Oriole Corp. has a deferred tax asset account with a balance of $163,600 at the end of 2016 due to a single cumulative temporary difference of $409,000. At the end of 2017, this same temporary difference has increased to a cumulative amount of $479,000. Taxable income for 2017 is $778,000. The tax rate is 40% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2016.

(a) Record income tax expense, deferred income taxes, and income taxes payable for 2017, assuming that it is more likely than not that the deferred tax asset will be realized.

(b) Assuming that it is more likely than not that $28,300 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2017 to record the valuation account.

Question 4 (attribution rule)

Martha purchased 10,000 common shares in 2010 of SENEDGE INC, a CCPC at $12 per share. Martha gifts her husband 5000 shares and her 14 year old daughter 5000 common shares in 2012, when the common share FMV was $13. Near the end of Dec 2015, SENEDGE INC gave out dividends $1 for each share. The husband and daughter both sell all their shares in 2016 at $16 Determine the taxable income to each individual for each case, write nil if zero

A) Common shares gifted

B) Dividends received 2015

C) Shares sold at 2016

A) Martha Husband Daug hter

B)

C)

The Asphalt Division of Sierra Industries is operated as a profit center. Sales for the division were budgeted for 2016 at $1,200,000. The only variable costs budgeted for the division were cost of goods sold ($590,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were:

                                            Sales                                       $1,185,000

                                            Cost of goods sold

                                                Variable                                    545,000

                                                Fixed                                        140,000

                                            Selling and administrative

                                                Variable                                      82,000

                                                Fixed                                          90,000

                                            Noncontrollable fixed                   105,000

Instructions

a. Prepare a responsibility report for the Asphalt Division for 2016.

b. Assume the division is an investment center, and average operating assets were $1,200,000. Compute ROI.

Need the correct formula that gives me the number for everything in blue

XYZ stock price and dividend history are as follows:

An investor buys five shares of XYZ at the beginning of 2015, buys another two shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all six remaining shares at the beginning of 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.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.)

Ringmeup, Inc., had net income of $137,200 for the year ended December 31, 2016. At the beginning of the year, 39,000 shares of common stock were outstanding. On May 1, an additional 16,000 shares were issued. On December 1, the company purchased 4,700 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid the annual dividend on the 9,000 shares of 3.65%, $100 par value preferred stock that were outstanding the entire year.

Required:

Calculate basic earnings per share of common stock for the year ended December 31, 2016

Amber Mining and Milling Inc., contracted with Traux Corporation to have constructed a custom-made lathe. the machine was completed and ready for use on January 1st 2016. Amber paid for the lathe by issuing a $600,000 3 year note that specified 4% interest payable annually on December 31st of each year. the cash market price of the lathe was unknown. it was determined by comparison with similar transactions they 12% was a reasonable rate of interest

1. prepare the journal entry on January 1st 2016 for Amber Mining and Milling purchase of the lathe.
2. prepare and amortization schedule for the three-year term of the note.
3. prepare the journal entries to record interest for each of the three years and payment of the note at maturity.

Changes in Shareholders' Equity

On January 1, 2016, the Osgood Film Studios reported the following alphabetical list of shareholders' equity items:

During 2016, the company sold 4,400 shares of common stock for $13 per share and 350 shares of preferred stock for $127 per share. It also earned income of $94,000 and paid dividends of $7 per share on the preferred stock and $1.20 per share on the common stock outstanding at the end of 2016.

Required:

The following partially completed schedule will help you to organize the information for this exercise.

On January 1, 2016, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions:

The lessor calculates that the present value on January 1, 2016 of 8 annual payments in advance of $34,500 discounted at 11% is $197,070.76 (the $1 purchase option is ignored as immaterial).

Required:

8

9