6. Major Co. reported 2021 income of $300,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $70,000. All income is subject to a 25% tax rate. In the income statement for the year ended December 31, 2021, Major Co. would show the following line-item amounts for income tax expense and net income:

14. ABC Company will issue $5,900,000 in 8%, 10-year bonds when the market rate of interest is 10%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Determine how much cash ABC Company will realize from the bond issue.

21. Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the installment sales method for revenue recognition. In 2020, Lake began operations and sold jet skis with a total price of $870,000 that cost Lake $435,000. Lake collected $290,000 in 2020, $290,000 in 2021, and $290,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $2,070,000 that cost Lake $1,242,000. Lake collected $690,000 in 2021, $600,000 in 2022, and $600,000 in 2023 associated with those sales. In 2023, Lake also repossessed $180,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $67,500 at the time they were repossessed. In its December 31, 2021, balance sheet, Lake would report:

24. Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $29,250 was sold for $55,000 in 2020. Collections on this sale were $19,000 in 2020, $15,700 in 2021, and $20,300 in 2022. In 2020, Reliable would recognize gross profit of:

26. On April 1^st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $5,000 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%. What is the expected transaction price with variable consideration estimated as the expected value?