The DeVille Company reported pretax accounting income on its income statement as follows: 2019 2020 2021 2022 Pretax accounting income $350,000 270,000 340,000 380,000 Included in the income of 2019 was an installment sale of property in the amount of $50,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $20,000 in 2020, $25,000 in 2021, and $5,000 in 2022. Included in the income of 2020 was $20,000 fine paid for violation of federal law. The enacted tax rate for 2019 and 2020 was 30%, but during 2020, new tax legislation was passed reducing the tax rate to 20% beginning in 2021.

1. Prepare the year-end journal entries to record income taxes for 2019.

2. Prepare the year-end journal entries to record income taxes for 2020.

Provide Explanation for each part

The cost of giving up a cash discount under the terms of sale​ 1/10 net 60​ (assume a 365day​ year) is

A.

7.4

B.

​ 6.1%

C.

​ 7.2%

D.

​14.7%

On its 2019 balance​ sheet, Sherman Books showed a balance of retained earnings equal to​ $510 million. On its 2020 balance​ sheet, the balance of retained earnings was equal to​ $520 million. Which of the following statements is most​ correct?

A.

If the company sold​ $10 million of newly issued common stock in​ 2020, then the​ company’s net income in 2020 must have been​ $20 million.

B.

The company must have paid a dividend in 2020.

C.

If the​ company’s net income in 2020 was​ $10 million, the company paid dividends of​ $20 million.  

D.

If the​ company’s net income in 2020 was​ $20 million, the company paid dividends of​ $10 million.  

Question 3 - Week 10 On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s reporting date. The exchange rates at the relevant dates are: 1 March 2020 A$1.00 = NZ$1.20 30 June 2020 A$1.00 = NZ$1.30 1 June 2021 A$1.00 = NZ$1.25

Required: a) Determine the amount in AUD, as at: • 1 March 2020; and • 30 June 2020. b) Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss .

Topic: Equity method investments

LO 2

Delta Corporation acquired 25% of the voting stock of Davidson Company in 2019. There were no basis differences. It is now 2020. Davidson reported 2020 net income of $5,000,000, other comprehensive income of $100,000, and declared and paid cash dividends of $1,500,000. Delta’s ending inventory contains $1,020,000 purchased from Davidson, and its beginning inventory contains $750,000 purchased from Davidson. Davidson sells inventory to Delta at a markup of 20% on cost. Delta uses the equity method to account for its investment in Davidson.

Required

a. Calculate equity in net income of Davidson, reported on Delta’s 2020 income statement.

b. Prepare Delta’s 2020 journal entry or entries related to its investment in Davidson.

c. What is the net effect of the investment in Davidson on Delta’s 2020 net income and on Delta’s 2020 comprehensive income

Additional information:

Calculate all possible liquidity, solvency, and profitability ratios for 2021. (Round answers for Collection period, Days sales in inventory, Operating cycle and Free cash flow to 0 decimal places, e.g. 125. Round answer for Earnings per share to 2 decimal places, e.g. 12.56. Round all other answers to 1 decimal place, e.g. 12.5 or 12.5%. )

On January 2, 2020, Seller sends Buyer a letter offering to sell an Andy Warhol painting (described in the letter) for $ 500,000. According to the letter, the seller must receive buyer’s acceptance no later than January 10, 2020. On January 6th, buyer (who wants the Warhol painting for his personal collection) decides to accept the offer and prepares a letter which states, "I accept your January 2, 2020 offer to sell the rare postage stamp (as described in the offer) for $500,000". Buyer leaves the office at noon for lunch. On the way, he stops at the post office to mail the letter.

Meanwhile, on the morning of January 6th, someone else offers Seller $ 600,000 for the painting. Before Seller accepts this offer, he needs to revoke the original offer that he had made to Buyer. Therefore, Seller calls Buyer’s office at 12:15 p.m. to revoke his offer. Seller speaks to Buyer’s secretary - the following exchange takes place:

Secretary: Buyer is out to lunch - he should be back at 1:00 p.m.

Seller: “Have him call me. I’m revoking my offer to sell the Andy Warhol painting”.

Secretary leaves Buyer a phone message slip that reads “Seller called. He wants you to return the call”. Secretary then goes out to lunch. When Buyer returns from lunch, he sees the message and calls Seller - the following exchange takes place:

Buyer: Funny you should call. I just got back from the post office. I just mailed you a letter. I am accepting your offer for the Andy Warhol painting.

