6. A Treasury bill that settled January 15, 2020 has face value $1 million and matures April 14, 2020. Its yield on a bank discount basis was 3.00%.

1. Show that the actual number of days elapsed between settlement and maturity is 90 days. [Hint: 2020 is a leap year.]
2. Calculate the bond equivalent yield (actual/365 basis).
3. Calculate the coupon equivalent yield (30/360 basis).
4. Calculate the CD equivalent yield (actual/360 basis).
5. Explain why the bond equivalent yield in part b is 365/360 of the CD equivalent yield in part d.

The following information is related to Tobey Corporation for 2020:
 Net Income: $2,500,000
 Common Stock Activities
1/1/20: 700,000 common shares outstanding
3/1/20: Purchased 60,000 treasury shares
7/1/20: 3-for-1 stock split
11/1/20: 120,000 new shares issued for cash
 8% Cumulative Preferred Stock
10,000 shares at $100 par
Required
a. Compute weighted average common shares outstanding (WACSO) for 2020.
b. Compute basic earnings per share for 2020. (Round to no fewer than four decimal places.)

Bone Thugs-n-Harmony incurs the expenditures listed below for constructing its corporate headquarters. They took out a $250,000 loan at 8% for the construction. They also have 2 additional loans: 500,000 at 10%, 200,000 at 6%. All loans were outstanding as of 1/1/2019 and were still outstanding when construction was completed on 4/30/2020.

How much interest does Bone Thugs-n-Harmony capitalize in 2019?

Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.    

a. Calculate the contribution margin per unit.                         

b. Calculate the contribution margin ratio.

c. Calculate the break-even in units and sales dollars for 2020.

d.Calculate the profit earned in 2020.

Carla Vista Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2020:

Assuming stable prices (no change in the price index during 2020), what is the cost of Carla Vista's inventory at December 31, 2020? (Hint: Round intermediate calculation to 2 decimal places, e.g. 0.63 and final answer to 0 decimal places.)

In 2019, Special Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2014. Special Corporation is contemplating a gift of land to a qualified charity in either 2019 or 2020. Special Corporation purchased the land as an investment five years ago for $100,000 (current year value is $250,000). Before considering any charitable deduction, Special Corporation projects taxable income of $1 million for 2019 and $1.2 million for 2020. Should Special Corporation make the gift of land to charity in 2019 or 2020? Provide detailed calculations and support for your answer.

On January 2, 2020, Dove, Inc. acquired a 25% interest in the outstanding voting ordinary shares of Cabot Enterprises for a cost of P900,000. This investment provides Dove with the ability to exercise significant influence over Cabot and classified the investment as investment in associates. The acquisition cost of the investment is in excess of the book value by P140,000; the excess is attributable to goodwill which is to be amortized over 20 year. During 2020, Cabot Enterprises reported net income of P312,000 and paid total cash dividends of P220,000. At December 31, 2020, the balance account Investment in Associates in Cabot should have a carrying value of?

McKenzie purchased qualifying equipment for his business that cost $457,900 in 2019. The taxable income of the business for the year is $111,500 before consideration of any § 179 deductions.

If an amount is zero, enter "0".

a. Calculate McKenzie’s § 179 expense deduction for 2019 and any carryover to 2020.
§ 179 expense deduction for 2019: $ _________
§ 179 carryover to 2020: $ _________

b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.5.
§ 179 expense deduction for 2019: $ _________
§ 179 carryover to 2020: __________

Mikey and Sal, married taxpayers filing a joint return, paid state income tax of $12,000 and other itemized deductions of $15,000 in 2020. Because the total of their allowable itemized deductions exceeded the standard deduction, they elected to itemize deductions on their 2020 federal income tax return rather than to claim the standard deduction. In May 2021, Mikey and Sal receive a refund of $1,000 for overpaid state income taxes paid in 2020. Under the tax benefit rule, how much of the $1,000 refund must they include in their gross income for 2021?