Ariel owns 70% of Sabastian. During 2019, Sabastian sold 1000 units of Inventory to Ariel for $70 each. The units cost $50 to produce. A 12/31/2019 inventory count indicates that 300 units remained in Ariel's inventory. Sabastian reported a $50,000 net income in 2019 and a $70,000 net income in 2020. No internal sales were made in 2020. Ariel should recognize investment income in 2020 for which of the following amounts?

Investment in Sabastian $44,800

...Investment Income $44,800

Investment in Sabastian $49,000

...Investment Income $49,000

Investment in Sabastian $53,200

...Investment Income $53,200

Investment in Sabastian $63,000

...Investment Income $63,000

Ahmad company (the 80%-owned subsidiary); in 1/5/2018 sold land to Fatima Company (the subsidiary) at selling price $125,000, the cost of land $100,000. During 2020, Fatima Company sold the land at $140,000. Net income for Fatima Company as follows: 2018 2019 2020 Net Profit 80,000 100,000 60,000 Instructions: 1. Journalize the above transactions in Parent Company records and in the Subsidiary Company records. 2. Calculate the Parent company from the subsidiary’s net income? 3. Calculate the Minority interest from the subsidiary’s net income? 4. Prepare the working paper in Journal entries format for 2018; 2019 and 2020?

The following is the income statement for Daisy’s Day Care Limited for the month ended March 31, 2020: Daisy’s Day Care Limited Income Statement Month Ended March 31, 2020

Revenue $ 20,000

Expenses: Food 6,000

Heat and lights 800

Office Supplies 200

Childcare supplies 1,000

Wages 8,000

Total expenses 16,000

Operating income $ 4,000

20% of the childcare supplies and 25% of the wages are fixed while the remaining amounts are variable. 100% of the food expense is variable.

Required: Based on the above information what would the operating income for the month ended March 31, 2020 be if the income statement was prepared using the contribution margin approach?

1. Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows:

                                                2018                       2019                       2020
Costs to date                      $1,500,000           $4,000,000           $6,200,000
Cost to complete             $4,500,000           $2,200,000           $0

Amounts billed to date $1,400,000           $5,800,000           $9,000,000
Amounts collected to date
                                             $1,300,000           $4,300,000           $9,000,000

Determine the gross profit to be recognized for

                                         2018                           2019                   2020

Record all journal entries necessary for 2018 below:

Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in:
                                                2018                       2019                      2020

Marimarsh Corporation reported the following pretax financial income (loss) for the years 2019 to 2021.

Pretax financial income (loss) and taxable income (loss) were the same for all years. The applicable tax rates are 30% for 2019, and 20% for 2020 and 2021.

Instructions:

a) Prepare the journal entry in 2019 to record income tax expense.

b) Prepare the journal entries in 2020 for the tax effects of the loss carryforward, assuming that based on the weight of evidence it is more likely than not that one-quarter of the benefits of the loss carryforward will not be realized.

c) Prepare the journal entry in 2021 to record income tax expense.

Referring to information in Brief Exercise 14-18, assume that Henry Inc. sold its holdings of Container Corpora-tion bonds on July 2, 2020, for $4,800. Record the sale of the debt investment, eliminating the Fair Value Adjust-ment account upon sale.

brief 14-18 Henry Inc. purchased $5,000 of Container Corporation’s 5% bonds at par. The purchase is made on January 1,

2020, and the investment is classified as a trading security. At June 30, 2020, Henry Inc. received semiannual

interest of $125, and the fair value of the bonds was $4,800. Prepare Henry’s journal entries for (a) the purchase

of the investment, (b) the interest received, and (c) the fair value adjustment.

Problem 9-5A Calculating depreciation—partial periods LO2, 3

West Coast Tours runs boat tours along the west coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $936,000, having a useful life of 10 years or 13,800 hours, with a residual value of $246,000. The company’s year-end is December 31.

Required:
Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule. (Note: Depreciation is calculated to the nearest month. Assume actual hours of service were: 2020, 900; 2021, 1,960; 2022, 1,715.)
Depreciation MethodYearStraight-LineDouble-Declining BalanceUnits-of-Production202020212022

on April 1 2018, company sold 10,000 bonds ($1,000 face value) at 11% semi-annually. they are due April 1 2028.

proceeds from the bonds were 9,156,946 and their coupon dates are april 1 and october 1

on april 1 2020 , the company bough back 6,000 bonds for 5,331,000 cash.

- prepare journal entries for the bonds from sale (april 1, 2018 to the end of year 2020 (12/31/20)

- what are the 12/31/20 balances in the related bonds, discount, and interest payable (from T accounts)

- what amounts related to the bonds will appear in the income statement for 2020 and how will they be reported/classified?

La Extended, S.A. sold specialized equipment at a price of $ 900,000 each, with a unit cost of $ 400,000.
On March 1, 2020, it sold 2 pieces of equipment on credit that include a one-year warranty for defects in their components, with the commitment to replace those that present failures. It is estimated that $ 120,000 could be claimed for defects in these components. Both clients took the extended warranty offered and handed in $ 30,000 in cash each to cover an extra year.
On March 25, 2020, one of the customers claimed that the equipment's system was not working properly. La Extended, S.A. replaced the component that had failures, which had a cost of $ 20,000 and discarded the previous one.
On October 20, 2021, the other client claimed equipment failures, so La Extended, S.A. discarded the failed component and replaced it with a new one at a cost of $ 8,000.

a. The record (s) corresponding to the month of March 2020 will increase Net Income by:

b. The record (s) corresponding to the month of March 2020 will increase Net Income by:

On January 1, 2020, ABC Co. paid $800,000 to acquire common shares of XYZ Co., which

represented 30% of XYZ Co.’s shares outstanding. The value of XYZ’s net assets was

$1,850,000 on that date. The excess of the purchase price over ABC’s share of XYZ’s net assets

is attributed to unrecorded intangibles with a 20-year life. XYZ earned net income and

comprehensive income of $400,000 in 2020 and paid dividends of $80,000. The investment in

XYZ had a fair value of $1,025,000 at December 31, 2020. XYZ incurred a net loss and

comprehensive loss of $425,000 in 2021 and paid no dividends. At December 31, 2021, the fair

value of the investment was $720,000 and the recoverable amount was $765,000. Assume that

ABC follows IFRS.

Prepare all the journal entries that ABC is required to make related to the XYZ shares in

2020 and 2021, assuming ABC has no significant influence over XYZ, and uses the FV-NI

model for the investment

Prepare all the journal entries that ABC is required to make related to the XYZ shares in