Atlantic Imports, a U.S. company, acquired a wholly-owned subsidiary, located in Portugal, on January 1, 2018 for €200,000,000. The subsidiary’s functional currency is the euro. The balance sheet of the subsidiary at the date of acquisition was as follows: Assets Current assets € 30,000,000 Noncurrent assets, net 150,000,000 Total assets €180,000,000 Liabilities and Stockholders' Equity Liabilities € 60,000,000 Capital stock 80,000,000 Retained earnings 40,000,000 Total liabilities and stockholders' equity €180,000,000 Appropriate revaluations of the subsidiary’s assets at the date of acquisition are as follows: Inventories are undervalued by €500,000. The subsidiary uses FIFO. Noncurrent assets are undervalued by €10,000,000. The noncurrent assets have a 10-year remaining life, straight-line. Identifiable indefinite life intangible assets, previously unreported, have a fair value of €5,000,000. During 2018 there was no impairment of either identifiable intangible assets or goodwill. The exchange rate on January 1, 2018 was $1.10/€. The average rate for 2018 was $1.12/€, and the rate at the end of 2018 was $1.15/€. The excess of acquisition cost over book value for this acquisition, in U.S. dollars, is: The entries required to consolidate the balance sheets of Atlantic Imports and its subsidiary at the date of acquisition include recognition of goodwill of: The entries required to consolidate the balance sheets of Atlantic Imports and its subsidiary at the date of acquisition include an increase in the subsidiary's noncurrent assets in the amount of: At the end of 2018, consolidation eliminating entry (R) includes a debit to current assets in the amount of: At the end of 2018, consolidation eliminating entry (O) includes a debit to depreciation expense in the amount of: At the end of 2018, consolidation eliminating entries (R) and (O) together will have what effect on consolidated other comprehensive income (increase or decrease)?

Solomon Manufacturing Company was started on January 1, 2018, when it acquired $80,000 cash by issuing common stock. Solomon immediately purchased office furniture and manufacturing equipment costing $9,100 and $33,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,500 salvage value and an expected useful life of four years. The company paid $11,300 for salaries of administrative personnel and $15,600 for wages to production personnel. Finally, the company paid $13,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Solomon completed production on 4,800 units of product and sold 3,880 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.)

Presented below is income statement information of the Nebraska Corporation for the year ended December 31, 2018.

Required:

Prepare the necessary closing entries at December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the entry to close the revenue and losses using the income summary.

Record the entry to close the expense accounts using the income summary.

Record the entry to close the income summary account.

Question 15

At December 31, 2017, the available-for-sale debt portfolio for Bramble, Inc. is as follows:

Security Cost Fair Value Unrealized Gain (Loss)

A $62,125 $53,250 $(8,875 )

B 44,375 49,700 5,325

C 81,650 90,525 8,875

Total $188,150 $193,475 5,325

Previous fair value adjustment balance—Dr. 1,420

Fair value adjustment—Dr. $3,905

On January 20, 2018, Bramble, Inc. sold security A for $53,605. The sale proceeds are net of brokerage fees.

Bramble Inc. reports net income in 2017 of $426,000 and in 2018 of $497,000. Unrealized holding gains and gains equal $142,000 in 2018.

Prepare a statement of comprehensive income for 2017, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2017  

Prepare a statement of comprehensive income for 2018, starting with net income. BRAMBLE, INC Statement of Comprehensive Income For the Year Ended December 31, 2018

1. Wing Sdn.Bhd is responsibility to pay royalties of RM70,000 to Way Pte Ltd for the financial year ended 31 December 2018. Wing Sdn.Bhd paid RM63,000, net of tax to Way Pte Ltd on 30 December 2018.

The company claimed the entire RM70,000 as a tax deduction to arrive at the chargeable income of RM800,000 for Y/A 2018.

Wing Sdn.Bhd submits its tax return Form C for Y/A 2018 on 31 July 2019, showing a tax charge of RM192,000 (24% of RM800,000). As at 31 August 2019, Wing Sdn Bhd did not yet submit the Withholding tax to IRB.

Required:

1. Compute the amount of penalty that the Director General can impose on Wing Sdn.Bhd for Y/A 2018.

2. Compute the amount due to IRB as at 31 August 2019.

2. Would your answer be the same in (b) if Wing Sdn Bhd is a pioneer company enjoying full income tax exemption under the Promotion of Investment Act 1986?

Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2011. The company began 2018 with the following inventory layers (listed in chronological order of acquisition):

During 2018, 40,000 units were purchased for $20 per unit. Due to unexpected demand for the company's product, 2018 sales totaled 49,000 units at various prices, leaving 26,000 units in ending inventory.

Required:
1. Calculate cost of goods sold for 2018.
2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2018 financial statements. Assume an income tax rate of 40%.
3. If the company decided to purchase an additional 9,000 units at $20 per unit at the end of the year, how much income tax currently payable would be saved?
  

the accounts reciavable balance by highland company at 31, 2017 was 25 ,000 during 2018 highland earned revenue of 452,000 on account and collected 329,000 on account , hihgland wrote off 5,400 reciavable as uncollective Industry experience suggests that uncollectible accounts will amount to 6% of accounts receivable. Assume highland had an unadjusted 2,000 credit balance in allowance for bad debts at December 21 , 2018 , journalize highland December 31 , 2018 , adjustment to record a bad debt expense using the percent -of- receivables method ( record debits first , then credits , selec the explanation on the las line of the journal entry table.) Assume highland had an unadjusted 1,800 debit balance in allowance for bad debts at December 31 . 2018 . journalize highlands December 31 , 2018 adjustment to record bad debts exprense using the percent of reciables method( record debits first , then credits , selec the explanation on the las line of the journal entry table)

On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Jackson sold 6,000 of the treasury shares on September 30, 2018, for $47 per share. Net income for 2018 was $180,905. Also outstanding at December 31, 2017, were fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40. These stock options were exercised on November 1, 2018. The market price of the common shares averaged $50 during 2018.

1. Compute basic EPS rounded to the nearest cent

2. Compute diluted EPS rounded to the nearest cent

Provide explanation for each number in both the denominator and numerator

On January 1, 2018, a machine was purchased for $117,500. The machine has an estimated salvage value of $10,400 and an estimated useful life of 5 years. The machine can operate for 119,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 23,800 hrs; 2019, 29,750 hrs; 2020, 17,850 hrs; 2021, 35,700 hrs; and 2022, 11,900 hrs.

(a)

Compute the annual depreciation charges over the machine’s life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)