1.

In 2020, Elaine paid $2,440 of tuition and $1,160 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband.

What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.)

Elaine’s AGI is $88,000.

What is the American opportunity tax credit?

2. In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

a. What is the maximum amount of education credits Laureen can claim for these expenditures? Laureen's AGI is $45,000. If Laureen claims education credits for her three children and herself, how much credit is she allowed to claim in total? If she claims education credits for her children, how much of her children’s tuition costs that do not generate credits may she deduct as for AGI expenses?

-American opportunity tax credit? _______

Lifetime learning credit?_______

For AGI deduction?_______

3.In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills.

b. Laureen’s AGI is $95,000. What is the maximum amount of education deductions Laureen can claim to the extent the costs don’t generate a credit?

For AGI deduction?_______

4.
In 2020, Laureen is currently single. She paid $2,400 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,400 each for a total of $4,800). Sheri and Meri qualify as Laureen’s dependents. Laureen also paid $1,750 for her son Ryan’s (also Laureen’s dependent) tuition and related expenses to attend his junior year at State University. Finally, Laureen paid $1,250 for herself to attend seminars at a community college to help her improve her job skills. (Leave no answer blank. Enter zero if applicable.)

c. Laureen’s AGI is $45,000 and Laureen paid $12,100 (not $1,750) for Ryan to attend graduate school (i.e., his fifth year, not his junior year).

-American opportunity tax credit? _______

Lifetime learning credit?_______

5.This year Luke has calculated his gross tax liability at $2,240. Luke is entitled to a $3,060 nonrefundable personal tax credit, a $1,830 business tax credit, and a $820 refundable personal tax credit. In addition, Luke has had $2,850 of income taxes withheld from his salary. (Input the amount as a positive value.)

What is Luke’s net tax due or refund?

6.

In 2020, Zach is single with no dependents. He is not claimed as a dependent on another’s return. All of his income is from salary and he does not have any for AGI deductions.

What is his earned income credit in the following alternative scenarios? Use Exhibit 8-10. (Round your intermediate calculations to whole dollar amount. Round your final answer to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

d. Zach is 24 years old and his AGI is $4,100.

What is the earned income credit?_____

7.

Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.

What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios? Use Exhibit 8-9

a. Julie paid $2,180 to the day care center and her AGI is $50,000

What is the child & dependent care credit?___

On August 1, 2020, Kazazis Company sold inventory to Magic Company and received Magic’s 9-month, noninterest-bearing $100,000 note due April 30, 2021. The cash selling price of the inventory was $94,000. The cost of the inventory was $60,000. Kazazis records adjusting entries annually at December 31.

a. Record the August 1, 2020, journal entries (including COGS) for Kazazis.

b. If Kazazis recorded the note as an interest-bearing note on August 1, 2020, (i.e., did not record a discount on the note), how would the financial statements be misstated (overstated/understated and $ amount)?. (Hint: Record the entry without the discount and compare to your answer in part a.)ASSETSLIABILITIESSE2020 NET INCOME$$$$OverstatedOverstatedOverstatedOverstatedUnderstatedUnderstatedUnderstatedUnderstated

c. Record the December 31, 2020, adjusting entry for Kazazis.

d. If Kazazis’ 2020 net income without including the Aug. 1 sale or December 31 adjusting entry was $200,000, what is the correct 2020 net income? Ignore taxes.

e. What amounts related to the note will Kazazis report on its 2020 balance sheet?

f. Record the April 30, 2021, journal entry/entries for Kazazis. (You may choose to record 1 entry as we did in the example in class or 2 entries as required by Connect.)

Blanchard Inc. acquired a packaging machine from CCC Corporation. CCC Corporation completed construction of the machine on January 1, 2020. In payment for the $4 million machine, Blanchard Inc. issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 6%.

1. Prepare the journal entry for Blanchard’s purchase of the machine on January 1, 2020

January 1, 2020:

PVA(i=3%, n=3) = 2.82861, PVA(i=3%, n=6) = 5.41719, PVA(i=6%, n=3) = 2.67301, PVA(i=6%, n=6) = 4.917322. Prepare the partial amortization schedule for the first two years of the 3-year installment note

3. Prepare the journal entry for the installment payments on December 31, 2020 and December 31, 2021.

December 31, 2020:

December 31, 2021

On January 1st 2000 Froto Company acquired 100% of the voting stock of Bilbo Company at book value.

Froto uses the initial value method (cost) and Bilbo doesn't pay any dividends.

On October 1st 2020 Froto sold some merchandise (inventory) to Bilbo company for $1,000,000 credit

the inventory had cost Bilbo $600,000. Both Bilbo and Froto use the perpetual inventory method.

During 2020 Bilbo had sold 70% of the merchandise acquired from Froto for $750,000 but had not paid off Froto

During 2021 Bilbo sold the remaining merchandise for $325,000 and paid off Froto

In 2020 Froto (unconsolidated) reported income of $1,000,000 and Bilbo reported income of $40,000

In 2021 Froto (unconsolidated) reported income of $1,200,000 and Bilbo reported income of $77,000.

