AX Development Ltd purchased land on 1 April 2016 at a cost of $3 000 000. The cost model was used for the land.

On 31 March 2017, AX Development Ltd switched to the revaluation model for the land. A revaluation was performed on the 31 March 2017; this resulted in a downward revaluation of $400 000 for the land.

On the 30 September 2018, the fair value of the land was reassessed by an independent valuer to be $3 600 000.

On the 31 March 2020, the fair value of the land was reassessed by an independent valuer to be $2 950 000.

Required:

(i) Prepare the journal entry at 31 March 2017 to recognise the first revaluation of the land.

State the carrying amount of the land, after the revaluation, as at 31 March 2017   

(ii) Prepare the journal entry at 30 September 2018 to recognise the second revaluation of the land.         

(iii) Prepare the journal entry at 31 March 2020 to recognise the third revaluation of the land.

State the carrying amount of the land, after the revaluation, on 31 March 2020.     

On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,161,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,220,000 and Retained Earnings of $61,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $129,000. QuickPort attributed the $9,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life.

During the next two years, NetSpeed reported the following:

On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $15,000. The equipment originally cost $18,500 and had accumulated depreciation of $5,300 and an estimated remaining life of three years at the date of the intra-entity transfer.

1. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021.
2. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed.

REQUIRED 2.1 Use the information provided below to prepare the Income Statement of Deere Limited for the month ended 31 March 2020 using the: 2.1.1 Variable costing method. 2.1.2 Absorption costing method. 2.2 Reconcile the profit calculated according to variable costing (in question 2.1.1) with the profit calculated according to absorption costing (in question 2.1.2).
INFORMATION The following information was extracted from the accounting records of Deere Limited for the month ended 31 March 2020: Inventory on 01 March 2020 Nil Production 50 000 units Sales 45 000 units

Selling price per unit R120 Manufacturing costs: Fixed R300 000 per month Variable R50 per unit Marketing costs: Advertising and salaries R42 000 per month Sales personnel’s commission 5% of sales Administration costs: Office costs including salaries R60 000 per month Other office costs R7 per unit sold

- A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 5% a year. If its required return is 15%, what is the stock's expected price 4 years from today?

- Assume that today is December 31, 2019, and that the following information applies to Abner Airlines:

After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $450 million.
The depreciation expense for 2020 is expected to be $190 million.
The capital expenditures for 2020 are expected to be $225 million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 6% per year.
The required return on equity is 15%.
The WACC is 12%.
The firm has $206 million of non-operating assets.
The market value of the company's debt is $3.304 billion.
130 million shares of stock are outstanding.

Using the corporate valuation model approach, what should be the company's stock price today?

George is the owner of Hornby’s Restaurant. George has asked you to support him with the preparation of a Balance Sheet and an Income Statement as of 30 June 2020. The information below was provided by George as at 30 June 2020.

To help George, you are required to calculate the total amounts (as of 30 June 2020) for the following positions. Please provide for each position the calculations.

a) current assets

b) non-current assets

c) current liabilities

d) non-current liabilities

e) expenses

f) revenues

g) profit/(or loss)

h) equity

The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2020 are presented below.

Kinder Company

Balance Sheet

            December 31    

     2020                  2019

         Cash $ 30,900 $ 10,200

         Accounts receivable (net) 43,300 20,300

         Inventory 35,000 42,000

         Long-term investments 0 15,000

         Property, plant & equipment 236,500 150,000

         Accumulated depreciation     (37,700)              (25,000)

$308,000 $212,500

         Accounts payable $ 17,000           $ 26,500

         Accrued liabilities 21,000 17,000

         Long-term notes payable 70,000 50,000

         Common stock 130,000 90,000

         Retained earnings      70,000               29,000

$308,000 $212,500

Additional data:

1.   Net income for the year 2020, $61,000.

2. Gain on sale of investment, $18,000, included in net income.

3.   Paid a $40,000 long-term note payable by issuing common stock.

Prepare a Statement of Cash Flows for Kinder using the indirect method using Be sure to include required supplemental disclosures.

The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2020 are presented below.

Kinder Company

Balance Sheet

            December 31    

     2020                  2019

         Cash $ 30,900 $ 10,200

         Accounts receivable (net) 43,300 20,300

         Inventory 35,000 42,000

         Long-term investments 0 15,000

         Property, plant & equipment 236,500 150,000

         Accumulated depreciation     (37,700)              (25,000)

$308,000 $212,500

         Accounts payable $ 17,000           $ 26,500

         Accrued liabilities 21,000 17,000

         Long-term notes payable 70,000 50,000

         Common stock 130,000 90,000

         Retained earnings      70,000               29,000

$308,000 $212,500

Additional data:

1.   Net income for the year 2020, $61,000.

2. Gain on sale of investment, $18,000, included in net income.

3.   Paid a $40,000 long-term note payable by issuing common stock.

Prepare a Statement of Cash Flows for Kinder using the indirect method using Be sure to include required supplemental disclosures.

Part A: Provisional Tax and Interest

Yixuan Wu runs a business and her residual income tax (RIT) for the 2019-20 income year (31 March balance date) was $30,000. She filed for her 2019-20 income year return on 1 July 2020. Business has not been great since April this year due to the lock downs and Yixuan is expecting to make much lower profit for this income year and hence expects to pay much less tax for the 2020-21 income year. She seeks your advice on her provisional tax payments for the 2020-21 income tax year ending 31 March 2021. She has previously used the standard uplift method to calculate her provisional tax payments.

(c) Yixuan is concerned that she may end up paying her tax late or underpaying her tax and is not sure of the consequences if this happens. Explain to Yixuan what happens if a taxpayer is late paying their tax or underpays their tax?

QS 6-12 Estimating inventories—gross profit method LO6

The inventory of Sixth Avenue Department Store was destroyed by a fire on September 10, 2020. The following 2020 data were found in the accounting records

Jan. 1 inventory ............................................................... $180,000

Jan. 1–Sept. 10 purchases (net) ................................. $342,000

Jan. 1–Sept.10 sales ..................................................... $675,000

2020 estimated gross profit rate ................................ 42%

QS 6-13 Estimating inventories—gross profit method LO6

During the past two months, management of Wallace Lake Computing Supplies was closely watching inven-tory levels due to suspected shrinkage caused by unknown factors. The physical count on July 31, the end of the current month, shows $48,000 of merchandise actually on hand. The accounting records for prior periods indicate that gross profit should be 30% of the $565,000 net sales for July. Inventory at June 30 was actually $65,000 and July purchases were $385,500. Calculate the estimated:

a. Ending inventory