1. A company reported total stockholders' equity of $170,000 on its balance sheet dated December 31, 2017. During the year ended December 31, 2018, the company reported net income of $20,000, declared and paid a cash dividend of $4,000, declared and distributed a 10% stock dividend with a $5,000 total market value, and issued additional common stock for $40,000. What is total stockholders' equity as of December 31, 2018?

2. Franklin, Inc. leased equipment from Juniper Co. on December 31, 2018. The lease meets the criteria of a finance lease under the new lease accounting standard. The lease requires annual payments of $150,000 due on December 31 of each year, beginning December 31, 2018. The present value of the lease payments is $1,020,000. The interest rate implicit in the lease is 8%. Of the payment due on December 31, 2019, how much will Franklin record as interest expense? (Round to the nearest dollar.)

3. On January 1, 2018, Albacore Company had 300,000 shares of its common stock issued and outstanding. Albacore issued a 10% stock dividend on July 1, 2018. On October 1, 2018, Albacore retired 12,000 of its common shares. When calculating basic earnings per share for 2018, what is the appropriate number of shares for Albacore to use in the denominator of the EPS ratio?

4.

Pennant Company has the following account balances at the end of 2016:

Income tax payable		$35,000
Income tax expense		$40,000
Pretax accounting income		$100,000
DTA		$7,000

What is Pennants net income for 2016

5. Under the new lease accounting standard, a lessee who enters into an operating lease records an amount equal to the present value of the lease payments as

6. For its first year of operations, Oakwood Corporation had pretax accounting income of $500,000 and taxable income of $410,000. The book-tax difference was due to $10,000 of municipal bond interest income and $80,000 of depreciation expense. Oakwoods tax rate is 40% for the current and later years. What should Oakwood report as its deferred tax asset (DTA) or deferred tax liability (DTL) as of the end of its first year of operations?

7. Metals, Inc. purchased a rust-inhibiting machine from the manufacturer by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years. The first payment was due three months after the purchase date, and the market interest rate for this type of arrangement was 8%.