Homework Answers
| 2020 | 2021 | |||
| Income before tax | $95,000 | $71,200 | ||
| Corrections: | ||||
| Sales erroneously included in 2020 income | -41,000 | 41,000 | ||
| Understatement of 2020 ending inventory | 8,300 | -8,300 | ||
| Adjustment to bond interest expense* | -1,320 | -1,412 | ||
| Repairs erroneously charged to the Equipment account | -8,900 | -10,100 | ||
| Depreciation recorded on improperly capitalized repairs (10%)*** | 890 | 1900 | ||
| Corrected income before tax | $52,970 | $94,288 | ||
| Bond interest expense for 2020 and 2021was computed as follows: | ||||
| Book Value of Bonds | Stated Interest | Effective Interest | amortization of discount | |
| 2020 | $216,000 | $ 13,800.00 | $15,120 | $1,320.00 |
| 2021 | 217,320 | $ 13,800.00 | $15,212 | $1,412.40 |
Add Answer to:
The before-tax income for Riverbed Co. for 2020 was $95,000 and $71,200 for 2021. However, the...
P18.6 The accounting records of Steven Corp., a real estate developer, indicated income before income tax of $850,000 for its year ended December 31, 2020, and of $525,000 for the year ended December 31, 2021. The following data are also available. Steve
P18.6 The accounting records of Steven Corp., a real estate developer, indicated income before income tax of $850,000 for its year ended December 31, 2020, and of $525,000 for the year ended December 31, 2021. The following data are also available.Steven Corp. pays an annual life insurance premium of $11,000 covering the top management team. The company is the named beneficiary.The carrying amount of the company's property, plant, and equipment at January 1, 2020, was $1,256,000, and the UCC at that...
On January 1, 2020, Bramble Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John’s net assets were $12,000,000. On July 1, 2021, Bramble paid $3,100,000 for 44,000 additio
On January 1, 2020, Bramble Co. purchased 22,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John’s net assets were $12,000,000.On July 1, 2021, Bramble paid $3,100,000 for 44,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Bramble owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess fair value is attributed to goodwill.)John reported the following net income and...
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available. 1
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available.1.Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary.2.The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded...
Riverbed Corp. reported the following differences between SFP carrying amounts and tax bases at December 31,...
Riverbed Corp. reported the following differences between SFP carrying amounts and tax bases at December 31, 2019: Carrying Amount Tax Base Depreciable assets $104,000 $70,200 Warranty liability (current liability) 18,500 0 Pension liability (long-term liability) 39,600 0 The differences between the carrying amounts and tax bases were expected to reverse as follows: 2020 2021 After 2021 Depreciable assets $17,000 $12,000 $4,800 Warranty liability 18,500 0 0 Accrued pension liability 12,000 11,000 16,600 Tax rates enacted at December 31, 2019 were...
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1.450.000. At the time, the book value and the fair value of John's net assets were $12,000,000. On July 1, 2018, Bonita paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction,...
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available. 1
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available.1.Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary.2.The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,500,000. At the time, the book value and the fair value of John's net assets were $12,300,000. On July 1, 2018, Teal paid $3,170,000 for 54,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,700,000. As a result of...
00 The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through...
00 The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $11,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $920,000. On July 1, 2021, CPS Transportation issued $620,000 of 9% bonds. The bonds mature in 20 years, and interest is payable each January 1 and July 1. The bonds were issued at a price to yield...
For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable...
For the year ended December 31, 2020, Sweet Ltd. reported income before income taxes of $190,500. Prior to 2020 taxable income and accounting income was the same each year. In 2020, Sweet Ltd. paid $123,900 for advertising; of this amount, $41,300 was expensed in 2020. The remaining $82,600 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $123,900 was deductible for tax purposes in 2020. The company paid $32,500...
Svet Major Co. reported 2021 income of $316,000 from continuing operations before income taxes and a...
Svet Major Co. reported 2021 income of $316,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $76,000. All income is subject to a 25% tax rate. In the income statement for the year ended December 31, 2021, Major Co. would show the following line-item amounts for income tax expense and net income: Multiple Choice $60,000 and $237,000 respectively $60,000 and $392,000 respectively $79,000 and $240,000 respectively. & $79,000 and $180,000 respectively
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1.450.000. At the time, the book value and the fair value of John's net assets were $12,000,000. On July 1, 2018, Bonita paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,200,000. As a result of this transaction,...
Exercise 22-22 On January 1, 2017, Teal Co. purchased 27,000 shares (a 10% interest) in Elton John Corp. for $1,500,000. At the time, the book value and the fair value of John's net assets were $12,300,000. On July 1, 2018, Teal paid $3,170,000 for 54,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John's identifiable assets net of liabilities was equal to their carrying amount of $13,700,000. As a result of...
00 The enacted federal income tax rates are 20% for 2020 and 25% for 2021 through 2024. CPS had a deferred tax liability of $11,500 as of December 31, 2020. For the year ended December 31, 2021, CPS's income before income taxes was $920,000. On July 1, 2021, CPS Transportation issued $620,000 of 9% bonds. The bonds mature in 20 years, and interest is payable each January 1 and July 1. The bonds were issued at a price to yield...
Svet Major Co. reported 2021 income of $316,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $76,000. All income is subject to a 25% tax rate. In the income statement for the year ended December 31, 2021, Major Co. would show the following line-item amounts for income tax expense and net income: Multiple Choice $60,000 and $237,000 respectively $60,000 and $392,000 respectively $79,000 and $240,000 respectively. & $79,000 and $180,000 respectively
Most questions answered within 3 hours.
-
Based on historical data, your team knows what proportion of the
company's orders come from Males...
asked 10 minutes ago -
8. Which of the following atoms has the largest magnitude
electron affinity?
(a) Sodium (Na)
(b)...
asked 12 minutes ago -
Assess the two types of tests of cognitive abilities. (
regarding HR course)
asked 17 minutes ago -
1.Write an inspiring vision statement for an organization where
you work or have worked. If the...
asked 18 minutes ago -
2. Is fair trade coffee sustainable for the mass market,
or is it a niche product...
asked 19 minutes ago -
Please answer this asap in MATLAB.
In the following for loop, the the loop is executed...
asked 31 minutes ago -
A 50.0-g golf ball is driven from the tee with an initial speed
of 44.6 m/s...
asked 26 minutes ago -
Use the molar concentration of the 50 mL solution to calculate
the moles of Cr(III) in...
asked 29 minutes ago -
Calculate the molarity of Fe3+ in solution A.
Solution A: 10 mL of 0.0600 M Fe(No3)3 ...
asked 37 minutes ago -
two dogs pull 2 strings horizontally which are tied to a sleigh.
the angle between the...
asked 38 minutes ago -
please write a paper about any ethical violation based on the
case study Stanford's Prison Experiment....
asked 59 minutes ago -
What is the advantage of considering each of the
following in calculating the work done by...
asked 1 hour ago