NaCl is stable in the temperature range between 200 ^oC and 850 ^oC, but in that range, NaHCO₃decomposes by the reaction:

2 NaHCO₃ (s) → Na₂CO₃ (s) + H₂O (g) + CO₂ (g)

If a mixture of the two is heated to temperatures in the above range, the gaseous products will escape and the residue will contain the original NaCl and an amount of solid Na₂CO₃. The Na₂CO₃ is related stoichiometrically to the amount of NaHCO₃ which has decomposed. If the reaction has proceeded to completion (no remaining NaHCO₃), the moles, and therefore the weight of NaHCO₃originally in the sample, are able to be determined.

We heat the sample several times, weighing the residue after each heating.

We use the following criterion to establish that the reaction is complete:

The reaction is considered complete if the change in weight of the residue

is less that 5.0 mg (plus or minus) in two successive heatings.

The following data were collected in such a determination:

Some heatings may have been unnecessary. You may assume that the weight after the 4th heating is the final weight, even if prior heatings were unnecessary.

From the data, answer the following questions:

Q: Based on the amount of mass that was lost after the last heating, calculate the grams of NaHCO₃ in the original sample of the mixture. Calculate the percent of NaHCO₃ in the original sample before heating.

2. AMC Corporation currently expects to generate $40 million free cash flows each year forever, and it currently has $100 million cash. Its cost of capital is 10%. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC’s free cash flow each year will be either $60 million or $20 million.

a.What is AMC’s share price prior to the share repurchase?

b.What is AMC’s share price after the repurchase if its firm value goes up? What is AMC’s share price after the repurchase if its firm value declines?

c. Suppose AMC waits until after the news comes out to do the share repurchase. What is AMC’s share price after the repurchase if its firm value goes up? What is AMC’s share price after the repurchase if its firm value declines?

d. Suppose AMC management expects good news to come out. Based on your answers to parts b and c, if management desires to maximize AMC’s long term share price, will they undertake the repurchase before or after the news comes out? When would management undertake the repurchase if they expect bad news to come out?

e. Given your answer to part d, what effect would you expect an announcement of a share repurchase to have on the stock price? Why?

The trial balance of Scan House, Inc. included the following selected accounts as of December 31, 2020: Debits Credits Sales Revenue 16,755,000
Interest Revenue 75,000 Gain on sale of investments 150,000 Unrealized gains on investments 200,000 Other Income * 1,200,000 Foreign currency translation losses 125,000 Cost of Goods Sold 11,635,000
Selling expenses 975,000 Goodwill impairment loss 550,000 Interest Expense 60,000 Administrative Expense** 780,000 Loss on sale of land 225,000 Dividends declared 175,000   
Additional information:

* Other Income consists of income from discontinued operations. This includes $900,000 of income from operations and a $300,000 gain on the sale of investments.
** Administrative expense includes a $150,000 expense that was a correction of an error made in the 2018 Income Statement, but discovered during 2020.
Retained Earnings balance: January 1, 2020 = $725,000.
ScanHouse had 600,000 shares of common stock outstanding throughout the year and 1,000,000 shares of common stock authorized. Income tax expense had not yet been accrued. The effective tax rate is 21%.

Required: 1. Prepare a single, continuous 2020 statement of comprehensive income for Scan House, Inc., including income tax expense and Earnings Per Share (EPS). Use a multiple-step income

2. Prepare a 2020 statement of retained earnings for Scan House, Inc.

On July 1, 2020, Concord Company purchased for $7,200,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $300,000. Depreciation is taken for the portion of the year the asset is used.

Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the

Assume the company had used straight-line depreciation during 2020 and 2021. During 2022, the company determined that the equipment would be useful to the company for only one more year beyond 2022. Salvage value is estimated at $400,000.

Compute the amount of depreciation expense for the 2022 income statement.

Assume the company had used straight-line depreciation during 2020 and 2021. During 2022, the company determined that the equipment would be useful to the company for only one more year beyond 2022. Salvage value is estimated at $400,000.

What is the depreciation base of this asset?

The following balance sheets have been prepared on December 31, 2020 for A Corp. and B Inc.

Balance Sheets

Additional Information:

A uses the cost method to account for its 50% interest in B, which it acquired on January 1, 2017. On that date, B's retained earnings were $20,000. The acquisition differential was fully amortized by the end of 2020.

A sold Land to B during 2019 and recorded a $15,000 gain on the sale. A is still using this Land. A's December 31, 2020 inventory contained a profit of $10,000 recorded by B.

B borrowed $20,000 from A during 2020 interest-free. B has not yet repaid any of its debt to A.

Both companies are subject to a tax rate of 20%.

Prepare a Consolidated Balance Sheet for A on December 31, 2020 assuming that A's investment in B is a control investment.

Can you please show calculations in detail? (Goodwill, RE, NCI and B/S)

Sweet Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Sweet, has gathered the following data concerning inventory.

At May 31, 2020, the balance in Sweet’s Raw Materials Inventory account was $485,520, and Allowance to Reduce Inventory to NRV had a credit balance of $27,670. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sweet’s May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle.

(a)

Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020.

Whispering Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Whispering, has gathered the following data concerning inventory.

At May 31, 2020, the balance in Whispering’s Raw Materials Inventory account was $424,320, and Allowance to Reduce Inventory to NRV had a credit balance of $27,440. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Whispering’s May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle.

(a)

Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020.

Tamarisk Gas Inc., an oil and gas company had the following information on its financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

A)

Calculate Tamarisk’s (Round answers to 1 decimal place, e.g. 52.7 or 52.7%.)

B)

Determine from the results obtained in part (a) if Tamarisk’s

1. Complete the pension worksheet using the information provided below:

2020 records of Lexxus Company provided the following data related to its noncontributory defined benefit pension plan.

ACCOUNT BALANCES (‘000s)    Jan. 1, 2020                Activity (‘000s)                                              2020

Projected Benefit Obligation $300 cr                                    Service cost                                                     $ 50

Plan Assets                             170 dr                                    Contributions                                                  110

Accumulated OCI – PSC            40 dr                                    Actual return on plan assets                                 8

Accumulated OCI - G/L            25 dr                                    Amortization of PSC                                          4

Remaining Service Life              10 years                               Pension benefits paid to retirees                       124

OTHER                                                         

Expected rate of return on plan assets            6%

Discount/Settlement rate                                8%

2. Perform the corridor test of OCI-Gains/Losses. Show your work here:
3. Provide the end of year journal entry based on worksheet amounts.
4. Explain the difference between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer’s obligation differs between the two types of plans.

B Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations.

At December 31, 2020, B Inc. capital accounts were as follows.

B Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since B began operations. The state law permits dividends only from retained earnings.

(a) Compute the book value of the common stock at December 31, 2020. (Round answers to 2 decimal places, e.g. $38.50.)

(b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $104 per share. (Round answers to 2 decimal places, e.g. $38.50.)