Determining Carrying Value and Amortization of Intangible Assets

Review the following information pertaining to Denzel Company.

1. A patent was purchased on January 2, 2018, for $149,500 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition.
2. On January 1, 2020, Denzel Company purchased a second patent for $184,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired.
3. On June 30, 2020, Denzel Company paid a firm $18,400 for a new trademark. Denzel considers the life of the trademark to be indefinite.
4. On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $276,000. Denzel determined that the fair value of the identfiable net assets acquired in the transaction is $269,100.

Note: When answering the following questions, do not round until your final answer. Round your final answer to the nearest whole number.

Required

a. What is the carrying value of intangible assets on December 31, 2020? Assume no impairment losses were recognized in prior periods.

$Answer

b. What is amortization expense for 2020?

$Answer

For each of the following transactions that occurred during the year, indicate the dollar amount to be reported as a current liability as of December 31, 2020. (Enter 0 for amounts if no current liability is to be reported. Do not leave any answer field blank.)

The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. 2016 1. Acquired $79,000 cash from the issue of common stock. 2. Purchased a used wrecker for $41,000. It has an estimated useful life of three years and a $10,000 salvage value. 3. Paid sales tax on the wrecker of $5,000. 4. Collected $65,100 in towing fees. 5. Paid $12,900 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for 2016. 7. Closed the revenue and expense accounts to Retained Earnings at the end of 2016. 2017 1. Paid for a tune-up for the wrecker’s engine, $1,800. 2. Bought four new tires, $2,150. 3. Collected $71,000 in towing fees. 4. Paid $18,900 for gasoline and oil. 5. Recorded straight-line depreciation for 2017. 6. Closed the revenue and expense accounts to Retained Earnings at the end of 2017. 2018 1. Paid to overhaul the wrecker’s engine, $5,700, which extended the life of the wrecker to a total of four years. The salvage value did not change. 2. Paid for gasoline and oil, $20,000. 3. Collected $74,000 in towing fees. 4. Recorded straight-line depreciation for 2018. 5. Closed the revenue and expense accounts at the end of 2018

1. What accounts for the unusual properties of the heart of a shrew? In other words, why is the shrew’s heart unusually large with an unusually slow heart rate?
2. What are the three general components of a circulatory system? Describe the functions of a cardiovascular system.
3. What are the limitations of Diffusion?
4. Describe the 3 main types of pumping structures in animal circulatory systems?
5. Distinguish between open and closed circulatory systems. Is the distinction between open and closed circulatory systems always clear? Distinguish among interstitial fluids, blood, lymph, and hemolymph.
6. Compare and contrast hemocytes found in insects and vertebrates.
7. Describe composition and functions of plasma?
8. Describe functions of the five types of leukocytes?
9. Describe the structure and function of erythrocytes?
10. Describe the structure and function of platelets?
11. How do sponges, cnidarians, and flatworms manage without a circulatory system?
12. Describe the circulatory system of an oligochaete?
13. Compare and contrast the circulatory system of a bivalve and a cephalopod?
14. Compare and contrast the structure and function of the circulatory systems of a branchiopod crustacean and a decapod crustacean?
15. Describe the five common features of crustacean heart?
16. How is the hear of Daphnia magnus different than the typical crustacean heart?
17. Describe the structure and function of the insect circulatory system.
18. Do all animals have a circulatory system? (explain)
19. Closed circulatory systems are usually found in high active organisms with high demands for oxygen or in those living in oxygen limited environments. What is the main exception to this general rule? (explain)

Milo Company buys and sells beach umbrellas. The selling price of each beach umbrella is R150 and it costs the company R70. The company is preparing budgets for the last quarter of the year and has assembled information to assist in the budget preparation. The marketing department has estimated sales as follows for the remainder of the year (in units):

Month Expected demand
September
4 000
October
3 000
November
7 000
December
5 000

The company sold 3 900 beach umbrellas during August and wrote off bad debts of R26 500. All sales are on account. The company normally collects 30% of a month’s sales before the same month ends, collects 40% in the month following the month of the sale and collects 25% two months after the sale. The remaining 5% is written off three months after the sale because it is generally not recoverable. Milo Company expects to sell 2 000 beach umbrellas during January 2020. The company estimates that its bank balance will be sitting at R80 000 at 30 September 2019.
Each beach umbrella is hard to acquire. Therefore, the company requires that the ending inventory of beach umbrellas to be equal to 20% of the following month’s estimated sales needs. Sixty percent of a month’s purchases of beach umbrellas is paid for in the month of purchase; the remainder is paid for in the following month. Milo Company decided to trade in its old and fully depreciated machine for R15 000 for a new machine that will cost the company R250 000 on 1 October 2019. The machine will be used for five years. Other expenses, including bad debts and depreciation, that are estimated to cost R120 000 per month.

REQUIRED:

a)Prepare the cash budget of Milo Company for each of the following three months: October, November and December 2019.

b)Analyse the projected cash budget of Milo Company for the last quarter of the 31 December 2019 financial year.