Briefly describe the three phases of treatment for individuals who have acquired spinal cord injuries and the major emphasis of each phase.

Agenda Item #4 Portfolio Returns

With the impacts of COVID-19 still weighing on the portfolio manager’s mind. You have been tasked with evaluating its effects on two contrasting portfolios. In addition to understanding the relationship between risk and return, you should be able to calculate the standard deviation of a two-asset portfolio with different weighting combinations.  You are aware that the current risk-free rate is 1.08%, and the expected return on the market is 6.49%.

رThe treasurer of Miller Co. has readnon the Internet that the stock price of
Wade Inc. is about to take off . In order to profit from this potential
development, Miller Co. purchased a call option on Wade common shares
on July 7, 2020, for $400. The call option is for 250shares (notional value),
and the strike price is $50. (The market price of a share of Wade stock on
that date is $50.) The option expires on January 31, 2021. The following
data are available with respect to the call option.
Date Market Price of Wade Shares Time Value of
Call
September 30, 2020 $55 per share
$100
December 31, 2020 45 per share
40
January 4, 2021 47 per share
33
Instructions
Prepare the journal entries for Miller Co. for the following dates.
a. July 7, 2020—Investment in call option on Wade shares.
b. September 30, 2020—Miller prepares financial statements.
c. December 31, 2020—Miller prepares financial statements.
d. January 4, 2021—Miller settles the call option on the Wade shares.

Jackson Auto Parts Manufacturer, a U.S. based manufacturer of piston rings and other auto parts sold parts to a South Korean Auto Manufacturer on December 1, 2020 with payment in 10 million South Korean Won to be received on March 31, 2021. The following exchange rates are relevant:

Date:    Spot Rate                Forward Rate

Dec 1, 2020 $0.0035 $0.0034

Dec 31, 2020 $0.0033 $0.0032

March 31 2021 $0.0038 $0.0032

Assuming Jackson did not hedge its foreign exchange risk, how much foreign exchange gain or loss should it report on its fiscal year end December 31, 2020 financial statements/

Assuming that Jackson did in fact decide to hedge its foreign exchange risk and entered into a forward exchange contract to sell 10 million South Korean Won on December 1, 2020 as a fair value hedge of a foreign currency receivable, what is the net impact on Jackson’s 2020 net income resulting from a fluctuation in the value of the Won? Ignore time value of money.

Defend your answer.

E18.17  (Sales with Returns) On March 10, 2020, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned six tool sets and received a credit to its account. . Assume that instead of selling the tool sets on credit, that Steele sold them for cash.

Instructions
a.    Prepare journal entries for Steele to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (c) any adjusting entries required on March 31, 2020 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct.

b.    Indicate the income statement and balance sheet reporting by Steele at March 31, 2020, of the information related to the Barr sale.

Yes, this is a Taxation subject. But the system does not have that category, so selected Accounting.

Zero Corporation is the parent corporation of a consolidated group of corporations that file a consolidated calendar year tax return. Its members include subsidiaries Loss Corporation and Gain Corporation. As of the end of 2019, the consolidated group hada net operating loss carryforward of $5 million. All of the net operating loss carryforward is attributable to losses of Loss Corporation.

On April 30, 2020, Zero Corporation sold all of the stock of Loss Corporation at a purchase price that resulted in a gain of $100,000. Loss corporation’s taxable income for 2020 is $1.2 million, $400,000 of which was earned in the first 4 months of 2020.

For 2020, Zero Corporation earned $2 million of taxable income, including the $100,000 gain on the sale of loss corporation, and Gain corporation earned $4 million of taxable income.

How much of the $5 million net operating loss carryforward will Loss Corporation take with it when it leaves the Zero consolidated group on April 30, 2020? How must Loss corporation report its taxable income for 2020?

ABC Co.'s balance sheet includes the following asset, at December 31, 2019 after annual depreciation has been recorded:

       Equipment....................................................... $120000

       Less: accumulated depreciation....................... (40000)

       Net Book value ................................................. $80000

After performing its annual review for impairment, ABC Co. obtains the following data:

       Equipment’s value in use.................................. $78000

       Equipment’s fair value less disposal costs.......... 76000

The remaining useful life of the asset at January 1, 2020 is 8 years. ABC Co. applies straight-line depreciation to its equipment assets and the equipment has a $6000 residual value. ABC Co. uses IFRS.

Required:

1. Determine the amount of impairment loss (using the rational entity impairment model).
2. Prepare the entry to record the impairment loss.
3. Prepare the journal entry to record the 2020 depreciation.
4. Assume the carrying value of the equipment, after recording 2020 depreciation, at December 31, 2020 is $69000 and that the carrying value of the equipment would have been $70750 if no impairment had been taken in 2019. The recoverable amount of the equipment at December 31, 2020 is $70000. Prepare the journal entry to record the impairment recovery for 2020.

Bridgeport Inc. has a defined benefit plan for its employees. On December 31, 2019 the company’s records showed the following information related to the plan:

All employees are expected to receive benefits under the plan. The company’s actuary provided the following information as at December 31, 2020:

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate pension expense for Bridgeport Inc. for 2020, assuming ASPE is used.

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Assistance Used

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate pension expense for Bridgeport Inc. for 2020, assuming IFRS is used.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,730,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2020 and 2021.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,730,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:
Compute the amount of gross profit recognized during 2020 and 2021.