Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary difference of $100,000 (taxed at 34%). During the year, Robinson reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000 and unfavorable temporary differences of $20,000. During the year, Congress reduced the corporate tax rate to 21%. Robinson's deferred income tax expense or benefit for the current year would be:

Angel Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, tax depreciation exceeded book depreciation by $100,000. Finally, Angel subtracted a dividends received deduction of $25,000 in computing its current year taxable income. Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

=

$189,000.

$194,250.

$210,000.

$204,750.

The following information is available for Weber Inc. on September 30 for the year just ended.

1. Of the consulting fees Weber Inc. received in advance, $800 has been earned.
2. Equipment purchased in a previous year for $18,500 will be sold after five years for $2,500.
3. Interest of $1,140 has accrued on a bank loan and is unrecorded.
4. Property taxes of $600 have accrued but are unrecorded.
5. Buildings purchased in a previous year for $68,750 will be sold after ten years for $9,250.
6. A review of the $12,500 unadjusted balance in the prepaid rent account shows a remaining balance of $9,000 at the end of the year.
7. A review of the $4,400 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $4,100.
8. Weber Inc. purchased furniture in a previous year for $14,000 and expects to sell this furniture for $500 after ten years.
9. $3,000 of advertising Weber Inc. placed in the local newspaper is unrecorded and unpaid.
10. $1,000 of the television advertising paid for in advance has been used.

Prepare the required adjusting entries at September 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'.

1. In the country of Classica, we have the following information for the year 2012: *Consumption stood at $1 billion dollars worth of new goods and services, 20% of which were bought by foreigners residing there. *New housing stock worth $100 million was sold. *Company profit totalled $200 million. *Businesses bought $150 million dollars worth of bonds. *The government of Classica bought $200 million worth of guns for the military. *Citizens of Classica living overseas bought $50 million worth of goods from Classica.

i. Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica’s consumption in 2012

ii. Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica’s investment in 2012

iii. What was Classica’s GDP in 2012? Explain your answer                   

Oppenheimer Bank is offering a​ 30-year mortgage with an EAR of 5.500 %. If you plan to borrow $ 300,000​, what will your monthly payment​ be?

1) At the beginning of the current year, Omar Company declared a 1 for 5 reverse stock split, when the market value per share was $10. Prior to the split, Omar had 100,000 shares issued and outstanding. After the split, what is the market value of the shares? Select one:

a. 10

b. 20

c. 50

d. 2

2) How would retained earnings be affected by the declaration of cash dividends – common and stock dividends? Select one:

a. Component of shareholders’ equity as part of total shareholders’ equity

b. Component of total liabilities as current liability

c. Component of total liabilities as noncurrent liability

d. Component of equity as part of share premium

3) What information is typically included in the shareholders’ equity of a public corporation’s balance sheet?

i - Number of shares authorized ii - Number of shares issued iii - Number of shares outstanding iv – Number of shares held by each shareholder Select one:

a. all of i, ii, iii, and iv

b. i and ii only

c. i and iv only

d. i, ii, and iii only

4) A liquidating dividend: Select one:

a. Forces to corporation to downsize its operations

b. Uses paid-in capital to pay dividends

c. Forces shareholders to sell their shares for cash

d. Forces the issuer to repurchase shares for cash Forces to corporation to downsize its operations

5) How would retained earnings be affected by the declaration of cash dividends – common and stock dividends? Select one:

a. Decrease and Decrease

b. No effect and No effect

c. Decrease and No effect

d. No effect and Decrease

The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:

1. Based on these data, prepare a multi-step income statement for internal reporting purposes

.2-a. What was the amount of gross profit?

2-c. Which of the following(s) is true? (Select all that apply.)

3. Did the gross profit percentage in the current year improve, or decline, relative to the 48 percent gross profit percentage in the prior year?

There is _______ in the gross profit percentage when compared to 48% in the previous year.

s a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:

Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year.

Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $250,400 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $125,000 cash in May.

Required:

1. Prepare a budgeted income statement for 20Y9.

Feedback

Use information from the expected sales, cost of goods manufactured and sold, and selling and administrative expenses.

Learning Objective 4, Learning Objective 5.

2. Prepare a budgeted balance sheet as of December 31, 20Y9.

Feedback

Do not forget to include inventories of finished goods, work in process, and materials as assets in the balance sheet.

Calculate the ending retained earnings balance. Include the remaining assets, liabilities, and stockholders' equity.

In a recent year the average movie ticket cost $10.50, In a random sample of 50 movie tickets from various areas

What is the probability that the mean cost exceeds $8.50, given that the population standard deviation is $1.50?

The Landers Corporation needs to raise $1.60 million of debt on a 5-year issue. If it places the bonds privately, the interest rate will be 10 percent. Thirty thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 11 percent, and the underwriting spread will be 2 percent. There will be $140,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 5-year period, at which time it will be repaid. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 16 percent annually. Use 8.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.60 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.)
  

This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $230,000. Last year, their total tax liability was $190,000. They estimate that their tax withholding from their employers will be $198,000.

a. Are Paula and Simon required to increase their withholding or make estimated tax payments this year to avoid the underpayment penalty?

yes

no

b. By how much, if any. must Paula and Simon increase their withholding and/or estimated tax payments for the year to avoid underpayment penalties?

Increase in withholding