On December 31, 2019, Novak Inc. borrowed $4,440,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $532,800; June 1, $888,000; July 1, $2,220,000; December 1, $2,220,000. The building was completed in February 2021. Additional information is provided as follows.

Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.

List of Accounts

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when 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.)

Cullumber Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan.

The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2020 and $472,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,312,500. No benefits have been paid.

(a)

Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2020 and 2021.

Vollie Company, is a packaging company and implementing waste management. The company making boxes from timber. Legally, the company can damp the scrap of the timber to the Resource Recovery Centers. Milena, the CEO of the company has high awareness of environment safety. She is considering recycling the timber waste. Milena is thinking of buying a machine, which process the scrap timber to paper. The paper can be sold as an additional product line. This investment requires $ 4 500 000. It is estimated that this machine will last eight years, and it is estimated at the end of eight year the machine can be sold for 300,000. The expected annual incremental income of selling papers as follow:

YEAR INCOME

1: $3 200 000

2 :3 500 000

3 :3 900 000

4 :4 100 000

5 :4 900 000

6 :4 500 000

7 :4 200 000

8 :4 100 000

Vollie has a cost of capital equal to 12%. The company applies a straight-line depreciation method.

1. Compute the payback period (1 mark)

2. Calculate the NPV of the proposed project

3. Based on payback and NPV, provide your opinion, should accept or reject the project.  Justify your answer   (1 mark).

4. Explain the impacts of your decision in (3) to the business sustainability/environmental performance

Zdon Inc. reports an accounting income of $105,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements.1- Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $16,000. 2- Rent revenue reported on the tax return in $24,000 higher than rent revenue reported on the income statement. 3- non-deductible fines appear as an expense of $15,000 on the income statement. 4- Zdon's tax rate is 30% for all years and the company expects to report taxable income in all future years. Zdon report under IFRS

Instructions:

a. Calculate taxable income and income tax payable for 2020.

b. Calculate any deferred tax balances at December 31, 2020.

c. Prepare the journal entries to record income taxes for 2020.

d. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income tax"

e. reconcile the statutory and effective rates of income tax for 2020. Round rates to one decimal place.

f. Provide the SFP presentation for any resulting deferred tax accounts at December 31, 2020. Be specific about the classification.

g. Repeat part (f) assuming Zdon follow ASPE

1.

a) Anaylze the flow of units:

b) Compute equivalent units:

c)Compute the per units:

d)The value of Goods-inProcess in the cutting Department on 1/31/2020:

e)The value of Goods-In-Process transferred to the Stiching Department is:

Kash Company is reviewing its December 31, 2020 unadjusted trial balance and determines that a sale in the amount of $15,000 had been incorrectly recorded as a debit to sales and a credit to accounts receivables. The correcting journal entry at December 31, 2020 is:

1. Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows:

                                                2018                       2019                       2020
Costs to date                      $1,500,000           $4,000,000           $6,200,000
Cost to complete             $4,500,000           $2,200,000           $0

Amounts billed to date $1,400,000           $5,800,000           $9,000,000
Amounts collected to date
                                             $1,300,000           $4,300,000           $9,000,000

Determine the gross profit to be recognized for

                                         2018                           2019                   2020

On January 1, 2020, Cullumber Corporation had $1,125,000 of common stock outstanding that was issued at par. It also had retained earnings of $746,500. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $410,000 for the year. Journalize the declaration of a 16% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $19. b. Par value is $5, and market price is $20.

1. (USE MATLAB) Create a table using fprintf that shows the conversion from US Dollars to Yen, Euros, Mexican Peso, and Canadian Dollars. Use the internet to find the conversion factors. Prompt the user for the US Dollar amounts they want to see conversions for.

Over the years we have seen large changes in US federal income tax rates, with the highest marginal rates falling from 70% to under 40% today. Describe the impact of this change on the spread between US Treasury bonds and municipal bonds.