Question 5

The following are Coronado Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

Comparative Balance Sheet

Additional information:

Prepare a statement of cash flows for Coronado Corp. for the year ended December 31, 2017, using the indirect method.

ABC Co. took four tax deductions on their 2016 tax return that have issues that could result in some or all of the deductions being disallowed if ABC’s 2016 tax return is audited. ABC believes the deductions are justifiable but knows that tax law related to each item is unclear. Information about each deduction follows:

1)         Amount of deduction $500,000

            ABC’s probability full deduction will be allowed 60%

            ABC’s estimate of potential deduction being allowed

                        500,000                       60%

                        400,000                       30%

                        250,000                       10%

2)         Amount of deduction $800,000

            ABC’s probability full deduction will be allowed 40%

            ABC’s estimate of potential deduction being allowed

                        800,000                       40%

                        650,000                       30%

                        500,000                       20%

                        400,000                       10%

3)         Amount of deduction $300,000

            ABC’s probability full deduction will be allowed 30%

            ABC’s estimate of potential deduction being allowed

                        300,000                       30%

                        250,000                       15%

                        200,000                       40%

                        125,000                       15%

4)         Amount of deduction $900,000

            ABC’s probability full deduction will be allowed 45%

            ABC’s estimate of potential deduction being allowed

                        900,000                       45%

                        800,000                       40%

                        650,000                       15%

ABC’s 2016 tax rate was 25%. ABC is a calendar-year company. During 2017, ABC Co. received notification that its 2016 tax return was being audited. At December 31, 2017, the IRS had verbally communicated their findings on deductions 1 – 3. Their findings were as follows:

Deduction 1                          $120,000 disallowed

Deduction 2                          no disallowance

Deduction 3                          $80,000 disallowed

Deduction 4 was still under examination at December 31, 2017. Prior to December 31, 2017, ABC and the IRS formalized their agreement on deductions 2 and 3 by signing IRS Form 906, “Closing Agreement on Final Determination Covering Specific Matters.” ABC is disputing the IRS’ findings related to deduction 1.

1.         What amount if any liability should ABC recognize at December 31, 2016 related to the tax effects of these four deductions? (ignore possible interest and penalties)

2.         Can ABC assert an “effective settlement” for any of the deductions taken on the 2016 tax return at December 31, 2017?

3.         What amount of liability should ABC report at December 31, 2017 related to the 2016 deductions assuming ABC has not changed its assessment of deduction 1 or 4?

The following are Ayayai Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.

Additional information:

Prepare a statement of cash flows for Ayayai Corp. for the year ended December 31, 2017, using the indirect method

ABC Co. took four tax deductions on their 2016 tax return that have issues that could result in some or all of the deductions being disallowed if ABC’s 2016 tax return is audited. ABC believes the deductions are justifiable but knows that tax law related to each item is unclear. Information about each deduction follows: 1) Amount of deduction $500,000 ABC’s probability full deduction will be allowed 60% ABC’s estimate of potential deduction being allowed 500,000 60% 400,000 30% 250,000 10% 2) Amount of deduction $800,000 ABC’s probability full deduction will be allowed 40% ABC’s estimate of potential deduction being allowed 800,000 40% 650,000 30% 500,000 20% 400,000 10% 3) Amount of deduction $300,000 ABC’s probability full deduction will be allowed 30% ABC’s estimate of potential deduction being allowed 300,000 30% 250,000 15% 200,000 40% 125,000 15% 4) Amount of deduction $900,000 ABC’s probability full deduction will be allowed 45% ABC’s estimate of potential deduction being allowed 900,000 45% 800,000 40% 650,000 15% ABC’s 2016 tax rate was 25%. ABC is a calendar-year company. During 2017, ABC Co. received notification that its 2016 tax return was being audited. At December 31, 2017, the IRS had verbally communicated their findings on deductions 1 – 3. Their findings were as follows: Deduction 1 $120,000 disallowed Deduction 2 no disallowance Deduction 3 $80,000 disallowed Deduction 4 was still under examination at December 31, 2017. Prior to December 31, 2017, ABC and the IRS formalized their agreement on deductions 2 and 3 by signing IRS Form 906, “Closing Agreement on Final Determination Covering Specific Matters.” ABC is disputing the IRS’ findings related to deduction 1. 1. What amount if any liability should ABC recognize at December 31, 2016 related to the tax effects of these four deductions? (ignore possible interest and penalties) 2. Can ABC assert an “effective settlement” for any of the deductions taken on the 2016 tax return at December 31, 2017? 3. What amount of liability should ABC report at December 31, 2017 related to the 2016 deductions assuming ABC has not changed its assessment of deduction 1 or 4? Provide authoritative support for your answer where necessary.

Edom Company, the lessor, enters into a lease with Davis Company to lease equipment to Davis beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

Required:

These quistion related to Oxidase Assay for Respiration and Catalase Assay experiment

1.In the clinical (real-world) setting, what is the main objective of performing laboratory tests such as the oxidase or catalase assays?

2.Some very important pathogens are positive for the oxidase test. Use your text or the Internet to find one such example.

3.A student performing the Experiment 2 of this lab set up a positive control with a known catalase-positive bacterium. However, he had no remaining hydrogen peroxide in his lab kit supplies so he used some that he had in his home medicine cabinet.   No bubbles were produced after the addition of the hydrogen peroxide even though the organism is catalase positive. What explanation can you give for this

A double-slit experiment is set up using red light (λ = 711 nm). A first order bright fringe is seen at a given location on a screen.

1)What wavelength of visible light (between 380 nm and 750 nm) would produce a dark fringe at the identical location on the screen?

λ =

2) A new experiment is created with the screen at a distance of 1.9 m from the slits (with spacing 0.11 mm). What is the distance between the second order bright fringe of light with λ = 698 nm and the third order bright fringe of light with λ = 409 nm? (Give the absolute value of the smallest possible distance between these two fringes: the distance between bright fringes on the same side of the central bright fringe.)

|x| =

Jordan is doing a science fair project on the effects of music on the growth of tomatoes. He has two tomato plants, Plant A and Plant B, that he grows in a window and gives the same amount of water. Plant A is exposed to classical music using headphones attached to the soil. Throughout the growth period, Jordan counts the number of tomatoes produced by each plant.

Plant A = 35 Tomatoes | Plant B = 55 Tomatoes

1) What is the control group?
2) What is the independent variable?
3) What is the dependent variable?
4) What should Jordan’s conclusion be? Write this in a complete sentence!
5) Jordan needs to repeat the experiment, but his teacher says that he needs to improve his design. In his second experiment, what should he do different.

A crossover trial is a type of experiment used to compare two drugs. Subjects take one drug for a period of time, then switch to another. The responses of the subjects are then compared using matched-pair methods. In an experiment to compare two pain relievers, seven subjects took one pain reliever for two weeks, then switched to the other. They rated their pain level from 1 to 10, with larger numbers representing higher levels of pain. Can you conclude that the mean pain level is less with drug B? Use significance level 0.10. (Paired samples).