The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.
Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $600,000 at face value.
Sep. 1 Acquired $1,500,000 of American Instruments' 10% bonds at face value.
Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.
Oct. 2 Sold the Distribution Transformers bonds for $670,000.
Nov. 1 Purchased $2,400,000 of M&D Corporation 6% bonds at face value.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are
American Instruments bonds $ 1,460,000
M&D Corporation bonds $ 2,480,000
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each transaction or
event during 2021, as well as any adjusting entries necessary at
year end.
2. Indicate any amounts that Ornamental Insulation would report in
its 2021 income statement, 2021 statement of comprehensive income,
and 12/31/2021 balance sheet as a result of these investments.
Include totals for net income, comprehensive income, and retained
earnings as a result of these investments.
In: Accounting
Marin Industries has the following patents on its December 31,
2016, balance sheet.
|
Patent Item |
Initial Cost |
Date Acquired |
Useful Life at Date Acquired |
|||
| Patent A | $43,452 | 3/1/13 | 17 years | |||
| Patent B | $16,560 | 7/1/14 | 10 years | |||
| Patent C | $20,640 | 9/1/15 | 4 years |
The following events occurred during the year ended December 31,
2017.
| 1. | Research and development costs of $243,000 were incurred during the year. | |
| 2. | Patent D was purchased on July 1 for $34,770. This patent has a useful life of 91/2 years. | |
| 3. | As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2017. The controller for Marin estimates the expected future cash flows from Patent B will be as follows. |
|
Year |
Expected Future Cash Flows |
|
| 2018 | $2,000 | |
| 2019 | 2,000 | |
| 2020 | 2,000 |
The proper discount rate to be used for these flows is 8%. (Assume
that the cash flows occur at the end of the year.)
1) Compute the total carrying amount of Marin’ patents on its December 31, 2016, balance sheet.
2) Compute the total carrying amount of Marin' patents on its December 31, 2017, balance sheet.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. The
company buys equity securities as noncurrent investments. None of
Ornamental’s investments are large enough to exert significant
influence on the investee. Ornamental’s fiscal year ends on
December 31. No investments were held by Ornamental on December 31,
2020.
| Mar. | 31 | Acquired Distribution Transformers Corporation common stock for $590,000. | ||
| Sep. | 1 | Acquired $1,185,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $20,650 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $634,000. | ||
| Nov. | 1 | Purchased $1,590,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 1,116,000 | |
| M&D Corporation common stock | $ | 1,669,000 | |
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
necessary at year-end.
2. Indicate any amounts that Ornamental Insulation
would report in its 2021 income statement, 2021 statement of
comprehensive income, and 12/31/2021 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
Q#1: As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.
| 1. Ayayai Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,500 shares of its $19 par value common stock. The owners’ asking price for the land was $133,500, and the fair value of the land was $119,000. | ||||||||||||||
|
2. Whispering Winds Corporation is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 19,000 shares of its $11 par value stock. At the time of the exchange, the land was advertised for sale at $273,000. The stock was selling at $12 per share Q#2: On January 1, 2020, the stockholders’ equity section of
Bramble Corporation shows common stock ($6 par value) $1,800,000;
paid-in capital in excess of par $1,050,000; and retained earnings
$1,230,000. During the year, the following treasury stock
transactions occurred.
Part B: Restate the entry for September 1, assuming the treasury shares were sold at $12 per share. |
In: Accounting
Penn Station East Coast Subs began in Cincinnati, Ohio with founder Jeff Osterfeld. Feeling frustrated with the lack of growth and profits, Jeff decided to franchise his handful of restaurants in the late 1980’s. This strategy proved successful. Based on the internal environment of Penn Station, what factors contributed to the success of the business? What characteristics, culture, and management style did Jeff portray that lead to his overall success?
In: Accounting
12.In order to qualify for unemployment insurance and worker's compensation, a person must have: a. proof of disability. b. a work experience of at least ten years. c. paid taxes the previous year. d. an employment record. e. a family of four.
13. One of the reasons behind the feminization of poverty is that: a. social insurance programs do not cover unmarried females. b. the number of people in female-headed households has increased at a faster rate than the number of people in other families. c. technological changes have lowered the income of female workers more than the income of male workers. d. income assistance programs do not cover married females. e. the number of people in female-headed households has increased at a slower rate than the number of people in other families.
16. The U.S. infant mortality rate: a. is the same as the mortality rates in other industrialized countries. b. is not related to the poverty rate. c. is higher than the mortality rates in other industrialized countries. d. is lower than the mortality rates in other industrialized countries. e. is inversely related to the poverty rate.
17. Which of the following groups has the fastest-growing population in the United States? a. Households headed by African Americans b. Households headed by married couples c. Households headed by male members d. Households headed by Hispanics e. Households headed by female members
18. Over the last forty years, poverty in the United States, as measured by the number of poor, has increased the most: a. among households headed by white males. b. among households headed by women. c. among the elderly because of cutbacks in the Social Security program. d. among men because of a lack of job opportunities for them. e. among women because of a high divorce rate.
19. Which of the following contributed the most to the large increases in poverty since 1960? a. An increase in the number of households headed by females b. Federal government budget deficits c. An increase in the number of retirees d. The failure of the Social Security system e. An increase in poverty rates among households headed by African Americans
20. The Equal Employment Opportunity Commission: a. was established by the Equal Rights Act of 1984. b. examines cases in which a worker is not paid the same as others performing the same work. c. established a minimum wage for minorities. d. has effectively eliminated racial discrimination in the workplace and has made on-the-job training mandatory for all workers. e. guarantees a worker's right to a job.