Seller: Actually, the offer is revoked. In fact, I told secretary “I’m revoking my offer to sell the Andy Warhol painting”.

The January 6th letter was delivered to Seller on January 8, 2020. Seller now refuses to transfer the painting. Buyer sues. RESULT?

Answer in this format :

1. Identification of the precise legal issue(s) presented by the facts :

2. Statement of the relevant legal principles/rules related to the issues

   identified :

Problem 23-04

Sarasota Company had the following information available at the end of 2020.

Prepare a statement of cash flows for Sarasota Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Ivanhoe Company had the following information available at the end of 2020.

Prepare a statement of cash flows for Ivanhoe Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

1. Read the following article excerpt: Sweetened-beverage sales in Seattle dropped 30% after soda tax, new study says The Columbian https://www.columbian.com/news/2020/feb/23/sweetened-beverage-sales-in-seattle-dropped-30- after-soda-tax-new-study-says/

By Daniel Beekman, The Seattle Times Published: February 23, 2020, 1:45pm

Sales of sugar-sweetened beverages at stores in Seattle dropped about 30.5% in the months after the city adopted a tax on such beverages, says a new study that also looked at sales at stores in Portland, which has no such tax. Sales in Portland declined only 10.5%, suggesting sales in Seattle dropped much more than they would have without a tax, according to the peer-reviewed study by University of Illinois at Chicago researchers.

The study’s results are the first to measure the impact of Seattle’s tax on beverage sales in the city, and they may bolster claims by supporters that the controversial policy is working as intended.

“From a public health perspective, this is good,” said Jay Krieger, a University of Washington professor who heads the nonprofit Healthy Food America. “People are purchasing less sugary drinks, and we know that sugary drinks are associated with heart disease, diabetes, high blood pressure and strokes.” Seattle’s tax of 1.75 cents per fluid ounce, which took effect on Jan. 1, 2018, is charged to distributors of sugar-sweetened beverages.

Distributors can pass the tax on to stores, and stores to consumers. Proponents said the tax would reduce soda sales and raise money for health and education programs.

Your task 1: Explain, with the aid of a diagram, how a soda tax such as the one described above would impact consumers, producers and society more generally.

Your task 2: Comment on whether or not you support such a tax and why.

We are to make a program about a car dealership using arrays. I got the code to display all cars in a list, so I'm good with that. What I'm stuck at is how to make it so when a user inputs x for search, it allows them to search the vehicle. We need two classes, one that shows the car information and another that shows the insert, search, delete, display methods. Here is what I have so far

package a1chrisd;

import java.util.Scanner;

public class Car {

    /**
     * @param args the command line arguments
     */
    String color;
    String model;
    String year;
    String company;
    String plate;

    public Car(String color, String model, String year, String company, String plate) {
        this.color = color;
        this.model = model;
        this.year = year;
        this.company = company;
        this.plate = plate;
    }

   public void introduceSelf() {
       System.out.println("This is a" + " " + this.color + " " + this.year + " " + this.company + " " + this.model + " with plate " + this.plate);
    }

    public static void main(String[] args){
         String arrModel[] = {"Corolla", "Mustang", "Cavalier", "LaSabre", "Civic",
                             "Accord", "Avalon", "Escalade", "XTS", "A220", "Crown Victoria"}; // Car models
       String arrPlate[] = {"11111", "22222", "33333", "44444", "55555",
                              "66666", "77777", "88888", "99999", "00000"}; // car plates
         String arrCompany[] = {"Toyota", "Ford", "Cheverolet", "Buick", "Honda",
                                "Honda", "Toyota", "Cadillac", "Cadillac", "Mercedes Benz", "Ford"}; // car company
         String arrColor[] = {"Red", "White", "White", "Green", "Black",
                               "Green", "Blue", "Black", "Orange", "Brown", "Blue"}; // car color
        String arrYear[] = {"2015", "2019", "1987", "2020", "2020",
                                "2001", "2004", "2016", "2010", "1991"}; // car year
                      
      
        Scanner in = new Scanner(System.in);
   int carsInserted = 0;
           Car arrCar[] = new Car[50];
           for (int i = 0; i < 10; i++){
               Car c = new Car(arrColor[i], arrYear[i], arrCompany[i], arrModel[i], arrPlate[i]);
               arrCar[i] = c;
           }
           
            for(int i = 0; i < 10; i++){
                arrCar[i].introduceSelf();
            }
    }