Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $560,000 and with an expected useful life of 4 years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $660,000, which includes interest revenue of $13,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 30%.
   
Prepare the journal entry to record income taxes.

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $780,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $880,000, which includes interest revenue of $25,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.
   
Prepare the journal entry to record income taxes.

A dollar today is worth more than a dollar to be received in the future. The difference between the present value of cash flows and their future value represents the time value of money. Interest is the rent paid for the use of money over time. The Stridewell Wholesale Shoe Company recently sold a large order of shoes to Harmon Sporting Goods. Terms of the sale require Harmon to sign a noninterest-bearing note of $60,500 with payment due in two years. How should Stridewell and Harmon value the note receivable/payable and corresponding sales revenue/inventory? Justify your answer.

Southern Corporation began operations in January 2019 and purchased a machine for $120,000 at that time. Southern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2019, 30% in 2020, and 20% in 2021. Pretax accounting income for 2020 – which is the SECOND year of using this machine – is $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

Prepare the JE for 2020

Annual revenues are used to predict the value of a baseball franchise. A sample of 32 franchises was used. An analysis of variance of these data showed that b1= 5.0785 and Sb1 = 0.2357.

a. At the 0.05 level of​ significance, is there evidence of a linear relationship between annual revenue and franchise​ value?

b. Construct a​ 95% confidence interval estimate of the population​ slope, β1.

a: Compute the test statistic. tSTAT= ​(Round to four decimal places as​ needed.)

The critical​ value(s) is(are) ​(Round to four decimal places as​ needed.)

b: The​ 95% confidence interval is ____ ≤ β1 ≤ ____ ​(Round to four decimal places as​ needed.)

3. A single-price monopolist has the schedules given in the table below.

a. Determine the profit-maximizing level of output, price as well as the amount of profit or loss at this level. Clarify how you obtain the answer.

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b. Compare between the perfect competition and monopoly market structure.

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[Total: 10 marks]

1. Differentiate barometric price leadership and dominant price leadership.

2. Is there a similarity between cartel pricing and monopoly pricing?

3. What conditions are favorable to the formation and maintenance of a cartel?

4. Can government be a potent force in the establishment and maintenance of monopolistic conditions? Name and describe such occurrences.

5. Describe the properties of the Baumol revenue maximization model. Do you consider this to be a good alternative to the profit maximization model?

6. Telephone companies charge different rates for calls during the day, in the evening, and at night or weekends. Do you consider this to be price discrimination?

Presented Below is Information related to Matrix Company at December 31,2018 the end of its first year of operations:

Account Balance

Question 1: What is income from continuing operations?

Question 2: What is the difference between continuing operations and net income?