The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017:

On October 15, 2018, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2018, for $5,540,000. Book value of the division’s assets was $4,760,000. The division’s contribution to Jackson’s operating income before-tax for each year was as follows:

Assume an income tax rate of 40%.

Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line)
1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
2. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $5,540,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
3. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $4,080,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.

Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $5,540,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

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Harper,  Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $259,200 in cash. The book value of Kinman's net assets on that date was $465,000, although one of the company's buildings, with a $72,200 carrying amount, was actually worth $129,700. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $125,500.

Kinman sold inventory with an original cost of $109,200 to Harper during 2017 at a price of $156,000. Harper still held $16,200 (transfer price) of this amount in inventory as of December 31, 2017. These goods are to be sold to outside parties during 2018.

Kinman reported a $49,800 net loss and a $27,000 other comprehensive loss for 2017. The company still manages to declare and pay a $9,000 cash dividend during the year.

During 2018, Kinman reported a $55,000 net income and declared and paid a cash dividend of $11,000. It made additional inventory sales of $124,000 to Harper during the period. The original cost of the merchandise was $77,500. All but 30 percent of this inventory had been resold to outside parties by the end of the 2018 fiscal year.

Prepare all journal entries for Harper for 2017 and 2018 in connection with this investment. Assume that the equity method is applied. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304.

Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788.

Alfred's salary for 2018 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes.

Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes.

Alfred and Beulah had interest income of $500. Alfred and Beulah receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign.

Required:

Compute the Olds' net tax payable (or refund due) for 2018. Use Form 1040 and Schedule 1 to complete this tax return.

• It may be necessary to complete the tax schedule and worksheet before completing Form 1040.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Make realistic assumptions about any missing data.
• When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• Use the 2018 Tax Rate Schedule provided. Do not use the Tax Tables.

Complete Form 1040 for the Olds.

The following data are taken from the trial balance of Bula Island Limited on 30 June 2018 with selected comparative information provided for 30 June 2017.

2018 2017 Sales revenue 9,245,000 Interest revenue 850,000 Royalties revenue 1,450,000 Dividend revenue 150,000 Depreciation-building 147,500 Depreciation-plant 262,500 Depreciation-equipment 75,000 Research and development expenditure 1,650,000 Cost of goods sold 4,005,000 Warranty expense 195,000 Wages and salaries expense 3,475,000 Long service leave expense 235,000 Interest expense 305,000 Rates and taxes on property 145,500 Doubtful debts expense 142,500 Accounts receivable 675,000 375,000 Estimated uncollectible debts 182,000 95,000 Interest receivable 300,000 275,000 Royalties receivable 920,000 745,000 Land (at cost) 2,500,000 2,500,000 Buildings 3,200,000 3,200,000 Accumulated depreciation-buildings 442,500 295,000
Plant 2,100,000 2,100,000 Accumulated depreciation-Plant 787,500 525,000 Equipment 750,000 750,000 Accumulated depreciation-equipment 225,000 150,000 Wages and salaries payable 345,000 265,000 Provision for long service leave 355,000 245,000 Provision for warranty claims 130,000 115,000 Interest payable 100,000 100,000

Additional Information

1. All depreciable assets were acquired on 1 July 2015. For financial reporting purposes, depreciation is recognised on a straight line basis, over 20 years for buildings (estimated residual value $250,000), eight years for plant and 10 years for equipment. For tax purposes, straight line depreciation is applied over 40, 10 and eight years respectively. 2. After reviewing all relevant information, the directors determined that, at 30 June 2018, the plant was impaired by $250,000 (this is not reflected in the amounts presented in the trial balance). 3. On 30 June 2018, after careful consideration, the directors of Bula Island Ltd decided to adopt the fair value model for land; the fair value of land on 1 July 2017 was $3,500,000 and on 30 June 2018 was $3,250,000. 4. The research and development expenditure qualifies for the additional 25% taxation deduction. 5. The tax rate at 30 June 2017 was 30%. On 15 June 2018, legislation was enacted decreasing the tax rate to 25% effective 1 July 2018.


Required:

1. Calculate the amount of current tax expense. Use an appropriately labelled table for this task.   2. Prepare a deferred tax worksheet to calculate the amounts for deferred tax assets and deferred tax liabilities for the reporting period 30 June 2018. Use an appropriately labelled table for this task.   3. Prepare journal entries for the income tax expense related items for the reporting period 30 June 2018.

NOTE: The solutions for this question has not been fully answered by chegg. A few requirements are still left to be answered. Please help out

A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term assets of $500. The firm has accounts payables of $200. All other current liabilities total $400. The firm had sales of $10000, EBIT of $5000, interest expenses of $2000 and net income of $800. Compute the following ratios:

Current ratio
DSO
TIE
profit margin
Total asset turnover

• The daily demand is 2000 units
• The production lead time is 4 days (this includes processing time, transport time, and waiting time)
• Management has decide to have a 1 day safety stock
•  One container fits 400 units

The following table shows part of the probability distribution for the number of boats sold daily at Boats Unlimited. It is known that the average number of boats sold daily is 1.57. x f(x) 0 0.20 1 0.30 2 0.32 3 ? 4 0.05 5 ? Complete the distribution by computing the probabilities of selling 3 nd 5 boats per day.

All boats sell for $2000. What is the standard deviation of the daily revenue of the company?

Suppose you are a monopolist in the market for a specific video game. Your demand curve is given by P = 150 – Q, and your marginal cost curve is MC = Q/2. Your fixed costs equal $2000.

a. Graph the demand and marginal cost curve.

b. Derive and graph the marginal revenue curve.

c. Calculate and indicate on the graph the equilibrium price and quantity.

d. What is your profit?

e. What is the level of consumer surplus?

An insurance company estimates that the probability that a person’s car will be destroyed and need to be replaced in any given year is 0.03. The insurance company charges $2000 for the insurance policy, and if your car is destroyed, they will give you $25000 to buy a replacement car. Let X be the net earnings for the insurance company from one insurance policy. What is the expected net earnings for this insurance company? On average, will the insurance company tend to earn money or lose money?