Which of the following is a description of the ITU, the organization to which the 5G specification will be submitted by 2020?

Group of answer choices

The International telephone company.

A union for workers in the telecommunications profession.

The United Nations specialized agency for information and communication technologies.

An IT organization at Universities.

Current (annualised) US Treasury spot rates are as follows:

6 months	1 year	18 months	2 years
0.4%	0.5%	0.6%	0.7%

Bond Cashflows:

Maturity: 2 years semi annual

Par value: 100

Coupon: 1.625/2 = 0.8125

6 months from now = 0.8125

1 year from now = 0.8125

1.5 year from now= 0.8125

2 years from now = 100+0.8125

From the US treasury spot rates above and assuming Z-spread of 35 basis points, calculate appropriate discount rates (implied spot rates) for this bond’s cash flows. Show calculations.

The records of Earthly Goods provided the following information for the year ended December 31, 2020.

	At Cost			At Retail
January 1 beginning inventory	$	466,350		$	922,150
Purchases		3,184,200			6,393,700
Purchase returns		51,800			118,350
Sales					5,485,700
Sales returns					44,100

Required:
1. Prepare an estimate of the company’s year-end inventory by the retail method. (Round all calculations to two decimal places.)

Under the assumption the company took a year-end physical inventory at marked selling prices that totalled $1,674,800, prepare a schedule showing the store’s loss from theft or other causes at cost and at retail.

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:

	Prince Corporation									Sword Company
Item	Debit				Credit					Debit				Credit
Cash		$	83,000								$	31,000
Accounts Receivable			67,000									72,000
Inventory			177,000									104,000
Land			81,000									26,000
Buildings and Equipment			491,000									159,000
Investment in Sword Company			255,000
Cost of Goods Sold			491,000									253,000
Depreciation Expense			21,000									11,000
Other Expenses			66,000									66,000
Dividends Declared			52,000									26,000
Accumulated Depreciation						$	143,000								$	55,000
Accounts Payable							64,000									30,000
Mortgages Payable							185,000									108,000
Common Stock							287,000									45,000
Retained Earnings							324,000									91,000
Sales							695,000									419,000
Income from Sword Company							86,000
		$	1,784,000			$	1,784,000				$	748,000			$	748,000

Additional Information

1. On January 1, 20X7, Sword reported net assets with a book value of $136,000. A total of $26,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Sword’s depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Prince used the equity-method in accounting for its investment in Sword.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $25,000 on December 31, 20X7.

Required:
a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare a three-part consolidation worksheet as of December 31, 20X7. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

1)
On April 10, a company acquired land in exchange for 1,000 shares of $20 par common stock with a current market price of $73. Journalize this transaction.


2)
A corporation purchased for cash 5,000 shares of its own $10 par common stock at $34 a share. In the following year, it sold 2,000 of the treasury shares at $38 a share for cash.
a) Journalize the entries to record the purchase (treasury stock is recorded at cost)
b) Journalize the entries to record the sale of the stock.


3)
Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet. 50,000 shares of common stock are authorized and 5,000 shares have been reacquired.

Common stock, $50 par $1,500,000
Paid In Capital in excess of par $ 250,000
Paid in capital from sale of Treasury stock $42,000
Retained Earnings 4,350,000
Treasury Stock 155,000

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $183,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:

	Prince Corporation									Sword Company
Item	Debit				Credit					Debit				Credit
Cash		$	88,000								$	27,000
Accounts Receivable			53,000									58,000
Inventory			182,000									120,000
Land			86,000									22,000
Buildings and Equipment			491,000									155,000
Investment in Sword Company			233,000
Cost of Goods Sold			491,000									258,000
Depreciation Expense			21,000									11,000
Other Expenses			62,000									62,000
Dividends Declared			55,000									23,000
Accumulated Depreciation						$	139,000								$	55,000
Accounts Payable							54,000									30,000
Mortgages Payable							187,000									117,000
Common Stock							286,000									43,000
Retained Earnings							331,000									84,000
Sales							692,000									407,000
Income from Sword Company							73,000
		$	1,762,000			$	1,762,000				$	736,000			$	736,000
Additional Information On January 1, 20X7, Sword reported net assets with a book value of $127,000. A total of $23,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. Sword’s depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. Prince used the equity-method in accounting for its investment in Sword. Detailed analysis of receivables and payables showed that Sword owed Prince $25,000 on December 31, 20X7. Additional Information On January 1, 20X7, Sword reported net assets with a book value of $127,000. A total of $23,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. Sword’s depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. Prince used the equity-method in accounting for its investment in Sword. Detailed analysis of receivables and payables showed that Sword owed Prince $25,000 on December 31, 20X7. Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts.

Equipment cost	$50,000
Salvage	5,000
Useful life	5
Tax rate	21%

Depreciation for book and tax purposes is as follows:

	Book	Tax
20X1	9,000	20,000
20X2	9,000	12,000
20X3	9,000	7,200
20X4	9,000	4,320
20X5	9,000	1,480

What is the deferred taxes payable balance as of December 31, 20X3?

On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,155,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $840,000, retained earnings of $390,000, and a noncontrolling interest fair value of $495,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.Net IncomeDividends DeclaredInventory Purchases from Corgan2017$290,000$49,000$240,0002018270,00059,000260,000Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 40 percent of the current year purchases remain in Smashing's inventory.A.

Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.B. Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing.Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.Investment balance 12/31/18Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Translation and Remeasurement of Subsidiary Trial Balance

Costsave Corporation, a U.S. company, acquired Denner, a discount supermarket chain in Switzerland, on January 1, 2017. Denner is a subsidiary of Costsave, and its results are consolidated with those of Costsave in Costsave's financial statements. Denner's trial balances for January 1 and December 31, 2017, in Swiss francs (CHF) appear below.

	Dr(Cr)
(in thousands)	December 31	January 1
Cash and receivables	CHF 45,000	CHF30,000
Inventories	55,000	65,000
Plants and equipment, net	180,000	160,000
Accounts and notes payable	(120,000)	(125,000)
Common stock	(40,000)	(40,000)
Retained earnings, January 1	(90,000)	(90,000)
Dividends	20,000	--
Sales	(500,000)	--
Cost of sales	375,000	--
Operating expenses	75,000	--
Totals	CHF 0	CHF 0

Additional Information: (in thousands)

Included in operating expenses is depreciation expense of CHF5,000.

Plant and equipment of CHF25,000 was purchased for cash during 2017, when the exchange rate was $1.04. Depreciation of CHF2,000 was taken on this purchase during 2017.

The ending inventory was purchased during the month of December.

Revenues, purchases, and operating expenses other than depreciation occurred evenly during the year.

Dividends were declared on December 31, 2017.

Exchange rates for 2017 were as follows ($/CHF):

January 1, 2017	$1.03
Average for 2017	1.06
Average for December, 2017	1.08
December 31, 2017	1.09

It is now December 31, 2017, and Denner's accounts must be converted to U.S. dollars in preparation for consolidation.

Do not use negative signs with any of your answers below.

(1) Plant and equipment, net (in thousands)
	CHF	$/CHF	$
Plant and equipment, net: purchased prior to 2017	CHF Answer	Answer	$Answer
Plant and equipment, net: purchased during 2017	Answer	Answer	Answer
	CHF Answer		$Answer