The table summarizes data on smoking status and perceived risk of smoking and is consistent with summary quantities obtained in a Gallup Poll conducted in November 2002. Assume that it is reasonable to consider these data as representative of the U.S. adult population.

(a) What is the probability that a randomly selected U.S. adult is a former smoker? (Give the answer to four decimals places.)


(b) What is the probability that a randomly selected U.S. adult views smoking as very harmful? (Give the answer to four decimals places.)


(c) What is the probability that a randomly selected U.S. adult views smoking as very harmful given that the selected individual is a current smoker? (Give the answer to four decimals places.)


(d) What is the probability that a randomly selected U.S. adult views smoking as very harmful given that the selected individual is a former smoker? (Give the answer to four decimals places.)


(e) What is the probability that a randomly selected U.S. adult views smoking as very harmful given that the selected individual never smoked? (Give the answer to four decimals places.)

Determining Carrying Value and Amortization of Intangible Assets

Review the following information pertaining to Denzel Company.

1. A patent was purchased on January 2, 2018, for $149,500 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition.
2. On January 1, 2020, Denzel Company purchased a second patent for $184,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired.
3. On June 30, 2020, Denzel Company paid a firm $18,400 for a new trademark. Denzel considers the life of the trademark to be indefinite.
4. On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $276,000. Denzel determined that the fair value of the identfiable net assets acquired in the transaction is $269,100.

Note: When answering the following questions, do not round until your final answer. Round your final answer to the nearest whole number.

Required

a. What is the carrying value of intangible assets on December 31, 2020? Assume no impairment losses were recognized in prior periods.

$Answer

b. What is amortization expense for 2020?

$Answer

On January 1, 2019, Jasper Company acquired 400,000 of Huckleberry Company's 1,000,000 shares at a cost of $1,600,000 and began applying the equity method. At the time, Huckleberry Company's equity included $2,000,000 of capital stock and $2,000,000 of retained earnings. During year Year One, Huckleberry Company reported a $500,000 income, but did not pay any dividends. On January 2, 2020, Jasper acquired an additional 200,000 shared of Huckleberry at a price of $6 per share. At what time should Blue value its investment in Huckleberry on January 2, 2020?

$2,800,000

$3,000,000

$2,600,000

None of the above

On December 31, 2019, Sumner Company held Wall Company bonds in its portfolio of trading securities. The bonds have a par value of $40,000, carry a 10% annual interest rate, mature in 2026, and had originally been purchased at par. The market value of the bonds on December 31, 2019 was $38,000.

On January 1, 2020, Sumner acquired bonds of Doherty Company with a par value of $30,000 for $30,200. The Doherty Company bonds carry an annual interest rate of 12% and mature on December 31, 2024. Additionally, on the same date, Sumner acquired Maggio Company bonds with a face value of $20,000 for $19,500. The Maggio Company bonds carry an 8% annual interest rate and mature on December 31, 2029. At the end of 2020, the respective market values of the bonds were: Wall, $39,000; Doherty, $31,000; and Maggio, $21,000. Sumner classifies all of the debt securities as trading. Assume that Sumner uses the straight-line method to amortize any discounts or premiums.

Required:

Robert Zoellick had a very interesting column in the Wall Street Journal called “Leave No Country Behind in the Post-Covid recovery”

Robert Zoellick is someone that I trust: he is a former World Bank President, former U.S. Trade Representative, and former Deputy Secretary of State.

Here are 2 sentences that I thought were important:

• “The U.S. should recognize that its healthy recovery--from both disease and economic disaster--depends on revivals elsewhere.” That is, we’re all in this together.
• “Countries will give their own citizens first priority for vaccines and treatments. But they can also commit support for the most vulnerable in developing countries.”

Discuss either the 2 sentences I highlighted or some other points he made that you found interesting.

2. A U.S. company, with an accounting year end of December 31, engages in the transactions indicated below. The company’s inventory allocation method is FIFO and they use the perpetual inventory system. prepare the entries to recognize the above transactions

1. On May 20, when the exchange rate was $1.40/£, a U.S. company purchased merchandise from a U.K. supplier for £10,000.
2. On June 5 the U.S. company acquired the required amount of U.K. £s and paid for the merchandise when the exchange rate was $1.38/£.
3. On August 15, when the exchange rate was $1.23/€, the U.S. company sold the merchandise purchased from the U.K. supplier to a customer in Belgium at an invoice price of €16,000.
4. On September 6, when the exchange rate was $1.21/€, the U.S. company received payment of €16,000 from the Belgian customer

Knowing that the company's former CFO and CEO not only got in trouble for fiduciary responsibility violations but IRS issues as well, you plan to write a report with your senior accountants to go over the main differences between the roles of financial accounting, cost accounting, and tax accounting as some of the prior accounting department misdeeds seemed to come from not keeping these separate.

1. In chart form, distinguish between these 3 segments of the accounting function, each of them along these 4 criteria:
   • The legal or regulatory bodies and guidelines that must be abided by.
   • Typical kinds of reports created and the stakeholders interested in each report.
   • Issues that, if not addressed properly, could land the company in trouble again.
   • The particular kinds of training/education that employees in each of these departments should have.

1. Ralph Larsen, former chairman and CEO of Johnson & Johnson, was quoted in
this chapter concerning the use of the Internet. Johnson & Johnson has been one
of America’s premier companies for decades and has exhibited a high level of
social responsibility around the world. Go to the Johnson & Johnson website at
www.jnj.com.
2. Click on “Our Caring.” Scroll down and click on “Our Credo Values.” Now
scroll to the bottom of the page and download the Credo as a PDF under the
“Our Credo” link. Read the first two paragraphs and write a brief summary
of the credo. Return to the home page and click on “Investors.” Then scroll
down and click on the most recent Annual Report (“Annual Report and Proxy
Statements”).
3. Scroll down the Annual Report until you see “Consolidated Statement of
Earnings” for the last few years.
4. Compute the percentage change between the last two years for the following
(numbers are in millions of dollars): (PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
a. Sales to customers.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
b. Net earnings.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
c. Earnings per share. (PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
5. Generally speaking, is Johnson & Johnson growing by more or less than
10 percent per year?

A former CEO of a major American corporation has the following to say about BP and the Deepwater Horizon disaster: In the aftershock, the world watched BP and its chief executive, Tony Hayward, make blunder after blunder while crude continued to gush. ... BP’s talk about caring for the environment was for naught, as its actions failed to match its message. ... Recently, a BP-sponsored Gulf Coast tourism TV campaign has implied that everything is back to normal. No doubt, substantial reparative progress has been made. But does the latest ad make you feel any better about the offender? Let’s assume that you’ve been asked to sit on a panel of randomly selected American consumers convened by BP. The company wants to find out what people like you think about its actions in the wake of Deepwater Horizon. How would you answer the question posed at the end of the preceding quote? How would you explain your response?