Get college assignment help at uniessay writers Advanced Financial Accounting: Acquisition Consolidated Balances. Problem 22. The problem given information and questions are in the attached file.
Olin Packett is a CGA-CPA and has been employed for over 5 years by a Canadian private corporation and recently promoted to a management position. He works in their Victoria, BC office. For 2018, his gross salary was $150,000. While he does not receive commissions, he was awarded a bonus of $10,000 for 2018 based on the performance of the business. One-half of this was paid in December 2018, with the balance paid in March 2019. The following amounts were withheld from his gross salary in 2018: Federal Income Tax $25,000 Employment Insurance Premiums 858 Canada Pension Plan Contributions 2,594 Registered Pension Plan Contributions 5,000 Charitable contributions (Centraide) 1,000 Other Information: 1. During 2018, Olin was provided with an automobile that the corporation bought at a cost of $82,500, including all taxes. The total operating costs of the car were $0.50/km for the year and they were all paid by the corporation. The car was available to Olin the entire year, except that he didn’t use the car for a 3-month period while he was on disability leave. Olin drove the car a total of 30,000kms during the year, all but 9,700kms were employment related (fully documented). Olin reimbursed his employer $950 for his personal use of the automobile for the year. 2. During 2015, Olin was granted the option to buy 1,000 shares of his employer’s common shares at a price of $31.00 per share. At that time, the shares were worth $33.00 each. On June 1, 2016, Olin exercised his option and acquired 1,000 shares at $31 each. At that time, the shares were worth $40.00 each. Olin sold all the 1,000 shares on May 1, 2018, for proceeds of $50.00 per share. 3. In order to assist Olin in purchasing a new luxury boat, his employer granted him a 3-year, interest-free loan of $100,000. The loan was granted on July 1, 2018. At that time, the interest rate on an open 5-year loan was 5%. The prescribed interest rate for 2018 was 2.5% for the period of July to September and 3% for the period of October to December 2018. 4. Olin has been a member of his employer’s defined benefits Registered Pension Plan (“RPP”) for the last 3 years. For 2018, his employer made a $5,000 matching contribution to the RPP on his behalf. 5. Other disbursements made by Olin during 2018 include the following: Tuition fees for a business management course $1,500 Tuition fees for a sailing course $1,000 Professional dues paid to CPA association $1,600 Premiums paid on life insurance policy $720 Mortgage payments on home $24,000 Olin’s employer reimbursed the tuition fees for both the business management and the sailing courses but none of the other costs paid personally by Olin, given his recent promotion to a manager’s position. Required: Calculate Olin’s net employment income for tax purposes for the year 2018. Explain your answer, including detailed calculations, and provide reasons for omitting items that you have not included in your calculations. Ignore all GST/HST considerations. Assume all applicable elections were made.
Do you agree with the concept of wealth transfer behind the transfer tax system? If you would fundamentally change it, how would you?
Submit a 200- to 300-word response in a Microsoft Word document to the Assignments section of eCampus that includes the following information: o Three strengths and three weaknesses in the financial statements o Trends in net profit, debt ratio as a percentage of total assets, and debt as a percentage of total equity o A review of 2- to 3-year trends and an analysis of positive and negative trends o A confirmation of whether or not the company is discussing what it intends to do to correct negative trends
8. Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $2,000 prior to payment. What is the amount of the cash discount allowable?
“Responsibility for sales volume variance Holbrook Company expected to sell 400,000 of its pagers during 2006. It set the standard sales price for the pager at $30 each. During June, it became obvious that the company would be unable to attain the expected volume of sales. Holbrook’s chief competitor, Coker, Inc., had lowered prices and was pulling market share from Holbrook. To be competitive, Holbrook matched Coker’s price, lowering its sales price to $28 per pager. Coker responded by lowering its price even further to $24 per pager. In an emergency meeting of key personnel, Holbrook’s accountant, Vickie Dees, stated, “Our cost structure simply won’t support a sales price in the $24 range.” The production manager, Jean Volker, said,“I don’t understand why I’m here. The only unfavorable variance on my report is a fixed cost volume variance and that one is not my fault. We can’t be making the product if the marketing department isn’t selling it.” Required a. Describe a scenario in which the production manager is responsible for the fixed cost volume variance. b. Describe a scenario in which the marketing manager is responsible for the fixed cost volume variance. c. Explain how a decline in sales volume would affect Holbrook’s ability to lower its sales price.
In 2004, Regina purchased a home in San Diego which cost $280,000. Due to the increase in the market value of the home, her debt on the home totaled $300,000 at the end of 2006. Regina accepted a new job in Dallas in April 2008. Unable to rent her home, she rented it in November 2008, at which its fair market value was $240,000. In June 2010, she sold the home for $230,000. What tax issues should Regina consider?
E11-26 2010, for $36,000. The computer equipment has a useful life of 10 years and a salvage value of $3,000. For tax purposes, the MACRS class life is 5 years. (Book vs. Tax (MACRS) Depreciation) Elwood Inc. purchased computer equipment on March 1, Instructions (a) Assuming that the company uses the straight-line method for book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2010 and (2) the tax return for 2010? (b) Assuming that the company uses the double-declining-balance method for both book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2010 and (2) the tax return for 2010? (c) Why is depreciation for tax purposes different from depreciation for book purposes even if the company uses the same depreciation method to compute them both?
