The Association of Sugar Cane Growers in the country plans to form a Company. The association is not sure yet on the kind of business they should venture in though they know that it should be in the sugar cane industry. The company should either be producing sugar known as option C, or producing biofuel referred to option D or just produce sugar cane and sell to sugar-producing organizations - option E. Information pertaining to investment requirements is given in the table below. The costs/revenue are in US $.

Using a discount rate 0f 12%

create statement of retained earnings & balance sheet

(TCO C) What are intangible assets?

How are limited-life intangibles accounted for subsequent to acquisition?

On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co. for an initial franchise fee of $100,000. The agreement provides that the fee is not refundable and no future services are required of the franchisor. The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually. Molden's revenue from the franchise for 2018 was $1,800,000. Molden estimates the useful life of the franchise to be 10 years.

Instructions:

1. Show a schedule of what should be shown in the Intangible Assets Section of Molden's Balance Sheet at December 31, 2018. Show supporting computations in good form.

2. Show a schedule showing all the expenses resulting from these transactions that would appear on Molden's Income Statement for the year ended December 31, 2018. Show supporting computations please.

(TCO C) What are intangible assets? How are limited-life intangibles accounted for subsequent to acquisition? On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co. for an initial franchise fee of $100,000. The agreement provides that the fee is not refundable and no future services are required of the franchisor. The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually. Molden's revenue from the franchise for 2018 was $1,800,000. Molden estimates the useful life of the franchise to be 10 years. Instructions: 1. Show a schedule of what should be shown in the Intangible Assets Section of Molden's Balance Sheet at December 31, 2018. Show supporting computations in good form. 2. Show a schedule showing all the expenses resulting from these transactions that would appear on Molden's Income Statement for the year ended December 31, 2018. Show supporting computations please.

Please answer the next 6 questions based on the information provided in the table above for a profit-maximizing firm producing HD TVs. Any of the three output combinations of HD TVs can be produced for the same cost. And to produce any one of the combinations requires that the firm operate at full capacity. The profit associated with combination A is $300. The revenue generated from C is $2,180.

1. The profit generated by producing combination C is _____ dollars.
2. The revenue generated by producing combination B is _____ dollars.
3. The cost of producing combination B is ______ dollars.
4. This firm will earn a profit of_____ dollars.
5. How many Large Screen tvs will this firm produce? _______
6. If the product price of a large screen TV increases by $5, ceteris paribus, then this firm will earn a profit of _____ dollars.

The legislature of the State of Texas has adopted a series of laws which impose a charge on business entities operating within the State. They say this is not an income tax because the taxpayer can use several different bases for calculating the amount of money due the State. Because of the federal system under which we operate, each state has legal jurisdiction over the entities operating within the bounds of the state. The legal reach of the state does not extend beyond the borders of the state for tax purposes. The legislature of the State of Texas has recognized that it is inappropriate to levy a tax on the sales value of items being shipped outside the State of Texas for consumption. The authorities will tell you that the Franchise Tax is a charge because the state has given a business the privilege of operating within the bounds of the state. The law in Texas provides for an allocation of sales revenue between Texas and other jurisdictions. Please prepare a short memo explaining the revenue allocation process.

Required information

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

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $20.1 million in iTunes gift cards in November, and customers redeem $13.1 million of the gift cards in December.

Required:

1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)

1. Record the receipt of cash for gift cards.

2. Record the revenue recognized from redemption of gift cards.

3. What is the ending balance in the Deferred Revenue account? (Enter your answer in dollars, not in millions. (i.e. 5.5 should be entered as 5,500,000).)

Discussion Question - There is an ongoing debate about the roles of quantitative and qualitative inputs in demand estimation and forecasting. Those in the qualitative camp argue that statistical analysis can only go so far. Demand estimates can be further improved by incorporating purely qualitative factors. Quantitative advocates insist that qualitative, intuitive, holistic approaches only serve to introduce errors, biases, and extraneous factors into the estimation task.

Suppose the executive for the theater chain is convinced that any number of bits of qualitative information (the identity of the director, the film’s terrific script and rock-music sound track, the Hollywood “buzz” about the film during production, even the easing of his ulcer) influence the film’s ultimate box-office revenue.

How might one test which approach—purely qualitative or statistical— provides better demand or revenue estimates? Are there ways to combine the two approaches? Provide concrete suggestions.

15. Consider an orange island economy that consists of only two companies: an orange company that produces oranges and an orange juice company that purchases oranges from the orange company to produce orange juice. Their income statements in 2015 are as follows:

Orange Company:

   Wages paid to employees                           $15,000

   Taxes paid to government                          $ 5,000

Sales revenue:

             Oranges sold to public                        $10,000

             Oranges sold to Juice Corp.                $25,000

Orange Juice Company:

   Wages paid to employees                           $10,000

   Taxes paid to government                          $ 2,000

   Juice boxes imported from China               $ 1,000

   Oranges purchased from orange corp.        $25,000

   Sales revenue                                              $40,000

1. Please calculate the 2015 GDP of this economy using Product approach, income approach and expenditure approach.
2. Suppose that, in addition to above transactions, the juice company imported juice boxes from China for $1000. Again, calculate the 2015 GDP of this economy using Product approach, income approach and expenditure approach.

On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $69,000 and will receive an additional 10% of the fixed fee at the end of the contract provided that building occupancy exceeds 80%. Royal estimates a 20% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.

Assume Royal estimates variable consideration as the expected value. How much revenue should Royal recognize on this contract in 2021?

Multiple Choice

• $35,190

• $38,250

• $34,500

• $69,000

Which of the following is not a performance obligation?

Multiple Choice

• A good that the seller could sell separately and that is separately identifiable from other goods or services in the contract.

• An extended warranty.

• A right of return.

• An option for a customer to purchase goods under terms that are more advantageous than those enjoyed by other customers.