WIKIPEDIA, leverages technological innovation afforded by the Internet combined with a crowdsourcing approach to content development and maintenance. Beyond the technical challenges of web interfaces, servers, and bandwidth for delivery is a sometimes-overlooked capability: the Wikipedians themselves. Over 32 million people have registered accounts to contribute edits to Wikipedia. More than 300,000 users provide edits to the website at least once a month. These volunteers build the content for the site, using a creative commons license that ensures free access to any of the 500 million unique visitors each month. This crowdsourcing and its legal underpinnings are successful only as long as individuals are willing to spend their own time contributing to the site for no pay or other extrinsic benefits. The ability to attract and utilize legions of interested individuals is vital to the success of Wikipedia both today and into the future. Moreover, Wikipedia is a nonprofit, free-of-advertising social entrepreneurship venture that is exclusively financed by donations. Wikipedia runs regular calls for donations using slogans such as: “Please help us feed the servers,” “We make the Internet not suck. Help us out,” and “We are free, our bandwidth isn’t!” Calls for donations also come in the form of personal appeals by co-founder Jimmy Wales. The question arises whether the donation model is sustainable given not only the increasing demand for Wikipedia’s services, but also the emergence of competitors. Wikipedia might not be as error-prone in science topics as shown in the Nature study mentioned earlier, because most entries on Wikipedia are not about science. Wikipedia maintains that it fosters a “neutral point of view.” A recent research study tested this claim. In particular, a study of 28,000 articles about US politics revealed a significant bias. On average, Wikipedia entries lean left of center. Initial entries arrive with a slant, and change little over time. This bias is more pronounced in earlier Wikipedia articles. The authors call this the “vintage bias.” Although the degree of slant in Wikipedia articles changes little over time, more recent political entries are more balanced. One reason the authors put forth to explain the vintage effect is that in the early days of Wikipedia only technology enthusiasts and early adopters participated, and this demographic tends to lean left. The shift toward a more “neutral point of view” over the years has arisen from the growth of Wikipedia, bringing in the early and late majority as contributors. Questions

a. How can Wikipedia maintain and grow its ability to harness the crowdsourcing of its “Wikipedians” to maintain high-quality (and quickly updated) content?

b. As Wikipedia keeps growing, do you think it can continue to rely exclusively on donations (in time and money)? Why or why not? What other “business models” could be considered? Would any of those “violate the spirit of Wikipedia”? Why or why not?

c. What, if anything, should Wikipedia do to ensure that its articles indeed present a “neutral point of view”? Shouldn’t the crowdsourcing approach ensure objectivity? Does a “neutral point of view” matter to Wikipedia’s sustainability? Why or why not?

d. How has the “long tail” affected Wikipedia?

Problem 3-04A

A review of the ledger of Gina Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.

Prepare the adjusting entries at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2020. 1. Larkspur Co. has developed the following schedule of future taxable and deductible amounts. 2021 2022 2023 2024 2025 Taxable amounts $400 $400 $400 $400 $400 Deductible amount — — — (2,200 ) 2. Cullumber Co. has the following schedule of future taxable and deductible amounts. 2021 2022 2023 2024 Taxable amounts $400 $400 $400 $400 Deductible amount — — (2,300 ) — Both Larkspur Co. and Cullumber Co. have taxable income of $3,900 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 30% for 2020–2023 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities. 1. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation one.

2. Compute the net amount of deferred income taxes to be reported at the end of 2020, and indicate how it should be classified on the balance sheet for situation two.

How to put merchandise inventory in T accounts

The following amounts summarize Transeer Company’s merchandising activities during 2020. Post the activities in the following T-accounts and calculate the account balances. Assume that the company uses perpetual inventory system.

Trainex Corporation purchased equipment on January 1, 2020 at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years. At the end of two years, Trainex reevaluated the useful life of the equipment. Management extended the total useful life an additional 5 years but estimated that the equipment would have no residual value at the end of this time. If the company uses straight-line depreciation, what amount (in whole dollars) would be recorded as depreciation expense 1) for 2020 , 2) for 2021 , and 3) for 2022 ? The journal entries to record depreciation in each of the years would include a debit to (what account?) and a credit to .

At the beginning of 2017, the Mini Construction Company received a contract to build an office building for $1.2 million. Mini will construct the building according to specifications provided by the buyer, and the project is estimated to take four years to complete. The cost breakdown is as follows. Determine the amount of revenue and gross profit to be recognized each year. (do not include $ in your answer, round to 4 decimal places).

Oriole Co. includes one coupon in each bag of dog food it sells. In return for 4 coupons, customers receive a dog toy that the company purchases for $1.40 each. Oriole's experience indicates that 60 percent of the coupons will be redeemed. During 2020, 109,000 bags of dog food were sold, 13,330 toys were purchased, and 43,600 coupons were redeemed. During 2021, 129,000 bags of dog food were sold, 17,485 toys were purchased, and 64,500 coupons were redeemed.

Determine the premium expense to be reported in the income statement and the premium liability on the balance sheet for 2020 and 2021.

Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Macinski expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020.

(a)

Discuss the nature of the lease arrangement and the accounting method that each party to the lease should apply.

Fuqua Company’s sales budget projects unit sales of part 198Z of 10,400 units in January, 13,000 units in February, and 13,400 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month’s production requirements, and its ending finished goods inventory to equal 20% of the next month’s expected unit sales. These goals were met at December 31, 2019.

Prepare a production budget for January and February 2020.

Prepare a direct materials budget for January 2020.