1. Flutie decided to buy a surfboard. 2. He calls Surfing USA Co. to inquire about their surfboards. 3. Two days later he requests Surfing USA Co. to make him a surfboard. 4. Three days later, Surfing USA Co. sends him a purchase order to fill out. 5. He sends back the purchase order. 6. Surfing USA Co. receives the completed purchase order. 7. Surfing USA Co. comples the surfboard. 8. Flutie picks up the surfboard. 9. Surfing USA Co. bills Flutie. 10. Surging USA Co. receives payment from Flutie. Instructions: In a memo to the president of Surfing USA Co., answer the following. (a) When should Surfing USA Co. record the sale? (b) Suppose that with his purchase order, Flutie is required to make a down payment. Would that change your answer?
(Ratio Analysis) The 2007 Annual Report of Eastman Kodak contains the following inforation. (in millions) Dec 31st 2007 Dec 31 2006 Total assets 13659 14320 Total liabilities 10630 12932 Net sales 10301 10568 Net income 676 (601) Compute the following ratios for Eastman Kodak for 2007. A) Asset turnover ratio. B)Rate of return on assets. C)Profit margin on sales. D)How can the asset turnover ratio be used to compute the rate of return on assets?
Get college assignment help at uniessay writers Exhibit 18-11 resembles the schedule Paul has in mind. Use it to determine the ending inventories of direct materials, work in process, and finished goods.
Dover Company began operations in 2010 and determined its ending inventory at cost and at lower of cost or market at December 31, 2010, and December 31, 2011. This information is presented below.
(Capitalization of Interest) On December 31, 2009, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2010, the company made the follow- ing expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Decem- ber 1, $1,200,000. Additional information is provided as follows. 1. Other debt outstanding 10-year, 11% bond, December 31, 2003, interest payable annually 4,000,000 6-year, 10% note, dated December 31, 2007, interest payable annually 1,600,000 March 1, 2010, expenditure included land costs of $150,000 Interest revenue earned in 2010 $49,000 Instructions (a) Determine the amount of interest to be capitalized in 2010 in relation to the construction of the building. (b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2010.
Bond X and bond Y are both issued by the same company. Each of the bonds has a maturity value of $100,000 and each pays interest at 8%. The current market rate of interest is 8% for each. Bond X matures in 7 years while bond Y matures in 10 years. Which of the following is correct? Both bonds will sell for the same amount. Both bonds will sell for more than $100,000. Bond X will sell for more than bond Y. Bond Y will sell for more than bond X. When a lease qualifies as a capital lease, what is the cost basis of the asset acquired? (Points : 1) The present value of the minimum lease payments, exclusive of executory costs. The present value of the minimum lease payments plus executory costs. The sum of the gross minimum lease payments. The present value of the minimum lease payments plus the present value of executory costs.
The following data are available from the records of Jazz, Inc.: Retained earnings, January 1, 2010 115,000$ Net sales 490,000 Interest expense 5,000 General and administrative expenses 95,000 Cost of goods sold 220,000 Selling expenses 115,000 Dividend revenue received from other companies 10,000 Dividends we declared in 2010 25,000 Dividends we paid in 2010 19,250 Income tax rate 30% Common stock outstanding during the year 50,000 shares Common stock authorized 100,000 shares Prepare a single-step income statement for Jazz, Inc. for the year ended December 31, 2010. Don’t forget to calculate income tax expense. Don’t forget EPS!
There are many acquisitions in business. Do you have some ideas on what the key ingredients are to make them successful and why many of them are not? Why do you think some companies seem to do well with acquisitions? Think of the recently failed attempt by China’s national oil company.
Moctezuma Furniture Corporation incurred the following costs. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Hourly wages of furniture craftsmen. 10. Salaries of factory supervisors. 11. Utilities expense. 12. Telephone bill. Instructions Identify the costs above as variable, fixed, or mixed.
“• Submit a 200- to 300-word response in a Microsoft Word document to the Assignments section of eCampus that includes the following information: o Three strengths and three weaknesses in the financial statements o Trends in net profit, debt ratio as a percentage of total assets, and debt as a percentage of total equity o A review of 2- to 3-year trends and an analysis of positive and negative trends o A confirmation of whether or not the company is discussing what it intends to do to correct negative trends
Acme Company has an agreement with a major credit card company which calls for cash to be received immediately upon deposit of Acme customers’ credit card sales receipts. The credit card company receives 3.5% of card sales as its fee. If Acme has $2,000 in credit card sales, which of the following statements are true?
You are given the following information for transactions by Schwinghamer Co. All transactions are set Record P6-6B in cash. Schwinghamer uses a perpetual inventory system and the FIFO cost formula. Unit Cost/ Units Selling Price perpet LCNR Date Transaction Oct. 1Beginning inventory 5 Purchase 8 Sale 15 Purchase 20 Sale 25 Purchase 60 110 (140) 52 (70) 15 $14 13 20 12 16 Instructions e) Prepare the required journal entries for the month of October for Schwinghamer Co. b) Determine the ending inventory for Schwinghamer. ) On October 31, Schwinghamer determines that the product has a net realizable value of $10 per unit. What amount should the inventory be valued at on the October 31 balance sheet? Prepare any required journal entries
During 2010 Kaitlyn incurs both deductible and nondeductible education expenses. Some of the deductible expenses are deductions for AGI, while the rest are deductions from AGI. Provide examples of Kaitlyn’s expenses that could be:
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