MacBillpurchaseda sowing machine on January 1, 2019. For its sowing machines, MacBilluses straight-line depreciation for financial reporting purposes (US GAAP) and accelerated depreciation for tax purposes. Its useful life is 3 years. Assume income before depreciation is $1,000 in 2019. MacBill has a 30% income tax rate for all years. The depreciation table is as follows:

1. What is the tax expense on its income statements for the year 2019?

Ans: $ ________________

2. What is the cash amount paid for income taxes for the year 2019?

Ans: $ ________________

c.   How does depreciation affect deferred tax account during 2019?

Deferred tax asset           Deferred tax liability                  (Choose one)

Increase               Decrease                                     (Choose one)

by the amount of $ ________________

Astro Co. sold 19,500 units of its only product and incurred a $45,700 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $145,000. The maximum output capacity of the company is 40,000 units per year.

1. Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.)

2. Compute the predicted break-even point in dollar sales for 2020 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.)

3. Prepare a forecasted contribution margin income statement for 2020 that shows the expected results with the machine installed. Assume that the unit selling price and the number of units sold will not change, and no income taxes will be due. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

4. Compute the sales level required in both dollars and units to earn $150,000 of target pretax income in 2020 with the machine installed and no change in unit sales price. (Do not round intermediate calculations. Round your answers to 2 decimal places. Round "Contribution margin ratio" to nearest whole percentage)

5. Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume no income taxes will be due. (Do not round intermediate calculations. Round "per unit answers" to 2 decimal places.)

P.S. 1, 4, and 5 are the ones I mainly need help with.

Delta Corporation has owned 45% of the voting stock of Egret Company for many years, originally purchased at book value and reported using the equity method. Egret has reported significant net losses in recent years, and at the beginning of 2019, the carrying value of the investment is $1,000,000. Egret reports a loss of $3,000,000 for 2019, and the loss is considered other than temporary. In 2020 Egret unexpectedly reports net income of $900,000. Required:

a. What amount should Delta report on its 2019 income statement as equity in net loss of Egret?

b. What amount should Delta report on its 2020 income statement as equity in net income of Egret

Company A purchases a stamping press on July 1, 2020. The press cost $53,000 and management estimates its salvage value and useful life to be $3,000 and 5 years, respectively. TC recognizes depreciation on a straight-line basis and sells the equipment on January 1, 2023 for $11,000. Instructions Compute the following amounts:

1. Total depreciation expense - 2020 $

2. Total depreciation expense - 2021 $

3. Accumulated depreciation - 12/31/2022 $

4. Net book value of the stamping press - 12/31/2022 $

5. Gain (loss) on sale - 1/1/2023 $

6. Gain (loss) on sale assuming a sales price of $0 $

On January 1, 2020, Sro Company issued ten convertible bonds with a par value of $8,000 per bond in market for $82,000 in total. Each bond is convertible into 800 ordinary shares of $3 per ordinary share par value. The bonds have a four-year life and a stated interest rate of 8% payable annually. The market interest rate for similar non-convertible bonds on January 1, 2020, is 9%.

Q : Compute fair value of liability component and fair value of equity component, rounded to the nearest dollar, and prepare the journal entry. In the computations, show the figures of present value factors and round to the fifth decimal point.

At December 31, 2020, RB Company has outstanding three long-term debt issues. The first is a $2,120,000 note payable which matures June 30, 2023. The second is a $6,840,000 bond issue which matures September 30, 2024. The third is a $12,580,000 sinking fund debenture with annual sinking fund payments of $2,516,000 in each of the years 2022 through 2026.

Prepare the required note disclosure for the long-term debt at December 31, 2020.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,900,000. 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:
Prepare all journal entries to record costs, billings, collections, and profit recognition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the following costs and cost drivers for three of the activities that are used in the ABC system:

In May of 2020, 646 units of Product C were finished, requiring $19,600 of direct materials, 6,000 direct labor hours, 1,089 parts, and 43 purchase orders.

How much of the three activity costs was allocated to Product C [round overhead rate(s) to two decimal places]?

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.