1. If competitive market circumstances are such that there is some leader-follower price competition, some product differentiation, and the purpose of advertising is to inform, but avoid price competition, then we must be operating in a(n):

-    monopolistic competition.

-    pure competition.

-    oligopoly.

-    pure monopoly.

2. In comparing penetration and skimming price policies:

-    the former is useful when the firm has excess production capacity.

-    the former sets a price without considering competition.

-    the latter discourages the entrance of competitors.

-    the latter is appropriate when demand is price elastic.

3. Reebok has developed a marketing strategy designed to produce inelastic cross-elasticity for their brand. What is the major reason Reebok is attempting to accomplish this?

-    it wants to show the value of each brand attribute and relate it to the price of its brand.

-    it wants to have more success when it puts its products on sale at season or year-end.

-    it wants price to be less important to buyers than other brand attributes.

-    it wants to be able to use price as a key tool to take market share away from Nike.

4. The price-quality association is most likely to occur when buyers:

-    know the names of the major brands in a product category.

-    can readily judge the overall quality of a product.

-    have little experience in judging quality.

-    perceive small differences in quality among brands.

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $113,000 to an investment banking firm.

The following information was also available:

• Zambrano further agreed to pay an extra $86,200 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $43,100.
• Soriano has a research and development project in process with an appraised value of $227,500. However, the project has not yet reached technological feasibility and the project’s assets have no alternative future use.

a&b. Prepare Zambrano’s journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $741,400 & (b) $861,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $124,000 to an investment banking firm.

The following information was also available:

• Zambrano further agreed to pay an extra $79,800 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $39,900.
• Soriano has a research and development project in process with an appraised value of $229,500. However, the project has not yet reached technological feasibility and the project’s assets have no alternative future use.

a&b. Prepare Zambrano’s journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $755,000 & (b) $875,200. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Please show work how you get the numbers. Thanks

11-27 (Objectives 11-3 , 11-4) The following are misstatements that can occur in the sales and collection cycle:

A customer number on a sales invoice was transposed and, as a result, charged to the wrong customer. By the time the error was found, the original customer was no longer in business.

A former computer operator, who is now a programmer, entered information for a fictitious sales return and ran it through the computer system at night. When the money came in, he took it and deposited it in his own account.

A nonexistent part number was included in the description of goods on a shipping document. Therefore, no charge was made for those goods.

A customer order was filled and shipped to a former customer, which had already filed for bankruptcy.

The sales manager approved the price of goods ordered by a customer, but he wrote down the wrong price.

A computer operator picked up a computer-based data file for sales of the wrong week and processed them through the system a second time.

For a sale, a data entry operator erroneously failed to enter the information for the salesman’s department. As a result, the salesman received no commission for that sale.

Several remittance advices were batched together for inputting. The cash receipts clerk stopped for coffee, set them on a box, and failed to deliver them to the data input personnel.

Required

Identify the transaction-related management assertion(s) to which the misstatement pertains.

Identify one automated control that would have likely prevented each misstatement

On May 1, Soriano Co. reported the following account balances along with their estimated fair values:

On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $101,500 to an investment banking firm.

The following information was also available:

• Zambrano further agreed to pay an extra $81,400 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $40,700.
• Soriano has a research and development project in process with an appraised value of $210,500. However, the project has not yet reached technological feasibility and the project’s assets have no alternative future use.

a&b. Prepare Zambrano’s journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $743,800 & (b) $862,800. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Haliteck Corporation is based in Halifax. At the end of 20X4, the company’s accounting records show the following items: a. A $110,000 loss from hurricane damage. b. Total sales revenue of $2,850,000, including $425,000 in the Decolite division, for which the company has a formal plan of sale. c. Interest expense on long-term debt of $70,000. d. Increase in fair value of marketable securities of $60,000. e. Operating expenses of $2,150,000, including depreciation and amortization of $525,000. Of the total expenses, $424,000 (including $80,000 in depreciation and amortization) was incurred in the Decolite division. f. Haliteck Corporation wrote down tangible capital assets by $34,000 during the year in order to reduce the Decolite division’s assets to their estimated recoverable amount. g. Haliteck has long-term debt denominated in U.S. dollars. Due to the weakening of the U.S. dollar during 20X4, the company has an unrealized gain of $22,000. h. Haliteck has a subsidiary in France. The euro strengthened during the year, with the result that Norse had an unrealized gain of $16,000 on its net investment in the subsidiary i. Haliteck’s income tax expense for 20X4 is $76,000. This amount is net of a tax recovery of $25,000 on the Decolite division and a $30,000 tax benefit from hurricane damage. j. The company had 41,000 common shares outstanding at the beginning of the year; an additional 10,000 were issued on March 31.

Required: Prepare a continuous SCI. (Round your "Earnings per share" answers to 2 decimal places.)

At the beginning of 2017, your company buys a $32,000 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 6,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 46,000 units in 2017, 55,000 units in 2018, 55,000 units in 2019, and 44,000 units in 2020.

Required:

A.Determine the depreciable cost.

B.Calculate the depreciation expense per year under the straight-line method.

C.Use the straight-line method to prepare a depreciation schedule.

D.Calculate the depreciation rate per unit under the units-of-production method.

E.Use the units-of-production method to prepare a depreciation schedule.

Answer two of the following three Problems

Problem 1

Company:                        XYZ Company

Date of bonds:                January 1, 2019

Term:                               4 years

Face (Par) Value:            $1,000

Stated interest rate:         12%

Effective interest rate:    10%

Interest payment dates on January 1 and July 1

1. Compute the market price of the bonds and journalize the issuance of the bonds.

2. Prepare a schedule to amortize the premium or discount using the effective interest method of amortization for the first year and journalize the entries to record the interest payment on July 1, 2019 and January 1 2020.

3. Interest expense for the year ended December 31, 2019 is $______________.

At the beginning of 2017, your company buys a $33,200 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 40,000 units in 2017, 53,000 units in 2018, 48,000 units in 2019, and 59,000 units in 2020.


Required:

1. Determine the depreciable cost.
2. Calculate the depreciation expense per year under the straight-line method.
3. Use the straight-line method to prepare a depreciation schedule.
4. Calculate the depreciation rate per unit under the units-of-production method.
5. Use the units-of-production method to prepare a depreciation schedule.

During 2018, a company has the following transactions:

i. Sells $30,000 worth of merchandise on credit. The company will collect the accounts in 2019.

ii. Records $3,000 in electricity expense for the month of December. Electricity bills are paid the next month.

iii. Purchases a $12,000 prepaid insurance policy that expires in 2020.

iv. Pays a $1,000 fine for dumping waste materials in a river.

v. Receives $20,000 in magazine subscription proceeds for 12 issues delivered to customers in 2019.

Which of the above transactions will result in a deferred tax asset?

ii and iv

i and iii

iii and iv

ii and v

why is the correct answer is ii and v