ millions) 2011 2012 2013 2014
Operating CF $3903 $4180 $5475 $6842
Investing CF (1930) (3595) (4276) (5065)
Financing CF (482) 2259 (539) 4432

A key here is its operating cash flows, which have increased 75% over the past four years... an impressive trend! In addition, its large investing cash outflows are what we expect from a growth company. Also, its relatively small financing cash inflows suggest that much of its expansion is self-funded (a positive finding).

It is clear that analysis of Amazon requires examination and interpretation of its cash flows. Moreover, while there is risk in investing in a company with high research and development outlays, the market often sees such outlays as a precursor to sales and income growth. While only the future can reveal the success or failure of such cash outlays, it is clear that the market utilizes cash flow numbers in predicting the future and for stock valuation. "We earn trust with customers over time," insists Jeff. "And that actually does mazimize free cash flow over the long term."

Review the chapter's opener involving Amazon.com and its founder, Jeff Bezos. (UP ABOVE)

Requred

1. In a business such as Amazon, monitoring cash flow is always a priority. Even though Amazon now has billions in annual sales and sometimes earns a positive net income, explain how cash flow can lag behind net income.

2. Amazon is a publicly traded corporation. What are potential sources of financing for its future expansion?

A college senior must choose between two Choices: going for an MBA or taking a full-time entry-level-level position right after graduation. She thinks that she has 0.6 probability of completing the MBA in a year. If she completes the MBA, she believes that she has 0.1 probability of getting a manager position; otherwise, she will get a senior staff position. Should she fails the MBA, she will have to take the entry job but with less seniority than what she would have if she had gone to work right after graduation. Once started at the entry-level position for a year, she believes that she has a 50-50 chance of moving up to a junior staff position versus staying at the entry-level position. Her preferences for the possible outcomes of her choice at the end of two years are listed in decreasing order below:

(1) Completing the MBA and getting a management position

(2) Completing the MBA and getting a senior staff position

(3) Moving to junior staff without going to MBA and thus more seniority

(4) Moving to junior staff after failing the MBA

(5) Staying at entry level without going to MBA and thus more seniority

(6) Staying at entry level after failing the MBA

Using the simple decision tree for utility estimation, she has found that she would be indifferent between:

Outcome (2) and a lottery with a 50-50 chance of yielding the best outcome (1) and the worst outcome (6)

Outcome (3) and the lottery if the lottery has a 0.35 probability yielding (1) and a 0.65 probability of yielding (6).

Outcome (4) and the lottery if the lottery has a 0.2 probability yielding (1) and a 0.8 probability of yielding (6).

Outcome (5) and the lottery if the lottery has a 0.1 probability yielding (1) and a 0.9 probability of yielding (6).

6a (10 points) By assigning a utility 0 to (6) and 100 to (1), find the utility for each of the four outcomes between (1) and (6).

6b (10 points) Draw a decision tree for her career decision and find her best Choice for the two-year period

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 9,900 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $71,400, which included a remeasurement loss of $12,400.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $90,000, and a cumulative translation adjustment of $8,100 (credit balance).

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 5,100 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $96,600, which included a remeasurement loss of $13,000.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $112,500, and a cumulative translation adjustment of $10,800 (credit balance).

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 23,500 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $162,250, and a cumulative translation adjustment of $9,650 (credit balance).