ABC Company formed in 2020. ABC company files their tax return using the accrual basis of accounting. ABC’s profit and loss showed the following:

Revenue - $1,000,000

Expenses:

Salaries - $700,000

Office Expense - $50,000

Supplies - $20,000

Postage - $10,000

Meals - $7,000

Entertainment - $1,000

Repairs - $2,000

Rent - $50,000

Political Contributions - $2,500

Calculate ABC company’s taxable income using the accounts above. Assuming ABC company operates a sole proprietorship, calculate the Qualified Business Income Deduction for 2020.

Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be paid semi-annually on Feb 1 and August 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS. Instructions: Prepare the entries required for these bonds at • December 31, 2019(year end) • February 1, 2020 • August 1, 2020 when the interest was paid, and the entire issue was retired early for $4,350,000 plus interest.

On January 1, 2020, the balance in Tim Company's "Accounts Payable" account was $22,000. At the December 31 year end, the balance was $30,000. In Tim's Cash Flow Statement for the year ended 12/31/2020, the $8,000 net increase will be
A Subtracted from Net Income in determining net cash provided by operating activities
B Reported as a cash outflow from financing activities
C Reported as a cash inflow from investing activities
D Added to Net Income in determining net cash provided by operating activities

JenBritt Incorporated had a free cash flow (FCF) of $92 million in 2019. The firm projects FCF of $220 million in 2020 and $560 million in 2021. FCF is expected to grow at a constant rate of 6% in 2022 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2020) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places.

On July 1, 2020, Katerina made a $90,000 interest-free loan to her son, Dominic, who used the money to retire a mortgage on his personal residence and to buy a certificate of deposit. Dominic’s only income for the year is his salary of $35,000 and $1,400 interest income on the certificate of deposit. Assume the relevant Federal interest rate is 8% compounded semiannually.

Required: Determine the effect of the loan on Katerina’s gross income for 2020. Provide explanations and supporting computations to support your answer to receive full credit.

Jackson’s Corporation purchased equipment at a cost of $500,000. The equipment has an estimated residual value of $50,000 and an estimated life of 5 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2020 and was used 2,500 hours in 2020 and 2,100 hours in 2021. On January 1, 2022, the company decided to sell the equipment for $315,000. Jackson’s Corporation uses the units-of- production method to account for the depreciation on the equipment.

1.) Will the entry to record the sale of the equipment show a gain or loss?

2.) How much will the gain or loss be?

A 8.93% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February and 15 August. The bond uses the 30/360 day-count convention for accrued interest. The bond is priced for sale on June 5, 2020 (that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 5.1%? Carry intermediate calcs. to four decimals. Answer to two decimals.

Pine Corporation issued $500,000 in ten-year, 8% bonds on September 1, 2019. Interest is to be paid semi-annually on May 1 and November 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS.

Instructions: Prepare the entries required for these bonds at • December 31, 2019(year end) • March 1, 2020 • September 1, 2020 when the interest was paid and the entire issue was retired early for $575,000 plus interest.

Assume you have been given $400,000 CAD with access to all listed stocks, bonds, futures, and options worldwide. You can trade in options and futures, in combination with the underlying asset. Assume today is Feb 1, 2020 and you have been given $400,000 CAD fake money to trade until April 20, 2020.

Perform a strip strategy. (involves a long call and two long puts with the same strike price and maturity)

Describe the trade and provide the reason for such trade.

Please provide table and or/ graph.