Blossom Ltd. purchased a new machine on April 4, 2014, at a cost of $ 197,600. The company estimated that the machine would have a residual value of $ 14,000. The machine is expected to be used for 10,200 working hours during its four-year life. Actual machine usage was 1,500 hours in 2014; 2,300 hours in 2015; 2,200 hours in 2016; 2,100 hours in 2017; and 2,100 hours in 2018. Blossom has a December 31 year end.

Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)

(1) Straight-line for 2014 through to 2018.

2014 Expense

2015 Expense

2016 Expense

2017 Expense

2018 Expense

(2) Diminishing-balance using double the straight-line rate for 2014 through to 2018.

2014 Expense

2015 Expense

2016 Expense

2017 Expense

2018 Expense

(3) Units-of-production for 2014 through to 2018.

2014 Expense

2015 Expense

2016 Expense

2017 Expense

2018 Expense

Culver Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $14,097 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are available for computations.

Compute the cost of the 2017 ending inventory under both:

(a) The conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using the conventional retail method $______

(b) The LIFO retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.)
Ending inventory at cost $____

Ending inventory at retail $____

ON JANUARY 1, 2016 FLORIDA PURCHASED ALL THE OUTSTANDING COMMON SHARES OF SUNSHINE CO FOR $3,500,000 CASH.AT THE DATE OF ACQUISITION, SUNSHINE EQUITY ACCOUNTS HAD THE FOLLOWING BALANCES:

COMMON STOCK$500,000

PAID IN CAPITAL$1,800,000

RETAINED EARNINGS$700,000

ALL OF SUNSHINE'S ASSETS WERE FAIRLY STATED EXCEPT FOR THE FOLLOWING:

EQUIPMENT: BOOK VALUE $180,000, FAIR VALUE $270,000, EST LIFE 5 YEARS

BUILDING: BOOK VALUE $600,000, FAIR VALUE $800,000, EST LIFE 10 YEARS

SUNSHINE ALSO HAD A COPYRIGHT WITH A FAIR VALUE OF $160,000 WITH A REMAINING OF 5 YEARS

DURING 2016, SUNSHINE REPORTED NET INCOME OF $1,325,000 AND PAID DIVIDENDS OF $850,000

DURING 2017, SUNSHINE REPORTED NET INCOME OF $900,000 AND PAID DIVIDENDS OF $1,100,000

REQUIRED:  

A.) ANALYZE THE PURCHASE PRICE AND PREPARE A SCHEDULE ALLOCATING THE PURCHASE PRICE

B.)  ASSUME THAT OHIO USES THE EQUITY METHOD TO ACCOUNT FOR ITS INVESTMENT IN BUCKEYE.  PREPARE ALL JOURNAL ENTRIES TO BE MADE ON ITS BOOKS FOR 2016 AND 2017.  EXPLAIN WHY THE ENTRIES ARE MADE.

C.) PREPARE THE CONSOLIDATION WORKSHEET ENTRIES FOR THE YEAR ENDED 2016 AND 2017.  EXPLAIN WHY THE ENTRIES ARE MADE.

1.On January​ 1, 2016, TXU Europe Corporation purchased​ 40% of the outstanding stock of Alberta Power Pool Corporation for​ $800,000. Net income reported by Alberta Power Pool Corporation for 2016 and 2017​ was, respectively,​ $100,000 and​ $125,000. Dividends paid by Alberta Power Pool Corporation during 2016 and 2017​ were, respectively,​ $60,000 and​ $75,000. The long−term investment will appear on TXU Europe​ Corporation's December​ 31, 2016, balance sheet​ at:

A.​$800,000

B.​$776,000

C.​$816,000

D.​$840,000

2. The adjusting entry for investments at fair value through other comprehensive income contains a credit to Investments for​ $651. The income statement will​ reflect:

A.other comprehensive​ income/loss of​ ($651)

B.an extraordinary gain of​ $651

C.revenue of​ $651

D.​nothing, because​ gain/loss is not reported on the income statement

3.The​ Gain/Loss on Investment account may appear on which financial​ statement?

A.the income statement under the​ "other income/expense" section

B.the balance sheet under the​ "assets" section as a contra asset

C.the balance sheet under the​ "liabilities" section

D.the balance sheet as part of the​ shareholders' equity

The following information is available for Gildan Activewear Inc., headquartered in Montreal, for three recent fiscal years (in U.S. $ thousands):

Calculate the inventory turnover, days in inventory, and gross profit margin for 2016 and 2015. (Round inventory turnover and gross profit margin ratio to 1 decimal place, e.g. 15.2. Round days in inventory to nearest day. Use 365 days for calculation.)

Based on the ratios calculated in part (a), did Gildan’s liquidity and profitability improve or deteriorate in 2016?

Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2016 were as follows:

The December 31, 2016, inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system.

Required:

a-1. Compute ending inventory valuation at December 31, 2016, under the FIFO and LIFO cost flow assumptions.
a-2. Is there any difference in valuation under FIFO and LIFO.
b. If the cost of mowers had increased to $960 each by December 1, and if management had purchased 30 mowers at that time and if it wants to minimize taxes, which cost flow assumption was probably being used by the firm?

A company has the following investment activity during 2016 and 2017:

Security E is impaired in 2017, but is not impaired in 2016. Security F is not impaired in 2017.

Required

a. Prepare the journal entries to record the above information for 2016 and 2017, assuming the company’s

reporting year ends December 31.

b. Show how this information is presented in the company’s balance sheet, income statement, and

statement of comprehensive income for 2016 and 2017.

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015. The summarised draft statements of profit or loss for Tulip Co and Daffodil Co for the year ended 31 May 2016 are shown below:

During the year Tulip Co sold goods costing €1,000,000 to Daffodil Co for €1,500,000. At 31 May 2016, 30% of these goods remained in Daffodil Co’s inventory.

Required:

Prepare the Tulip group consolidated statement of profit or loss for the year ended 31 May 2016 by writing the appropriate numbers in the blanks.

TULIP GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MAY 2016

The following details are for questions 16–20. Each individual question will appear below the details. Caterpillar Inc (CAT) has the following excerpts from their financial statements: CAT Financial Statements Item December 31, 2016 December 31, 2015 December 31, 2014 Inventory (in $ Millions) 9,615 9,700 12,205 Net Income (in $ Millions) (67) 2,512 2,452 Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2016 and 2015. If the FIFO (first-in, first-out) method had been in use, inventories would have been $1,639 million and $2,498 million higher than reported at December 31, 2016 and 2015, respectively. Assume a corporate tax rate of 35%. Question If CAT had used FIFO method instead of LIFO method...

The amount that would be added to CAT’s retained earnings at December 31, 2016, (rounded to the nearest million) is: Group of answer choices $1,390 Million $1,065 Million No change in retained earnings $749 Million