6) Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO.

Pratt Company purchased 60% of the outstanding voting shares of Sandy Company at the beginning of 2013 for $480,000. At the time of purchase, Sandy Company's total stockholders' equity amounted to $650,000. Income and dividend distributions for Sandy Company from 2013 through 2015 are as follows:

Required:

Prepare journal entries for Pratt Company from the date of purchase through 2014 to account for its investment in Sandy Company under each of the following assumptions:

1. Pratt Company uses the cost method to record its investment.
2. Pratt Company uses the partial equity method to record its investment.
3. Pratt Company uses the complete equity method to record its investment. The difference between the book value of equity acquired and the value implied by the purchase price was attributed solely to a depreciable asset, with a remaining life of 15 years

Do not copy from Chegg, otherwise, I have to report the answer.

IF you were the CEO of an organisation facing the challenges and opportunities specified in question 1, what steps would you take to address the challenges and utilize the opportunities

How does a Board of Directors align the interests of CEO/shareholders and other stakeholders given the legally the #1 role of the BOD is to make a profit for the owners or shareholders?

Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:

Accounts receivable

$102,000

Accrued interest payable

1,000

Dividend revenue

9,000

Sales revenue

600,000

Purchase discounts

9,000

Purchases

360,000

Accounts payable

30,000

Loss from fire (net of $7,000 tax)

21,000

Selling expenses

64,000

Common shares (20,000 issued; no change during 2020)

200,000

Accumulated depreciation

90,000

Long-term note payable (due Oct 1, 2024)

100,000

Inventory, Jan 1, 2020

76,000

Inventory, Dec 31, 2020

62,500

Supplies inventory

40,000

Unearned service revenue

3,000

Land, at cost (fair value is $450,000).

370,000

Cash

60,000

Franchise

100,000

Retained earnings, Jan 1, 2020

135,000

Interest expense

8,500

Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax) prior to 2020

(18,000)

General and administrative expenses

80,000

Dividends declared and paid

15,000

Allowance for doubtful accounts

5,000

Loss from discontinued operation (before tax)

20,000

Machinery and equipment

225,000

Unless indicated otherwise, you may assume a 25% income tax rate.

General and administrative expenses include depreciation.

Peanut has chosen to account for its land at fair value but the bookkeeper does not understand what to do so he has kept the land’s recorded value at cost.

There are no preferred shares issued.

Instructions

a.    Prepare, in good form, a multiple-step comprehensive income statement.

b. Prepare, in good form, the retained earnings portion of the statement of changes in equity.

Exercise 13-13 - Topic - Non Financial and Current Liabilities

Ayayai Corporation offers enriched parental benefits to its staff. While the government provides compensation based on Employment Insurance legislation for a period of 12 months, Ayayai increases the amounts received and extends the period of compensation. The benefit program tops up the amount received to 100% of the employee’s salary for the first 12 months, and pays the employee 70% of his or her full salary for another 6 months after the EI payments have stopped.
Zeinab Jolan, who earns $52,000 per year, announced to her manager in early June 2020 that she was expecting a baby in mid-November. On October 29, 2020, 9 weeks before the end of the calendar year and Ayayai’s fiscal year, Zeinab applied for and began her 18-month maternity leave. Assume that the Employment Insurance program pays her a maximum of $720 per week for 52 weeks.
For the purpose of this question, ignore any tax, CPP, and EI deductions when making payments to Zeinab.

A.) Prepare all entries that Ayayai Corporation must make during its 2020 fiscal year related to the parental benefits plan in regard to Zeinab Jolan.

B.) Prepare one entry to summarize all entries that the company will make in 2021 relative to Zeinab Jolan’s leave.

C.) Calculate the amount of parental benefits payable at December 31, 2020, and 2021.

Explain how these amounts will be shown on Ayayai’s SFP. (Round answers to 0 decimal places, e.g. 5,275.)

Problem 10-12 Acquisition costs; lump-sum acquisition; noninterest-bearing note; interest capitalization [LO10-1, 10-2, 10-3, 10-7]

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,160,000. San Antonio paid $380,000 and signed a noninterest-bearing note requiring the company to pay the remaining $780,000 on March 28, 2020. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $38,000 were paid at closing.
   
During April, the old building was demolished at a cost of $88,000, and an additional $68,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $6,300,000 at 10% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $780,000. The fair values of the equipment and the furniture and fixtures were $572,000 and $308,000, respectively. In December, San Antonio paid a contractor $375,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?

Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s home for the entire year, and Camille paid for all the costs of maintaining the home. Camille received a salary of $90,000 and contributed $5,600 of it to a qualified retirement account (a for AGI deduction). She also received $13,000 of alimony from her former husband (per divorce decree issued in 2018). Finally, Camille paid $16,700 of expenditures that qualified as itemized deductions. (Use the tax rate schedules and 2020 rules.)

a. What is Camille’s taxable income?

b. What would Camille’s taxable income be if she incurred $32,500 of itemized deductions instead of $16,700?

c. Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $6,700. Kaly provided $4,020 of her own support, and Camille provided $6,700 of support. What is Camille’s taxable income?

V. Each of the following situations involves possible violations of the AICPA Code of Professional Conduct. For each situation, state what section of the Code is involved. Explain whether the action is a violation of that section, and explain the rationale for the rule. A. Colonial, Inc. has struggled financially and has not been able to pay the audit fee to its auditor, Shively and Starch, CPAs, for the 2018 and 2019 audits. Shively and Starch is currently planning the 2020 audit. B. Margo Rabil is a former partner of Howe and High, CPAs. Recently, she left the firm to become the chief operating officer of Gravy Town, Inc, which is an audit client of Howe and High. In her new role, Rabil has no responsibilities for financial reporting. HJowe and High made significant changes to the audit plan for the upcoming audit. C. Ben Parsley is the partner in charge of the audit of Eastern Gate Bank. Parsley is in the process of purchasing new lakefront property and has obtained mortgage financing from Eastern Gate. D. Ellen Grant is CPA, but not a partner, with three years of professional experience with James and Wallace, CPAs. She owns 25 shares of stock in an audit client of the firm, but she does not take part in the audit of the client, and the amount of stock is not material in relation to her total portfolio. E. Christian and Knight, a regional CPA firm, is performing consulting services to help management of Airtrans Services streamline its production operations. The fee for this engagement is a percentage of the cost savings that results once the new process is implemented. This is the only service that Christian and Knight provide for the client.