24. Most people on welfare benefit programs in the United States are: a. immigrants. b. poorly educated and have limited job skills. c. not eligible for food stamps, child care, or Medicaid. d. employed part-time. e. below the age of 16 years.
In: Economics
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56
a) What is the probability that an American chosen at random died as a passenger car occupant last year? 0.719 Incorrect Give your answer as a fraction or decimal. If decimal, make sure your answer is accurate to at least 2 significant figures (values after leading zeros)
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56 Hint: b)Does your probability of dying in a car accident next year differ much from the probability of a random person dying in a car accident?
c) Estimate the probability that you will die as a passenger car occupant next year? Incorrect 0.0000018 Make sure your answer is accurate to at least 2 significant figures (values after leading zeros)
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56
d) What is the probability that an American chosen at random will die as the result of a tornado next year? 0.25Incorrect Make sure your answer is accurate to at least 2 significant figures (values after leading zeros)
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56
g) People sometimes claim skydiving is less dangerous than driving or riding in a car. Does the data support this claim? Explain. The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56
h) People sometimes claim motorcycle riding is less dangerous than traveling by car. Does the data support this claim? What additional information and/or calculations would be useful to evaluate this claim?
In: Statistics and Probability
Case of Antidumping in Action Study
A GAME OF CHICKEN
When it comes to chicken, Americans prefer white meat. South Africans prefer dark meat. Sounds like the basis for mutually beneficial trade. And it would be, if it weren't for those pesky dumping laws.
U.S. chicken producers noticed the differences in demand. They began exporting dark-meat chicken to South Africa. This created extra competition for South African chicken producers, but South African consumers gained more than local producers lost. That's the way trade works. In addition, U.S. chicken producers were happy. The price they received for their dark-meat exports was somewhat higher than the price they could get in the United States. This added to their profitability.
South African chicken producers scratched back. They charged U.S. producers with dumping by exporting dark-meat chicken at a price less than production cost. This is an ideal situation for a biased antidumping authority because there is no one way to determine this production cost. (What comes first, the dark meat or the white?) In 2000, the South African government determined that the U.S. firm Tyson was dumping by a margin of 200 percent (its export price was only one-third of its estimated production cost) and Gold Kiss was dumping by an incredible 357 percent margin. Something is fowl in South Africa. Good-bye gains from trade.
WHAT'S SO SUPER ABOUT SUPERCOMPUTERS?
In 1996 the Japanese company NEC won the contract to supply a supercomputer to a university consortium funded by the U.S. National Science Foundation, to be used for weather forecasting. This was the first-ever sale of a Japanese supercomputer to an agency of the U.S. government. It seemed to be a major setback for Cray Research, then the major U.S. supercomputer maker. But Cray thought it saw unfair trade.
With encouragement from the U.S. Depart-ment of Commerce, Cray filed a dumping complaint. NEC guessed that it was not likely to win with the Department of Commerce also acting as the judge, and it refused to participate in the case. Based on information provided by Cray, the U.S. government imposed antidumping duties on NEC supercomputers at the super rate of 454 percent (and at the almost super rate of 173 percent for supercomputers from Fujitsu, the other major Japanese producer). With these antidumping duties in place, no one in the United States would be buying NEC or Fujitsu supercomputers.
Not so super for U.S. users of supercomputers. Or for anyone in the United States who wanted accurate weather forecasts. NEC supercomputers were simply the best in the world for this purpose.
There's one more twist in this wired tale. Hey, maybe it isn't dumping after all. In 2001, Cray was in financial trouble, and its technology was lagging. In exchange for a $25 million investment by NEC and a 10-year contract to be the exclusive distributor of NEC supercomputers in North America, Cray asked the Department of Commerce to end the antidumping duty.
How do you compare the rationales for exercising anti-dumping sanctions in these two very different cases?
In: Economics
|
Social networking is becoming more and more popular around the
world. Pew Research Center used a survey of adults in several
countries to determine the percentage of adults who use social
networking sites (USA Today, February 8, 2012). Assume
that the results for surveys in Great Britain, Israel, Russia and
United States are as follows.
a. Conduct a hypothesis test to determine whether the proportion of adults using social networking sites equal for all four countries. Using a .05 level of significance. Use Table 12.4.
Choose correct answer from above choice The p-value is - Select your answer -less than .01greater than .01Item 3 What is your conclusion? b. What are the sample proportions for each of the four countries? Round your answers to two decimal places.
Which country has the largest proportion of adults using social
networking sites? c. Using a .05 level of significance, conduct multiple pairwise comparison tests among the four countries. Round p i, p j and Diff to two decimal places. Round CV ij to four decimal places.
What is your conclusion? any help on this would be appriciated, kinda lost on how to do this |
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In: Advanced Math
The value of goodwill is the excess of
The purchase price over the fair value of tangible and identifiable intangible net assets acquired.
The purchase price over the fair value of tangible net assets acquired.
The purchase price over the carrying value of tangible and identifiable intangible net assets acquired.
The purchase price over the carrying value of tangible net assets acquired.
In: Accounting