(ii) Broadoak acquired a 12-year lease en a property on 1 October 2016 at a cost of S240,000. The company policy is to revalue its properties to their market values at the end of each year. Accumulated amortization is eliminated and the property is restated to the revalued amount. Annual amortization is calculated on the carrying values at the beginning of the year, The market values, of the property on 30 September 2017 and 2018 were $231,000 and $175,000 respectively, The existing balance on the revaluation reserve at 1 October 2016 was S50,000. This related to some non-depreciable land whose value had not changed significantly since 1 October 2016.

Required: Prepare extracts of the Fiancial statements of of Broadoak. (including the movement on the revaluation reserve) for the years to 30 September 2017 and 2018 in respect of the leasehold property

Dollar-Value LIFO

Belstock Company manufactures one product. On December 31, 2015, Belstock adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $200,000. Inventory data for succeeding years are as follows:

Required:

Compute the ending inventory using the dollar-value LIFO method for 2016, 2017, and 2018. Do not round your intermediate calculations. If required, round your answers to the nearest dollar.

Suppose that Nissan produced 1,000 new XTerra sport utility vehicles at its factory in Tennessee in December 2015. In January 2016, these vehicles were transported to dealers and were later sold to customers. Which of the following statements are true?

• A. Because the vehicles were produced in 2015, their value should be included in real GDP for 2015.

• B. Because the vehicles were not purchased until 2016, their value should not be included in real GDP for 2015.

• C. Under the expenditure approach, these vehicles should be included as expenditure on investment in 2015.

• D. Under the expenditure approach, these vehicles should be included in net exports for 2016 because Nissan is headquartered in Japan.

• E. Both (a) and (c) are true.

• F. Both (b) and (d) are true

• G. None of the above statements are true.

ABC Furniture Company started construction of a office building for it’s own use at an estimated cost of $5,000,000 on January 1, 2016. ABC expected to complete the building by December 31, 2016. ABC has the following debt obligations outstanding during the construction period.

Construction Loan­ 12% interest, payable semiannually, issued December 31, 2015 $2,000,000

Short Term Loan ­ 10% interest, payable monthly, and principal payable at maturity on May 30, 2017 $1,400,000

Long­term loan – 11% interest, payable on January 1 of each year. Principal payable on January 1, 2019 $1,000,000

Assume that they completed the office building on December 31, 2016 as planned and the weighted average of accumulated expenditures was $3,600,000. What is the avoidable interest and the total cost capitalized for this building including interest?

Separate income statements of quail corp and its 80% owned subsidiary, Savannah corp, for 2016 are as follows:

Quail Savannah

sales rev 800,000 300,000

gain on equipment 35,000

cost of sales (400000) (160000)

other expenses (265000) (60000)

separate incomes 135000 115000

addiitonal information:

1. quail acquired its 80% interest in savannah corporation when the book values were equal to the fair values.

2. the gain on equipment relates to eqiupment with a book value of 85000 and a 7yr remaining useful life that svannah sold to quail for 120,000 on jan 1 2016. straight line depreciaiton method is used

required:

prepare a consolidated income statement for quail corp and subsidiary for the year 2016 by preparing a consolidated wokrsheet

please show all work

Madison Corporation is authorized to issue $500,000 of 5-year bonds dated June 30, 2016, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2016.

Required:

Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.)

Bryan Company issued $500,000 of 10% face value bonds on January 1, 2016, for $486,000. The bonds are due December 31, 2018, and pay interest semiannually on June 30 and December 31. Bryan uses the straight-line amortization method.

Required:

1. What is the future value on December 31, 2022, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2016, and interest at 9% compounded annually? Round your answer to two decimal places.

3.What is the present value on January 1, 2016, of 7 equal future annual receipts of $30,000 if the first receipt is received on January 1, 2017, and the interest rate is 10% compounded annually? Round your answer to two decimal places.

4.What is the future value on December 31, 2021, of 6 annual cash flows of $50,000 with the first cash flow being made on December 31, 2016, and interest at 9% compounded annually? Round your answer to two decimal places.