On January 1, 2016, SugarBear Company acquired equipment costing $150,000, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $12,000. The estimated output from this equipment is as follows: 2016 - 15,000 units; 2017 - 24,000 units; 2018 - 30,000 units; 2019 - 28,000 units; 2020 - 18,000 units. The company is now considering possible methods of depreciation for this asset.

Required:

a.) Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses:

i.) The straight-line method

ii.) The units-of-production method

iii.) The double-diminishing-balance method

b.) Briefly discuss the criteria that a company should consider when selecting a depreciation method.

Below are some data from the land of milk and honey

1. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year.
2. Compute the percentage change in nominal GDP, real GDP and the GDP deflator in 2017 and 2018 from the preceding year. For each year, identify the variable (“price” or “quantity”) that does not change. Explain why your answer makes sense.
3. Did economic well-being increase more in 2017 or 2018? Explain.

The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of operations: : Pretax financial income, $200,000. Excess of tax deprecation over book depreciation equals $36,000 in 2015 (future taxable). This temporary difference (i.e., $36,000 depreciation expense) will be reversed as follows: $23,000 in 2016 and $13,000 in 2017. The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively. Instructions: (a) Compute Juniper’s 2015 taxable income. (b) Prepare a schedule to show the derivation of the deferred tax liability at the end of 2015. (c) Prepare the journal entry to record income tax expense, deferred income tax liability, and income taxes payable of Juniper for 2015.

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.