The information that follows pertains to Richards Refrigeration, Inc.:

1. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:

2. No temporary differences existed at the beginning of 2018.
3. Pretax accounting income was $210 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 30%.

Required:
1. Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018
2. What is the 2018 net income?
  

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $21 million attributable to a temporary book-tax difference of $60 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $40 million. Payne has no other temporary differences. Taxable income for 2018 is $140 million and the tax rate is 35%.

Payne has a valuation allowance of $4 million for the deferred tax asset at the beginning of 2018.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March 2018. The sale price of the house is $336,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2018 for a total of 30 years.

(1) Calculate the required monthly mortgage payment for Mr. Davidson.

(2) Construct the 2018~2047 amortization table for Mr. Davidson.

(1)   Mr. Davidson should prepare his 2018 tax filings in early 2019. Please compute the total mortgage interest payments which he can use for his 2018 tax deductions.

: Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March 2018. The sale price of the house is $336,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2018 for a total of 30 years.

(1) Calculate the required monthly mortgage payment for Mr. Davidson.

(2) Construct the 2018~2047 amortization table for Mr. Davidson.

(1)   Mr. Davidson should prepare his 2018 tax filings in early 2019. Please compute the total mortgage interest payments which he can use for his 2018 tax deductions.

On December 31, 2017, Brisbane Company had 100,000 shares of common stock outstanding and 23,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Brisbane purchased 17,000 shares of common stock on the open market as treasury stock paying $33 per share. Brisbane sold 5,300 treasury shares on September 30, 2018, for $38 per share. Net income for 2018 was $173,905. Also outstanding during the year were fully vested incentive stock options giving key personnel the option to buy 43,000 common shares at $33. The market price of the common shares averaged $43 during 2018. Required: Compute Brisbane's basic and diluted earnings per share for 2018. (Round your answers to 2 decimal places.)

On January 1, 2018, Harlon Consulting entered into a three-year lease for new office space agreeing to lease payments of: $5,000 in 2018, $6,000 in 2019 and $7,000 in 2020. Payments are due on December 31 of each year with the first payment being made on December 31, 2018. Harlon is aware that the lessor used a 5% interest rate when calculating lease payments.

Required:

1. Prepare the appropriate entries for Harlon Consulting on January 1, 2018 to record the lease.

2. Prepare the appropriate entries for Harlon Consulting on December 31, 2018 to record the lease.

3. Prepare the appropriate entries for Harlon Consulting on December 31, 2019 to record the lease.

4. Prepare the appropriate entries for Harlon Consulting on December 31, 2020 to record the lease.

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $36 million attributable to a temporary book-tax difference of $90 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $80 million. Payne has no other temporary differences. Taxable income for 2018 is $230 million and the tax rate is 40%.

Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2018.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $105 million. Jackson Industry’s net income for the year ended December 31, 2018, was $135 million. The fair value of the shares held by Sanborn was $128 million at December 31, 2018. During 2018, Jackson declared a dividend of $70 million.

Required:
1. Prepare all appropriate journal entries related to the investment during 2018.

Record the purchase of Jackson Industry capital stock for $105.

Record Sanborn Tobacco's portion of Jackson Industry's net income of $135 million.

Record the dividend revenue

Record the fair value adjustment.

2. Assume that Sanborn sold the stock on January 2, 2019 for $140 million. Prepare the journal entries Sanborn would use to record the sale.

The Alford Group had 310,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.
  

Required:

1. Determine the 2018 EPS.
2. Determine the 2019 EPS.
3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

(For all requirements, Enter your answers in thousands.)

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $197,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $645,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,060,000 in total. Seida's January 1, 2018 book value equaled $1,910,000, although land was undervalued by $137,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $278,000 and declared and paid dividends of $113,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.

Record 2018 amortization for trademark excess fair value.