Identify the specific effects (account name, dollar amount, financial statement impact) on the listed balance sheet components. Indicate increases, decreases, and no effects on particular components.

Blue Co. has a patent on a communication process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $39 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries). What is the appropriate patent amortization expense in 2021? (Do not round your intermediate calculation.)

$21.67 million.

$5.42 million.

$10.83 million.

$4.33 million.

Which of the following is not a change in estimate?

A change in the useful life of a depreciable asset.

A change in the mortality rate used for pension computations.

A change from the cost to the equity method in accounting for investments.

A change in the warranty expense percentage.

Translation of purchase of inventories on credit terms

Stranded Ltd is an Australian company that purchases inventories from Hammers plc,

which is an English company. The following information is relevant to a recent

acquisition of inventories for £300 000 pursuant to a contract with terms including FOB

shipping.

Required

In accordance with AASB 121/IAS 21, prepare all of the entries of Stranded Ltd that relate to the foreign currency purchase of inventories. How would your answer change if the inventories acquired had a net realisable value of £270 000 at 30 June 2017?

Tanner-UNF Corporation acquired as a long-term investment $340 million of 6.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $310.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $320.0 million.

Required:

3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet?
4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $300.0 million. Prepare the journal entry to record the sale.

QUESTION 1

Bar Limited is a company that farms corn. Bar Limited is a relatively new company in the corn industry, having previously been in the furniture manufacturing industry. Bar Limited was awarded a government grant of R 500 000 on 1 January 2015, the details of which are as follows:

a) R 300 000 is to assist with the purchase of new harvester;

b) R 200 000 is for immediate financial support and is not associated with any future costs;

c) All conditions attaching to the grant have been met.

Later that day, the harvester was acquired for R 900 000. The harvester has a useful life of years and, at the end of its useful life, Bar Limited expects to sell it for R 50 000 as scrap metal.

Required

Show the general journal entries for the years ended 31 December 2015 to 2019 using the direct method (recognized as grant income)

The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Andreas Ltd for the year ended 30 June 2020, amounted to $85 000, including the following revenue and expense items:

The statement of financial position of the company at 30 June 2020 showed the following net assets.

Additional information

(a) Accumulated depreciation of plant for tax purposes was $30 000 at 30 June 2019, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $ 6 500.

(b) The tax rate is 30%.

Required(show all workings):

Prepare a current tax worksheet and the journal entry to recognise the company’s current tax liability as at 30 June 2020.

Promotion and pricing of a product or service involve consideration of the strategies as well as how the strategies will be carried out, in line with the organization’s values. You have read about promotion and pricing (two of the 4 P’s of the marketing mix) and had an opportunity to review the 4 P’s tutorial. You read about ethics and social responsibility in Chapter 3 and discussed these topics in the Discussion. In this Assignment, you will apply these concepts to a real-world company scenario. In addition, you will add audio to your presentation that speaks to the audience specified in the scenario. Being able to prepare a professional audiovisual presentation is an important career skill and can be added to your resume once you have become proficient.

Read the scenario below and address all the checklist items.

Scenario:

A startup company, Korwin Pharmaceuticals is a U.S. pharmaceutical products firm that is growing very rapidly at home and abroad. Integrity and honesty regarding product quality and concern for consumer well-being are values of the founders of the firm.

Recently, Korwin Pharmaceuticals developed several new products to service customers who cannot afford the pricier life-saving anti-allergen medications and the self-injecting devices currently on the market. These products can be self-injected by the person suffering from a life-threatening allergic reaction and were just recently approved for the marketplace by the U.S. Food and Drug Administration.

To respond to the projected rapid growth of the firm, they are going to hire an additional 100 employees in the next 2 months to cope with the demand for these new life-saving products. Because the company is hiring so many new employees, they are concerned with maintaining the founders’ original values of social responsibility while ensuring a quality product.

They are also concerned with promoting and pricing these new products fairly, based on the company values along with their concern for affordability for the middle class in the U.S. and other consumers and client companies abroad.

As a marketing consultant to the president of the company and executive management, address the items pertaining to the promotion and pricing strategy for the company’s new products in line with the company founders’ values and their social responsibility.

