1. Officials for the Lexington Company are preparing financial statements for Year One. The company is reporting net income of $900,000. The company had 100,000 shares of common stock outstanding at the beginning of the year but a stock split on October 1 doubled that number to 200,000. In the previous year, the company issued 10,000 convertible bonds with a face value of $1,000 each that will come due in ten years. Each bond is convertible into 15 shares of common stock (adjusted for the stock split). These bonds pay 4 percent interest but were sold for 93 percent of face value to generate a higher interest rate for the buyers. The tax rate for the company is assumed to be 30 percent. The bond discount is being amortized by the straight-line method. What should the company report as its diluted earnings per share (rounded)?

1. When the purchase of a material sevenminus year depreciable asset is recorded by debiting an expense​ account, which one of the following statements is​ correct?

A. It is a selfminus correcting error and no adjustment is necessary.

B. Since it affects only the income​ statement, no adjustment is required.

C. The error will eventually selfminus ​correct, but the financial statements will be in error for seven years.

D. If the company uses a rapid depreciation​ method, the error will selfminus correct quickly so no adjustment is necessary.

2. On January​ 1, Year​ 1, Davenport Corporation granted an employee

40 comma 000

options to purchase

40 comma 000

shares of​ Davenport's $10 par common stock at​ $30 per share. The options became exercisable on December​ 31, Year​ 3, after the employee completed three years of service. The option was exercised on February​ 1, Year 4. The market prices of​ Davenport's stock were as​ follows: January​ 1, Year​ 1, $40; December​ 31, Year​ 3, $60; and February​ 1, Year​ 4, $55. An options pricing model estimated the value of the options at

$ 12

each on the grant date. For Year​ 1, Davenport should recognize compensation expense of​ ________. (Do not round intermediate calculations. Only round your final answer to the nearest​ dollar.)

A.

​$0

B.

$ 160 comma 000

C.

$ 480 comma 000

D.

$ 400 comma 000

3.

Which of the following measures of benefit obligations does the FASB require for pension​ computations?

A.

accumulated benefit obligation

B.

future benefit obligation

C.

vested benefit obligation

D.

projected benefit obligation

4.

When using the indirect method to prepare the operating section of a statement of cash​ flows, which of the following is added to net income to compute cash flows from operating​ activities?

A.

bond discount amortization

B.

gain on sale of

longminus

term

asset

C.

decrease in deferred tax liability

D.

All of the above.

5. Tomminus

Kat

​Inc.'s income before taxes is

$ 390 comma 000

and its tax rate is

40

​%.

Tomminus

Kat

included

$ 40 comma 000

of interest from municipal bonds in the

$ 390 comma 000

.

There are no other

bookminus

tax

differences. What is the journal entry to record income tax​ expense?

A.

B.

C.

D.

A 42-year old female presents with a complaint of a papule on her left forearm for the past 2 months that “looks funny”. Denies itching, scaling, drainage, or other complaints.

Discuss what questions you would ask the patient, what physical exam elements you would include, and what further testing you would want to have performed, In SOAP format, list Pertinent positive and negative information, differential and working diagnosis, treatment plan, including Pharmacotherapy with complementary and OTC therapy, diagnostics (labs and testing), health education and lifestyle changes, age-appropriate preventive care, and follow-up to this visit.

A 62 year-old inmate is admitted to the hospital from prison with a complain of chest pain. The patient is being worked up for possible myocardial infarction and admitted to the cardiac unit. Because the patient is an inmate, while he is in the hospital a prison guard will be posted outside of the patient’s room and he patient will be hand cuffed to the bed rail. During the initial assessment, the admission nurse finds the patient to be withdrawn. The nurse discovers the patient has a past medical history significant for abuse of multiple substances. . the patient describes how the addictive behaviours led to his incarceration and estrangement from his family. The patient expresses to the nurse interest in meeting with a chaplain while in the hospital.

• QUESTION

Describes examples of the how a nurse can provide care to this patient as guided by each of the 10 caritas processes.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

(Indicate the effect of each trend by selecting "Favorable" or  "Unfavorable" or "None" for no effect (i.e., zero variance).

(Round your intermediate calculations and final answers to 1 decimal place.)

The average retail price for bananas in the year 2001 was 51.0 cents per pound. In order to test whether there is any significant difference in price of bananas between now and the year 2001, a random sample of 16 markets is taken which yields a sample mean price of 57 cents per pound and a sample standard deviation of 11 cents per pound. Assume that the prices of bananas follow a normal distribution. Set up the null and alternate hypotheses to perform this test.

Note: This problem is for the 2018 tax year.

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.

During 2018, the Deans had the following receipts:

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.

The Deans had the following expenditures for 2018:

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans' household includes the following, for whom they provide more than half of the support:

Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $4,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.

Required:

Determine the Federal income tax for 2018 for the Deans on a joint return by providing the following information that would appear on Form 1040 and Schedule A. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them.

• Make realistic assumptions about any missing data.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

2. Calculate taxable gross income.

3. Calculate the total adjustments for AGI.

4. Calculate adjusted gross income.

5. Calculate the greater of the standard deduction or itemized deductions.

6. Calculate total taxable income.

7. Calculate the income tax liability.

8. Calculate the total tax credits available.

9 Calculate total withholding and tax payments.

10. Calculate the amount overpaid (refund):

11. Calculate the amount of taxes owed:

Waterways Corporation is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers.

Sales:

Waterways wants to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31 totaled 183,780.

Direct Materials:

The product uses metal, plastic, and rubber. In total, each unit requires 2 pounds of material at an average cost of 0.75 per pound.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for materials is made within 15 days. 50% is paid in the month of purchase and 50% is paid in the month after purchase. Accounts Payable on December totaled $120,595. Raw materials on December 31 totaled 11,295 pounds.

Direct Labor:

Labor requires 12 minutes per unit for completion and is paid at a rate of $18 per hour.

Manufacturing Overhead:

Selling and Administrative Expenses:

Variable selling and administrative cost per unit is $2.40.

Other Information:

The cash balance on December 31 totaled $220,500, but management has decided that it wants to maintain a cash balance of at least $750,000 beginning January 31. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with the First National Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 8% interest. Waterways borrows on the first day of the month and repays on the last day of the month. Reserve repayment, if required, until Waterways can pay the entire amount. A $250,000 equipment purchase is planned for February.

Instructions (Do all parts):

Note: All budgets and schedules should be prepared by month for the first quarter (January, February, and March). Round all figures to the nearest dollar. For labor hours round to whole hours.

e. Prepare a manufacturing overhead budget and a cash budget.

f. Prepare a selling and administrative budget.

g. Prepare a schedule for expected cash collections from customers.

h. Prepare a schedule for expected payments for materials purchases.

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $20,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,420 of medical insurance deductions, and $880 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.
1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities.
2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.

Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

• Record the employee payroll expenses and liabilities for the first weekly pay period of the year.

Note: Enter debits before credits.

• Record the employer’s payroll expenses and liabilities for the first weekly pay period of the year.

Note: Enter debits before credits.

The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $238,000, and income taxes were $36,400, for the current year. Cash dividends paid on common stock during the current year totaled $41,580. The common stock was selling for $22 per share at the end of the year.

Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.