Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 earlier in 2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be used for investment decisions. Facebook Trial Balance

Facebook, Inc. Consolidated trial balance (adapted for classroom use) As of December 31, 2015

Debit Credit Cash and cash equivalents $ 4,907 - Debit

Marketable securities 13,527 - Debit

Accounts receivable, net 2,559 - debit

Prepaid and other expenses 659- debit

Property and equipment

net 5,687 - debit

Intangible assets, net 3,246 - debit

Other long-term assets 18,822 - debit

Accounts payable $ 196 - credit

Other current liabilities 1,729 - credit

Capital lease obligations, long-term 107 - credit

Other long-term liabilities 3,157 - credit

Common stock and other 34,431 - credit

Beginning retained earnings 6,099 - credit

Net revenues 17,928 - credit

Expenses 11,703 - debit

Other expenses and adjustments 2,537 - debit

Totals $ 63,647- debit $ 63,647 - credit

Questions:

A) what accounts on FB Inc. trial balance should be closed?

B) Using the FB Inc. trial balance, what closing entries would FB Inc. make for 2015?

C) What was FB Inc. net income for the year ended December 31, 2015

Question 1 (EPS)

The following summarised information is available in relation to ‘La Scan’, a publicly listed company in Australia:

Statement of comprehensive income extracts for years ended 30th June:

* Acquired on the 1st November 2017

Analyst expect profits from the market sector in which La Scan’s existing operations are based to increase by 6% in the year to 30th June 2019 and by 8% in the sector of its newly acquired operations.

On 1st July 2016 La Scan had:

$12 million of $1 ordinary shares in issue.

$5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan’s shares for the year ending 30th June 2018 was $2.50 each.

Assume an income tax rate of 30% for year 2016,2017 and 2018

Required:

(i) Calculate La Scan’s estimated profit after tax for the year ending 30 June 2019 assuming the analysts’ expectations prove correct;

(ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.

Question 1 (EPS)

The following summarised information is available in relation to ‘La Scan’, a publicly listed company in Australia:

Statement of comprehensive income extracts for years ended 30^th June:

* Acquired on the 1^st November 2017

Analyst expect profits from the market sector in which La Scan’s existing operations are based to increase by 6% in the year to 30^th June 2019 and by 8% in the sector of its newly acquired operations.

On 1^st July 2016 La Scan had:

$12 million of $1 ordinary shares in issue.

$5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan’s shares for the year ending 30^th June 2018 was $2.50 each.

Assume an income tax rate of 30% for year 2016,2017 and 2018

Required:

(i) Calculate La Scan’s estimated profit after tax for the year ending 30 June 2019 assuming the analysts’ expectations prove correct;

(ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.

The Cassidy Corporation, a publicly accountable entity, made an accounting policy choice to use the revaluation model for land and buildings. Cassidy has only one parcel of land and one building. Both were purchased on December 31, 20x0. The building has a useful life of 30 years with no residual value. Details on original cost and fair values follows:

  Land Building

Original Cost (Dec 31, 20x0) $300,000 $15,00,000

Fair Values -

Dec 31,20x2 340,000 1,350,000   

Dec 31, 20x5 280,000 1,275,000

Dec 31, 20x7 330,000 1,200,000

Required-

a.Prepare all journal entries related to the land revaluation for the years ended December 31, 20x2, 20x5 and 20x7.

b.Prepare all journal entries related to the building depreciation and revaluation for all years between December 31, 20x1 and 20x7.

You are a counselor working at a publicly funded alcohol and drug treatment program. Your client, Doug, attends one of your counseling groups. Although he has a previous conviction and is on probation for possession of an illegal substance, he entered treatment as a voluntary client. Doug's probation officer recently learned from another probationer that Doug is in treatment, and the doug probation offieder has sent you a letter requesting that you provide a progress report and an assessment of Doug's likelihood of relapse. The probation officer will use this information, if favorable, to petition the court for Doug's early release from probation or can be used against doug at his early release petion is Doug probaiton officer allowed to ask for dougs records without doug perission? Why or why not? is this ethical and can the you the couselor give the records up to the probation officer?

Discuss your options for responding to the probation officer's request and describe what you would do. Cite relevant legal issues, including federal confidentiality and privacy regulations in your discussion. Identify the specific circumstances under which you would provide the information requested by the probation officer. How would you handle this differently if Doug were involuntarily attending the group?

In this problem, we'll write a Python module that defines two things publicly.

• A namedtuple called Student with two fields, scores and grade, intended to carry grade-related information about a student. (This will be part of the output of this problem.) So that we're all in agreement about what that will look like, here it is:

  Student = namedtuple('Student', ['scores', 'grade'])
  

• A function named build_grade_report, which takes two parameters: a Path object describing the path to a file containing the "raw scores" for each student, and the ranges of total scores necessary to achieve each possible grade. (The details of both of these parameters are described in more detail below.)

The inputs

The first parameter to your function is the path to a file containing score information, but the interesting thing about it is the format of that information, which we'll need to agree on. What you'll expect is a text file in which each line of text represents one student's information. The first thing you'll see on each line is the student's UCInetID (i.e., an identifier that's unique for each student); after that will be a sequence of numbers that are separated by at least one space, which are that student's raw scores. Any line of text consisting only of spaces, or any line whose first non-space character is a # is to be ignored. Note that it is possible for a student to have no scores.

