Asia Pacific Ltd started operating on 1 July 2017 with 12 employees. Three years later all of those employees were still with the company. On 1 July 2019 the company hired 15 more people but by 30 June 2020 only 10 of those employed at the beginning of that year were still employed by Asia Pacific Ltd. All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years of employment with Asia Pacific Ltd. At 30 June 2020 Asia Pacific Ltd estimates the following:

 The aggregate annual salaries of all employees hired on 1 July 2017 is now $1,200,000.

 The aggregate annual salaries of all current employees hired on 1 July 2019 is now $800,000.

 The probability that employees hired on 1 July 2017 will continue to be employed for the duration of the conditional period is 40 per cent.

 The probability that employees hired on 1 July 2019 will continue to be employed for the duration of the conditional period is 20 per cent.

 Salaries are expected to increase indefinitely at 1 per cent per annum.

The interest rates on high-quality corporate bonds are as follows:

Corporate bonds maturing in seven years 6% Corporate bonds maturing in eight years 8% Corporate bonds maturing in nine years 8% Corporate bonds maturing in ten years 10% At 30 June 2019 the provision for long-service leave was $12,000.

Required: a) Calculate the total accumulated long-service leave benefit as at 30 June 2020.

b) What amount should be reported for the long-service leave provision as at 30 June 2020 in accordance with AASB 119?

c) Prepare the journal entry for the provision for long-service leave for 30 June 2020 in accordance with AASB 119.

d) Which employee benefits are required to be discounted in accordance with AASB 119?

Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common.

When the company began on July 1, 2018, Tony and Suzie each purchased 12,500 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during 2020, its third year of operations:

July 2 Issue an additional 110,000 shares of common stock for $9 per share.

September 10 Repurchase 11,000 shares of its own common stock (i.e., treasury stock) for $12 per share.

November 15 Reissue 5,500 shares of treasury stock at $13 per share.

December 1 Declare a cash dividend on its common stock of $129,500 ($1 per share) to all stockholders of record on December 15.

December 31 Pay the cash dividend declared on December 1.

Required:

1. Record each of these transactions.

2. Great Adventures has net income of $147,000 in 2020. Retained earnings at the beginning of 2020 was $137,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2020.?

Problem A, Income Taxes Harms Way Company (HWC) provides you with the following information for the year ended October 31, 2020. Your assignment is to calculate income tax expense, income taxes payable, and deferred income tax assets/liabilities. The end result will be a journal entry to record all of that. In addition, you must calculate HWC’s effective tax rate and prepare a reconciliation to the federal statutory rate of 21%. You can explain the difference in words, if you wish.

Information provided:

1. Income before tax, as shown on HWC’s GAAP statement of income = $2,440,000

2. Depreciation calculated under GAAP = $300,000. Depreciation as will be shown on the tax return = $475,000.

3. Interest income on municipal bonds, which is not subject to federal income tax = $150,000.

4. Fines recorded and paid during the year to the EPA for environmental violations = $450,000. Fines are not tax deductible.

5. Meals and entertainment expenses recorded during the year = $375,000. Only one-half (50%) of those expenses may be deducted for tax purposes.

6. At the end of the fiscal year (in October 2020), HWC received a payment of $750,000 from a client for a product to be delivered in November 2020. Under the tax law, that payment is taxable when received, not when the product is delivered.

Your Assignment: Calculate:

1. Income tax expense (GAAP).

2. Income taxes currently payable.

3. Deferred income taxes resulting from this year’s operations.

Be sure to show your work, I give partial credit (full credit, too, of course), but I must be able to see how you calculated amounts used in your answer

QUESTION 4

KAM Ltd (KAM) is a private company in the electronics industry. The company has grown steadily since its incorporation in 1997 and is seeking public listing in the next financial year.

KAM prepared its financial statements under International Financial Reporting Standards (IFRS).

You work in the finance department of KAM and are currently working on the financial statements for the year ended 30 April 2020.

