Sunland 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 Sunland, has gathered the following data concerning inventory.

At May 31, 2020, the balance in Sunland’s Raw Materials Inventory account was $505,920, and Allowance to Reduce Inventory to NRV had a credit balance of $27,630. 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 Sunland’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.

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

Condensed financial data of Bonita Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

For the year ending December 31, 2020, Bad Year, Inc. reported Basis Earnings Per Share in the amount of $ 1.75, which was calculated as Net Income of $ 1,050,000 dividend by 600,000 weighted average commonshares outstanding. Bad Year, Inc. does not have a preferred stock outstanding, and did not pay any common dividends during 2020.
Throughout 2020, employees of Bad Year, Inc. owned 150,000 stock options, which entitled them to purchase 150,000 shares of Bad Year, Inc. common stock at a price of $ 40 per share. The options are currentlyexercisable, and expire on December 31, 2025. During 2020, the average price of Bad Year Common Stock was $ 25 per share.
In addition, Bad Year has Convertible Debt with a face value of $ 8,000,000 outstanding. This debt was issued "at par" on January 1, 2016, it has a coupon rate of 5% per year, and an expiration date of December 31,2030. The conversion option on the debt allows an owner to exchange $ 1,000 of face value debt for 50 shares of Bad Year common stock. Bad Year, Inc. currently pays income tax at a rate of 20%
Based on the information provided above, what is the "Diluted EPS"that Bad Year, Inc. should report for the fiscal year ending December 31, 2020?

A.$1.25

B.$1.37

C.$ 1.75

D.None of the above

On January 1, 2020, Crane Corp., which uses IFRS, signs a 10-year, non-cancellable lease agreement to lease a specialty lathe from Liu Inc. The following information concerns the lease agreement.

calculate the amount of the right-of-use asset and lease liability and prepare the initial entry to reflect the signing of the lease agreement

Prepare the journal entries on Crane Corp.’s books to record the payments and expenses related to this lease for the years 2020 and 2021 as well as any adjusting journal entries at its fiscal year ends of December 31, 2020 and 2021. Crane does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25.)

Ayayai Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $246,000 net loss 2019 $38,000 net loss 2020 $835,000 net income At December 31, 2020, Ayayai Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,400 shares $540,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 693,000 shares $693,000 Ayayai Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Ayayai 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.) Book value per share $enter a dollar amount of the book value of the common stock at December 31, 2020 rounded to 2 decimal places.
(b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $105 per share. (Round answers to 2 decimal places, e.g. $38.50.) Book value per share $enter the book value per share in dollars rounded to 2 decimal places

Barton Enterprises purchased equipment on January 1, 2020, at a cost of €350,000. Barton uses the straight‐line depreciation method, a 5‐year estimated useful life, and no residual value. At the end of 2020, independent appraisers determined that the assets have a fair value of €320,000.

Instructions

a. Prepare the journal entry to record 2020 depreciation using the straight‐line method.

b. Prepare the journal entry to record the revaluation of the equipment.

c. Prepare the journal entry to record 2021 depreciation, assuming no additional revaluation.

additional instructions:

4. Prepare the closing journal entries for a. and b.
5. Suppose that at the end of 2021, after the depreciation is recorded per c., the equipment is re-valued to €180,000. Prepare the journal entry to record the revaluation. Then prepare the closing entries required at the end of 2021.
6. Prepare the depreciation entries for 2020 and 2021, assuming the Cost Model was followed in both years.
7. Assume that the equipment is sold on 1 July 2022 for €170,000.
   1. Calculate depreciation for 2022 under both the cost and fair value models. (Hint: Depreciate only up to the date of disposal.)
   2. Prepare the journal entry for the disposal under the cost model.
   3. Prepare the journal entry for the disposal under the fair value model. Do not revalue the equipment on 1 July 2022 (prior to the disposal).
8. In total (for 2020, 2021, and 2022 taken together), which model resulted in the greatest decrease to total comprehensive income?

Condensed financial data of Sandhill Company for 2020 and 2019 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Fedora’s Vases experienced all of the following events during the month of September 2020. For each transaction, give the correct amount of revenue and expense to be recognized. If nothing should be recognized, enter 0 for your answer.

a) Sold vases for $288,000 on credit. The cost of the vases was $160,000.

Revenue recognized ______

Expense recognized ______

b) Paid employees $96,000 for work performed during the months of August and September. Half of the work relates to September 2020.

Revenue recognized   ______

Expense recognized ______

c) Purchased $6,400 of shipping bubble wrap on account.

Revenue recognized   ______

Expense recognized ______

d) Used half the bubble wrap purchased above.

Revenue recognized    ______

Expense recognized ______

e) Received a $3,000 utility bill that relates to the month of September 2020. The bill will not be paid until October 15, 2020.

Revenue recognized ______

Expense recognized ______

f) Paid $6,400 to the supplier of the bubble wrap.

Revenue recognized    ______

g) Expense recognized ______

Collected $176,000 worth of receivables that relate to August 2020 credit sales.

Revenue recognized    ______

Expense recognized ______

h) Received $112,000 in advance payments for vases not yet shipped.

Revenue recognized    ______

Expense recognized ______

i) Sold vases for $80,000 on credit. The vases cost $48,000.

Revenue recognized    ______

Expense recognized ______

What was the net income for Fedora's Vases for the month of September considering only the transactions above?

Fedora's net income for September ______

Carla Vista Company manufactures equipment. Carla Vista’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $235,000 to $1,620,000, and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment to perform to specifications. Carla Vista has the following arrangement with Winkerbean Inc.

Carla Vista delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. Assume that the equipment and the installation are two distinct performance obligations that should be accounted for separately.

a) Prepare any journal entries for Carla Vista on May 2, June 1, and September 30, 2020.