Bridgeport Inc. has a defined benefit plan for its employees. On December 31, 2019 the company’s records showed the following information related to the plan:

All employees are expected to receive benefits under the plan. The company’s actuary provided the following information as at December 31, 2020:

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate pension expense for Bridgeport Inc. for 2020, assuming ASPE is used.

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New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate pension expense for Bridgeport Inc. for 2020, assuming IFRS is used.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,730,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2020 and 2021.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,730,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2020 and 2021.

Stenberg plc is preparing its financial statements for the year ended 30 November 2020.
On 1 May 2020, the company purchased a factory for the manufacture of optical disks,
paying £24,000,000. The factory will be depreciated over its estimated life of 10 years
using the straight line method on a full year basis with no residual value.
The asking price for the factory had been £30,000,000. However, Stenberg plc estimated
the net present value of the factory’s future expected net cash flows at £28,500,000 and
the price eventually agreed with the vendor was £24,000,000.
During October 2020 a rival company announced that it had patented a new technology
which has been enthusiastically greeted by the major players in the industry. Stenberg
plc now feels that it may be necessary to revise downwards its expectations for the
factory. It now believes that the net present value of the expected net cash flows from the
factory as at 30 November 2020 was £20,500,000. The net realisable value of the factory
was estimated at £14,000,000 as at 30 November 2020.
Required:
Discuss whether or not there is evidence of impairment and describe how the factory
should be treated in the financial statements for the year ended 30 November 2020.

a) Colbert sells 3D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $4,000. Colbert imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020.

b) Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

On January 1, 2020, Nivtop Corp. leased a machine from Nosnah Inc. The lease agreement calls for
Nivtop to make four annual lease payments of $559,113 each January 1, with the first payment to be
made on January 1, 2020. Nivtop’s incremental borrowing rate is 8%; this is the same rate Nosnah
used to calculate the lease payments. The fair market value of the machine is $2,000,000 and its
expected useful life is 5 years. This is a non-specialized machine.
Nosnah purchased the machine from a vendor on December 31, 2019 for $1,573,000.
Required
a. List the 5 criteria used to determine whether a lease qualifies as finance/sales-type or
operating. Review each criterion to determine which (if any) this lease meets.
b. What type of lease is this for Nivtop?
c. What type of lease is this for Nosnah?
d. Show all of Nivtop’s journal entries relative to this lease at
1) January 1, 2020
2) December 31, 2020
3) January 1, 2021
e. Show all of Nosnah’s journal entries relative to this lease at
1) January 1, 2020
2) December 31, 2020
3) January 1, 2021

On January 1, 2020, Nivtop Corp. leased a machine from Nosnah Inc. The lease agreement calls for
Nivtop to make four annual lease payments of $559,113 each January 1, with the first payment to be
made on January 1, 2020. Nivtop’s incremental borrowing rate is 8%; this is the same rate Nosnah
used to calculate the lease payments. The fair market value of the machine is $2,000,000 and its
expected useful life is 5 years. This is a non-specialized machine.
Nosnah purchased the machine from a vendor on December 31, 2019 for $1,573,000.
Required
a. List the 5 criteria used to determine whether a lease qualifies as finance/sales-type or
operating. Review each criterion to determine which (if any) this lease meets.
b. What type of lease is this for Nivtop?
c. What type of lease is this for Nosnah?
d. Show all of Nivtop’s journal entries relative to this lease at
1) January 1, 2020
2) December 31, 2020
3) January 1, 2021
e. Show all of Nosnah’s journal entries relative to this lease at
1) January 1, 2020
2) December 31, 2020
3) January 1, 2021

Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are

$ 4.93$4.93

million. The product is expected to generate profits of

$ 1.17$1.17

million per year for ten years. The company will have to provide product support expected to cost

$ 94 comma 000$94,000

per year in perpetuity. Assume all profits and expenses occur at the end of the year.a. What is the NPV of this investment if the cost of capital is

6.4 %6.4%​?

Should the firm undertake the​ project? Repeat the analysis for discount rates of

1.1 %1.1%

and

17.3 %17.3%​,

respectively.

b. What is the IRR of this investment​ opportunity?  

c. What does the IRR rule indicate about this​ investment?

a. What is the NPV of this investment if the cost of capital is

6.4 %6.4%​?

Should the firm undertake the​ project? Repeat the analysis for discount rates of

1.1 %1.1%

and

17.3 %17.3%​,

respectively.If the cost of capital is

6.4 %6.4%​,

the NPV will be

​$nothing.

​(Round to the nearest​ dollar.)

Please paraphrase the following in your own words.

Technological Innovation

Next to improving methods of fossil fuel production to reduce climate impact, and biofuels, an important area of investment to be mentioned are new offshore wind parks (solar energy has been abandoned as a major R&D area in 2008). An offshore wind farm (108 MWh) has been developed with energy provider Nuon, 10 km west of the Dutch coast at Egmond aan Zee (5). Shells offshore technical knowledge with oil and gas platforms helped ensure 115 tonne turbines to withstand the harshest weather.

New ways of Stakeholder Engagement

Shell has started to develop close relationships with its external stakeholders. Contacts are maintained with the academic world, governmental bodies and NGO’s. The relationships provide two-way information (informing NGOs about latest Shell news and funnelling information of NGO into the Shell organisation). Shell is performing impact assessments and setting up engagementswith NGO’s and local communities to investigate impact of new upstream projects, in order to provide for a sustainable cooperation with local communities. An example is the project in the Arctic region. In cooperation with IUCN and Wetlands International, Shell is studying implications of construction of new upstream projects on tundra and permafrost environments. Traditional knowledge of Eskimos about ice seasons, whale and seal movements is therefore crucial. It helps Shell to plan better its offshore production, not to disturb traditional fishing and hunting.

Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are 4.95 million. The product is expected to generate profits of 1.05 million per year for ten years. The company will have to provide product support expected to cost 91,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is ​5.6%? Should the firm undertake the​ project? Repeat the analysis for discount rates of 1.5% and 13.8%​, respectively. b. What is the IRR of this investment​ opportunity?   c. What does the IRR rule indicate about this​ investment?