In order to gain maximum interest from the market when shares are offered for public trading, the Directors of KAM are keen to present financial statements showing high profitability.

They are aware that market analysts will look favourably on a higher than average return on capital employed (ROCE) for the electronics industry.

The standard formula to calculate gearing by analysis is:

Profit before interest and tax Equity + Long term liabilities

When reviewing the financial statement the following matters come to light: Part (a)

On 1 May 2019, KAM issued redeemable preference shares for £10 million. The preference shares carry a fixed dividend of 5%.

The dividend of £500,000 has been paid on 30 April 2020 and this amount has been deducted from reserves.

The directors are pleased as the amount paid has not affected the profit for the year.

QUESTION 4 CONTINUES ON THE NEXT PAGE:-

REQUIRED:

1. Explain the correct treatment of the bond under IFRS, identifying any necessary adjustments to the profit for the year ending 30 April 2020.

Maximum word count 200

2. Explain whether the return on capital employed for KAM will change as a result of the adjustments calculated in (a) (i).

Maximum word count: 100

Part (b)

On 1 May 2019, KAM granted 100 share options to all of its employees within its development team on the condition that they remain in its employment for the next four years.

At the grant date, there were 150 employees in the development team and the fair value of each option on the grant date was £52.

During the year ended 30 April 2019, the estimate of the total employee departure was assessed as 10% of the original 150 employees.

During the year ended 30 April 2020, the estimate of total employee departures was reassessed to 8% of the original 150 employees.

The share based payment was correctly accounted in the financial statements for the year ended 30 April 2019. The directors of KAM have stated that they do not wish to make any adjustment for the year ended 30 April 2020, as the impact of the options won’t be felt for another 2 years.

QUESTION 4 CONTINUES ON THE NEXT PAGE:-

REQUIRED:

1. Compute any necessary adjustments to profit before interest and tax for the year ended 30 April 2020 as well as the balance within equity on that date.

2. Provide a brief explanation for the treatment of this type of share based payment in accordance with IFRS 2: Share based payment.

Word count: 200

3. Explain whether the return on capital employed for KAM Plc. will increase or decrease as a result of adjustments calculated in (a) (i).

Word count 100

Having made the adjustments as well as providing explanations for these amendments for the share-based payments, you receive an email from the Managing Director asking:

“Can the estimates for total expected departures be increased, so lessening the impact of profit?”

REQUIRED:

Construct a brief reply to the Managing Director’s email discussing whether this would be permitted under IFRS.

The following details are for questions 24–26. Each individual question will appear below the details.

The Not-too-tough company started its operation in 2018. Its balance sheet for December 31, 2018, showed the following account balances (there were no other accounts listed, numbers are in thousands):

During 2019 the following transactions occurred:

1. Rent for 24 months, starting January 1, 2019, in the amount of $48, was paid in cash.

2. On July 31, 2019, the company enters into a new labor contract with the employees’ union that calls for a $15 increase in wages, effective February 1, 2020.

3. Sales, all on credit, were $850. Collections from customers were $720.

4. In addition to the transactions described in item 3 above, products were shipped to the customer who paid $40 in advance (see December 31, 2018 balances). The selling price was $120, and the customer will pay the balance in early 2020.

5. The company purchased $550 worth of inventory, on account. Payments on accounts payable were $470.

6. Based on a physical count, inventory balance as of December 31, 2019 was $85. The market value of these inventories was $90.

7. The employees earned $54 as wages. Cash wage payments to employees were $57.

8. Depreciation for the year equals $15.

9. A dividend of $55 was declared and paid during 2019.

Question

Prepare the Balance Sheet, Income Statement and Cash Flow from operations using the indirect method.

Type your answer in the text box below. Present the answer as a list and don't worry about left or right indentation.

Prof. Business has a self-managed retirement plan through her University and would like to retire in 8 years and wonders if her current and future planned savings will provide adequatefuture retirement income. Here’s her information and goals.