The second parameter to your function is a dictionary where the keys are letter grades and the values are tuples specifying the range of total scores that would lead to that letter grade. A tuple containing only one value would mean "The given score or anything higher," while a tuple containing two values would mean "Any score that's greater than or equal to the first of these, but is less than the second of these." For example, if the dictionary looked like this:

{'A': (600, ), 'B': (500, 600), 'C': (400, 500), 'D': (300, 400), 'F': (0, 300)}

then we'd expect any student scoring at least 600 points total would receive a grade of A, any student scoring at least 500 points but less than 600 would receive a B, and so on. Don't assume that the letter grades will always be A, B, C, D, and F, or even that they'll always be a single letter. It is expected that the ranges of scores will not overlap; if they do, your function can output any grade that matches (i.e., if 17 points is either a B or a C, you can return either grade for a student in that case).

The output

Your function will return a dictionary where the keys are the UCInetIDs of students who are listed in the file, and where the corresponding values are Student namedtuples with scores being a list of the student's scores (in the order listed on the corresponding line of the file) and grade being the student's grade.

Note that grades are calculated by determining the sum of all of a student's raw scores (i.e., there is no weighting scheme that makes one assignment worth more than another, which is different from the actual grading formula used in this course) and comparing it to the given grade ranges. If the total score is not in any of the given grade ranges, the student's score should be specified as the Python value None.

If the file cannot be opened or it cannot be read to completion, the function should raise an exception; it's not important what kind of exception it is, but the file should be closed in any circumstance in which it was opened successfully.

An example

Suppose that you had a file called scores.txt in the same directory as your problem3.py file, in which the following text appeared.

# Alex has work to do, but is improving
thornton 30 40 50 60 70 80 90
# Boo is perfect, as usual
boo 100 100 100 100 100 100 100
# Student that submitted no work; total score is 0
didnothing

Here's how your function should behave, given that file.

>>> grade_ranges = {'A': (600, ), 'B': (500, 600), 'C': (400, 500), 'D': (300, 400), 'F': (0, 300)}
>>> build_grade_report(Path('scores.txt'), grade_ranges)
{'thornton': Student(scores=[30.0, 40.0, 50.0, 60.0, 70.0, 80.0, 90.0], grade='C'),
 'boo': Student(scores=[100.0, 100.0, 100.0, 100.0, 100.0, 100.0, 100.0], grade='A'),
 'didnothing': Student(scores=[], grade='F')}

x is a publicly held corporation with a subsidiary, S, of which X always has owned 100 percent of the outstanding stock. what is the total tax liability for X and S under each of the following sets of facts? in this problem, use all corporate tax rate brackets.

a) X has taxable income of $2.2 million and S has no income.

b) X has taxable income of $2 million and S has taxable income of $200,000

c) same as b) above, but S distributed $100,000 to X as a dividend.

d) same as c) above, but X has not always owned all of the stock of S, and the dividend is distributed out of earnings and profits of a taxable year of S during which S and X were not members of the same affiliated group.

e) same as c) above, but X ownes only 10 percent of the vote and value of S's stock at all times during the year.

f) same as c) above, but X and S file a consolidated return.

1. [Public key revocation procedure] Suppose that a certain authority is running a (publicly accessible) database of users’ public keys. Let us define the following procedure for revoking a public key from the database. When a user Bob claims that the secret key sk_B corresponding to his public key pk_B was stolen, he sends to the authority the statement “Revoke Bob’s public key pk_B”
   which is signed using sk_B . Upon receiving such the statement, the authority revokes pk_B from the database.

Explain why it is not necessary for the authority to check Bob’s identity in this case.
In particular, explain why it is not a problem that an adversary who has stolen Bob’s secret key sk_B can forge signatures for this key.

Hint: Consider the following two cases:

1) Bob’s secret key sk_B was not stolen;

2) Bob’s secret key sk_B was stolen.

Suppose that a certain authority is running a (publicly accessible) database of users’ public keys. Let us define the following procedure for revoking a public key from the database. When a user Alice claims that the secret key skA corresponding to his public key pkA was stolen, she sends to the authority the statement “Revoke Alice’s public key pkA” which is signed using skA . Upon receiving such the statement, the authority revokes pkA from the database. Explain why it is not necessary for the authority to check Alice’s identity in this case. In particular, explain why it is not a problem that an adversary who has stolen Alice’s secret key skA can forge signatures for this key. Hint: Consider the following two cases: 1) Alice’s secret key skA was not stolen; 2) Aice’s secret key skA was stolen.

Create a mock merchandising company and demonstrate your knowledge of accrual basis accounting and the double-entry accounting system by creating a minimum of 10 original transactions spanning a period of 3 months (Jan. 1 – Mar. 31) and completing the requirements below. Assume your mock company is a new company that begins operations on Jan. 1^{st .} The transactions should include examples of accruals and deferrals and at least one of each of the following: financing a new business (e.g. issuing stock or borrowing), obtaining assets, incurring liabilities, earning revenue, and incurring expenses.

1. Write a list of at least 10 original transactions spanning a fiscal quarter (e.g. Jan.1 – March 31) and following the guidelines above. The first transaction should be a financing transaction (issue stock or borrow).

2. Journalize each transaction.

3. Post the journal entries to accounts and compute the ending balance (March 31) in each account.

4. Prepare a trial balance from ending account balances.

5. Write a list of at least 5 adjusting entries for the quarter-ended March 31 related to transactions prepared in step 1. Note that adjusting entries do not have an effect on the cash account.

6. Journalize the adjusting entries. Note that adjusting entries do not affect the cash account.