Canberra acquired all of the equity shares in Yass on 1 October 2019, for consideration of $2,150 million. The carrying amount of identifiable net assets at acquisition was $2,130 million, which was the same as the fair value. Canberra is actively selling its entire shareholding in Yass as a single transaction and has classified the investment as a disposal group held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, for the year ended 30 September 2020. The carrying amounts of the net assets of Yass in the individual financial statements of Canberra at 30 September 2020, before classification as held for sale, were ($ million):

Canberra measures properties at fair value, in accordance with IAS 16 Property, Plant and Equipment. No revaluations had been recognised on acquisition, when the estimated fair values were substantially the same as the carrying amounts. Properties with a carrying amount of $630 million were revalued to fair value of $680 million, at 30 September 2020. This fair value change has not been recognised in the financial statements. The total fair value less costs to sell of the disposal group was estimated as $2,140 million, at 30 September 2020. No impairments had been recognised previously, to the goodwill of Yass.

Yass owns and operates private hospitals and the medical sector is highly regulated. Canberra is confident that the sale of Yass will be agreed shortly after 30 September 2020. Any purchaser will require regulatory approval, which could delay completion of the sale until after 30 September 2021. Regulatory approval cannot be sought by a purchaser until a contract of sale had been agreed. Yass will continue to operate the hospitals until the sale is completed. Canberra will sell all of the shares in Yass to the purchaser, who would obtain all of Yass’s rights and obligations. Yass does not intend to sell or acquire any significant assets or liabilities prior to completion of the sale, as that would affect the value of the shares being sold.

Required:

Discuss the correct recognition and measurement of the investment in Yass in the consolidated financial statements, for the year ended 30 September 2020. Provide calculations.                 

In 2010, researchers recommended a new series of measures be carried out over the next decade to sustain the duck population. After the measures were implemented, the population was expected to be:

?(?) = 3? 3 + 2? 2 − 10? + 600 (0≤ ? ≤ 10)

a) What type of growth is N(t)?

b) Find an expression for N′(t).

c) What was the rate of growth of the Duck population after one year? .

d) What was the rate of growth of the Duck population after five years?

e) How many ducks were in the population in 2019?

The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries are prepared.

  Debit   Credit

Prepaid Insurance   RM 3,600

Supplies   2,800

Equipment   25,000

Accumulated Depreciation—Equipment   RM5,000

Unearned Service Revenue   9,200

An analysis of the accounts shows the following.

1.Insurance expires at the rate of RM100 per month.

2.Supplies on hand total RM800.

3.The equipment depreciates RM200 a month.

4.During March, services were performed for one-half of the unearned service revenue.

Prepare the adjusting entries for the month of March.

A random sample of 75 students revealed 0.25 had acquired an internship for summer 2020 before February 2020. If an associated confidence interval started at 0.152 and ended at 0.348, what was the level of confidence?

Group of answer choices

a) 90

b)80

c)99

d)95

For a t distribution with n = 19, find the probability for the following region:

To the left of +2.5524

a)0.51

b)0.49

c)0.99

d)0.91

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate of 21% and provides the following selected information (covers the three tax difference items) from its ledger as at December 31, 2019 and 2020:

                                                                                                    2019             2020

                        Equipment, at cost                                  900,000 DR 900,000 DR

                        Accumulated depreciation, equipment    450,000 CR 525,000 CR

                        Deferred Tax Asset                                   10,080 DR                   ?

                        Warranty Liability                                     48,000 CR    56,000 CR

                        Deferred Tax Liability                              47,250 CR                   ?

                        Depreciation expense, equipment             75,000 DR   75,000 DR

                        Warranty expense                                     27,000 DR   30,000 DR

                        Municipal bond interest (tax exempt)       17,800 CR    18,800 CR

The tax basis of the equipment (book value for tax purposes or the amount of the cost of the asset not yet deducted for tax purposes) is $225,000 at December 31, 2019 and $112,500 as at December 31, 2020. The tax deduction for warranties is limited to actual warranty payments.

Required:

1. What is the tax deduction for warranties on Vigor’s 2020 tax return?
2. What is taxable income for 2020?
3. What is income tax expense/benefit, current portion for 2020?
4. What is the amount of the deferred tax asset at December 31, 2020?
5. What is the amount of the deferred tax liability at December 31, 2020?
6. What was income tax expense/benefit, deferred portion for 2020?
7. What is Vigor’s effective income tax rate (ETR) for 2020?