Prof. Business wants a 20-year retirement annuity that begins 8 years from today with an equal annual payment equal to $110,000 today inflated at 2% annually over 8 years. Her first retirement annuity payment would occur 8 years from today. She realizes her purchasing power will decrease over time during retirement.

Prof. Business currently has $640,000 in her University retirement account. She expects these savings and any future deposits into her University and any other retirement account will earn 7.5% compounded annually. Also, she expects to earn this same 7.5% annual return after she retires.

Answer the following questions to help Prof. Business finalize her retirement planning.

1. What is Prof. Business’ desired annual retirement income?

2. How much will Prof. Business need 8 years from today to fund her desired retirement

   annuity?

3. In addition to the $640,000 balance today, Prof. Business will fund her future retirement goal from question 2 by making 8 annual equal deposits at 7.5% compounded annually into her retirement accounts starting a year from today (the last deposit will be made when Prof. Business retires). How large does this annual deposit need to be in additionto the initial $640,000 invested in Prof. Business’ retirement fund?

4. This annual figure from #3 is more than the Prof.’s current annual contribution, which makes her feel a little anxious about her future planned retirement. Also, Prof. Business’annual retirement account contribution is based on a percentage of her salary and willincrease as her salary increases. So, let’s re-plan her retirement income. Let’s account for the fact that her and the University’s contributions to Prof. Business’ Universityretirement plan are based on a certain percentage of her salary and will increase as her salary increases. Based on this formula, her first upcoming end of the year deposit will be$20,200 and let’s assume that her annual deposit and salary will grow at a 2% annualrate over the remaining 7 years (8 total deposits) to Prof. Business’ retirement. Thesedeposits are in addition to the $640,000 she currently has today in the University retirement plan. Answer the following based on these assumptions.

1. a) How much money will Prof. Business have in her retirement account immediately after her last deposit 8 years from today?

2. b) What would be the equal annual payment from her 20-year retirement annuity whose first payment occurs exactly 8 years from today?

The university claims that the average cost of accommodation(μo) within five kilometers is 2000 JD per academic year. A university student is preparing her budget for her first year at the university. She is concerned that the university’s estimate is too low. Having taken AP statistics, she decides to perform the following test of Hypothesis; Ho: μ = 2000 JD Ha: μ ˃ 2000 JD (a)- Describe the type I and type II for this problem (b)- Which of the two errors I or II has more serious consequences for the student, and Why?

Subject: Probability and statistics

Java Programing

Write a program called reverseProg.  

This program will do the following

1. Asks the user to input a string, it reads the string and does the followings
   1. Prints the string in reverse order.
   2. Displays the characters that are in position 7^th, 8^th and 9^th of this string
   3. Displays the length of the string
   4. Displays the string in all UPPER CASE

Sample output example:

Enter a string: Wilmington University

String Entered is: Wilmington University

Wilmington University spelled backward is: ytsirevinU notgnimliW

The 7^th character in the string is: T

The 8^th character in the string is: O

The 9^th character in the string is: N

Length of the string is: 21

Company A has a market value of equity of $2,000 million and 80 million shares outstanding. Company B has a market value of equity of $400 million and 25 million shares outstanding. Company A announces at the beginning of 2019 that is going to acquire Company B.

The projected pre-tax gains in operating income (in millions of $) from the merger are:

The projected pre-tax gains in operating income are expected to grow at 4% after year 2023. The company is using a discount rate of 8% to value the synergies. The marginal corporate tax rate is 35%.

Company A has decided to pay a $300 million premium for Company B. Assume that capital markets are efficient and that there is a 100% probability the deal will be closed.

1/ By how much the price per share of Company A would change at the time of the announcement of the acquisition?

2/ If Company A were to make a 100% stock offer for Company B, what would the exchange ratio be? Remember that the exchange ratio is the number of Company A’s shares that the shareholders of Company B will receive in exchange for each of their shares.

3/ If Company A were to offer 0.80 share of Company A for each share of company B, by how much the price per share of Company A would change at the time of the announcement of the acquisition?