Lisa’s Darwin Home

Lisa sold her home in Darwin (contract date September 2019, settlement December 2019), receiving $1,220,000 at settlement. This is after legal fees ($12,000), advertising ($2,000) and real estate commissions ($25,000) were deducted. Records indicate that Lisa purchased the property in 2002 (contract date January, settlement March) for $653,000. Legal fees, commissions and advertising of $8,000 were also incurred. Lisa moved in within 6 months, selling her former residence during that time. Over the ownership period, Lisa rented the property for three years beginning December 2010, with $65,000 of $120,000 in non-capital costs claimed against rental income. The property was valued at $890,000 at the time it began being rented. Sculpture Lisa gave a sculpture, valued at $18,900, to her friend in June 2020.

The sculpture was purchased for $480 in December 2000 and repaired in March 2016 for $1,250.

Vase

When Lisa was playing with her cat in September 2019, the cat accidentally knocked over and broke a vase given to her by her grandmother in September 2018 (worth $6,100 at that time). The vase dated back to the Australian gold rush (circa 1850's) and, after undertaking some research, she discovered it was currently worth approximately $27,000. Lisa did not have insurance for the item. Cryptocurrency Lisa converted cryptocurrency into $27,200 Australian dollars in October 2019. To complete the transaction, she incurred $950 in transaction fees. Therefore, Lisa received $26,250 in cash. Lisa had acquired the cryptocurrency in September 2018 for $9,200 Australian dollars.

Shares Lisa sold

shares she held in a construction company in March 2020 for $182,000. She had purchased the shares for $37,200 in December 1986. Lisa has indicated that she has carried forward losses from prior years of $180,000 relating to a prior disposal of shares and land. We will have a meeting first thing Monday morning, so please complete your analysis by the end of Friday so I can review her circumstances over the weekend.

Required: You are required to calculate Lisa’s Net Capital Gain (loss) for the year ending 30 June 2020 based on the above information provided. In doing so, you must present an accurate and complete analysis.

Qa) Determine the taxable capital gain (loss) on the sale of the home. Briefly justify your answer/show all workings.

Qb) Determine the taxable capital gain (loss) on the sale of the Sculpture. Briefly justify your answer/show all workings

Qc) Determine the taxable capital gain (loss) on the sale of the Vase. Briefly justify your answer/show all workings

Qd) Determine the taxable capital gain (loss) on the sale of the Cryptocurrency. Briefly justify your answer/show all workings.

Qe) Determine the capital gain on the sale of the Shares. Briefly justify your answer/show all workings A.6 Determine the Net Capital Gain and/or Loss for Lisa. Briefly justify your answer/show all workings.

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. Depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
2. Land A and Building A were acquired from a predecessor corporation. Thompson paid $772,500 for the land and building together. At the time of acquisition, the land had a fair value of $103,200 and the building had a fair value of $756,800.
3. Land B was acquired on October 2, 2019, in exchange for 2,600 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $21 per share. During October 2019, Thompson paid $10,000 to demolish an existing building on this land so it could construct a new building.
4. Construction of Building B on the newly acquired land began on October 1, 2020. By September 30, 2021, Thompson had paid $170,000 of the estimated total construction costs of $260,000. Estimated completion and occupancy are July 2022.
5. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value at $14,400 and the residual value at $1,600.
6. Equipment A’s total cost of $102,000 includes installation charges of $510 and normal repairs and maintenance of $10,600. Residual value is estimated at $5,000. Equipment A was sold on February 1, 2021.
7. On October 1, 2020, Equipment B was acquired with a down payment of $3,600 and the remaining payments to be made in 10 annual installments of $3,600 each beginning October 1, 2021. The prevailing interest rate was 7%.

Required:
Supply the correct amount for each answer box on the schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.)

Erin McKenna’s Bakery’s Florida location is at Disney Springs. Please review the web page about her bakery. As a result of COVID-19, Disney Springs has closed indefinitely. Locations in New York City and Los Angeles are also impacted. Like so many businesses, sadly 2020 is not going as planned for Erin.

Erin’s budget plans for 2020 were most likely set before January 1^{st ,} way before the current situation unfolded.

