Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $656,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

a. What is the maximum amount of §179 expense TDW may deduct for 2020?

b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2020 on the assets it placed in service in 2020, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 98.

Prepare entries to record issuance of bonds, interest accrual, and bond redemption.

Instructions

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020.
2. At December 31, 2020, $8,000 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2020.
3. On January 1, 2022, when the carrying value of the bonds was $5,896,000, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid.

Please show all work!

Excavation Co., a publicly-traded company, has a December 31 year end. For the 2020 fiscal year, there were 100,000 common shares outstanding all year. Net income for the year ended December 31, 2020 was $900,000. The company’s income tax rate is 25%. During 2019, Spade issued a $5,000,000, 5% convertible bond at par. Each $1,000 bond is convertible into 20 common shares. No bonds have been converted as of December 31, 2020. Also during 2019, Spade issued 100,000, $2 cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. The preferred share dividend was declared and paid in June, 2020. Required : Calculate basic and diluted earnings per share for 2020.

Below is the financial data of FIT Corp. at the end of January 31, 2020. Prepare a traditional income statement. Show your calculations of the numbers that are not directly given.

1. Direct Materials used      $70k
2. Direct labor hour recorded:    1600
3. Average DL hourly pay:   $35
4. Applied Overhead   $50k
5. Work In Process (WIP), Jan.1, 2020        $20k
6. WIP, Jan.31, 2020                    $10k
7. Finished Goods Inventory, Jan. 1, 2020 $40k
8. Finished Goods Inv., Jan. 31, 2020 $30k
9. Other expenses paid for during January are:
10. Salesmen, executives, and other corporate employees salary and bonuses $100k
11. New vehicle bought on credit and put in use on 1/1/2020. $24k, 10 years life
12. Rent and utilities paid for the first quarter    $33k
13. Shipped products $800k
14. Collected payment $600k
15. No interest payment made. Tax rate is 21%

Please show the calculations please, thank you!

Piece of Time is a manufacturer of wrist watches and relies heavily on advertising to promote its products. Its partially filled Prepaid Advertising account below is missing an additional $44,000 (GST-inclusive) prepaid for advertising by Piece of Time on October 8, 2020 and the recognition of advertising expense for the month of October 2020.

Required:

Complete the Prepaid Advertising 3-column ledger below to find out the amount of advertising expense incurred by Piece of Time in October 2020. GST needs to be accounted for.

Using the General Journal below, record the additional $44,000 (GST-inclusive) prepaid for advertising and record the advertising expense for the month of October 2020 following the completion of Prepaid Advertising 3-column ledger above. GST needs to be accounted for. Narrations are not required.

1. On December 31, 2020, for GAAP purposes, Clubs Inc. reported a balance of $40,000 in a warranty liability for anticipated costs to satisfy future warranty claims. No claims were paid in 2020. Pretax GAAP income is $300,000 and the tax rate is 25%. Assume no other differences between the tax bases and GAAP bases of assets and liabilities, or any beginning balances in deferred tax accounts.

Required:

1. Record the income tax journal entry on December 31, 2020.

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b. Assume that there was a December 31, 2019, balance of $4,000 in the DTA account. Record the income tax journal entry on December 31, 2020.

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2. In 2020, Cardinals Company operated at a tax loss, totaling $88,000 during its first year of business. Assuming a tax rate of 25%, and that income is expected in 2021, record the entry to reflect the tax benefit of the net operating loss on December 31, 2020. Cardinals Company determined that it was more likely than not that 75% of the deferred tax asset would not be realized.

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(a) George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $

1.Pharoah Company sells TVs. The perpetual inventory was stated as $37,200 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.

1. TVs shipped to a customer January 2, 2021, costing $5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021.

2. TVs costing $15,800 received December 30, 2020, were recorded as received on January 2, 2021.

3. TVs received during 2020 costing $4,900 were recorded twice in the inventory account.

4. TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost $10,900, were not received by the customer until January, 2021. The TVs were included in the ending inventory.

5. TVs on hand that cost $6,300 were never recorded on the books.

Compute the correct inventory at December 31, 2020.

On November 15, 2020, a fire destroyed Youngstown Inc.’s warehouse where inventory is stored. It is estimated that $20,000 can be realized from sale of usable but damaged inventory. The accounting records concerning inventory reveal the following. Based on recent records, gross margin has averaged 35% of net sales.

a. Calculate the estimated loss of inventory using the gross profit method.
b. Assume instead that the markup is 35% of cost. Estimate the loss of inventory using the gross profit method.

• Do not round the gross profit percentage used in your calculations.
• Round your final answers below to the nearest dollar.

a. Estimated loss of inventory assuming a 35% markup on sales:

b. Estimated loss of inventory assuming a 35% markup on cost:

Consider the following table of activities A through E in which A is the start node and E is the stop node. Assume the project starts on Monday, May 4, 2020 and no work is done on weekends (Saturday and Sunday). All activities require the same resource. Assume no working-day holidays during the months of May and June—no Memorial Day holiday, for example.

On a piece of scratch paper, draw the early-start Gantt Chart associated with this table. Assume the project is resource-constrained but not time-constrained. Assume only one resource is available and that resource can only do one activity at a time. Given that the Month of May has 31 days, what would be the completion date for the project?

• Monday, June 8, 2020

• Wednesday, June 10, 2020

• Friday, June 5, 2020

• Thursday, June 11, 2020

• Thursday, June 4, 2020