Plastix Inc. bought a molding machine for $600,000 on July 1, 2017. The company expected to use this machine to extrude plastic toys for the next eight (8) years, when the machine would be sold for $40,000. On July 1, 2020, their major customer, WalMart, gave notification that they were terminating Plastix Inc. as a supplier. Plastix Inc.’s accountants estimate that the machine will generate $360,000 in future cash inflows from other customers and the fair value of the machine is $350,000. Plastix uses straight-line depreciation. What is the impairment loss on July 1, 2020?

Question 5.4                                                                                (Total: 14 marks; 2 marks per line)

Frigid Temperatures Inc. has sold 1,000 refrigerators during 2020 at a total price of $ 1,620,000, with a warranty guarantee that the product was free from any defects. The cost of the refrigeratetors sold was $1,080,000. The warranty covers one year, with an estimated cost of $ 10,000. In addition, Frigid Temperatures Inc. sold extended warranties on 600 refrigerators for four years beyond the one-year period for $ 210,000.

Required

1.      Prepare the journal entries to record the sale and related warranties for 2020.

10)Gordon Company purchased an asset on January 1, 2016 for $25,000. At that time, Gordon Company estimated the residual value would be $1,000 at the end of the asset's projected ten-year life. It is now January 1, 2020; Gordon Company now estimates the asset will have a residual value of $1,500, and has a remaining useful life of four years (will last until the end of 2023). Assuming Gordon Company uses the straight-line method, what will be the depreciation expense recorded for 2020?

A)$3,475

B)$2,937.50

C)$2,400

D)none of the above

Exercise 14-20 At December 31, 2017, Grouper Company has outstanding three long-term debt issues. The first is a $2,050,000 note payable which matures June 30, 2020. The second is a $5,920,000 bond issue which matures September 30, 2021. The third is a $12,810,000 sinking fund debenture with annual sinking fund payments of $2,562,000 in each of the years 2019 through 2023. Prepare the required note disclosure for the long-term debt at December 31, 2017. Long-term Debt 2018 $ 2019 $ 2020 $ 2021 $ 2022 $

1) In 120 to 150 words (at least 120 but not more than 150), describe how the responsibilities and expectations from Financial Analysts have evolved from 2000 to 2020.

2) In 120 to 150 words (at least 120 but not more than 150), contrast the two occupations (a) Securities, Commodities, and Financial Services Sales Agents and (b) Financial Analysts

3) Tell us which of the (a) Securities, Commodities, and Financial Services Sales Agents, (b) Financial Analysts, and (c) Personal Financial Advisors (as defined by U.S. BLS in 2020) may appeal to you; and why?

On January 1, 2019, Daniel Durrow owned a commercial rental property which had an adjusted basis to him of $270,000. Daniel made the following expenditures during 2019:

• Ordinary painting of building                    $ 5,000
• Repair of roof section (useful life not

appreciably extended)                                  2,500

• Legal fees paid to defend title                   10,000
• Property taxes                                             6,000
• Assessment for local street improvement

(value of property increased greatly)          15,000

What is Daniel’s basis in the rental property at the beginning of 2020 and how much depreciation would be deductible in 2020?

Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2020. During that time, he earned $54,000 of self-employment income. On April 1, 2020, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $200,000 in salary.

What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? (Round your intermediate calculations to the nearest whole dollar amount.)

1. Consider the purchase of a new farm truck (automobile). The specific information is:

Total Purchase cost = $150,000.00              Purchase date = Jan 1, 2020

Useful life = 6 years                                      Salvage value = $50,000.00

Note: each highlighted box is worth 1 point

Complete each depreciation table.

ECONOMIC DEPRECIATION:

1. Fill in the table using the straight-line depreciation method for economic depreciation. (5 points)

1. Sky High Incorporated reported the following ($ in millions) as of December 31, 2020. All accounts have normal balances.

Retained earnings                  $6,000

Common stock                        4,000

Paid-in capital-excess of par        62,000

Treasury stock (at cost)                800

During 2021 ($ in millions), net income was $18,000, 50% of the treasury stock was resold for $1,800; cash dividends declared were $1,000; cash dividends paid were $800.

What ($ in millions) was shareholders’ equity as of December 31, 2020?

What ($ in millions) was shareholders’ equity as of December 31, 2021?