The pretax financial income of Indigo Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $310,000 $183,000 35 % 2021 308,000 231,000 20 % 2022 345,000 279,000 20 % 2023 408,000 535,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,900 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020.

Collapse question part (a) Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021.

OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans. It is hoping to raise $10 million dollars from a debt issuance. It is considering the following options:

A. Issue 2-year 8% debentures at par on January 1, 2019. Interest payments are made annually at the end of each year. The debenture matures on December 31, 2020.

B. Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A.

Please Show Journal entries and working for option A and B

Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: Year Nature of Item Cash Inflow Cash Outflow 2018 Purchase price $ 94,800 2018 Revenue $ 38,500 2019 Revenue 38,500 2020 Revenue 27,500 2020 Major overhaul 9,700 2021 Revenue 24,500 2022 Revenue 22,500 2022 Salvage value 8,500 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches.

On January 1, 2017, AJ Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 including accrued interest; the remainder were held until maturity.

Prepare an investment interest income and bond premium amortization schedule using the effective interest method.

Prepare the journal entries to record the purchase of the bonds.

Prepare the journal entries to record each interest payment.

Prepare the journal entries to record the partial sale of the investment on March 31, 2018, and the retirement of the bond issue on June 30, 2020.

Required information

[The following information applies to the questions displayed below.]
  
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Germany has given Zambia a K370 million rapid response package to mitigate the effects of COVID – 19 (Coronavirus), especially on the vulnerable. The support is focusing on expanding social protection measures through social cash transfers and supporting health systems in combating the pandemic by procuring medical supplies like protective equipment, essential medicines, and enhancing testing and laboratory capacity (Tuesday, May 12, 2020: Zambia Daily Mail.)
In April, 2020, Trade Kings made a contribution of K155, 000.00 to the fight against the spread of COVID – 19 (Coronavirus) in Zambia. What justification do you think the company management should give or will give to the owners of the business for taking such a commendable action? Is there any Economic benefit in taking such an action? .
(Be constructive and Analytical in your justification)

SQL

A manufacturing company’s data warehouse contains the following tables.

Region

Note: (p) = "primary key" and (f) = "foreign key". They are not part of the column names.

Product

Sales_Totals

Answer the following questions using the above tables/data:

6. Write a set of SQL statements which will add a row to the Region table for Europe, and then add a row to the Sales_Total table for the Europe region and the Sprocket product (product_id = 7684) for October 2020, with a sales total of $1,500. You can assign any value to the region_id column, as long as it is unique to the Region table. The statements should be executed as a single unit of work. Please note that since the statements are executed as a single unit of work, additional code is needed.

Required:

1. Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
2. Calculate return on equity for 2020 and 2019.
3. Calculate working capital and the current ratio for each of the past three years.
4. Calculate earnings per share for 2020 and 2019.
5. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock?
6. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
7. Calculate the dividend payout ratio for 2020.
8. Assume that accounts receivable at December 31, 2020, totaled $311 million. Calculate the number of days' sales in receivables at that date.
9. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
10. Calculate the times interest earned ratio for 2020 and 2019.

“The U.S. House of Representatives on Friday approved an unprecedented $2.2 trillion stimulus package to alleviate the economic devastation of the coronavirus pandemic and sent it to President Donald Trump to sign into law.” 28 March 2020 Below is one of the elements of the package: Enhanced unemployment aid Payments for jobless workers would increase by $600 per week. Laid-off workers would get those payments for up to four months. Regular benefits, which typically run out after six months in most states, would be extended for an additional 13 weeks. Self-employed workers, independent contractors, and those who typically don’t qualify for unemployment benefits would be eligible. The government would also partially make up wages for workers whose hours are scaled back, in an effort to encourage employers to avoid layoffs. Estimated cost: $260 billion

How do you think the above -mentioned component of the package could affect unemployment rates and GDP of the US?