Simpson Company purchased a new machine for $80,000 on January 1, 2017. The machine has an expected salvage value of $5,000, and is expected to used 187,500 hours over its estimated useful life of 15 years. Actual hours used were 11,000 in 2017 and 13,000 in 2018. Determine the following:

________________ Depreciation expense for 2017 under the straight-line method

________________ Depreciation expense for 2018 under the straight-line method

________________ Book value at the end of 2018 under the straight-line method

________________ Depreciation expense for 2017 under the units-of-activity method

________________ Depreciation expense for 2017 under the declining balance method

________________ Depreciation expense for 2018 under the declining balance method

1. Zella Co. uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Zella allocates manufacturing overhead costs using direct manufacturing labor costs. Zella provides the following information:

1. Compute the actual and budgeted manufacturing overhead rates for 2018. (1pt)
2. At the end of 2018, compute the under- or overallocated manufacturing overhead under normal costing. Prepare a journal entry to dispose of this amount. (1pt)

Assume that TDW Corporation (calendar-year-end) has 2018 taxable income of $674,000 for purposes of computing the §179 expense. The company acquired the following assets during 2018: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

b. What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2018 on the assets it placed in service in 2018 assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

1. Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows:

                                                2018                       2019                       2020
Costs to date                      $1,500,000           $4,000,000           $6,200,000
Cost to complete             $4,500,000           $2,200,000           $0

Amounts billed to date $1,400,000           $5,800,000           $9,000,000
Amounts collected to date
                                             $1,300,000           $4,300,000           $9,000,000

Determine the gross profit to be recognized for

                                         2018                           2019                   2020

Record all journal entries necessary for 2018 below:

Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in:
                                                2018                       2019                      2020

Super b ​Manufacturing, Inc., reported the following at December​ 31,2018​, and December​ 31, 2019​:

Super b Manufacturing has paid all preferred dividends only through 2015.

Requirement

Begin with 2018. Calculate the total amounts of dividends to both preferred and common stockholders for

2018 if total dividends are $50,000.

Data Table

a research and development project for a new product was initiated on 1 mac 2018 at monthly cost of rm300000. the reseach phase is from mac to may 2018.the development activities started on 1 june 2018 and able to demonstrate that the production process met the criteria for recognition of intangible asset only on 30 september 2018. the total reseach and development cost were incurred evenly every month and the project complete only in april 2019.no transaction have been recorded during the period in the book of accounts of the company. all cost incurred were pay by cheque..
which accounting stnadard is applicable and explain the appropriate accounting treatment. prepare the journal entries..

You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $78 million, had a tax rate of 30 percent, and its depreciation expense was $9 million. Fields and Struthers’ gross fixed assets increased by $44 million from 2017 to 2018. The firm’s current assets increased by $32 million and spontaneous current liabilities increased by $22 million. Calculate Fields and Struthers’ operating cash flow for 2018. Calculate Fields and Struthers’ investment in operating capital for 2018. Calculate Fields and Struthers’ free cash flow for 2018.

At December 31, 2018, the financial statements of Hollingsworth Industries included the following:

Additional data:
The bonds payable were issued at par in 2016. The tax rate for 2018 was 40%.

Required:
Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
  

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:

During 2018, the machine produced 42,000 units and during 2019, it produced 44,000 units.

Required

Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:

[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, 2018, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 62,000 miles in 2021. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

1. a-1. Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.)

a-2. Which company will report the highest amount of net income for 2018?

• Company A

• Company B

• Company C

• All of the choices

Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $9,100 and $24,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid $10,720 for raw materials that were used to make inventory. All inventory was started and completed during the year. Vernon completed production on 4,100 units of product and sold 3,190 units at a price of $15 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)

Required

1. Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.)

2. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.)

3. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.)

4. Determine the amount of net income that would appear on the 2018 income statement. (Round your answer to the nearest dollar amount.)

5. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)

6. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)