Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows: Total cash paid $4,500,000 Assets acquired: Land $800,000 Building $700,000 Machinery $800,000 Patents $700,000 The building is depreciated using the double-declining balance method. Other information is: Salvage value $70,000 Estimated useful life in years 20 The machinery is depreciated using the units-of-production method. Other information is: Salvage value, percentage of cost 10% Estimated total production output in units 100,000 Actual production in units was as follows: 2019: 20,000 2020: 20,000 2021: 30,000 The patents are amortized on a straight-line basis. They have no salvage value. Estimated useful life of patents in years 40 On December 31, 2020, the value of the patents was estimated to be $100,000 Where applicable, the company uses the ½ year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31. The machinery was traded on December 2, 2021 for new machinery. Other information is: Fair value of old machinery $400,000 Trade-in allowance $600,000 List price for new machinery $840,000 Estimated useful life of new machinery in years 10 Estimated salvage value of new machinery $8400 The new machinery if depreciated using the stright-line method and ½ year rule. On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows: Amount of addition, paid in cash $400,000 Number of years of useful life from 2023 (original machinery and addition): 20 Salvage value, percentage of addition 10% Required: Prepare journal entries to record: 1 The purchase of the assets of Coffee. 2 Depreciation and amortization expense on the purchased assets for 2019. 3 The decline (if any) in value of the patents at December 31, 2020. 4 The trade-in of the old machinery and purchase of the new machinery. 5 Depreciation on the new machinery for 2021. 6 Cost of the addition to the machinery on August 14, 2023. 7 Depreciation on the new machinery for 2023.

Sheffield Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,320,800 for 50,800 shares. Kulikowski Inc. declared and paid an $0.90 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $755,000 for 2021. The fair value of Kulikowski’s stock was $29 per share at December 31, 2021. Assume that the security is a trading security.

Prepare the journal entries for Sheffield Inc. for 2020 and 2021, assuming that Sheffield cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Prepare the journal entries for Sheffield Inc. for 2020 and 2021, assuming that Sheffield can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 under each of these methods?

Brown Company paid cash to purchase the assets of Coffee Company on January 1, 2019. Information is as follows:

Total cash paid $2,990,000

Assets acquired:

Land $600,000

Building $600,000

Machinery $500,000

Patents $600,000

The building is depreciated using the double-declining balance method. Other information is:

Salvage value $60,000

Estimated useful life in years 30

The machinery is depreciated using the units-of-production method. Other information is:

Salvage value, percentage of cost 10%

Estimated total production output in units 400,000

Actual production in units was as follows: 2019: 40,000

2020: 80,000

2021: 120,000

The patents are amortized on a straight-line basis. They have no salvage value.

Estimated useful life of patents in years 20

On December 31, 2020, the value of the patents was estimated to be $900,000

Where applicable, the company uses the ½ year rule to calculate depreciation and amortization expense in the years of acquisition and disposal. Its fiscal year-end is December 31.

The machinery was traded on December 2, 2021 for new machinery. Other information is:

Fair value of old machinery $240,000

Trade-in allowance $336,000

List price for new machinery $504,000

Estimated useful life of new machinery in years 20

Estimated salvage value of new machinery $15,120

The new machinery if depreciated using the stright-line method and ½ year rule.

On August 14, 2023, an addition was made. This amount was material. Other relevant information is as follows:

Amount of addition, paid in cash $100,000

Number of years of useful life from 2023 (original machinery and addition): 20

Salvage value, percentage of addition 10%

Required: Prepare journal entries to record:

1 The purchase of the assets of Coffee.

2 Depreciation and amortization expense on the purchased assets for 2019.

3 The decline (if any) in value of the patents at December 31, 2020.

4 The trade-in of the old machinery and purchase of the new machinery.

5 Depreciation on the new machinery for 2021.

6 Cost of the addition to the machinery on August 14, 2023.

7 Depreciation on the new machinery for 2023.

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $94,110; December 2019, $84,830; January 2020, $102,390; February 2020, $123,530; and March 2020, $131,560. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $17,540; January 2020, $16,370; February 2020, $18,950; and March 2020, $19,050. (a) Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total: 1) Expected collections from clients. (2) Expected payments for landscaping supplies. (b) Determine the following balances at March 31, 2020: (1) Accounts receivable (2) Accounts payable

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $94,110; December 2019, $84,830; January 2020, $102,390; February 2020, $123,530; and March 2020, $131,560. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $17,540; January 2020, $16,370; February 2020, $18,950; and March 2020, $19,050.

Suppose the following data show the percentage of 17- to 24-year-olds who are attending college in several metropolitan statistical areas in four geographic regions of the United States.

