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.

On January 1, 2020, ABC Corporation had 990,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On May 1, the company issued a 5% stock dividend. On July 1, the corporation declared and issued a 3-for-1 stock split. On October 1, the corporation repurchased on the market 400,000 of its own outstanding shares and retired them. Instructions Compute the weighted average number of shares to be used in computing earnings per share for 2020

A 9.81% 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 5.7%? Carry intermediate calcs. to four decimals. Answer to two decimals.

A company makes the following journal entry for 2020:

Dr. Income Tax Expense                    xxxx

Dr. Deferred Tax Asset                      77,000

            Cr. Deferred Tax Liability                     27,000

            Cr. Income Tax Payable                                 275,000

On the income statement, the deferred portion of income tax expense for 2020 appears as: _______________. Very important: If the amount of the deferred portion is subtracted from the current portion to obtain income tax expense, put a minus sign in front of the amount; if the amount of the deferred portion is added to the current portion, then leave the amount as is.

1. ABC Corporation owned a business warehouse that was destroyed by fire on October 1, 2020. On December 1, 2020 the corporation received an insurance payment of $900,000 for the loss. The corporation’s basis in the warehouse just prior to the loss was $500,000. The corporation would like to use the involuntary conversion rules to defer as much gain as possible. Assume the corporation built a new warehouse on the old site within the required timeframe and incurred construction costs of $950,000.  

1. How much gain would be taxable?

1. What would be the corporation’s basis in the new building?

Compute the amount that a $20,000 investment today would

accumulate to at the end of 10 years, 8% interest compounded quarterly.

$ __________

   Part (b) Fran wants to retire at the end of this year (2020). Her

life expectancy is 35 years from her retirement. She has

come to you, her CPA, to learn how much she should deposit

on December 31, 2020 to be able to withdraw $100,000 at the

end of each year for the next 35 years, assuming the amount

on deposit will earn 8% interest annually.

$ __________

in 2018 the westgate construction company entered into a contract to construct a road for Santa Clara County for 10,000,000 The road was completed in 2020. Calculate the amount of revenue and gross profit to be recognized in each of the 3 years assuming the following costs to incur and costs to complete information. ( Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.

   2018    2019 2020

Cost incurred during the year $2,016,000 3,890,000    3,290,000

Estimated cost to complete as of year end $5,184,000    3,190,000