ABC Company purchased a mine in 2017 for $3,400,000. It was estimated that the mine contained 200,000 tons of ore and that the mine would be worthless after all of the ore was extracted. The company extracted 25,500 tons of ore in 2017 and 30,000 tons of ore in 2018. In 2017, ABC Company sold 22,000 tons of ore. In 2018, the company sold 15,000 tons of ore. What is book value of the mine at December 31, 2018

On 1/1/2018, Diebergs market invested $200m in the equity of Maul's BBQ sauce, which represented a 25% ownership stake. In 2018, Maul's had net income of $10 and declared dividends totaling $10.

1) Record all transaction that Diebergs Co would record in 2018 related to its invested in Maul's under the

a Equity method

b. Cost method

c Fair value method

On January 1st, 2018, MTU Inc. purchased 25,000 of the 100,000 common shares of Blizzard Co. for $14 per share. Blizzard declared a dividend of $30,000 on June 30th, 2018. On Dec. 31, 2018, Blizzard reported net income of $400,000 and the fair market value of its stock at that point in time was $18 per share.

Prepare all necessary journal entries relating to this investment for MTU Inc.

Boxer Corporation has consistently used the percentage-of-completion method of recognizing income. In 2018, Boxer started work on a $45,000,000 construction contract that was completed in 2019. The following information was taken from Boxer's accounting records in 2018.

Progress billings $15,400,000

Costs incurred 14,700,000

Collections 9,600,000

Estimated costs to complete 21,400,000

What amount of gross profit should Boxer have recognized in 2018 on this project?

On January 1, 2018, Ellison Co. issued 9 year bonds with a face value of $250,000,000 and a stated interest rate of 7.5%, payable semiannually on July 1 and January 1. The bonds were sold to yield 8%.

a. The issue price of the bonds is

b. Record the issuance on January 1, 2018.

c. Prepare the journal entries for the interest expense and payments for 2018, 2019, 2020, 2021 and 2022.

On January 2, 2018, Smith Co. leased equipment, with a fair value of $750,000, under a capital lease calling for seven annual lease payments of $130,000 beginning January 2, 2018. Smith's incremental borrowing rate on the date of the lease was 10%. However, the lessor's implicit rate, which was known by Smith, was 8%. Provide the amortization table for the lease and the journal entries required for year ended 2018 and 2020.

ABC Pty Ltd sells upmarket washing machines. It had $200,000 stock on hand at the beginning of the 2017/2018 financial year. It purchased $50,000 of additional trading stock during the income year. The closing stock on hand was $130,000.

At the beginning of the 2018/2019 financial year ABC Pty Ltd had $130,000 stock on hand. It did not purchase any stock during the year as it was having financial difficulties. In fact, in September 2018 ABC gave two washing machines to a creditor as payment in full of the debt it owed to that creditor (ABC owed the creditor $2,000). Each washing machine had cost ABC $1,000 and ABC would usually sell each washing machine for $1,750.

ABC did not sell any stock during the 2018/2019 financial year. Towards the end of that year, a flood swept through the warehouse and all stock was destroyed. ABC did not purchase any replacement stock.

Required: Advise ABC of the tax implications for each of the 2017/2018 and 2018/2019 financial years based on the information above. Where appropriate, support your answer with legislative authority.           

In 2018, Rogan LLC had the following information related to sales and inventory. Rogan uses a perpetual inventory system and the FIFO cost method. All sales and inventory purchases are on account.

On January 1, 2018, Rogan reported:

Inventory                                                         $30,000 (3,000 units at a cost of $10/unit)

In 2018, Rogan had the following inventory transactions (in chronological order):

Purchased, on account, 5,000 units at a cost of $12/unit.

Sold, on account, 6,000 units at a selling price of $25/unit; terms included sales discount.

Received $135,000 on account from customers who owed $140,000; $5,000 taken in discounts.

Purchased, on account, 8,000 units at a cost of $15/unit.

Sold, on account, 9,000 units at a selling price of $30/unit; terms included sales discount.

Received $250,000 on account from customers who owed $260,000; $10,000 taken in discounts

Requirement 1: Record the 2018 inventory transactions.

Requirement 2: Determine 2018 net sales.

Requirement 3: Determine 2018 gross profit.

Requirement 4: Determine the 12-31-18 balances for Accounts Receivable and Inventory.

On January 1, 2018, Pine Company owns 40 percent (80,000 shares) of Seacrest, Inc., which it purchased several years ago for $448,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $580,000. Excess patent cost amortization of $24,000 is still being recognized each year. During 2018, Seacrest reports net income of $582,000 and a $240,000 other comprehensive loss, both incurred uniformly throughout the year. No dividends were declared during the year. Pine sold 16,000 shares of Seacrest on August 1, 2018, for $168,759 in cash. However, Pine retains the ability to significantly influence the investee. During the last quarter of 2017, Pine sold $60,000 in inventory (which it had originally purchased for only $36,000) to Seacrest. At the end of that fiscal year, Seacrest's inventory retained $13,900 (at sales price) of this merchandise, which was subsequently sold in the first quarter of 2018. On Pine's financial statements for the year ended December 31, 2018, what income effects would be reported from its ownership in Seacrest?