17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000 17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000 17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000 17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000 17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000 17. ABC Company provided the following net income and inventory: In 2019, net income using LIFO 2,750,000; year- end inventory using FIFO 1,400,000; YearOend inventory using LIFO 900,000; In 2020, Net Income using LIFO is 3,000,000; Year- end inventory using FIFO 2,000,000; Year-end inventory using LIFO is 1,600,000. What amount should be reported as net income for 2020 using the FIFO cost flow? * a. 2,900,000 b. 2,600,000 c. 3,500,000 O d. 3,100,000 18. On January 1, 2015, Honey Company purchased equipment for 4,000,000. The equipment has a useful life of 10 years and a residual value of 400,000. On January 1, 2019, the entity determined that the useful life of the equipment was 12 years from the date of acquisition and the residual value was 480,000. What is the carrying amount of the equipment on January 1, 2019? * a. 2,560,000 b. 2,920,000 O O d. 2,800,000 c. 2,400,000 19. Using the same information, what is the depreciation of the equipment for 2019? * O a. 175,000 O b. 260,000 O c. 300,000 O d. 360,000 20. After the issuance of the 2019 financial statements, Love Company discovered a computational error of 150,000 in the calculation of the December 31, 2019 inventory. The error resulted in a 150,000 overstatement in the cost of goods sold for the year ended Dec. 31, 2019. In Oct 2020, the entity paid the amount of 500,000 in settlement of litigation instituted against it during 2020. The income tax rate is 30%. In the financial statements for 2020, what is the adjustment of the retained earnings on January 1, 2020? * O a. 150,000 credit Ob. 350,000 debit O c. 245,000 debit O d. 105,000 credit 2 pun Company was sued by a competitor for 5,000,000 for infringement of a patent. Based on the advice of the legal counsel, the entity accrued the sum of 3,000,000 as a provision on Dec. 31, 2019. Subsequently, on March 15, 2020, the Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of 3,500,000. The financial statements were prepared by management on Feb. 15, 2020 and approved by the board of directors on March 31, 2020. What amount should recognized as accrued liability on Dec. 31, 2019? * O a. 3,500,000 O b. 5,000,000 c. 1,500,000 22. Using the same information, what amount should be adjusted on Dec. 31, 2019 in relation to this event? O a. 1,500,000 O b. 1,000,000 O c. 500,000 O d.o 2 pur 23. Happy Company reported 2p the following transactions involving the officers: Contributions to retirement benefit plan 1,000,000; monthly salary 100,000; share options and other share based payments 500,000; trip to Japan for annual convention 300,000. What amount should be disclosed as related party disclosure? * a. 1,900,000 b. 1,600,000 c. 2,700,000 O d. 3,000,000
Expert Answer:
Answer rating: 100% (QA)
17 Answer 2900000 Explanation To calculate the net income for 2020 using FIFO cost flow Net income LIFO for 2020 3000000 Understatement of inventory f... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
Equipment with an estimated life of 10 years and no expected residual value was purchased on account for $60,000 on March 6, 2014. Assuming a year-end of December 31, calculate depreciation for 2014...
-
What expenses should be reported as separate line items instead of being classified by function in the government-wide Statement of Activities?
-
The Tamer Tire Company provided the following partial trial balance for the current year ended December 31. The company is subject to a 40% income tax rate. Required a. Prepare a single- step income...
-
It is clear that Jaguar practices responsibility toward the environment. Using your knowledge gained from this Jaguar case study and further research, provide five (5) examples of how Jaguar is...
-
What are some of the possible reasons Scott did not seek or receive advice from her immediate supervisor? Sue Ann Scott was a receptionist at the headquarters of a large corporation. A high school...
-
Appendix B.4 is a table of random numbers that are uniformly distributed. Hence, each digit from 0 to 9 has the same likelihood of occurrence. a. Draw a graph showing the population distribution of...
-
Refer to the decision faced by Jessicas parents in Disney World. Which criteria of relevance did the $56 baby-sitting cost fail to meet? Explain your reasoning.
-
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The companys most recent monthly contribution format income statement follows: A study indicates that $340,000 of the fixed...
-
Your? start-up company has negotiated a contract to provide a database installation for a manufacturing company in Poland. That firm has agreed to pay you $196,100 in three months when the...
-
Prepare general journal entry. Billy Bob's Bikes Transactions Nov. 1: Billy Bob paid in advance for an 8-month insurance policy, which will begin today. He paid $3,856 cash for the policy. Nov, 1-...
-
please help me Arinder Smith is a junior accountant in Toronto. He has requested your help with completing his personal tax return (T1) for 2021. During 2021, his employer provided him with the...
-
Undertake a comprehensive landscape analysis of the operating environment ( both internal and external) that your organizations are currently operating. Discuss how the factors you have identified...
-
5) Megan and four of her friends plan to go for a long drive. She buys 12 bottles of frappe and a few bottles of orange juice from a supermarket. The total number of bottles they have are four times...
-
At December 31, 2022, the trading debt securities for Sunland, Inc. are as follows. Security Cost Fair Value $17,800 $16,300 B 12,900 14,400 C 23,300 18,700 $54,000 $49,400 (E) Your Answer Correct...
-
A service-oriented architecture (SO) is the underlying structure supporting communication between services. b) Provide a critical definition for a SOA. What role does messaging play in an SOA? What...
-
Transform general form to standard form 3. 4x + 4y - 8x + 4y - 11 = 0 4. 2x + 2y2 - 2x + 2y - 1 = 0
-
Provide a summary of the following key concepts: learned response, rewards, shaped behavior, and scheduled reinforcement. Provide a well-developed paragraph describing each of the concepts listed...
-
Test your confidence in the following Project Decisions: SI. # Question 01 02 03 04 05 06 07 08 09 10 How many years did it take to construct the largest Egyptian Pyramid- Pyramid of Cheops? When was...
-
Using the information from BE18.3, calculate the effective rate of income tax for Nilson Inc. for 2020. Also make a reconciliation from the statutory rate to the effective rate, using percentages....
-
Tuit Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: Additional information: 1. Dividends on common shares in the amount of $6,000 were...
-
Big Country Corporation is in the business of selling cattle. Due to recent diseases plaguing cattle, Big Country is experiencing a cash shortage. Big Country issued a $280,000, six-year,...
-
You find short time lags between deposits and withdrawals and large deposits made on Fridays. What should you suspect?
-
What are some ways to steal cash? What can help to prevent cash and check thefts?
-
What are some audit steps to catch skimming and money-laundering schemes?
Study smarter with the SolutionInn App