Here are the three initial questions for this discussion. Each student should post the answers to these questions individually (due date is Friday April 10th at Midnight). Then, once students have done their initial post, you are required to post at least four comments as you discuss everyone's responses as a group (due date is Tuesday April 14th at Midnight). No final group response is required on this assignment - just the posts conversing back and forth with the group will be enough.

Question 1: Erin McKenna’s Bakery will definitely have significant budget variances due to the COVID-19 virus business closure, especially if she receives no assistance financially from an outside source. After reviewing the web page, discuss the potential impact of COVID-19 on sales, operating expenses, cash receipts and cash disbursements. Be detailed in your answers - please mention specific impacts within those four categories. (10 points)

Question 2: Erin McKenna’s Bakery has less than 500 employees, therefore her business could qualify for some of the Small Business Administration programs (Links to an external site.) that are included in the CARES Act (Links to an external site.) that was signed into law by President Trump on Friday March 27^th. (10 points)

A. How can the Paycheck Protection Program (Links to an external site.) help Erin’s business?

B. How can the EIDL Loan Advance (Links to an external site.) help Erin’s business?

C. How can the SBA Express Bridge Loans (Links to an external site.) help Erin’s business?

Question 3: How do you feel about the outlook for Erin McKenna's Bakery's future, if she pursues some of these options with the Small Business Administration? Your answer should be a full paragraph, not just a single sentence. (10 points)

INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2020. During the fiscal year ended December 31, 2020, the following transactions occurred.

1. A business donated rent-free office space to the organization that would normally rent for $35,200 a year.
2. A fund drive raised $186,000 in cash and $102,000 in pledges that will be paid within one year. A state government grant of $152,000 was received for program operating costs related to public health education.
3. Salaries and fringe benefits paid during the year amounted to $208,760. At year-end, an additional $16,200 of salaries and fringe benefits were accrued.
4. A donor pledged $102,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,460.
5. Office equipment was purchased for $12,200. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,800 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE.
6. Telephone expense for the year was $5,400, printing and postage expense was $12,200 for the year, utilities for the year were $8,500 and supplies expense was $4,500 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,800.
7. Volunteers contributed $15,200 of time to help with answering the phones, mailing materials, and various other clerical activities.
8. It is estimated that 90 percent of the pledges made for the 2021 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5.
9. All expenses were allocated to program services and support services in the following percentages: public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent.
10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes.
11. All nominal accounts were closed to the appropriate net asset accounts.

Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 10 expenses will be allocated to functions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round the intermediate and final answers to the nearest dollar amount.)

Da Vinci's Mona Lisa was assessed for insurance in 1962 and it was valued at around 110 million. If the CPI in 1962 was 28.152 and the CPI in September 2020 is 258.310. What is the value of the Mona Lisa in September 2020 dollars?

1. 3,096.70 million

2. 1,009.32 million

3. 660.00 million

4. 11.99 million

During 2020, Canadian resident Biff Johnson has calculated his Taxable Income to be $69,600.

Instructions:

Calculate Biff's 2020 federal Tax Payable before consideration of any tax credits. Complete the six (6) blanksin the table below:

On January 1, 2020, a company had 700,000 shares of common stock outstanding. On March 1, it issued a 3-for-1 stock split. On July 1 it Issued 50,000 shares. On September 1 it Issued a 20% stock dividend. Determine the weighted-average number of shares outstanding as of December 31, 2020.

Lesson 1 Discussion 2020 unread replies.2020 replies. Answer the following question(s): How can a SWOT analysis be used in order to identify areas of opportunity and improvement? How do the people of the organization factor in to future opportunities and improvements? Please provide examples in order to illustrate your response

4. ?? , ? = 1, . . . , ? are i.i.d. and has p.d.f. ?(?) = { 0 ? < 0 ??−? + (1 − ?)2? −2? ? ≥ 0 , here 0 ≤ ? ≤ 1. Write down the likelihood function. (10 points) When ? = 1, write down the MLE of ?. (10 points) When ? = 1, write down the bias and variance of the MLE of ?. (10 points)