Astrom Ltd. purchased a piece of equipment on May 12, 2020, for $51,200. At the time, management determined that the equipment would have a 4-year useful life and a residual value of $4,400. Astrom uses the straight-line depreciation method for its equipment, and the company has a December 31 year end. Also assume that Astrom sold the equipment on September 25, 2022, for $20,725. Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios:

TTT is a television ratings company. TTT announced that on 11^th of June 2020, for a specific program on DDD TV channel, 10% of all televisions in NY tuned to DDD TV channel. It is known that the similar specific program will be presented on 25^th of June 2020 on DDD TV channel. What is the probability that in a random sample of 20 television sets in NY , 3 or fewer would have been tuned to DDD TV channel? Find the mean and standard deviation. Explain your solution in detail.

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion. Required:

1. During the annual fund-raising drive, the Cancer Society raised $900,000 in pledges of financial support for general operations. By fiscal year-end, the society had collected $600,000 of the pledges. The society estimates that 10% of the remaining pledges will be uncollectible. The NET amount of revenue the society should recognize during the current year from this pledge drive is

1. $900,000.

2. $870,000. answer

3. $810,000.

4. $600,000.

2.

1. In June 2015, a public university bills and collects $45 million in tuition for the summer semester that runs from June 1 through July 15. In addition, in May and June it bills $300 million for the fall semester that runs from September 1 through December 15. Of this amount it collects only $120 million (expecting to collect the balance prior to September 1). In its statement of revenues, expenses, and changes in net position for the fiscal year ending June 30, 2015 it should recognize as tuition revenue

a) $30 million , answer

b) $45 million

c) $150 million

d) $165 million

3. In 2014, a public university was awarded a federal reimbursement grant of $18 million to carry out research. Of this, $12 million was intended to cover direct costs and $6 million to cover overhead. In a particular year, the university incurred $4 million in allowable direct costs and received $3.4 million from the federal government. It expected to incur the remaining costs and collect the remaining balance in 2015. For 2014 it should recognize revenues from the grant of

a) $3.4 million

b) $4.0 million

c) $6.0 million , answer

d) $18.0 million

I have the answer, but please explain briefly how to get the answer and why.  

Module 7 &8: Management Issues for Non-Depository Institutions

The Save You Insurance Company has the following financial statements.                                                                           2020                      2019

Net Premiums Written                           48,612             47,398

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Income Statement ($ mils.)

Premiums Earned                                   42,624             48,321

Loss Expenses                                         30,746             34,364

Operating Expenses                                17,720             17,693

Total Policy Expenses                             48,466             52,057

Net Underwriting Gain/Loss                             (5,842)             (3,736)

Net Investment Income                           15,700            19,995

Operating Income before taxes              9,858               16,259

Dividends to Policyholders                     6,517              10,361

Income Tax                                              1,294               1,670

Net Income                                              $2,047            $ 4,228

Ave Investment Yield                           4.94%                 5.89%

(mils.)                                                       2020               2019

Total Assets                                         $381,972          $406,529

Liabilities

Total Liabilities                                    $349,069         $369,700

Total Equity                                            32,903             36,829

Total Liabs. & Equity                           $381,972        $406,529  

Dupont Analysis:

                   Asset Turnover                                

                  Net Profit Margin                              

                     ROA                                                 

                     ROE                                                 

                     OROA                                              

           Equity Multiplier (EM)        

Give an overview for why the insurance companies overall profitability changed in 2020 including trends in the expense ratio, loss ratio, and combined rate, and average investment yield. Also do a Dupont analysis explaining why the ROE and ROA for the insurance company changed in 2020 (based on the Operating Profit Margin, Asset Utilization, and the Equity Multiplier.

