Please show work if you can.

FACTS:

Sheldon and Victoria were married last year and live in England.

• Sheldon is a U.S. citizen and has a valid Social Security number. Victoria is a citizen of England.

• During the interview, Victoria mentions that she has never filed a joint return with Sheldon. She asks the volunteer what is required to file a joint return with Sheldon. Based on the information provided, Victoria decides she does not want to be treated as a resident alien for U.S. tax filing purposes this year.

• Sheldon worked for a U.S.-based company and earned $55,000. Victoria worked part-time and earned the equivalent of $12,000 in U.S. dollars.

• Sheldon and Victoria’s daughter, Riley, lives with them. Riley is eight months old, a U.S. citizen, and has a valid Social Security number.

• Victoria has another child from a previous marriage; Adam is five years old and is a citizen of England. Sheldon has not adopted Adam.

• Sheldon and Victoria provided all the financial support for Riley and Adam.

1. Victoria does not want to elect to file a joint return with Sheldon. What is the most advantageous filing status for Sheldon?

a. Married Filing Separately

b. Single

c. Head of Household

d. Qualifying Widower

2. On his U.S. tax return, how should Sheldon treat Victoria’s income?

a. Because Victoria did not choose to file a joint return, Sheldon should report her income as his own on a separate return.

b. Victoria’s income is not included on the return because she does not choose to be treated as a resident alien.

c. Because their combined income is less than the foreign earned income exclusion limit, Sheldon doesn’t need to file a return.

d. Victoria’s worldwide income must be reported on Sheldon’s return.

3. In the future, if Victoria and Sheldon choose to file Married Filing Jointly and treat Victoria as a resident alien for tax purposes, this election will continue each year unless suspended or ended.

a. True

b. False

An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September 30, 2020.

Costs incurred: raw materials purchases $62,300, direct labor $48,200, manufacturing overhead $26,900. The specific overhead costs were: indirect labor $6,000, factory insurance $4,900, machinery depreciation $6,400, machinery repairs $2,800, factory utilities $3,900, miscellaneous factory costs $1,770. Assume that all raw materials used were direct materials.

Prepare the cost of goods manufactured schedule for the month ended September 30, 2020.

On 1 April 2019 Orange Limited entered into an agreement to lease a machine that had an estimated life of four years. The lease period is also four years, at which point the asset will be returned to the leasing company. Annual rentals of $50,000 are payable in arrears from 31 March 2020. The machine is expected to have a nil residual value at the end of its life. The machine had a fair value of $142,750 at the inception of the lease. The lessor includes a finance cost of 15% per annum when calculating annual rentals.

Required: How should the lease be accounted for in the financial statements of Orange Limited for the year end 31 March 2020? Note: Clearly present the lease liability table.

Required information
  
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

Question 1

The inventory at April 1, 2020, and the costs charged to Work in Process--Department B during April for Worldwide Company are as follows:

During April, all direct materials are transferred from Department A. In Department B, the units in process at April 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units which were 70% completed as to conversion costs. Inventories are costed by the first-in, first-out method.

Required:

Prepare a cost of production report for Department B for the month April 2020.

Presented below are 11 income statement items from Braun Company for the year ended December 31, 2020.

Sales revenue $2,700,000

Cost of goods sold 1,150,000

Interest revenue 15,000

Loss from abandonment of plant assets   45,000

Gain from extinguishment of debt 28,000

Selling expenses 290,000

Administrative expenses 190,000

Effect of change in estimated useful lives of fixed assets (included in administrative expenses) 35,000

Loss from earthquake 30,000

Gain on disposal of discontinued operation 50,000

Instructions

a. Using the information above, prepare a condensed multiple-step income statement. Assume a tax rate of 30% and 100,000 shares of common stock outstanding during 2020.