Part C Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Following information was extracted from the Statement of Financial Position at 30 June 2020:

Other information was available for the year ended 30 June 2020:

1. Sales are recorded for income tax purpose at the time the sales are made.
2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
5. Insurance is allowed as a tax deduction when it is paid.
6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

1. Determine the amount of taxable income for the year ended 30 June 2020.
2. Determine the amount of income tax expense for the year ended 30 June 2020.
3. Prepare a journal entry to record current tax liability on 30 June 2020.
4. Determine the amount of tax base for machine.
5. Determine the amount of temporary difference for machine.
6. The temporary difference for machine is deductible in this question, is this correct? Explain.
7. Provide journal entry to record DTA or DTL for machine.

Suppose that the one-year interest rate is 10 percent in the United Kingdom. The expected annual rate of inflation for the coming year is 4 percent for the United Kingdom and 7 percent for Switzerland. The current spot exchange rate is £:SFr = 3.75. Using the precise form of the international parity relations, compute the one-year interest rate in Switzerland, the expected Swiss franc to pound exchange rate in one year, and the one-year forward exchange rate.

31.       Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2016. The instrument that Ewa signed is most likely

32.       Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2016. With respect to this instrument, Sunny States Bank is

                  33.       Rupert owes $5,000 in unpaid taxes. Using the back of an old t-shirt, he executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is most likely

34.       Gladys, the chief executive officer of Home Electrical, Inc., signs an instrument by using a rubber stamp with her thumbprint on it. This instrument is

                  35.       To borrow money to finance the start-up of his business, Buck executes an instrument in favor of City Bank. For the instrument to be negotiable, the signature must be

                  36.       International Properties, Inc. (IPI), signs an instrument in favor of Financial Investments Corporation that includes the statement "IPI plans to pay this debt from the proceeds of the sale of the IPI Office Building in Montreal." The sale has been completed. This instrument is

                  37.       USA Oil Corporation signs an instrument that states it is being executed "as per contract for a purchase of 4,000 barrels of oil dated May 1." This instrument is

38.       Olena signs a promissory note payable to the order of Payday Loan Company. The note states that it is payable "with interest at the legal rate." The quoted language

39. On behalf of Equity Capital, Inc., Flip signs an instrument promising to pay $5,000 in gold to Growth Investments, Inc., on May 15. This instrument is

40. Tyrone draws a check payable to "Cash" and presents it to Urban Bank for payment. This instrument is

Scenario

           Imagine that you are on a team of counselors who have been called in to provide consultation. You begin your work by interviewing trainees at the site. Your first interview is with Kara, a master's level student at her local university who is doing an internship at the agency. Kara states that her most puzzling client is an Eastern European male named Dominik; he has been in the United States for about a year on a work visa and is working hard to "blend in." Dominik sought counseling because his employer suggested that it might help him be less distracted at work improve his ability to complete tasks. Kara states that she diagnosed Dominik with ADHD because he was having difficulty sitting still and focusing, but she did not refer him for a medical evaluation. Kara expresses confidence that things are going well because when Dominik arrives for his appointment, he says, "Hey Doc!" and gives her a kiss on the cheek. Dominik schedules appointments over his lunch hour so he will not miss work, and he brings Kara lunch so she can eat too. Kara wants Dominik to feel welcome and comfortable, so she accepts what he brings. Sometimes they sit outside if the weather is nice. Kara says she believes that fresh air is good for the wellbeing of her client. Kara confides to you that yesterday, Dominik asked if they could meet at a restaurant instead of eating at the office. Kara says she felt a little funny about this but she said, "Yes." Kara also discloses that recently Dominik "friend-requested" her on Facebook and LinkedIn, both of which she accepted. Kara enjoys talking to Dominik and finds him to be good company. He has only four more sessions of counseling left at the agency and she hopes they can still be friends after he completes treatment. When you ask to review Kara's case notes, you do not see a supervisor's signature. Kara says she told her internship supervisor that things are going well so she does not feel the need to staff this case; she states that they agreed that Kara could exercise her own professional judgment. On the treatment plan, you see that Kara states that she is using a directive approach and supplementing it with humor therapy, which she read about on the Internet. She describes this approach as "common sense counseling," but she is not able to articulate why it will be helpful for Dominik or discuss the evidence that this approach helps clients get better. When you ask Kara how she knows her counseling sessions are benefitting Dominik, she says, "Well, he keeps coming back, so it must be worth his while, right?"

          Using the Web sites for the ACA and AMHCA ethics codes, the ACA Ethical Decision-Making Model, and the Calmes, Piazza, and Laux (2013) DOI: 10.1002/j.2161-007X.2013.00025.x article assigned in this unit's studies, prepare a draft of your conclusions regarding this case that you will review with your consulting team.

1) Prepare a multi-step plan for the agency to follow in re-aligning its interns' and superiors' clinical work with professional standards.

Question one: 75 marks

United Sports Company prepares monthly financial statements. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September.

UNITED SPORTS COMPANY

Trial Balance (Selected Accounts)

September 30, 2019

—————————————————————————————————————————

An analysis of the account balances by the company's accountant provided the following additional information:

1. A physical count of office supplies revealed $1,200 on hand on September 30.
2. A two-year life insurance policy was purchased on June 1 for $3,600.
3. Office equipment depreciated $3,000 per year.
4. The amount of rent received in advance that remains unearned at September 30 is $400.

Instructions

Complete the balances of the following accounts in a partial adjusted Trial balance for United Sports Company on September 30.

UNITED SPORTS COMPANY

Trial Balance (Selected Accounts)

September 30, 2019

How to do survival analysis in excel with this data

Life expectancy of females in years from 2005 to 2015

How to do survival analysis in excel with this data

Life expectancy of males in years from 2005 to 2015

Q3 Foreign currency translation A: 20 marks

On January 1, 2020, in an effort to diversify, Bauman Corp. (a Canadian company that sells decorative cedar branches), purchased 80% of Noskova Inc, an American company that manufacturers nitrous oxide, for US$50,000.

Noskova’s book values approximated its fair values on that date except for plant and equipment, which had a fair value of US$30,000 with a remaining life expectancy of 5 years.   A goodwill impairment loss of US$1,000 occurred during 2020. Noskova’s January 1, 2020, Balance Sheet is shown below (in U.S. dollars):

The following exchange rates were in effect during 2020:

Sales, purchases and other expenses occurred evenly throughout the year.
Dividends declared and paid December 31, 2020.
The financial statements of Bauman (in Canadian dollars) and Noskova (in U.S. dollars) are shown below:

Balance Sheets

Translate Noskova’s 2020 Income Statement into Canadian dollars if the functional currency is the Canadian dollar (i.e. the same functional currency as the parent).