A proprietorship commenced operations on May​ 1,2020 and will have a calendar fiscal year. On June​ 1, 2020​, the proprietorship acquired goodwill for $60,000.

What is the maximum CCA deduction of the goodwill for the year 2020​?

Wilkins Food Products, Inc., acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2019. In payment for the machine Wilkins issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2021. The error had caused Wilkins to understate interest expense by $45,000 in 2019 and $40,000 in 2020.

Required:

1. Determine which accounts are incorrect as a result of these errors at January 1, 2021, before any adjustments. Explain your answer. (Ignore income taxes.)

2. Prepare a journal entry to correct the error.

3. What other step(s) would be taken in connection with the error?

BUSINESS LAW

Aaron has been asked by Mariappan to negotiate a business deal on his behalf with Tune Sdn Bhd. Mariappan has reminded Aaron to close the deal legally with Tune Sdn Bhd before the end of March 2020. Aaron agreed. The deal had been successfully negotiated but Mariappan found that Aaron had used the illegal means of obtaining confidential profits through the negotiation. Mariappan argued on how Aaron dealt with Tune Sdn Bhd. Aaron emphasized that it was a common method used in business. Mariappan need not worry since his instruction to obtain the contract had been successfully completed.
Under the principle of agency, how is the business deal supposed to be conducted? Support your answer with legal provision from the Contract Act 1950 and ONE (1) relevant case.
(10 markah / marks)

Volta is an international manufacturer of electric cars, and plans for a worldwide launch of its cars in 2020. Before doing so, Volta has asked you to advise it as to the general law on intellectual property. Secondly, Volta wishes to patent its (first in the world and novel) clean energy engine in Malaysia. Can it do so?

a) Advise how Volta specifically can patent its (first in the world and novel) clean energy engine. [10 marks]

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You are the Head of IT Security at a financial institution in Malaysia. Due to the rise in cyber crime in recent years, you have been asked to prepare a plan of action to combat phishing (for online transaction services provided by the financial institution).

a) How can phishing affect the financial institution? [10 marks]

b) How can the financial institution clients avoid being affected by phishing? [10 marks]

Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Actual variable costs were indirect materials $14,800, indirect labor $9,200, utilities $9,300, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,400. The actual activity level equaled the budgeted level.

All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.

(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)

(b) Prepare a responsibility report for the first quarter.

MacBillpurchaseda sowing machine on January 1, 2019. For its sowing machines, MacBilluses straight-line depreciation for financial reporting purposes (US GAAP) and accelerated depreciation for tax purposes. Its useful life is 3 years. Assume income before depreciation is $1,000 in 2019. MacBill has a 30% income tax rate for all years. The depreciation table is as follows:

1. What is the tax expense on its income statements for the year 2019?

Ans: $ ________________

2. What is the cash amount paid for income taxes for the year 2019?

Ans: $ ________________

c.   How does depreciation affect deferred tax account during 2019?

Deferred tax asset           Deferred tax liability                  (Choose one)

Increase               Decrease                                     (Choose one)

by the amount of $ ________________

A . Prepare income statements for the XXX company in December 2020. Use the following information please :

B. What is the Gross Margin %?

C. What is Basic EPS? What is Diluted EPS?

***************Use below Information *********

Cost of Goods Sold. 600,000

Purchased patents 50,000

Sales Returns 30,000

Sales 1,505,000

Allowance for Doubtful Accounts 60,000

Trademarks 15,000

Sales and marketing expenses 220,000

Accounts Payable 65,000

Engineering Expenses 300,000

Contributed Capital 300,000

G&A Expenses 165,000

Goodwill 150,000

Sales Discounts 18,000

Sales Tax Payable 5,000

Interest Expense 32,000

Tax rate 35%

Loss on investments 10,000

Copyrights 30,000

Wages payable 100,000

Losses on division scheduled

for closing 100,000 before tax.

There are 500,000 average common shares outstanding and 100,000 equivalent shares.

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).

Ignore the Net Investment Income Tax.

Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return?

Coca-Cola Company (KO) paid a common dividend of $1.48 in 2017. The cost of equity is 3.0%, market return is 6%, and a 10-year Treasury note rate is 2%. You decided to value KO’s stock to determine whether it is under-valued. You gathered the following information:

1. The before-tax cost of debt is 6 percent.
2. The company’s target capital structure is financed 25 percent debt, 25 percent preferred stock, and 50 percent common stock.
3. The cost of preferred stock is 4 percent.
4. Common dividend is expected to grow at 5 percent in 2018, 2019, and 2020. It will grow at 3 percent in 2021, and then stabilizes at a long-term growth rate of 2%.
5. Corporate tax rate is 25%

What is the expected KO’s market price per share at the end of 2021?

Kiyara (single) is a 50 percent shareholder of Jazz Corporation (an S Corporation). Kiyara does not do any work for Jazz Corp. Jazz Corp. reported $306,000 of business income for the year (2020). Before considering her business income allocation from Jazz Corp. and the self-employment tax deduction (if any), Kiyara’s adjusted gross income was $256,000 (all employee salary). Answer the following questions for Kiyara. (Leave no answer blank. Enter zero if applicable.)

Problem 4-44 Part a (Algo)

a. Assuming the income allocated to Kiyara is qualified business income, what is Kiyara’s deduction for qualified business income?

b. What is Kiyara’s net investment income tax liability (assume no investment expenses)?

c. What is Kiyara’s self-employment tax liability?

d. What is Kiyara’s additional Medicare tax liability (include all earned income)?