Use α = 0.05 to test whether the mean percentage of 17- to 24-year-olds who are attending college is the same for the four geographic regions.

State the null and alternative hypotheses.

H₀: μ_N = μ_M = μ_S = μ_W
H_a: μ_N ≠ μ_M ≠ μ_S ≠ μ_WH₀: Not all the population means are equal.
H_a: μ_N = μ_M = μ_S = μ_W    H₀: At least two of the population means are equal.
H_a: At least two of the population means are different.H₀: μ_N ≠ μ_M ≠ μ_S ≠ μ_W
H_a: μ_N = μ_M = μ_S = μ_WH₀: μ_N = μ_M = μ_S = μ_W
H_a: Not all the population means are equal.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Reject H₀. There is not sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.

Do not reject H₀. There is not sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.

Reject H₀. There is sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.

Do not reject H₀. There is sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.

Your firm has two manufacturing facilities in North Texas. Suppose that for years the mean number of units manufactured per shift for plant 1 has been accepted to be the same as the mean number of units for plant 2. However, now plant 1 is believed to have a greater (>) mean than plant 2. Letting ? = .05 and assuming the populations have equal variances and x is approximately normally distributed, conduct a hypothesis to test this belief.
What is the correct hypothesis statement?
H0: ?1 ? ?2 -or- ?1 - ?2 ? 0
HA: ?1 < ?2 -or- ?1 - ?2 < 0

H0: ?1 = ?2 -or- ?1 - ?2 = 0
HA: ?1 ? ?2 -or- ?1 - ?2 ? 0

H0: ?1 ? ?2 -or- ?1 - ?2 ? 0
HA: ?1 > ?2 -or- ?1 - ?2 > 0

H0: ?1 ? ?2 -or- ?1 - ?2 ? 10
HA: ?1 < ?2 -or- ?1 - ?2 < 10

Your firm has two manufacturing facilities in North Texas. Suppose that for years the mean number of units manufactured per shift for plant 1 has been accepted to be the same as the mean number of units for plant 2. However, now plant 1 is believed to have a greater mean than plant 2. Letting ? = .05 and assuming the populations have equal variances and x is approximately normally distributed, conduct a hypothesis to test this belief. Data consists of 10 samples from each plant.
What is the critical value?
Round to three digits and include leading zeros if necessary.
What is the decision rule?
If the calculated test statistic is less than -1.734, reject the null hypothesis.
If the calculated test statistic is less than -2.101, reject the null hypothesis.
If the calculated test statistic is greater than 1.734, reject the null hypothesis.
If the absolute value of the calculated test statistic is greater than 1.734, reject the null hypothesis.

What is the calculated value of the test statistic?
Round to three digits and use leading zeros if necessary.
What is your decision about the null hypothesis?

Fail to reject.
Reject.
Conclude the null is supported.
Find the null is true.
Some studies have shown that in the United States, men spend more than women buying gifts and cards on Valentine’s Day. Suppose a researcher wants to test this hypothesis by randomly sampling nine men (sample1) and 10 women (sample 2) with comparable demographic characteristics from various large cities across the United States. Each study participant is asked to keep a log beginning one month before Valentine’s Day and record all purchases made for Valentine’s Day during that one-month period. . Use a 1% level of significance to test to determine if, on average, men actually do spend significantly more than women on Valentine’s Day. Assume that such spending is normally distributed in the population and that the population variances are equal.
What is the correct hypothesis statement?
H0: ?1 ? ?2 -or- ?1 - ?2 ? 0
HA: ?1 < ?2 -or- ?1 - ?2 < 0

H0: ?1 = ?2 -or- ?1 - ?2 = 0
HA: ?1 ? ?2 -or- ?1 - ?2 ? 0

H0: ?1 ? ?2 -or- ?1 - ?2 ? 0
HA: ?1 > ?2 -or- ?1 - ?2 > 0

H0: ?1 ? ?2 -or- ?1 - ?2 ? 10
HA: ?1 < ?2 -or- ?1 - ?2 < 10

What is the absolute value of the critical value?

What is the decision rule?
If the calculated test statistic is greater than -2.567, reject the null hypothesis.
If the calculated test statistic is greater than 2.567, reject the null hypothesis.
If the absolute value of the calculated test statistic is greater than 2.567, reject the null hypothesis.
If the absolute value of the calculated test statistic is less than -2.567, reject the null hypothesis.

Some studies have shown that in the United States, men spend more than women buying gifts and cards on Valentine’s Day. Suppose a researcher wants to test this hypothesis by randomly sampling nine men (sample1) and 10 women (sample 2) with comparable demographic characteristics from various large cities across the United States. Each study participant is asked to keep a log beginning one month before Valentine’s Day and record all purchases made for Valentine’s Day during that one-month period. . Use a 1% level of significance to test to determine if, on average, men actually do spend significantly more than women on Valentine’s Day. Assume that such spending is normally distributed in the population and that the population variances are equal. Data are in the attached file below.

