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)?

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​?

***Please complete the "Total market value of shares for Feb 5th and Feb 28th

[The following information applies to the questions displayed below.]

The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows:

On February 5, the directors declare a 16% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $41 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28

1. Prepare entries to record both the dividend declaration and its distribution.

2. One stockholder owned 750 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)

On February 5, the directors declare a 16% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $41 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28.

3. Compute the total market value of the investor’s shares in part 2 as of February 5 and February 28.

Please complete the "Total market value of shares for Feb 5th and Feb 28th

CK investments (Pty) is a local hand sanitizing production company. The company was
incorporated in 2010.
The company was started by Charles Mujende who is the 100% shareholder. CK is run by the
owner’s brother in law, Lazareth Shilongo CA(NAM), the CEO of the company. Charles started
the company using his pension fund of N$ 200 000.00.
The start-up funds were used to build the production centre in Tsumeb where the sanitisers are
produced. The ingredients used to make the sanitiser include water from a nearby lake, alcohol
and fragrance. CK investments is known to make sanitizers that leave your skin clean, smelling
good and moisturized, they have patented their recipe and production processes. The sanitiser
is packaged in plastic bottles. It is company policy that all spoilage from production be dumped
in the lake to minimise waste management costs.

You are a charted accountant and you went to university with Lazareth, the two of you have
remained good friends since your time at university. Lazareth has asked you to assist the
company with accounting, finance and internal audit functions of the company as they do not
currently have a CFO or CAE. You accepted the job because he has promised you a handsome
service fee that you will be paid in cash at the end of every month, off the books.
The company employs 500 men to produce, package and sell the sanitisers. All the salesmen
are paid on a commission basis only. The company has a list of commercial suppliers whom
they have a three-year sales agreement with. The CEO is output driven and is known to fire
salespersons who do not sell more than N$10 000.00 worth of sanitiser per month. The CEO
and all executives receive annual bonuses based on the profit before tax of the company.
In 2020, the demand for hand sanitisers increased exponentially due to the Corona virus. The
government has put out a tender to local companies to produce hand sanitizers. The tendering
process is highly competitive.
Fortunately, the audit committee chair, who is also the sales executive at CK, Sidney Haufiku is
good friends with the government official who is overseeing the tender process. Sidney has
invited the government official and his family to a nearby lodge for the weekend. All expenses
for this trip were covered by CK investments and expensed in terms S11a of the income tax act.
On the Saturday afternoon Sidney had a drink with the government official to discuss the
tender. Sidney proposed that he could service the tender at a cost of N$3m, half the market
value of sanitizers to save the government money if he could be guaranteed that the tender
would be awarded to CK Investments. The government official agreed that given countries
financial position, they would agree to the N$3m.
On 30 March the board had their first and last board meeting for the year. The audit committee
has not had a meeting and no other committees have been established as yet. At that meeting
Sidney briefed the board on his deal with the government official. Wilhelm Gariseb, is the
production executive and a member of the board, his department has been experiencing a
shortage of pharmaceutical alcohol in 2020. He proposed that to be able to produce at such low
costs, they could use less alcohol and more water to make the sanitizers. The board consisting of Lazareth Shilongo (chair of the board), Sidney Haufiku (audit comm chair) and Wilhelm Gariseb (member of the board), resolved to apply for the tender at a low cost using less alcohol At the same meeting, the board learned that they were required to hire an external auditor.
Lazareth suggested that you be appointed as the auditor as you are already familiar with the
business. The board members agreed, and you were appointed as the auditor.
On 29 May 2020, a newspaper article published that a local company CK Investments had been
selling the government ineffective sanitizer that was not strong enough to cleanse or sanitize
skin. The government has distributed this sanitizer to schools and hospitals. As a result, the
virus was able to easily spread as people would go about day to day activities under the
assumption that they had effectively sanitized their hands.
After a legal inquiry the company was found guilty of several legal violations. As a result, the
company was liquidated, and all 500 employees were left unemployed.

Question 5 (2)
The executive and government official agreed that the company would benefit from the
contract as they would have more income and the government would save costs from the 3m
dollar deal. Which method of ethical evaluation did they use and why?
Question 6 (2)
What kind of economic system is CK investments operating in? Please provide a reason for your
conclusion.

question 7

Assume that CK is the only seller of sanitizer in the country. What kind of competitive
environment do they operate in? Please draw the demand curves for this type of competition.
Question 8 (5)
Would you agree or disagree that CK investments is operating sustainably? Please provide
reasons for your answer.
Question 9 (10)
Identify any ethical concerns you may in terms of the CPC, based on the company description
above.
Question 10 (12)
Please raise any corporate governance concerns you noted in the description above based on
your knowledge of King 3/4. Please state the principle first and then apply it to the scenario
above.