19. On September 1, 2015, Higdon Master Meter Company purchased a new bottling machine for $300,000. The bottling machine has an estimated salvage value of $30,000 and a useful life of of five years. Compute the required amounts ($) for each of the following depreciation methods.(Round all answers to the nearest dollar). 1. 150% Declining-Balance 2015 Depreciation Expense:________________ Accumulated Depreciation as of 12/31/2016:________________ Book Value at 12/31/2017:___________________ 2. Sum-of-the-Years'-Digits 2015 Depreciation Expense:________________ Accumulated Depreciation as of 12/31/2016:________________ Book Value at 12/31/2017:___________________ 3. Straight Line 2015 Depreciation Expense:________________ Accumulated Depreciation as of 12/31/2016:________________ Book Value at 12/31/2017:___________________

On September 30, 2015, Ericson Company negotiated a 2-year, 1,000,000 dudek loan from a foreign bank at an interest rate of 2 percent per year. It makes interest payments annually on September 30 and will repay the principal on September 30, 2017. Ericson prepares U.S.-dollar financial statements and has a December 31 year-end.

a.Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 dudek:

b.Determine the effective cost of borrowing in dollars in each of the three years 2015, 2016, and 2017.

On September 30, 2015, Ericson Company negotiated a 2-year, 1,000,000 dudek loan from a foreign bank at an interest rate of 2 percent per year. It makes interest payments annually on September 30 and will repay the principal on September 30, 2017. Ericson prepares U.S.-dollar financial statements and has a December 31 year-end.

a.Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 dudek:

b.Determine the effective cost of borrowing in dollars in each of the three years 2015, 2016, and 2017.

Dobbs Company issues 5%, two-year bonds, on December 31, 2016, with a par value of $95,000 and semiannual interest payments.

Use the above straight-line bond amortization table and prepare journal entries for the following.

Required:

(a) The issuance of bonds on December 31, 2016.

(b) The first through fourth interest payments on each June 30 and December 31.

(c) The maturity of the bond on December 31, 2018.

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2016, S&L purchased Coca-Cola common shares for $805,000 and sold the shares on January 3, 2017, for $809,000. At December 31, the shares had a fair value of $800,500. These securities were classified as Trading Securities.

On December 27, 2016, S&L purchased Coca-Cola common shares for $730,000 and sold the shares on January 3, 2017, for $733,000.

At December 31, the shares had a fair value of $728,000. These securities were classified as Available-for-Sale securities. What amount should S&L include in its 2016 and 2017 earnings as a result of this investment?

Question 2 a. What is GDP? Explain the three methods that the Australian Bureau of Statistics uses to calculate GDP.

b. If in 2016 the CPI is 100 and nominal wages are $500 and in 2017 the CPI is 120 and nominal wages are $550. What is the level of price inflation from 2016 to 2017? Explain whether real wages have increased from 2016 to 2017?

c. Define structural, frictional and cyclical unemployment. Which of these types of unemployment do the 'long-term unemployed' belong?

d. Explain why the growth in real per capita GDP is a more appropriate measure of economic growth that nominal GDP for the whole country. e. In an 'economic boom' what is likely to happen to inflation, unemployment and the participation rate? Explain why.

West Wing Distribution Corporation has a fiscal year end of December 31. On March 15, 2017, the company’s 2016 financial statements were issued. Between December 31, 2016 and March 15, 2017, the following occurred:

1. On January 22, 2017, the company negotiated a major merger with Blakedon Industries to be completed by the middle of 2017.

2. On February 3, 2017, West Wing negotiated a $10 million long-term note (material amount) with the Credit Bank of Pennsylvania.

3. A flood destroyed one of the company’s manufacturing plants causing $600,000 of uninsured damage on February 25, 2017.

Determine the appropriate treatment of each of these events in the 2016 financial statements of West Wing Distribution Corporation.

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. Please show steps.

Instructions

(a) Record the acquisition of equipment on March 1, 2016.

(b) Record depreciation at August 31, 2016, 2017, and 2018.

(c) Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions:

1. It was sold for $60,000.
2. It was sold for $80,000.
3. It was retired for no proceeds.

n 2017, Frost Company, which began operations in 2015, decided to change from LIFO to FIFO because management believed that FIFO better represented the flow of their inventory. Management prepared the following analysis showing the effect of this change:

Frost reported net income of $2,500,000, $2,400,000, and $2,100,000 in 2015, 2016, and 2017, respectively. The tax rate is 30%.

Required: