(a)In May 2020, SHARP Company filed suit against HP Company seeking $1,900 damages for patent infringement. A court verdict in November 2020 awarded SHARP Company $1,500 in damages, but HP Company's appeal is not expected to be decided before 2021. The legal counsel believed it is probable that SHARP Company will be successful against HP Company for an estimated amount in the range between $800 and $1,100, with $1,000, considered the most likely amount. What amount should SHARP Company record as income from the lawsuit for the year ended December 31, 2020?

(b)During the current year, Bee Company offered a $20 cash rebate coupon to customers who purchased one of its new line of products. The entity sold 10,000 of these products during the current year. By year-end, 7,600 of the rebates had been claimed and 7,100 had been paid. The historical experience with such rebates indicated that 85% of customers claim the rebates. What amount should be reported as rebate expense for the current year?

(c)Pink COMPANY acquires a new manufacturing equipment on January 1, 20x7, on installment basis. The deferred payment contract provides for a down payment of $150,000 and an 8-year note for $1,552,080. The note is to be paid in 8 equal annual instalment payments of $194,010, including 10% interest. The payments are to be made on December 31 of each year, beginning December 31, 20x7. The equipment has a cash price equivalent of $1,185,000. Pink's financial year-end is December 31. Determine the amount of interest expense to be recognized in 20x7.

(d)Pink's COMPANY acquires a new manufacturing equipment on January 1, 20x7, on instalment basis. The deferred payment contract provides for a down payment of P150,000 and an 8-year note for P1,552,080. The note is to be paid in 8 equal annual instalment payments of P194,010, including 10% interest. The payments are to be made on December 31 of each year, beginning December 31, 20x6. The equipment has a cash price equivalent of P1,185,000. Pink's financial year-end is December 31. Determine the carrying value of note payable at December 31, 20x7.

(e)An entity has an outstanding bond payable amounting to $1,250,000 with accrued interest of $125,000. To settle this debt, the entity issued 500, $500 par value shares, currently selling at $1,125 per share. The bonds have a current fair value of $1,575,000. Determine the gain or (loss) on extinguishment of debt and the increase in the entity's stockholders' equity.

(f)On August 1, 2020, Xis Company purchased a machine. The purchase agreement required Xi to pay an initial fee payment of $700,000 plus four $300,000 payments due every four (4) months, the first payment due December 31, 2020. The market interest rate is 12%. The present and future value tables at 4% for four (4) periods were as follows: Present value of $ 1, 0.85; Present value of an ordinary annuity of $1, 3.63; Future value of $1, 1.17, Future value of an ordinary annuity of $1, 4.25. What is the fair value of the note on November 31, 2020.

(g)On January 1, 2019, XYZ Co. issued 3-year bonds with a face value of $1,200,000 and stated interest of 8% per year payable annually on December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the interest expense for 2019. (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest dollar)

(h)On January 1, 2020 XYZ Co. issued 3-year bonds with a face value of $1,200,000 and stated interest of 8% per year. The bonds mature in 3 equal annual installments every December 31. The interest is also payable every December 31. The bonds were acquired to yield 10%. The bonds were appropriately classified as financial liability at amortized cost. Compute for the carrying value on December 31, 2021. (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest dollar)

What are the necessary steps to be undertaken? What are the best answers at each situation?