What is the calculated value of the test statistic?
Round to three digits and use leading zeros if necessary.

What is your decision about the null hypothesis?
Fail to reject.
Reject.
Conclude the null is supported.
Find the null is true.

Using Excel determine the exact p-value.
Round to four digits and use leading zeros if necessary.

Question 2 Qui Limited was incorporated in Nova Scotia on May 21, 1936. The corporation has never carried on business in Canada, but held its annual directors' meeting in Nova Scotia each year from 1936 through 1966. Which one of the following best describes Qui Limited's residency status for Canadian income tax purposes for 2018? Question 2 options:

1) A full-time resident

2) A part-time resident

3) A deemed resident (sojourner)

4) A non-resident

Question 3 Which of the following statements about the ITA and related procedures is correct? Question 3 options:

1) There is no statutory definition of the word "income" in the ITA.

2) Courts always make decisions based on GAAP.

3) In tax matters, CRA always has the burden of proving that an assessment is incorrect.

4) An appeal in the Federal Court of Appeal must be made within 60 days from the date of the Tax Court of Canada decision.

Question 4 An overloaded external auditor takes home the audit work related to a client's taxation. Due to time pressure, the auditor asks her husband, who is an accountant too but working for another company, to help her in completing the working papers. Which of the following best describes your assessment of the auditor's action? Question 4 options:

1) This is acceptable because her husband is not working for her client.

2) She has most likely violated Canadian Auditing Standards (CAS) only.

3) She has most likely violated the CPA-Alberta Rules of Professional Conduct only.

4) She has most likely violated both CPA-Alberta Rules of Professional Conduct and CAS.

Question 5 Individuals must file their income tax returns: Question 5 options:

1) On a quarterly basis if self employed or spouse is self-employed.

2) June 15 if self-employed or spouse is self-employed.

3) If an individual's date of death is December 15, by April 30 of the following calendar year.

4) If an individual's date of death is November 15, by April 30 of the following calendar year.

Question 6 In citing the general restriction on expenses against business or property income, you would refer to: Question 6 options:

1) Subsection 18(1)a)

2) Subparagraph 18(1)a)

3) Paragraph 18(1)a)

4) Clause 18(1)a)

Question 7 Ontario Manufacturing Company is a company incorporated in the United States. It employs salespeople who live in Canada but does not have an office or any establishment bearing the company name in Canada. The salespeople visit Canadian customers, who then order from Ontario Manufacturing Company and receive goods directly from the United States. Which of the following best describes the tax status in Canada of Ontario Manufacturing Company? Question 7 options:

1) Ontario Manufacturing Company is not taxable in Canada, because it does not have a permanent establishment in Canada.

2) Ontario Manufacturing Company is subject to a withholding tax under Part XIII of the Income Tax Act on its gross revenue in Canada.

3) Ontario Manufacturing Company is subject to tax only on its Canadian sales because the location of company employees in Canada implies that there is a permanent establishment.

4) Ontario Manufacturing Company is subject to a withholding tax under Part XIII of the Income Tax Act on its net income earned in Canada.

Question 8 Amy lives in Detroit, Michigan, USA. She commutes daily to Windsor, Ontario, Canada, where she is employed by Ford Motor Company of Canada Limited. She works 9 am to 5 pm, Monday through Friday. Which one of the following best indicates Amy's residency status for Canadian income tax purposes for 2018? Question 8 options:

1) A full-time resident

2) A part-year resident

3) A deemed resident (sojourner)

4) A non-resident

Question 9 An auditor reviewing ABC Corporation discovered that $100,000 of corporate revenue was being deliberately recorded in the books as a debit to Bank and a credit to shareholders loan. Which of the following statements is true? Question 9 options:

1) This transaction is an example of tax avoidance.

2) This transaction is an example of tax planning.

3) This transaction does not fit any the above categories.

4) This transaction is an example of tax evasion.

Question 10 ABC Inc. is a private corporation incorporated in Canada in 1991. All of its income is derived from sources originating in New Zealand. All the ABC shareholders reside permanently in the United States, where they make all the major decisions for the company. Which of the following accurately describes ABC's tax status in Canada? Question 10 options: 1) ABC is not a resident of Canada and is taxed in Canada only on income earned from its permanent establishment in Canada.

2) ABC is a resident of Canada and taxed in Canada on its world income.

3) ABC is not a resident of Canada and is not subject to tax in Canada.

4) ABC is not a resident of Canada but is subject to a withholding tax on dividends paid to its shareholders in the United States.