Jeremy Moon, the founder of Icebreaker, is committed to having his company embrace "ethical business practices". Identify some of those ethical business practices. Are you surprised that they produce their products in China?
In: Operations Management
John files a return as a single taxpayer. In 2019, he had the following items: ∙ Salary of $30,000. ∙ Loss of $65,000 on the sale of Section 1244 stock acquired two years ago. ∙ Interest income of $6,000. In 2020, John again files a return as a single taxpayer and had the following items: Salary of $114,000 Loss of $55,000 on the sale of Section 1244 stock acquired three years ago. Capital gain of $22,000 on the sale of publicly traded stock purchased one year ago. Determine John’s AGI for 2019 and 2020 (assume these are the only transactions, no other carryovers etc...)
In: Accounting
In: Finance
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,200. Meg works part time at the same university. She earns $33,200 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks).
a. What is the Comers’ tax liability for 2020 if they report the following capital gains and losses for the year?
| Short-term capital gains | $ | 9,200 | |
| Short-term capital losses | (2,200) | ||
| Long-term capital gains | 15,200 | ||
| Long-term capital losses | (6,200) | ||
B. What is the Comers’ tax liability for 2020 if they report the
following capital gains and losses for the year?
| Short-term capital gains | $ | 1,500 | |
| Short-term capital losses | 0 | ||
| Long-term capital gains | 13,200 | ||
| Long-term capital losses | (10,200) | ||
In: Accounting
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,400. Meg works part time at the same university. She earns $33,400 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks).
a. What is the Comers’ tax liability for 2020 if they report the following capital gains and losses for the year?
| Short-term capital gains | $ | 9,400 | |
| Short-term capital losses | (2,400 | ) | |
| Long-term capital gains | 15,400 | ||
| Long-term capital losses | (6,400 | ) | |
|
Total tax liability |
|||
b. What is the Comers’ tax liability for 2020 if they report the following capital gains and losses for the year?
| Short-term capital gains | $ | 1,500 | |
| Short-term capital losses | 0 | ||
| Long-term capital gains | 13,400 | ||
| Long-term capital losses | (10,400 | ) | |
|
Total tax liability |
|||
In: Accounting
Problem 21-12
Please explain how you come to the answers, I'm hoping to learn how to do them. Thank you!!
You have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2020, as prepared following IFRS. Picard uses a periodic inventory system. You discover the following situations:
| 1. | The physical inventory count on December 31, 2019, improperly excluded merchandise costing $27,700 that had been temporarily stored in a public warehouse. | ||||||||||||||||
| 2. | The physical inventory count on December 31, 2020, improperly included merchandise with a cost of $16,000 that had been recorded as a sale on December 27, 2020, and was being held for the customer to pick up on January 4, 2021. | ||||||||||||||||
| 3. | A collection of $7,700 on account from a customer received on December 31, 2020, was not recorded in 2020. | ||||||||||||||||
| 4. | Depreciation of $5,250 for 2020 on delivery trucks was not recorded. | ||||||||||||||||
| 5. | In 2020, the company received $3,750 on a sale of fully depreciated equipment that originally cost $25,300. The company credited the proceeds from the sale to the Equipment account. | ||||||||||||||||
| 6. | During November 2020, a competitor company filed a patent infringement suit against Picard, claiming damages of $621,000. Picard’s legal counsel has indicated that an unfavourable verdict is probable and a reasonable estimate of the court’s award to the competitor is $460,000. Picard has not reflected or disclosed this situation in the financial statements. | ||||||||||||||||
| 7. | A large piece of equipment was purchased on January 3, 2020, for $43,160 and was charged in error to Repairs and Maintenance Expense. The equipment is estimated to have a service life of eight years and no residual value. Picard normally uses the straight-line depreciation method for this type of equipment. | ||||||||||||||||
| 8. | Picard has a portfolio of temporary trading investments reported at fair value. No adjusting entry has been made yet in 2020. Information on carrying amount and fair value is as follows: | ||||||||||||||||
|
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| 9. | At December 31, 2020, an analysis of payroll information showed accrued salaries of $11,600. The Salaries and Wages Payable account had a balance of $17,300 at December 31, 2020, which was unchanged from its balance at December 31, 2019. | ||||||||||||||||
| 10. | An $21,000 insurance premium paid on July 1, 2019, for a policy that expires on June 30, 2022 was charged to insurance expense. | ||||||||||||||||
| 11. | A trademark was acquired at the beginning of 2019 for $37,560. Through an oversight, no amortization has been recorded since its acquisition. Picard expected the trademark to benefit the company for a total of approximately 12 years with no residual value. |
Assume that the trial balance has been prepared, the ending
inventory has not yet been recorded, and the books have not been
closed for 2020. Assuming also that all amounts are material,
prepare journal entries showing the adjustments that are required.
Ignore income tax considerations. (Credit account
titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for
the account titles and enter 0 for the amounts.)
In: Accounting
1a. Can COVID-19 induced fall in oil prices act to break the global carbon lock-in?
b. Oil prices have become 'evermore' volatile. Ranging from as high as US$160/barrel, oil prices went low and with the impact of COVID-19, WTI crude sold for below US$0/barrel on 20th April 2020. Based on the case of one oil producing country in Africa and one from any other region, discuss the differentiated impacts of oil price volatilities on economies.
In: Accounting
The company provides some details for the period 2020 for preparing necessary budgets:
(a) Sales Details
The Company estimates that it can get maximum profits if it charges $ 200 (selling price) for one of its products. The marketing manager of the company had indicated that at $ 200 selling price, the company would be able to sell 1,000 units in the first quarter of 2020. The company also expects that sales would go up by 100 units over previous quarter sales (like 1000, 1100 and so on….) Selling price is expected to be same throughout the year.