Mike's Company purchased equipment that cost $118,000 on August 1, 2018. The equipment has an estimated useful life of eight years with an estimated salvage of $10,000. Mike's Company has a December 31 year-end. Calculate the following, showing all of your computations well-labeled and in good form under each of the followingindependent scenarios:

1. The equipment is depreciated using machine hours. The machine is expected to be used for a total of 110,000 hours over it estimated useful life. The following hours of usage were recorded in 2018, 2019, and 2020:

2018
2019
2020

6,000 hours 13,000 hours 12,000 hours

(a) Calculate the depreciation for 2019 using the above data. Round to the nearest hundredth.
(b) Calculate the book value on the machine at December 31, 2020.

Straight-line method.

(a) Calculate the depreciation for 2019 using the above data.
(b) Calculate the book value on the machine at December 31, 2020.

Sum-of-the-years’ digits method

(a) Calculate the depreciation for 2019 using the above data.

(b) Calculate the book value on the machine at December 31, 2019.

Double declining-balance method. Round your calculations to the nearest dollar.

(a) Calculate the depreciation for 2019 using the above data.
(b) Calculate the book value on the machine at December 31, 2019.

On January 1, 2019, Garner issued 10-year, $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Garner $2 par value common stock. The company has had 10,000 shares of common stock (and no preferred stock) outstanding throughout its life. None of the bonds have been converted as of the end of 2020. (Ignore all tax effects.)

Requirement 1: Accounting

1. Prepare the journal entry Garner would have made on January 1, 2019, to record the issuance of the bonds.
2. Garner’s net income in 2020 was $30,000 and was $27,000 in 2019. Compute basic and diluted earnings per share for Garner for 2020 and 2019.
3. Assume that 75% of the holders of Garner’s convertible bonds convert their bonds to stock on June 30, 2021, when Garner’s stock is trading at $32 per share. Garner pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion.

Requirement 2: Analysis

Show how Garner will report income and EPS for 2020 and 2019. Briefly discuss the importance of GAAP for EPS to analysts evaluating companies based on price-earnings ratios. Consider comparisons for a company over time, as well as comparisons between companies at a point in time.

On 1/1/19, Athlon Company acquired 100% of Opteron Corporation's common stock for $150,000. At the date of acquisition, Operon's common stock was $50,000 and the retained earnings were $60,000. The difference between Opteron's book value and fair value at the date of acquisition was attributable to depreciable fixed assets that had a continuing life of another 10 years.

For 2009, Opteron reported net income of $50,000 and dividends of $45,000.

In 2010, net income of $25,000 and dividends of $30,000 were reported.

In 2011, net income of $10,000 and dividends of $15,000 were reported.

A) How much investment income would Athlon Company report in 2010 under the equity method?

B) What is the investment account balance on Athlon Company's books for its investment in Opteron corporation as of 12/31/11 under the equity method

C) How much investment income would Athlon Company Report in 2011 from its investment in Opteron under the Cost Method?

Office of Technology Transfer – University of Michigan

How does this university transfer research technology to the commercial markets?

Is it successful?

What are some examples of success?

Write a report on your findings

Sherrod, Inc., reported pretax accounting income of $84 million for 2018. The following information relates to differences between pretax accounting income and taxable income:

Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end had a balance of $4 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020.

Sherrod was assessed a penalty of $4 million by the Environmental Protection Agency for violation of a federal law in 2018. The fine is to be paid in equal amounts in 2018 and 2019.

Sherrod rents its operating facilities but owns one asset acquired in 2017 at a cost of $88 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

Warranty expense of $3 million is reported in 2018. For tax purposes, the expense is deducted when costs are incurred, $2 million in 2018. At December 31, 2018, the warranty liability was $2 million (after adjusting entries). The balance was $1 million at the end of 2017.

In 2018, Sherrod accrued an expense and related liability for estimated paid future absences of $8 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($5 million in 2019; $3 million in 2020).

During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss is paid in 2018 at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2018, were $2.0 million and $3.2 million, respectively. The enacted tax rate is 40% each year.

1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry.

2. Show how any deferred tax amounts should be classified and reported in the 2018 balance sheet.​