A simple random sample of 300 colleges and universities was selected and for each it was determined whether they planned to move summer 2020 classes online or not. Of the 300 colleges and universities in the sample, 90 responded that they will move summer 2020 classes online , and 210 responded that they will not move summer 2020 classes online. . If appropriate, use this information to calculate and interpret a 99% confidence interval for the proportion of all colleges and universities that will move their summer 2020 classes online . Please type your solution in the box below.

3. Prepare the journal entry to record receipt of payment by Hamada LLC if the spot rate on dirhams was 4.75 dirhams/GBP on April 2, 2020.

Suppose that on February 1, 2020, Victoria, Plc., a British company, makes a sale and ships goods to Hamada, LLC, an Emirati customer, for 100,000 (GBP).

However, it is agreed that Hamada will pay in dirhams on April 2, 2020. The exchange (spot) rate as of February 1, 2020 is 5 dirhams per Great British Pound.

Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020.

What is your total payoff and profit if Facebook share is traded at $170 on 5/15/2020 and what is your total payoff and profit if Facebook share is traded at $185 on 5/15/2020?

Suppose the first population is all Zoom meetings held in March 2020, the second population is all face-to-face meetings held in March 2020, and the parameter of interest is μ1 – μ2 = the difference in the mean number of people attending all Zoom meetings and the mean number of people attending all face-to-face meetings. For both Zoom meetings and face-to-face meetings the distributions are skewed heavily to the right due to some meetings that have many people in attendance.

It is known that the standard deviation of the number of people attending all Zoom meetings in March 2020 is 7.5, and that the standard deviation of the number of people attending all face-to-face meetings in March 2020 is 6.8. A simple random sample of 84 Zoom meetings from March 2020 was selected, and the mean number of people attending this sample of 84 meetings was 21.6. An independent simple random sample of 51 face-to-face meetings in March 2020 was selected, and the mean number of people attending this sample of 51 meetings was 17.4. If appropriate, use this information to calculate and interpret a 99% confidence interval for the difference in the mean number of people attending all Zoom meetings in March 2020 and the mean number of people attending all face-to-face meetings in March 2020.

On 1 November 2019, Pink Ltd issued a prospectus inviting applications for 200 000 ordinary shares to the public at an issue price of $4, payable as follows:
$2 on application (due by closing date of 1 February 2020)
$1 on allotment (due 31 March 2020)
$1 on future call/calls to be determined by the directors
By 1 February 2020, applications had been received for 250 000 ordinary shares of which applicants for 100 000 shares forwarded the full $4 per share and the remainder forwarded only the application money.
At a directors’ meeting on 15 February 2020, it was decided to allot shares in full to applicants who had paid $4 on application, to reject applications for 10 000 shares and to proportionally allocate shares to all remaining applicants. According to the company’s constitution, all surplus money from application can be transferred to Allotment and/or Call accounts. Share issue costs of $3 000 were also paid on 15 February 2020. All outstanding allotment money was received by 31 March 2020.
The call for $1 was made on 1 July 2020 with money due by 1 September 2020. All money was received by the due date.

Required:
Prepare the journal entries to record these transactions of Pink Ltd.

NOELLA Consultants Inc. has had a defined benefit pension plan since January 1, 2014.

The following represents beginning balances as at January 1, 2019:

Market value of Plan Asset $2,008,900; Defined Benefit Obligation $2,340,000; AOCI: Gain of $65,000

Additional Information is as follows:

Current Service cost is $221,000 for 2019 and $215,200 for 2020.

Company Funding/Contribution is $200,400 for 2019 and $212,700 for 2020. Funding is made on December 31 of each year.

Actual return on assets is $115,600 for 2019 and $117,400 for 2020.

There are payments made to retired employees equal to $63,900 in 2019 and for $90,300 in 2020.

Increase in obligation of $123,500 due to Past service cost from plan amendment dated December 31, 2019.

There is an increase in obligation for $64,510 due to changes in Actuarial assumptions at Dec 31, 2020.

The discount/interest rate is 6% for both years.

Required:

1. Prepare a spreadsheet to determine all the pension items for both 2019 and 2020.
2. Prepare the required journal entries for both 2019 and 2020.
3. Prepare a partial balance sheet and a partial income statement for both 2019 and 2020.
4. Prepare the notes to the financial statements for 2019 only.

Note: You can use either the textbook approach or the alternative approach as we discussed in class.

Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)

The vehicle cost $30,800 and business use is 100 percent (ignore §179 expense).

b. The vehicle cost $74,000, and business use is 100 percent.

c The vehicle cost $74,000, and she used it 80 percent for business.

d. The vehicle cost $74,000, and she used it 80 percent for business. She sold it on March 1 of year 2.

e. The vehicle cost $74,000, and she used it 20 percent for business.

f. The vehicle cost $74,000, and is an SUV that weighs 6,500 pounds. Business use was 100 percent.

1. On January 1, 2020, Pantop Corporation acquired 85% of the outstanding common stock of Sunny Company for $527,000. There was no control premium.

The following information about Sunny Company on January 1, 2020 was available:

Pantop uses the complete equity method to account for its investment in Sunny. During 2020, Sunny had a net income of $80,000. The remaining useful life of the building was five years with no salvage value. Sunny uses straight line depreciation. Sunny’s cost of goods sold (FIFO) was $70,000 in 2020. On December 23, 2020, Sunny declared and paid $48,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31, 2020.

(i) Prepare journal entries for Pantop to record under the complete equity method of accounting the operating results of Sunny in 2020.

(ii) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pantop Corporation and subsidiary for the year ended December 31, 2020.

For the year ended Dec 31, 2020, King Inc. reported pretax accounting income of $800,000.

Select information is listed below:

1) In 2019, the company purchased a piece of equipment with a cost of $500,000. For financial reporting purposes, the company used the straight-line method over a 5-year service life with no residual value expected. For tax purposes, the equipment was scheduled to be depreciated by $160,000, $140,000, $120,000, $50,000 and $30,000 in years 2019 through 2023, respectively.

2) During 2020 loss contingency accrued for financial reporting purpose was $45,000. The loss contingency was due to the pending patent lawsuit brought by its long-time competitor, Queen Inc. The payment for the lawsuit is expected to be paid in 2022.

3) In 2020, the company earned $10,000 interest income from municipal bonds. The interest earned on municipal bonds are exempted for tax purposes. King Inc.’s income tax rate is 30%. At January 1, 2020, the deferred tax asset balance was $0 and the deferred tax liability was $12,000.

Required:

What is taxable income for 2020?

What is the ending balance of DTA on 12/31/2020?

What is the ending balance of DTL on 12/31/2020?

Prepare journal entry to record income taxes for year 2020.

1. On January 1, 2020, Pantop Corporation acquired 85% of the outstanding common stock of Sunny Company for $527,000. There was no control premium.

The following information about Sunny Company on January 1, 2020 was available:

Pantop uses the complete equity method to account for its investment in Sunny. During 2020, Sunny had a net income of $80,000. The remaining useful life of the building was five years with no salvage value. Sunny uses straight line depreciation. Sunny’s cost of goods sold (FIFO) was $70,000 in 2020. On December 23, 2020, Sunny declared and paid $48,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31, 2020.

(i)  Prepare journal entries for Pantop to record under the complete equity method of accounting the operating results of Sunny in 2020.

(ii) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pantop Corporation and subsidiary for the year ended December 31, 2020.