On January 1, 2017, Alison, Inc., paid $60,000 for a 40 percent interest in Holister Corporation’s common stock. This investee had assets with a book value of $200,000 and liabilities of $75,000. A patent held by Holister having a $5,000 book value was actually worth $20,000. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2017, Holister earned income of $30,000 and declared and paid dividends of $10,000. In 2018, it had income of $50,000 and dividends of $15,000. During 2018, the fair value of Allison’s investment in Holister had risen from $68,000 to $75,000.

Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2018?

Required information

Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018:

3. Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using the Average cost method. (Round "Average Cost per Unit" to 2 decimal places.)

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. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Required:
5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

Required information

[The following information applies to the questions displayed below.]

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. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

In 1913, Andrew Carnegie's net worth was approximately $475 million. In 2018, Mark Zuckerberg’s net worth was $58 billion. One dollar ($1) in January of 1913 has the same buying power as $25.76 in September of 2018.

What is the real wealth for Andrew Carnegie in 1913?

a. 2.5b units of goods and services

b. 1.5b units of goods and services

c. 768m units of goods and services

d. 475m units of goods and services

e. 2.25b units of goods and services

What is the real wealth for Mark Zuckerberg in 2018?

a. 2.25b units of goods and services

b. 1.5b units of goods and services

c. 768m units of goods and services

d. 475m units of goods and services

e. 4.25b units of goods and services

Who is the wealthier of the two?

A. Andrew Carnegie

B. Mark Zuckerberg

Tamarisk Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $128,000 17 % 2019 118,000 17 % 2020 (290,000 ) 19 % 2021 306,000 19 % The tax rates listed were all enacted by the beginning of 2018. Collapse question part

(a) Prepare the journal entries for the years 2018–2021 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0)

Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2018 to $8.97 million in 2019. Its assets totaled $2 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2018 is available: Aug.1 Inventory on hand—6,500 units; cost $7.90 each. 8 Purchased 24,000 units for $6.90 each. 14 Sold 18,000 units for $13.40 each. 18 Purchased 13,000 units for $6.40 each. 25 Sold 17,000 units for $12.40 each. 31 Inventory on hand—8,500 units. Required: Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using each of the following cost flow methods: FIFO,LIFO, Average cost

Assume that in 2017, The Shallonz Corporation reported net income of $143 million, and paid dividends totaling $36.5 million throughout the year. Their net income has been growing at about 5% per year for some time, but it is expected to grow by 20% in 2018. Growth is expected to return to the normal 5% the following year and thereafter. It has also been estimated that the company will need about $52 million in funds for capital expenditures in 2018. The company is financed with 70% equity. What will be the company’s payout ratio if it follows a pure residual dividend policy in 2018? What would the payout ratio be if instead they allowed the dividends to grow at the same rate as the long-term growth rate in income? What would you recommend they do? Please explain exactly why.