8. The accounting records of Jamaican Importers, Inc., at January 1, 2018, included the following:

Assets Investment in IBM common shares $1,895,000 Less: Fair value adjustment (200,000) ____________ $1,695,000

No changes occurred during 2018 in the investment portifolio.

Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was

1. $1,331,000 2. $1,770,000 3. $1,920,000

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the fair value adjustment assuming the fair value of the IBM common shares was $1,331,000.

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.

Required:
Calculate the income and payroll taxes for the January 2018 pay period. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period.

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.

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

Hunter Corp. issued 8​% fifteen​-year bonds payable with a face amount of $ 100 comma 000 when the market interest rate was 8​%. Hunter​'s fiscal​ year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement LOADING.... a. Issuance of the bonds payable at par on July​ 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit 2018 Jul 1 b. Accrual of interest expense on December​ 31, 2018 Journal Entry Date Accounts and Explanations Debit Credit 2018 Dec 31 c. Payment of cash interest on January​ 1, 2019 Journal Entry Date Accounts and Explanations Debit Credit 2019 Jan 1 d. Payment of the bonds payable at maturity​ (give the​ date) Journal Entry Date Accounts and Explanations Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question.

On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 120,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 120,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply:

Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.

1. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract.
2. What is the impact on net income in 2017?
3. What is the impact on net income in 2018?

1.The following information is available for the 21,300 units of X Company's one product sold in 2018: Selling price $55.50 Variable costs per unit $28.40 Total fixed costs $340,800 Management believes it can increase the selling price in 2019 with no effect on unit sales. Variable costs per unit and fixed costs will remain the same. How much would the selling price have to be increased in order for X Company's 2019 profit to be $295,538 [rounded to two decimal places]?

2. X Company has the following information for its three products in 2018:

Fixed costs in 2018 were $319,000. In 2019, the unit sales mix and fixed costs will be the same as in 2018, but sales will increase to 84,260 units. What will profit be [round all small numbers to two decimal places]?

On June 30, 2017, Pearl Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487, a yield of 12%. Pearl uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.

Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

During 2018, Crown Corporation, a calendar year C corporation, has net short-term capital gains of $50,000, net long-term capital losses of $80,000, and taxable income from other sources of $270,000. Prior years' transactions included the following. 2014 net short-term capital gains $12,000 2015 net long-term capital gains 10,000 2016 net short-term capital gains 9,500 2017 net long-term capital gains 7,000 If an amount is zero, enter "0".

a. How much is Crown's net capital loss for 2018? $ What is the amount of the capital loss deduction on Crown's 2018 tax return? $ 0 Any excess net capital loss is carried back or forward as a short-term capital loss .

b. Of the excess 2018 net capital loss, how much is carried back to the previous years? $

c. Compute the amount of capital loss carryover to 2019 and future years. $

Identify the additional amount of tax that will be due from the taxpayer on the dividends received in each of the scenarios below. TAX YEAR 2018

a. Masha (an individual taxpayer) owns 100 percent of Metro Fashion Corporation. In 2018, she receives a $100,000 dividend from the Corporation. Masha’s other sources of income this year are wages of $80,000 (thus, she is not considered a high income taxpayer).

b. Tyson Corporation owns 100 percent of Lafayette Corporation, and both companies are in the same affiliated group. Lafayette pays Tyson $300,000 in dividends in 2018. Aside from the dividend income, Tyson Corporation earned $400,000 in income from its ordinary operations during the year.

c. Maya Enterprises (a corporate taxpayer) owns 15 percent of Tiger Corporation. Maya Enterprises earned $2 million from its ordinary operations during 2018. Tiger Corporation paid out a total of $1 million in dividends to all its owners, giving each owner a dividend in proportion to its ownership percentage.