The dollar-value LIFO method was adopted by Blossom Corp. on January 1, 2020. Its inventory on that date was $399,900. On December 31, 2020, the inventory at prices existing on that date amounted to $380,800. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112.

On December 31, 2021, the inventory at prices existing on that date was $421,245, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.

1. Cook Ltd owns all of the share capital of James Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020.

1. In January 2020, Cook Ltd sells inventories to James Ltd for $10 000 in cash. These inventories had previously cost Cook Ltd $7 000, and remain unsold by James Ltd at the end of the period.                                                             

2. In February 2020, Cook Ltd sells inventories to James Ltd for $15 000 in cash. These inventories had previously cost Cook Ltd $12 000, and are on-sold externally on 2 April 2020.                                                                          

3. In February 2020, James Ltd sells inventories to Cook Ltd for $22 000 in cash (original cost to James Ltd was $16 000) and one quarter (25%) are on-sold externally by 30 June 2020.                                                                   

4. In March 2020, Cook Ltd sold inventories for $10 000 to Zara Ltd, an external entity. These inventories were transferred from James Ltd on 1 June 2019. The inventories had originally cost James Ltd $8000, and were sold to Cook Ltd for $12 000.                                                                                                      

Required

In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2020. Only the adjusting entries need be shown.

question 1 Prepare the journal entries for the following independent situations: a) Records Plus paid for several patents on January 1, 2020 for a total price of $300,000. The patents have a legal life of 25 years and are expected to provide revenues for the next 12 years. Record the purchase on January 1, 2020 and the annual depreciation on December 31, 2020. b) January 1, 2020, PG Mower Ltd. paid $800,000 to acquire Garden Man Ltd. Garden Man had assets valued at $2,300,000 and liabilities of $1,650,000. Record the purchase in PG Mower Ltd.’s records.

question 2 Ivan Manufacturing purchased equipment and a delivery van on January 1, 2020. The equipment cost $95,000 and has an estimated useful life of 8 years with a residual value of $10,000.

The delivery van cost $125,000 and has an estimated life of 5 years or 200,000 kilometres and a residual value of $20,000. The delivery truck is expected to be driven 25,000 and 50,000 kilometres in 2019 and 2020, respectively.

Required

1 Ivan has decided to depreciate the equipment using either the straight-line method or double declining method. Calculate depreciation for the equipment for 2020 and 2021 using the straight-line method AND the double declining method.

2 Ivan has decided to depreciate the delivery van using the units-of-production method

calculate depriciation for the delivery of truck for 2020 and 2021

Choose TWO variables that you feel are correlated and explain why you feel that they are correlated. Do you suspect the relation is positive or negative? Why? Which would be considered the independent variable, which the dependent variable? Why?

Run a regression analysis in Excel and provide the results in your post along with your raw data. Looking at the R² value, explain what this indicates about the strength of the relation. Then write out your Regression Equation, state if your p-value and conclusion.

Question 6 Oriole Company reported the following amounts for its cost of goods sold and ending inventory: 2021 2020 Cost of goods sold $170,000 $175,000 Ending inventory 30,000 30,000 Oriole made two errors: (1) 2020 ending inventory was overstated by $10,500, and (2) 2021 ending inventory was understated by $9,000. Calculate the correct cost of goods sold and ending inventory for each year. 2021 2020 Correct ending inventory $enter a dollar amount $enter a dollar amount Correct cost of goods sold $enter a dollar amount $enter a dollar amount Describe the impact of the errors on profit for 2020 and 2021 and on owner’s equity at the end of 2020 and 2021. In 2020 profit is select an option by $enter a dollar amount , the amount of the error in ending inventory. This error flows through to owner’s equity in 2020 to produce an select an option of $enter a dollar amount . In 2021 both errors have an impact. The net effect is an select an option of profit by $enter a dollar amount . This is a result of the $10,500 select an option of the beginning inventory plus $enter a dollar amount select an option of ending inventory. Owner’s equity in 2021 would show only an select an option of $enter a dollar amount . The $10,500 select an option of 2020 would be offset by the $10,500 select an option in profit caused by the impact on beginning inventory in 2021

Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020.

1. Pearl Co. has developed the following schedule of future taxable and deductible amounts.

2. Martinez Co. has the following schedule of future taxable and deductible amounts.

Both Pearl Co. and Martinez Co. have taxable income of $3,600 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 30% for 2020–2023 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities.

1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation one.

2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation two.

Amortize a $35,000 car loan with a 5% annual interest rate and payments for 60 months (4) What is the monthly payment? (5) What will the balance on the loan be after 2 years of payments? (Assume that you just took out the loan) (6) How many months will it be before the car is halfway paid off?

A spring hangs from the ceiling. A block of 0.450 kg is tied to the other end of the spring. When released from rest, the block lowers 0.150 m before momentarily reaching rest, after which it moves upwards. (1) What is the spring constant, K? (2) Calculate the angular frequency of the vibrations of the block.

With the decrease in gas prices, demand has shifted toward large cars and SUV's, away from hybrid cars like the Prius. Draw a graph showing the supply and demand for hybrid cars before and after the decrease in the price of gas. What do you predict will happen to the price of hybrids as the price of gasoline falls?

Vectors p1 = [10 2] and p2 = [2 15] are represented in o₁x₁y₁ coordinate frame. Translate o₁x₁y₁ by t = [30 1]^T and rotate by 45^◦ to obtain o₂x₂y₂. Is the dot product of p₁ and p₂ same in o₁x₁y₁ and o₂x₂y₂?

I believe o₁x₁y₁ and o₂x₂y₂ are the pair of vectors before and after the translation and rotation