Checklist:

1. Specify what code of conduct the company should institute to make sure that all personnel adhere to the founders’ values in promoting and pricing the product at home and abroad.
2. Provide an advertising campaign (using pioneering, competitive, or comparative advertising) for this line of life-threatening anti-allergen medications and self-injecting devices using three (3) different types of advertising.
3. Provide a public relations strategy to promote the new product line while considering the social responsibility involved.
4. Prepare one (1) promotional tool each for consumer sales promotion, personal selling, and social media.
5. Describe how the AIDA concept stages are to be addressed.
6. Explain three (3) possible pricing strategies and any discounts, rebates, trade discounts, and/or allowances that would apply for this new line of life-saving products.
7. Explain how you will determine a profit has been realized based on your pricing objectives.

What are the qualifications for becoming a member of the U.S. House of Representatives?

What are the qualifications for becoming a member of the U.S. Senate?

How long is the term of a U.S. Senator? How long is the term of a member of the U.S. House of Representatives?

How many U. S. Senators are there? How many congressmen are there?

What is an incumbent, and what advantages do they have?

How many members of the U.S. House of Representatives currently represent Ohio?

What are the names of the two congresswomen who represent parts of Cleveland, Ohio?

What are the names of the two U.S. senators representing Ohio?

Name three enumerated powers of Congress (e.g., those listed in the Constitution)

Describe in detail the steps required for a bill to become a law.

What are committees and subcommittees?

Define hearing, markup, and report as it applies to committee action.

Explain filibuster and cloture. What is the effect of these procedures on democracy?

Define veto and pocket veto. What percentage of votes is required to override a veto?

What are the titles of the elected leaders in the House and the Senate?

What is the role of the whip?

What is logrolling?

What is a constituent?

List and describe five of the roles of the president.

What is the cabinet? Name at least five cabinet positions.

What is an executive order?

What is impeachment? Describe the process by which a president can be impeached.

Which two presidents have been impeached in U.S. history?

Which party holds the majority in the U.S. House of Representatives and the U.S. senate?

What is an interest group?

How does an iron triangle work?

What power does a president have to affect the economy?

What is a lobbyist?

Who is the Chief Justice of the U.S. Supreme Court? How many other justices are there?

What are the three tiers of the federal justice system?

How many justices serve on the U.S. Supreme Court? How long is their term of office?

What is the difference between a strict constructionist and an activist judge?

What is a class action suit?

What is an amicus curiae brief? How does it allow outsiders to participate in the judicial process?

What are the three types of Supreme Court opinions?

What is precedent and how does it ensure that courts don’t radically change existing policy?

What is judicial review?

What is an example of a decision a bureaucracy has the authority to make?

Briefly describe the bureaucratic rulemaking process. What role can average citizens play?

Sherrod, Inc., reported pretax accounting income of $84 million for 2018. The following information relates to differences between pretax accounting income and taxable income:

Income from installment sales of properties included in pretax accounting income in 2018 exceeded that reported for tax purposes by $3 million. The installment receivable account at year-end had a balance of $4 million (representing portions of 2017 and 2018 installment sales), expected to be collected equally in 2019 and 2020.

Sherrod was assessed a penalty of $4 million by the Environmental Protection Agency for violation of a federal law in 2018. The fine is to be paid in equal amounts in 2018 and 2019.

Sherrod rents its operating facilities but owns one asset acquired in 2017 at a cost of $88 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

Warranty expense of $3 million is reported in 2018. For tax purposes, the expense is deducted when costs are incurred, $2 million in 2018. At December 31, 2018, the warranty liability was $2 million (after adjusting entries). The balance was $1 million at the end of 2017.

In 2018, Sherrod accrued an expense and related liability for estimated paid future absences of $8 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($5 million in 2019; $3 million in 2020).

During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss is paid in 2018 at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2018, were $2.0 million and $3.2 million, respectively. The enacted tax rate is 40% each year.

1. Determine the amounts necessary to record income taxes for 2018 and prepare the appropriate journal entry.

2. Show how any deferred tax amounts should be classified and reported in the 2018 balance sheet.​