(b) Inventory details
Alwyn Industries maintains at the end of each quarter an inventory of 10% of the next quarter’s sales. This allows the company to better meet its customers’ needs in case the customers experience a sudden surge in demand. The opening inventory for first quarter 2020 has been estimated to be 200 units
(c) Divisional Performance
Alwyn Industries has to divisions (A & B) working within the company. The CEO of the company is wondering whether divisional performance evaluation will be fruitful for them since the company has two divisions operating with certain targets. The head of those divisions report the following results for the quarter ending 2019, which is given below:
|
Particulars |
Division A |
Division B |
|
Operating Income |
900,000 |
1,951,600 |
|
Average Total Assets |
2,500,000 |
6,500,000 |
|
Net Sales |
7,500,000 |
5,243,600 |
Question : Evaluate the divisional performance (A & B) using ROI for the quarter ending 2019 stating which product is better and why
In: Accounting
Parsons Company acquired 90% of the outstanding common stock of Shea Company on June 30, 2019, for $426,000. On that date, Shea Company had retained earnings in the amount of $60,000, and the fair value of its recorded assets and liabilities was equal to their book value. The excess of implied over the fair value of the recorded net assets was attributed to an unrecorded manufacturing formula held by Shea Company, which had an expected remaining useful life of five years from June 30, 2019.
Financial data for 2021 are presented here:
|
Parsons Company |
Shea Company |
|
|
Sales |
$2,555,500 |
$1,120,000 |
|
Dividend Income |
54,000 |
|
|
Total Revenue |
2,609,500 |
1,120,000 |
|
Cost of Goods Sold |
1,730,000 |
690,500 |
|
Expenses |
654,500 |
251,000 |
|
Total Cost and Expense |
2,384,500 |
941,500 |
|
Net Income |
$ 225,000 |
$ 178,500 |
|
1/1 Retained Earnings |
$ 595,000 |
$ 139,500 |
|
Net Income |
225,000 |
178,500 |
|
Dividends Declared |
(100,000) |
(60,000) |
|
12/31 Retained Earnings |
$ 720,000 |
$ 258,000 |
|
Cash |
$ 119,500 |
$ 132,500 |
|
Accounts Receivable |
342,000 |
125,000 |
|
Inventory |
362,000 |
201,000 |
|
Other Current Assets |
40,500 |
13,000 |
|
Land |
150,000 |
|
|
Investment in Shea Company |
426,000 |
|
|
Property and Equipment |
825,000 |
241,000 |
|
Accumulated Depreciation |
(207,000) |
(53,500) |
|
Total Assets |
$2,058,000 |
$ 659,000 |
|
Accounts Payable |
$ 295,000 |
$32,000 |
|
Other Liabilities |
43,000 |
19,000 |
|
Capital Stock |
1,000,000 |
300,000 |
|
Additional Paid‐in Capital |
50,000 |
|
|
Retained Earnings |
720,000 |
258,000 |
|
Total Liabilities and Equity |
$2,058,000 |
$ 659,000 |
On December 31, 2019, Parsons Company sold equipment (with an original cost of $100,000 and accumulated depreciation of $50,000) to Shea Company for $97,500. This equipment has since been depreciated at an annual rate of 20% of the purchase price. During 2020 Shea Company sold land to Parsons Company at a profit of $15,000.
The inventory of Parsons Company on December 31, 2020, included goods purchased from Shea Company on which Shea Company recognized a profit of $7,500. During 2021, Shea Company sold goods to Parsons Company for $375,000, of which $60,000 was unpaid on December 31, 2021. The December 31, 2021, inventory of Parsons Company included goods acquired from Shea Company on which Shea Company recognized a profit of $10,500.
Required:
In: Accounting
On January 1, 2020, Canyon Creek Company acquired Smoltz Corporation by issuing 50,000 shares of its $1 par common stock with a market value of $12 per share. A building on Smoltz’s books was undervalued by $50,000, resulting in annual amortization of $5,000. Also, there was an unrecorded patent valued at $80,000, resulting in annual amortization of $8,000. The separate 2020 financial statements for Canyon Creek and Smuckerman are presented below.
|
Canyon Creek Co. |
Smuckerman Corp. |
|
|
Sales revenue |
$850,000 |
$380,000 |
|
Cost of goods sold |
-505,000 |
-234,000 |
|
Gross profit |
345,000 |
146,000 |
|
Operating expenses |
-300,600 |
-26,500 |
|
Equity income |
106,500 |
_ |
|
Net Income |
$150,900 |
$119,500 |
|
Retained Earnings, 1/1/20 |
$800,000 |
$305,600 |
|
Net income |
150,900 |
119,500 |
|
Dividends |
-45,000 |
-25,000 |
|
Retained Earnings, 12/31/20 |
$905,900 |
$400,100 |
|
Cash and receivables |
$250,000 |
$158,000 |
|
Inventory |
350,000 |
42,600 |
|
Equity investment |
681,500 |
|
|
Property, plant & equipment (Net) |
1,165,100 |
474,100 |
|
Total Assets |
$2,446,600 |
$674,700 |
|
Accounts payable |
$426,000 |
$45,000 |
|
Accrued liabilities |
54,700 |
28,000 |
|
Notes payable |
0 |
125,000 |
|
Common stock |
75,000 |
46,600 |
|
Additional paid-in capital |
985,000 |
30,000 |
|
Retained Earnings, 12/31/20 |
905,900 |
400,100 |
|
Total Liabilities and Equities |
$2,446,600 |
$674,700 |
Required: Prepare Consolidated Spreadsheet
In: Accounting