1. The Sherman Act is a landmark federal statute:

A: That refuses to enforce the "yellow-dog", anti-union employment contract.

B: Fixing wage, hour and working conditions for most federal supply contracts in excess of $10,000.

C: On competition law passed by Congress in 1890. It prohibits certain business activities that reduce competition in the marketplace, and requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of being in violation.

D: Prohibiting featherbedding of the stand-by or make work types in the radio industry.

2. In Lyng v. International Union, United Automobile Workers, the Supreme Court upheld provisions contained in the federal Food Stamp Act that bar strikers and their families from participating in the food stamp program. It found this provision permissible for all of the following reasons except:

A: It contains an exception for strikes caused by the failure or refusal of an employer to conform to the provisions of an agreement or contract between employer and employee, or a law pertaining to hours, wages or other conditions of work.

B: It cuts federal expenditures.

C: It limits the use of limited food-stamp funds for those most in need.

D: It avoids providing "one-sided support" in labor strikes.

3. A "double-breasted" company:

A: May or may not constitute a single bargaining unit using the usual "community of interest" test.

B: Is one which is regulated by the Interstate Commerce Commission in as much it regulates the hours of service of interstate passenger and freight motor vehicle operators.

C: Is one which has a clear separation between a disestablished company-dominated union its "successor" which is required by the National Labor Relations Board.

D: Is one in which there is an indicia of interrelated operations, common management, common ownership, and centralized control of labor relations.

4. Garmon preemption is a labor law doctrine. This doctrine forbids or prohibits state and local regulation of activities that are actually or arguably protected by the:

A: Supremacy Clause in the second paragraph of Article VI of the Constitution.

B: Labor-Management Reporting and Disclosure Act of 1959.

C: Secondary boycott provisions contained in Section 303 of the Act.

D: National Labor Relations Act’s rules relating to the right of employees to organize and bargain collectively; or prohibited by provisions of the National Labor relations Act that govern unfair labor practices.

Under the new tax law passed in December 2017, individuals can deduct no more than a combined $10,000 of state and local property taxes and either sales or state income taxes from their federal taxes. Previously, individuals could deduct all of these items fully (up to a certain limit for very high-earners). News reports have focused on how these new provisions may disproportionately hurt taxpayers (depending on their individual situations) in high-tax states such as California. In a couple of short sentences, explain why taxpayers in high-tax states are hurt by this change as compared to taxpayers in low-tax states.

Jones, Incorporated acquires 15% of Anderson Corporation on January 1, 2020, for $105,000 when the book value of Anderson was $600,000. During 2020 Anderson reported net income of $150,000 and paid dividends of $50,000. On January 1, 2021, Jones purchased an additional 25% of Anderson for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2020 but Jones has deemed it necessary to change to the equity method after the second purchase. During 2021 Anderson reported net income of $200,000, and reported dividends of $75,000.

The balance in the investment account at December 31, 2021, is

A. 480,000

B. 412,500

C. 400,000

D. 335,000

E. 355,000

ABC Corp. provides its employees with a defined benefit pension plan. The company's actuary has provided you with the following information as of December 31, 2020: PBO $ 1,200,000 Fair Value Plan Assets 1,650,000 Current Service Cost 480,000 Interest Cost 48,000 PSC amortization 120,000 Expected and actual return on assets 165,000 In the past, contributions made to the pension plan have been equal to the pension expense for the corresponding year. The company has not made any contribution in 2020. In the statement of financial position as of December 31, 2020, ABC must report

a. a net pension asset of $ 1,650,000

b. a net pension debt of $ 78,000

c. a net pension debt of $ 450,000

d. a net pension asset of $ 450,000

1 Prepare the journal entries to set up the partnership as at 1 May 2020.

2 prepare a classified Balance Sheet of the partnership as at 1 May 2020.

Michelle and Peter form a partnership on 1 May 2020.

Michelle agrees to bring in $250,000 of cash.

Peter, who has been trading as a sole trader, is to invest certain business assets at agreed market valuations and also transfer his business liabilities.

Details of Peter’s assets and liabilities and their agreed valuations, are as follows:

On January 1, 2020, Winthrop Inc. entered into a lease agreement to lease equipment:

• 5-year lease term
• Annual lease payments are $10,000
• First payment is on January 1, 2020 and the other payments are on 31 December each year
• At the end of the lease the leased asset will revert to the lessor
• The asset’s economic life is estimated at 10 years
• Winthrop could have obtained equivalent financing from its bank at a rate of 5%
• Winthrop’s fiscal year end is December 31
• The equipment has a fair value of $70,000

Required:

1. Calculate the present value of the lease payments.
2. Prepare the amortization table.
3. Classify the lease agreement.
4. Prepare the journal entry(ies) for the lessee for the 2020 fiscal year related to the lease arrangement.

Mariner Corporation, which manufactures sail boats, ordered dry dock equipment from Brown Corporation. This equipment was built for the specialized needs of Mariner, and could not be used by any other company. Instead of purchasing the equipment, Mariner elected to enter into a long term lease agreement with Brown Co. The lease contract was signed on January 1, 2020.   It calls for 12 payments of $15,000, with the first one due on December 31, 2020. The lessor’s implicit interest rate is not known. Mariner’s incremental borrow rate is 8%.

a. Is this lease a finance or operating lease? Explain.

b. Present the journal entry to be made by Mariner when the lease is signed.

c. Show the journal entry that Mariner will make for the December 31, 2020 payment.

Mariner Corporation, which manufactures sail boats, ordered dry dock equipment from Brown Corporation. This equipment was built for the specialized needs of Mariner, and could not be used by any other company. Instead of purchasing the equipment, Mariner elected to enter into a long term lease agreement with Brown Co. The lease contract was signed on January 1, 2020. It calls for 12 payments of $15,000, with the first one due on December 31, 2020. The lessor’s implicit interest rate is not known. Mariner’s incremental borrow rate is 8%. a. Is this lease a finance or operating lease? Explain. b. Present the journal entry to be made by Mariner when the lease is signed. c. Show the journal entry that Mariner will make for the December 31, 2020 payment.

Headland Corp. purchased machinery on January 1, 2016 for $462,000. Straight-line depreciation is used. At the time management estimated that the machinery would be used over 10 years and would have a residual value of $41,000. It is now December 31, 2020 and management has determined that the machine’s life is now a total of 12 years with no residual value. No adjusting journal entries have been recorded yet for the 2020 year-end.

What journal entries are required to record the above events on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)