Assume that the following facts pertain to a non-cancelable lease agreement between Fifth-Third Leasing Company and Bob Evans Farms, a Lessee. Inception date January 1, 2017 Residual value of equipment at end of lease term, guaranteed by the lessee $50,000 Lease term 6 years Economic life of leased equipment 8 years Fair value of asset at January 1, 2017 $400,000 Lessor’s implicit rate 10% Lessee’s incremental borrowing rate 12% The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee has guaranteed the lessor a residual value of $50,000. The lessee uses the straight-line depreciation method for all equipment. Using the spreadsheet Lease Amort Schedule, found in the link below, prepare an amortization schedule that would be suitable for the lessee for the lease term.m. Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2017 and 2018 to record the lease agreement and all expenses related to the lease. Assume the Lessee’s annual accounting period ends on December 31 and that reversing entries are used when appropriate.

In your initial post, provide your calculation for one year of ROE using the DuPont Identity. In your initial post you should also critically analyze the advantages and/or disadvantages to using the DuPont Identity as a tool for calculating ROE.   When responding to your peers, perform a calculation from one of the other years and identify what has changed over the years, and identify what may be influencing changes to the DuPont Identity ROE.

Problem 21A-1 a-c

The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Windsor Company, a lessee.

.he asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Gabriela and Johnny are married and filed a joint tax return. They had the following items for 2018:

Gabriela's car was completely destroyed in a hurricane, which had been declared a federal disaster area. At the time of the hurricane, the car had a fair market value of $30,000 and an adjusted basis of $40,000. She used the car 100% of the time for personal use. She received an insurance recovery of $25,000.

1. Provide a detailed calculation of the couple's AGI.

Your Answer must:

(a) explain the rule for § 1244 small business stock and how it applies to the facts;

(b) show a detailed netting capital item;

(c) explains the rule for worthless stock;

(d) explains the rule for the tax treatment of nonbusiness bad debts.

2.(a) What is the rule for calculating the amount of the casualty loss?

(b) Apply the rule to the facts and show a detailed calculation of the loss.

(c) Which schedule does the casualty loss total appear on?

Gabriela and Johnny are married and filed a joint tax return. They had the following items for 2018:

Gabriela's car was completely destroyed in a hurricane, which had been declared a federal disaster area. At the time of the hurricane, the car had a fair market value of $30,000 and an adjusted basis of $40,000. She used the car 100% of the time for personal use. She received an insurance recovery of $25,000.

1. Provide a detailed calculation of the couple's AGI.

Your Answer must:

(a) explain the rule for § 1244 small business stock and how it applies to the facts;

(b) show a detailed netting capital item;

(c) explains the rule for worthless stock;

(d) explains the rule for the tax treatment of nonbusiness bad debts.

2.(a) What is the rule for calculating the amount of the casualty loss?

(b) Apply the rule to the facts and show a detailed calculation of the loss.

(c) Which schedule does the casualty loss total appear on?

• $28,000
• $0
• None of these answer choices are comect
• $6,000

Inventory Errors Haywood Inc. reported the following information for 2018: Beginning inventory $25,000 Ending inventory 53,440 Sales revenue 1,000,000 Cost of goods sold 620,000 A physical count of inventory at the end of the year showed that ending inventory was actually $65,000.

Required: 1. What is the correct cost of goods sold and gross profit for 2018?

Assuming the error was not corrected, what is the effect on the statement of financial position at December 31, 2018?

In 2018, X Company expects to produce and sell 66,000 units of its only product for $34.73. The following are budgeted variable costs per unit:

Budgeted fixed overhead for 2018 is $187,440, and budgeted fixed selling and administrative expenses are $190,740.

What is X Company's budgeted contribution margin rate for 2018?