Ex. 17-54Weighted average of common shares outstanding At January 1, 2017, Elan Corporation had 300,000 common shares outstanding (no preferred issued). On March 1, the corporation issued 45,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2 for 1 stock split. On October 1, the corporation purchased on the open market 180,000 of its own shares at $35 each and retired them. Instructions Calculate the weighted average number of common shares outstanding to be used in calculating earnings per share for 2017. Ex. 17-55Earnings per share Define the following a)The calculation of earnings […]

31) At the end of 2017, its first year of operations, Kali Corp. prepared the following reconciliation between pre-tax accounting income and taxable income:Pre-tax accounting income$800,000Estimated lawsuit expense 400,000Excess CCA for tax purposes(900,000)Taxable income$300,000The estimated lawsuit expense of $400,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $300,000 in each of the next three years. The income tax rate is 25% for all years. Kali adheres to IFRS requirements. The current income tax payable is a)$0. b)$ 75,000. c)$150,000. d)$200,000. 32) Macintyre Inc. sells household […]

61.              The net defined benefit liability/asset that should be reported at December 31, 2017 is a) $120,000 asset. b) $120,000 liability. c) $204,000 asset. d) $360,000 liability. 62.              Presented below is pension information related to Mango Ltd. at December 31, 2017.The corporation uses IFRS. Defined benefit obligation………………….$3,500,000Cr Plan assets (at fair value)………………….2,500,000Dr Past service costs……………………….100,000 Contributions to plan……………………..200,000               The amount to be reported as the net defined benefit liability at December 31, 2017 is a) $1,100,000. b) $1,000,000. c) $900,000. d) $700,000. 63.              Presented below is pension information related to Squash Corp. for the calendar year 2017.The corporation uses […]

31) For most businesses, annual straight line depreciation expense on the company's building is what type of cost? A) Variable B) Mixed C) Fixed D) Step 32) Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is A) $5.92/unit. B) $2.08/unit. C) $4.00/unit. D) $1.92/unit. 33) Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The variable cost per unit is A) $6.67/unit. B) $5.03/unit. C) $11.69/unit. D) $1.64/unit. […]

213) Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. The purchase of materials includes a A) debit to WIP Inventory-Molding. B) debit to Raw Materials Inventory. C) credit to Manufacturing Overhead. D) credit to Raw Materials Inventory. 214) Fun Stuff Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Requisition of materials to molding includes a A) debit to Raw Materials Inventory. B) debit to Manufacturing Overhead. C) credit to Raw Materials Inventory. D) credit to Finished Goods Inventory. 215) A transfer of $30,000 from the assembly department to […]