1. Before considering a net operating loss carryforward of $76 million, Fama Corporation reported $140 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 34%. On January 1 of the current year, a new tax law was enacted, reducing the rate to 29% effective immediately. Fama's income tax payable for the current year would be: (Round your answer to the nearest whole million.)

Multiple Choice

• $27 million.

• $22 million.

• $73 million.

• $19 million.

2. Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,550 and $165,050 at December 31, 2017 and 2018, respectively. During 2018 Clor recognized $75,400 of net income and paid dividends of $20,900. Assuming that Bloomfield owned the same percentage of Clor throughout 2018, their percentage ownership must have been (Round your answer to the nearest whole percent):

Multiple Choice

• 27%.

• 19%.

• 25%.

• 69%.

3. Mary signed up and paid $660 for a 6 month ceramics course on June 1^st with Choplet Ceramics. As of August 1^st, Choplets accounting records would indicate:

Multiple Choice

• $220 of revenue, $440 of accounts receivable

• $220 of revenue, $440 of deferred revenue

• $440 of revenue, $220 of accounts receivable

• $660 of revenue, $660 of cash

4. BullsEye sells gift cards redeemable for BullsEye products either in-store or online. During 2018, BullsEye sold $1,850,000 of gift cards, and $1,650,000 of the gift cards were redeemed for products. As of December 31, 2018, $147,000 of the remaining gift cards had passed the date at which BullsEye concludes that the cards will never be redeemed. How much gift card revenue should BullsEye recognize in 2018?

Multiple Choice

• $1,703,000

• $1,850,000

• $1,797,000

• $1,650,000