At December 31, 2020, the trial balance of Darby Antiques contained the following amounts before adjustment.

Journalize entries to record transactions related to bad debts.

Instructions

a. Based on the information given, which method of accounting for bad debts is Darby using—the direct write‐off method or the allowance method? How can you tell?

b. Prepare the adjusting entry at December 31, 2020, for bad debt expense, assuming an aging schedule indicates that £11,750 of accounts receivable will be uncollectible.

£10,750

c. Repeat part (.b.) assuming that instead of a credit balance there is a £1,000 debit balance in Allowance for Doubtful Accounts.

d. During the next month, January 2021, a £3,000 account receivable is written off as uncollectible. Prepare the journal entry to record the write‐off.

e. Repeat part (.d.) assuming that Darby uses the direct write‐off method instead of the allowance method in accounting for uncollectible accounts receivable.

f. What type of account is Allowance for Doubtful Accounts? How does it affect how accounts receivable is reported on the statement of financial position at the end of the accounting period?

please note the following additional information

• Incorporate GST, using the GST Clearing account, as needed. Accounts receivable of £385,000 is GST inclusive, but the Allowance for Doubtful Accounts and Sales Revenue accounts are net of GST.
• For part b., the figure £11,750 is net of GST.
• For part d., the figure £3,000 does not include GST, i.e., the GST inclusive amount is £3,450. The GST portion is reimbursable from the government.
• Replace Instruction e. with the following: In February, £2,300 of accounts receivable, previously written off, was collected. The £2,300 includes GST. Prepare the required journal entries.
• Replace Instruction f. with the following: Assume the balance for Accounts Receivable on 1 January 2020 was £420,000, including GST, and the balance in the Allowance account was £2,000, not including GST. The Sales Revenue shown (£970,000) is for the year. Calculate the days in accounts receivable for 2020 and analyse the trend from 2019, when days in accounts receivable were 140. Suppose Darby’s credit terms allow customers to pay in equal instalments over a six month period. How would this affect your conclusion as to collection efficiency?   

In 2020, RST Corporation has $75,000 of income before taxes in its accounting records.   In computing income tax expense, RST makes the following observations of differences between the accounting records and the tax return:

1. An accelerated depreciation method is used for tax purposes. In 2020, RST reports $6,000 more depreciation expense for tax purposes than it shows in the accounting records.

2. In 2020, RST collected $60,000 from a business that is renting a portion of its warehouse. The $60,000 covers the rental payment for the four years 2021-2024, and therefore no rental revenue has been recognized for 2020. However, XYZ must pay taxes on the entire amount collected in 2020.

The enacted tax rate in 2020 is 21% and is 23% in 2021 and years following.

Required:

1.      Calculate taxable income for 2020.

2.      Prepare the journal entry necessary to record income taxes at the end of 2020.

3.      How would any deferred tax amounts be reported on a classified balance sheet?

4.     Assume that RST’s 2021 pretax accounting income is $9,000 and that RST reports $3,000 more depreciation expense for tax purposes than it shows in the accounting records. Also during 2021, RST invests in tax-free municipal bonds that earn $3,000 interest in 2021. Prepare the journal entry necessary to record income taxes at the end of 2021.

5. What is the amount of net income or loss that RST would report on its 2021 income statement and how will it be reported?

The Skysong, Inc. opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Skysong, Inc. also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

Do the following:

A. Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

B. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post sthe adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question. Round answers to 0 decimal places, e.g. 5,275.)

C.  Prepare an adjusted trial balance on May 31. (Round answers to 0 decimal places, e.g. 5,275.)

D.  Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

E. Prepare an retained earnings statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

F. Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, plant and equipment in order of land, buildings and equipment. Round answers to 0 decimal places, e.g. 5,275.)

4. Under Clayton Christensen's theory of disruptive innovation, sustaining innovation will always entail an incumbent continuing to apply the core design concepts that underlie their existing product architecture. True or False? Explain why? (Word Count: 150)

What is creative disruption and how can disruptive innovation be a positive contributor to our economy?

Give an example of a industry that has experienced or is experiencing a process of disruptive innovation.

How would you measure this success from an economic perspective?