Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $5,998,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,030,000 including retained earnings of $1,530,000.

At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary:

Post acquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:

No asset impairments have occurred since the acquisition date.

Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period

Total liabilities and equity$(15,952,250) $(4,760,000)

1. Determine the fair value in excess of book value for Allison's acquisition date investment in Mathias.

2. Prepare a worksheet to determine the consolidated values to be reported on Allison’s financial statements.

Jeffery Company purchased 10% of the outstanding common stock (75,000 shares) of Another Company on January 1, 2020 for $750,000. The investment was not sufficient to give Jeffery Company the ability to significantly influence the operations of Another Company. On January 1, 2020, the fair value of the percentage of Another Company’s net assets purchased by Jeffery Company exceeded book value by $20,000. The difference was attributable to plant assets with remaining useful life of five years. During 2020, Another Company reported net income of $150,000 and paid dividends of $40,000. The fair value of Another Company’s common stock on December 31, 2020 was $15 per share.

The entry to record the purchase of the stock on January 1, 2020 would include?

The entry to record the dividends Jeffery Company received from Another Company would include? check figure; A credit to investment revenue for $4,000

As a result of the investment, Jeffery Company's income before income tax for the year ended December 31, 2020 would increase by? check figure;$379,000

The entry on December 31, 2020 to recognize changes in fair value would include? check figure: A credit to unrealized holding gain for $375,000

Jeffery Company would report an investment in Another Company on the balance sheet as of December 31, 2020 of?

Please explain in detail the answers I would appreciate the help thanks.

Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016" "Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016"

1)What is the 2020 Adjusted Gross Income for Martin and Michele Albert?

2)What is the 2020 taxable income for Martin and Michele Albert?

3)What is the tax due (refund) for Martin and Michele Albert for 2020?

Corporate Finance management - MBA

why do we need to analyze the financial statement of companies?

I am graduating with MBA degree. What would you recommend as a "letter to a future student"?

QUESTION 5

The variable Z has a standard normal distribution. The probability P(- 0.5 < Z < 1.0) is:

QUESTION 6

If a random variable X is normally distributed with a mean of 30 and a standard deviation of 10, then P(X=20) =

QUESTION 7

If P( -z < Z < +z) = 0.8812, then the z-score is:

QUESTION 8

If the mean of a normal distribution is negative,

QUESTION 9

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $90,000 and a standard deviation of $20,000. What is the probability that a randomly selected individual with an MBA degree will have a starting salary of at least $78,500?

1. 0.2810
2. 0.8840
3. 0.7190
4. 0.8210

QUESTION 10

The starting salaries of individuals with an MBA degree are normally distributed with a mean of $90,000 and a standard deviation of $20,000. What is the lowest salary for those individuals with an MBA degree whose starting salary is in the top 25 percent?

1. $104,500
2. $103,600
3. $83,750
4. $106,400

1. You graduated from Loyola two years ago, and you are now earning a salary of $50,000 per year. The total cost of your Loyola education was $200,000. You are now thinking about earning an MBA degree. Because of your excellent education at Loyola, you are eligible for the one-year, accelerated program at Global University, which has a cost of $120,000 for tuition, room, board, books, etc. To earn the MBA, you would have to quit your job and study full-time. As you are deciding what to do, your manager at work tells you that, based on your outstanding performance, you will be promoted in one month; the new position will carry a salary of $60,000 per year, or $10,000 more than you are earning now. You estimate that the MBA will translate into the following incremental after-tax earnings for the next ten years, which is your decision horizon:

       Incremental

Year                          After-tax Earnings

   1                                    $15,000

   2                                    20,000

   3                                    23,000

   4                                    26,000

   5                                    30,000

   6                                    35,000

   7                                    40,000

   8                                    50,000

   9                                    60,000

10                                    70,000

          You have a discount rate of 10.0%. Lastly, in order to get to/from class, you

          will need to spend more on transportation, and you will also have to eat

          several meals a week at fast food restaurants. These incremental net

          working capital costs will be $3,000 for the year. Your on-going fixed

overhead costs—for rent, clothes, insurance, food, etc.—are $20,000 per

year.

USING THE PRECEDING INFORMATION, PLEASE ANSWER THE

FOLLOWING QUESTIONS:

1. What is your

1. Sunk cost?
2. Fixed overhead cost?
3. Project cost?
4. Erosion?
5. Opportunity cost?
6. Incremental net working capital cost?

2. Combining all appropriate costs, what is the total cost of the MBA?
3. What is the present value of the incremental after-tax earnings?
4. What is the net present value of the MBA?
5. Should you pursue the MBA?
6. Should you factor in financing costs?
7. Should you factor in on-going fixed overhead costs?

For the company APPLE

1. Choose a firm that is currently in the S&P 500. Choose one that you trust or that operates in an industry you are interested in. Who is the CEO (Executive Leader)?
   1. THE EXECUTIVE – Research the CEO of the firm and describe their background and any relevant information about this person that is available (e.g., traits, behaviors, motivations, or any important things they have accomplished).
   2. THE FIRM – Where are the firm’s headquarters located? What is the stock price & market capitalization at the time you write this? How many employees does the organization employ? What do they produce or what services do they provide? Does your organization have CEO duality?

If Susie earns $750,000 in taxable income, how much tax will she pay as a single taxpayer for year 2020? (Use tax rate schedule)

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2020, what is his average tax rate (rounded) & effective tax rate (rounded)

3. Jamie is single. In 2020 , she reported $100,000 of taxable income, including a long-term capital gain of $5,000. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the tax rate schedules,long term capital gains tax brackets)