Statistics question (please show thorough working):

- Part a):

Public health authorities want to estimate the proportion of Australians aged 18-65 who caught the flu during winter 2018. If the true proportion is thought to be about 24%, how large a sample will be needed if we want to be 95% sure that our estimate will be within 0.02 of the true value?

- Part b):

Due to a change in the available funding, the sample actually used for estimating the prevalence of flu included 1,712 randomly-selected Australians aged 18-65. Of these, 367 reported having a “flu-like illness” during winter 2018. Use these data to calculate a 90% confidence interval for the proportion of Australians aged 18-65 who had a flu-like illness during winter 2018.

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $22,600 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $9,000 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income.

1. What is consolidated net income for 2018?
2. How is 2018 consolidated net income distributed to the controlling and noncontrolling interests?

On January 1, 2014, Pronghorn Company purchased a building and equipment that have the following useful lives, salvage values, and costs.

The building has been depreciated under the double-declining-balance method through 2017. In 2018, the company decided to switch to the straight-line method of depreciation. Pronghorn also decided to change the total useful life of the equipment to 9 years, with a salvage value of $4,800 at the end of that time. The equipment is depreciated using the straight-line method.

(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2018.

(b) Compute depreciation expense on the equipment for 2018.

Up and its 80 percent–owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $54,000 during this period.

In 2017, intra-entity gross profits of $54,000 on upstream transfers of $162,000 were deferred into 2018. In 2018, intra-entity gross profits of $71,200 on upstream transfers of $196,400 were deferred into 2019.

1. What amounts appear for each line in a consolidated income statement?

2. What income tax expense should appear on the consolidated income statement if each company files a separate return? Assume that the tax rate is 30 percent.

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2015 $ 130 $ 5 2016 144 5 2017 120 5 2018 125 5 An investor buys six shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all eight remaining shares at the beginning of 2018. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2015, to January 1, 2018. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.)

In 2018, the internal auditors of KJI Manufacturing discovered the following material errors made in prior years:
  

Equipment was purchased on June 30, 2016, for $140,000. The purchase was incorrectly recorded as a debit to repair and maintenance expense. The equipment has a useful life of five years and no residual value.

On March 31, 2017, $66,000 was paid to a contractor to landscape the area around a manufacturing plant including the installation of a sprinkler system. The expenditure was debited to the Land account. The landscaping is expected to have a 20-year useful life and no residual value.

KJI uses the straight-line method of depreciation for all depreciable assets.

Required:
1. Prepare the journal entries at December 31, 2018, to correct the errors (ignore income taxes).
2. Prepare the journal entries to record 2018 depreciation for any assets recorded in requirement 1.

Module Assignment:

Depreciation Exercise

On January 1, 2018, Happy Hospital purchased an MRI for $8,375,000. It cost an additional $125,000 to deliver, install and calibrate the MRI. The MRI has a useful life of 5 years, at which time it is expected that it will be disposed of for a $100,000 salvage value.

Using straight-line depreciation method, prepare a schedule showing annual depreciation expense and accumulated depreciation for each of the 5 years.

Show how the asset and accumulated depreciation would appear on the balance sheet at December 31, 2018.

Prepare journal entries to record the asset’s acquisition, annual depreciation for each year and the asset’s sale for $100,000.

Year    Annual Expense          Accumulated Depr      Net asset value

2018

2019

2020

2021

2022

Property, Plant & Equipment

Less: Accumulated depreciation

Net Asset value

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,900 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $12,800 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income.

1. What is consolidated net income for 2018?

2. How is 2018 consolidated net income distributed to the controlling and noncontrolling interests?

On January 1, 2018, NFB Visual Aids issued $780,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2018, the fair value of the bonds was $650,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Determine the price of the bonds at January 1, 2018. 1-b to 4. Prepare the necessary Journal entries.