Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the company's projected benefit obligation at the beginning of 2018 (after 14 years' service) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2018 service. 3. What is the company's service cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 4. What is the company's interest cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 5. Combine your answers to requirements 1, 3, and 4 to determine the company's projected benefit obligation at the end of 2018 (after 15 years' service) with respect to Davenport. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Condensed balance sheet and income statement data for Landwehr Corporation appear below.

Additional information:

1. The market price of Landwehr’s common stock was $4.00, $5.00, and $8.00 for 2016, 2017, and 2018, respectively.
2. All dividends were paid in cash.

Instructions

1. Compute the following ratios for 2017 and 2018. (9 marks; 25 minutes)

1. Profit margin.
2. Asset turnover.
3. Earnings per share. (Weighted-average common shares in 2018 were 32,000 and in 2017 were 31,000.)
4. Price-earnings ratio.
5. Payout ratio.
6. Debt to assets ratio.

2. Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2017 to 2018 of Landwehr Corporation. (3 marks; 5 minutes)

Bill and Janet are a married couple filing jointly in 2018 and have one child, Robert, who is 9 years old. Robert has interest income of $3,000 in 2018. Bill and Janet’s taxable income in 2018 is $46,050 and they take the standard deduction as the only from AGI deduction.

Click here to access the trust and estate tax rate schedule and the individual income tax schedules.

Calculate Robert’s tax liability for 2018, assuming:

a.  Bill and Janet do not make the election to include Robert’s income on their tax return.
$_____________

b.  Bill and Janet make the election to include Robert’s income on their tax return.
$____________

Juniper Corporation has taxable income of $48,000 for the short period ended on October 31, 2018.

Calculate Juniper Corporation's short-period tax for the period January 1 through October 31, 2018. Assume that this is not the first or last year of operations. The corporate tax rate is 21 percent.

If required, round any division to four decimal places and round your answer to the nearest dollar. Base the allocation on months, not days.

Juniper Corporation's short-period tax is $.__________

Melaleuca, Inc., is an accrual basis taxpayer with the following transactions during the calendar tax year:

Calculate Melaleuca, Inc.'s, net income for this year.
$____________

Blossom Productions Corp. purchased equipment on March 1, 2018, for $ 75,000. The company estimated the equipment would have a useful life of three years and produce 12,000 units, with a residual value of $ 7,600. During 2018, the equipment produced 4,900 units. On November 30, 2019, the machine was sold for $ 19,000 and had produced 5,700 units that year.

a. Record all the necessary entries for the years ended December 31, 2018, and 2019, using the following depreciation methods: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round the depreciation rate in the double-diminishing-balance method to the nearest whole percent, e.g. 43% and round depreciation per unit in the units-of-production depreciation method to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 5,275.)

Topic 4: Investment in associates Ingram Ltd acquired 35% of ordinary shares issued in A Ltd for $300,000 on 1 July 2017. The equity of A Ltd at that date was as follows. $ Ordinary share capital 560,000 Retained earnings 54,000 All assets were recorded at fair value at acquisition date, except for plant and equipment which had a fair value of $20,000 above its carrying amount. This plant and equipment was estimated to have a remaining useful life of 5 years. On 1 July 2017, land was recorded in the books of A Ltd at $100,000. The fair value of this asset has since risen by $40,000, with $28,000 ($40,000 less 30% tax) being credited to a revaluation surplus account by A Ltd on 30 June 2018. On 1 January 2018, A Ltd sold a motor vehicle to Ingram Ltd for $34,000. The vehicle had originally cost A Ltd $68,000, and had a carrying amount of $20,000 at 1 January 2018. The motor vehicle had a remaining useful life of 4 years. At 30 June 2018, Ingram Ltd had inventory costing $40,000 on hand which had been purchased from A Ltd during the financial year. A profit before tax of $10,000 had been made on the sale. As at 30 June 2018, the following relates to A Ltd: $ Operating profit before income tax 180,000 Income tax expense 54,000 Dividends paid 30,000 The tax rate is 30%. Required: Prepare an acquisition analysis in relation to the acquisition made by Ingram Ltd. Assume Ingram Ltd does prepare consolidated financial statements. Prepare the consolidated worksheet entries for the year ended 30 June 2018 for inclusion of the equity-accounted results of A Ltd.

Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.3% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $96,000 at the end of 2018 and the company's actuary projects her salary to be $310,000 at retirement. The actuary's discount rate is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. What is the company's projected benefit obligation at the beginning of 2018 (after 14 years' service) with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributable to 2018 service.
3. What is the company's service cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
4. What is the company's interest cost for 2018 with respect to Davenport? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
5. Combine your answers to requirements 1, 3, and 4 to determine the company's projected benefit obligation at the end of 2018 (after 15 years' service) with respect to Davenport. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income for 2018 was $50 million.

Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2018. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $9 million are paid at January 1 of each year starting in 2018.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.)

The balance sheet for Campbell Corporation follows:

Required

Compute the following. (Round "Ratios" to 1 decimal place.)

The following data come from the financial records of Solomon Corporation for 2018:

Required

How many times was interest earned in 2018? (Round your answer to 2 decimal places.)

Selected data from Benson Company follow:

Required

Compute the accounts receivable turnover for 2018.

Compute the inventory turnover for 2018.

Compute the net margin for 2017.

(For all requirements, round your answers to 2 decimal places.)

The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income for 2018 was $66 million.

Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2018. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2018.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)