What is the applicable statue of limitations in each of the following independent situations?

a. Not return was filed by the taxpayer.

b. A corporation is determined to have been a personal holding company for the year in question.

c. for 2011, the XYZ associates filed Form 1065 (a partnership return). In 2016, the IRS determined that the organization was not a partnership in 2016 but a corporation.

d. in 2011, T incurred a bad-debt loss that she failed to claim.

e. on his 1996 return a taxpayer inadvertently committed a lard amount of gross income.

F. Assume the same situation as that in situation e, except that the omission was deliberate.

g. For 1996, a taxpayer innocently overstated her deductions by a large amount.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,720,000. The project was begun in 2015 and completed in 2016. Cost and other data are presented below: 2015 2016 Costs incurred during the year $ 411,000 $1,020,000 Estimated costs to complete 959,000 0 Billings during the year 465,000 1,310,000 Cash collections during the year 365,000 1,410,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Purnama Bhd acquired 45% of the ordinary shares of Bulan Bhd on 1 January 2016. The remaining shares are held by Bintang Bhd and Matahari Bhd ,each holding 25% and 30% of the ordinary shares of Bulan Bhd respectively. Starting from 1 January 2016, it has been agreed that the key management of Purnama Bhd will direct the relevant activities of Bula Bhd which include approving any kind of transactions related to sales and purchases of goods as well as other transactions related to the assets and liabilities of Bulan Bhd.

Required:

Advise whether Purnama Bhd has control over Bulan Bhd in accordance with MFRS 10 Consolidated Financial Statements.

E14-2 Knudsen Corporation was organized on January 1, 2016. During its first year, the

corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10

par value common stock. At December 31, the company declared the following cash dividends:

2016, $5,000; 2017, $12,000; and 2018, $28,000.

Instructions

(a) Show the allocation of dividends to each class of stock, assuming the preferred stock

dividend is 6% and noncumulative.

(b) Show the allocation of dividends to each class of stock, assuming the preferred stock

dividend is 7% and cumulative.

(c) Journalize the declaration of the cash dividend at December 31, 2018, under part (b).

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $2.2 million, $6.0 million, and $46.8 million in each of its first three years of operation: 2016, 2017, and 2018, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 6%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating. (Round final answers to 2 decimal places.)

Explain your numbers please

On January 1,2016, McKeown, Inc., issued $250,000 of 8%, 9year bonds for $220,776, yielding a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year.

a) Show computations to confirm the bond issue price

b) Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate.

c) Post the journal entries from part b) to their respective T-accounts

d) Record each of the transactions from part b) in the financial statement effects template

Consolidation at the end of the first year subsequent to date of acquisition—Equity method (purchase price equals book value) Assume that a parent company acquires its subsidiary on January 1, 2016, by exchanging 40,000 shares of its $1 par value Common Stock, with a market value on the acquisition date of $28 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of the first year. On the acquisition date, all of the subsidiary’s assets and liabilities had fair values equaling their book values. Following are financial statements of the parent and its subsidiary for the year ended December 31, 2016.

Question text

Computing Depreciation Expense.
Equipment costing $580,000, with an expected scrap value of $60,000 and an estimated useful life of 5 years, was purchased on January 1, 2012.

Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line method and (b) the double-declining-balance method.

Round to the nearest whole number.

(Show Work and Calculations)

On December 31, 2016, Larkspur Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Larkspur to make annual payments of $9,399 at the beginning of each year, starting December 31, 2016. The machine has an estimated useful life of 6 years and a $4,700 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Larkspur uses the straight-line method of depreciation for all of its plant assets. Larkspur’s incremental borrowing rate is 6%, and the lessor’s implicit rate is unknown.
1. What type of lease is this

2. Compute the present value of the lease payments.