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?

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.​

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

Assuming that we are at a full employment equilibrium, suggest a disturbance that would move us away from the full employment equilibrium? Show this disturbance graphically. If we are at an unemployment equilibrium, what policy might you use to bring us to full employment? Explain and show graphically.

Let us say you are a manager of a given Multinational Corporation and requested to solicit a fund of $300 Million for a new project.  Explain the source of fund you will be looking for? Tell us the step-by-step action you will make in getting this fund from the sources you identified.

Presented below is information related to Kingbird Company.

Compute the ending inventory for Kingbird Company for 2017 through 2022 using the dollar-value LIFO method.

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 6,940 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $38,766; labor $20,500; overhead $43,213.

Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Problem 14-5

(Comprehensive Bonds Problem) In each of the following independent cases, the company closes its books on December 31, 2021.

1. Sanford company sells $500,000 of 10% bonds on March 1. 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Instructions: for the above case, prepare all the relevant journal entries from the time of the sale until the date indicated. Use the effective interest method for discount amortization (construct amortization table) where applicable. Amortize discount on interest date and year-end (assume that no reversing entries are made).

A. Ling, Johnson, Lesley, and Miya commenced business and named their company as Moba
Teknologi Sdn Bhd. The company sells a ready-to-use software product, ML1 for the use of
small businesses. The current selling price for the product is $500. Next year in 2020, the
company planned to sell 7,300 units. The followings are information on the expenses:
Cost of software $180 per unit
Shipping and handling $20 per unit
Annual fixed cost $1,200,000

Required:
a. Calculate Moba Teknologi’s breakeven point in unit and value ($).
b. Calculate the next year's margin of safety (in percentage).
c. Calculate the company’s operating income for the year 2020 if there is a 10% increase
in unit sales.

B. Suppose in the year 2020, Moba Teknologi will sell two products; ML1 and ML2. The product
cost and sales information are as follows:
Selling price ML1 $500 ML2 $700
Variable cost per unit ML1 $200 ML2 $300
The total annual fixed expense is $3,900,000, while the expected sales mix is three ML1 to
one ML2.

Required:
a. Calculate the total contribution margin for ML1 and ML2.
b. Calculate the break-even point in the unit for each product.

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.