Five identical vehicles which cost $500,000 (total) are acquired on April 1, 2018. Their estimated residual value is $20,000 and expected life is eight years. These assets are Class 10 with a maximum CCA rate of 30%. The company has a December 31 year end. Required Calculate the depreciation expense/CCA (to the nearest dollar) by each of the following methods:

1. Straight-line for 2018

2. Double declining-balance for 2019

3. Maximum Capital cost allowance for 2019

Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $680,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019:

What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation?

Assume that a business was started on January 1, 2003 when it

acquired $60,000 cash from its owner(s). During 2003 the

company generated $29,000 of cash services revenue,

incurred $19,000 of cash expenses, and distributed $4,000

cash to the owner(s).

•

Prepare a statement of changes in equity for this partnership:

–

Carl Link and Bill Morgan established the business as a

partnership. Link contributed 60% of the capital, Morgan

40%. The partners agreed to share profits and withdrawals

in proportion to their capital investments

Effect of Subsidiary Preferred Stock

Snow Corporation issued common stock with a par value of $100,000 and preferred stock with a par value of $80,000 on January 1, 20X5, when the company was created. Klammer Corporation acquired a controlling interest in Snow on January 1, 20X6.

Required:

What does Klammer's controller need to know about the preferred stock to determine the proper allocation of consolidated net income to the controlling and noncontrolling interests? What ethical factors should be considered, if any ?

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.

On January 1, 20X7 Quick Company acquired 100 percent of Sluggish Company's stock when Sluggish reported book values as follows: assets of $1,200,000; liabilities of $450,000; common stock of $350,000; and retained earnings of $400,000. At the date of acquisition, the book values and the fair values of Sluggish's assets and liabilities were equal. For 20X7, Sluggish reported net income of $500,000, and paid dividends of $25,000.

Give the eliminating entry needed on December 31, 20X7, to prepare consolidated financial statements

On April 1, 2017, Flounder Company received a condemnation award of $490,200 cash as compensation for the forced sale of the company’s land and building, which stood in the path of a new state highway. The land and building cost $68,400 and $319,200, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $182,400. On August 1, 2017, Flounder purchased a piece of replacement property for cash. The new land cost $102,600, and the new building cost $456,000.

Given the following list, indicate if each entry normally is an item related to the ongoing core business of a company. Enter “Yes” if it normally relates to the ongoing core business and “No” of it does not.

A) Litigation-related charges:

B) Royalty expense:

C) Impairment of goodwill:

D) Restructuring charges:

E) SG&A expense:

F) R&D expense:

G) Gains and losses on the sale of assets:

H) Amortization of acquired intangibles:

I) Purchased R&D expense:

J) Asset write-offs:

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Some firms, frequently family firms or founder firms, have dual-class shares ("A" shares and "B" shares) with differential voting rights. Sometimes one class gets more votes than the other class (e..g., "A" shares receive 1 vote per share and "B" shares receive 10 votes per share). Other times, one class can have the right to elect a majority of the directors (e.g., "A" shares elect 3 directors and "B" shares elect 7 directors). In these cases, the company is considered a "controlled" company and does not have to abide by independent director rules established by the SEC or the stock exchanges. In Atlanta, Rollins is a controlled (family controlled) company and elects to be treated as a controlled, company. That is, as a controlled company, Rollins exercises their right not to comply with director independence requirements. The New York Times (controlled by the Ochs-Sulzberger Family since 1893 -- ability to elect 7 of 10 directors) and Facebook (controlled by Mark Zuckerberg since the founding; 22% of the CF rights but 56% of voting rights after the IPO) are controlled companies. The New York Times and Facebook both claim controlled status but choose to meet director independence requirements. Corporate Governance groups (e.g., Institutional Investor Services) and shareholder activists almost routinely view these control arrangements negatively since the controlling shareholder has, within legal limits, unlimited power and few if any checks and balances. Thus, the controlling shareholders could choose policies to benefit themselves at the expense of minority shareholders. For instance, the Ochs-Sulzberger family might receive private satisfaction from influencing the news even if their approach did not maximize shareholder value. Others, argue that these arrangements can be beneficial for certain firms. For instance, control allows the Ochs-Sulzberger family to maintain independent journalistic control without shareholder pressure. If the Ochs-Sulzberger slant sells best to a certain constituency, this approach could maximize value for shareholders. Likewise, if Zuckerberg's creativity and innovation is vital to Facebook, his control would protect his creative guidance of the firm from unwanted takeovers or market pressures, and therefore benefit shareholders. A third viewpoint is that markets work pretty well so any positive or negative impact of the control arrangement is already impacted in the stock price when you purchase it. If The argument is correct, you will not incur costs as an investor.

Do you think controlled firms provide good governance and protect shareholder interests? Why or why not. Or, maybe you think it doesn't matter one way or the other? Why or why not? Would you be willing to invest in a controlled company? Why or why not?