33 Levin Chemical received $300,000 from customers as deposits on returnable containers during 2021 Fifteen percent of the containers were not returned The deposits are based on the container cost marked up 20 How much profit did Levin realize on the forfeited deposits A $0 B $45,000 C $9,000 D $7,500 34 Reese Product Inc distributed 100 million coupons in 2021 The coupons are redeemable for 30 cents each General anticipates that 70 of the coupons will be redeemed The coupons expire on December 31, 2022 There were 45 million coupons redeemed in 2021 and 30 million redeemed in 2022 General recognizes coupon expense in the period coupons are issued What was Reese's coupon liability as of December 31, 2021 A $13 5 million B $7 5 million C $16 5 million D $21 0 million 35 Robart Services pays its employees monthly The payroll information listed below is for January 2021, the first month of BMS's fiscal year Assume none of the employees' earnings reached $7,000 during the month Salaries $80,000 Federal income taxes to be withheld 16,000 Federal unemployment tax rate (FUTA) 0 80 State unemployment tax rate (after FUTA deduction) 5 40 Social security tax rate 6 2 Medicare tax rate 1 45 The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of A $6,120 B $4,960 C $57,880 D $11,080 39 Z Co filed suit against W Inc in 2021 seeking damages for patent infringement At December 31, 2021, legal counsel for Z believed that it was probable that Z would be successful against W for an estimated amount in the range of $30 million to $60 million, with each amount in that range considered equally likely Z was awarded $40 million in April 2022 Z should report this award in its 2021 financial statements, issued in March 2022 as A A receivable and deferred revenue of $40 million B A receivable and revenue of $40 million C A disclosure of a gain contingency of $40 million D A disclosure of a gain contingency of an undetermined amount in the range of $30 million to $60 million

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33. Levin Chemical received $300,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are

33. Levin Chemical received $300,000 from customers as deposits on returnable containers during 2021. Fifteen percent of the containers were not returned. The deposits are based on the container cost marked up 20%. How much profit did Levin realize on the forfeited deposits?

A. $0.

B. $45,000.

C. $9,000.

D. $7,500.

34. Reese Product Inc. distributed 100 million coupons in 2021. The coupons are redeemable for 30 cents each. General anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2022. There were 45 million coupons redeemed in 2021 and 30 million redeemed in 2022. General recognizes coupon expense in the period coupons are issued.

What was Reese's coupon liability as of December 31, 2021?

A. $13.5 million.

B. $7.5 million.

C. $16.5 million.

D. $21.0 million.

35. Robart Services pays its employees monthly. The payroll information listed below is for January 2021, the first month of BMS's fiscal year. Assume none of the employees' earnings reached $7,000 during the month.

Salaries	$80,000
Federal income taxes to be withheld	16,000
Federal unemployment tax rate (FUTA)	0.80%
State unemployment tax rate (after FUTA deduction)	5.40%
Social security tax rate	6.2%
Medicare tax rate	1.45%

The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of:

A. $6,120.

B. $4,960.

C. $57,880.

D. $11,080

39. Z Co. filed suit against W Inc. in 2021 seeking damages for patent infringement. At December 31, 2021, legal counsel for Z believed that it was probable that Z would be successful against W for an estimated amount in the range of $30 million to $60 million, with each amount in that range considered equally likely. Z was awarded $40 million in April 2022. Z should report this award in its 2021 financial statements, issued in March 2022 as:

A. A receivable and deferred revenue of $40 million.

B. A receivable and revenue of $40 million.

C. A disclosure of a gain contingency of $40 million.

D. A disclosure of a gain contingency of an undetermined amount in the range of $30 million to $60 million.