HW submission Use MS Excel and show your calculations where needed Please include your first and last name in your file name In 2020, Brown Corporation, a service business, no longer qualifies as a small business Thus, it must change from the cash to the accrual method starting with its 2020 tax At the beginning of 2020, Brown had accounts receivable of $575,000 Also, Brown had accounts payable of $345,000 Determine the adjustment to income due to the change in accounting method and the amount that is allocated to 2020 LEARNING OBJECTIVES CMPV SWFT 2020 LO 16 03 LO 16 03 POINTS 10 Barbara operates a sporting goods store She uses the cash method and treats inventory as nonincidental supplies At the beginning of the year, she had inventory of $26,000 She purchased $470,000 of goods during the year Her ending inventory was $42,000 She makes sure to pay all of her suppliers by the last day of her tax year What is Barbaras inventory deduction for the year LEARNING OBJECTIVES CMPV SWFT 2020 LO 16 06 LO 16 06 POINTS 10 Gray Company, a calendar year taxpayer, allows customers to return defective merchandise for a full refund within 30 days of the In 2019, the company refunded $400,000 for claims involving sales The $400,000 consisted of $350,000 in refunds from 2019 sales and $50,000 in refunds from 2018 sales All of the refunds from 2018 sales were for claims filed in 2018 and were paid in January and February 2019 At the end of 2019, the company had $12,000 in refund claims for sales in 2019 for which payment had been approved These claims were paid in January 2019 Also, in January 2020, the company received an additional $30,000 in claims for sales in 2019 This $30,000 was paid by Gray in February 2020 With respect to the above, Gray can deduct in 2019 LEARNING OBJECTIVES CMPV SWFT 2020 LO 16 02 LO 16 02 POINTS 10 Pacioli Partnership is owned 35 by Leo Corporation (March 31 year end), 35 by Davinci Corporation (June 30 year end), and 30 by Steve, an individual (December 31 year end) What is the partnerships year end Why LEARNING OBJECTIVES CMPV SWFT 2020 LO 16 01 POINTS 10 Pacioli Partnership is owned 40 by Leo Corporation (March 31 year end), 30 by Davinci Corporation (March 31 year end), and 30 by Steve, an individual (December 31 year end) What is the partnerships year end Why LEARNING OBJECTIVES CMPV SWFT 2020 LO 16 01 POINTS 10

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HW submission: Use MS Excel and show your calculations where needed. Please include your first and last name in your file name.

In 2020, Brown Corporation, a service business, no longer qualifies as a small business. Thus, it must change from the cash to the accrual method starting with its 2020 tax At the beginning of 2020, Brown had accounts receivable of $575,000. Also, Brown had accounts payable of $345,000. Determine the adjustment to income due to the change in accounting method and the amount that is allocated to 2020.

LEARNING OBJECTIVES: CMPV.SWFT.2020.LO: 16-03 - LO: 16-03

POINTS: 10

Barbara operates a sporting goods store. She uses the cash method and treats inventory as nonincidental supplies. At the beginning of the year, she had inventory of $26,000. She purchased $470,000 of goods during the year. Her ending inventory was $42,000. She makes sure to pay all of her suppliers by the last day of her tax year. What is Barbaras inventory deduction for the year?

LEARNING OBJECTIVES: CMPV.SWFT.2020.LO: 16-06 - LO: 16-06

POINTS: 10

Gray Company, a calendar year taxpayer, allows customers to return defective merchandise for a full refund within 30 days of the In 2019, the company refunded $400,000 for claims involving sales. The $400,000 consisted of $350,000 in refunds from 2019 sales and $50,000 in refunds from 2018 sales. All of the refunds from 2018 sales were for claims filed in 2018 and were paid in January and February 2019. At the end of 2019, the company had $12,000 in refund claims for sales in 2019 for which payment had been approved. These claims were paid in January 2019. Also, in January 2020, the company received an additional $30,000 in claims for sales in 2019. This $30,000 was paid by Gray in February 2020. With respect to the above, Gray can deduct in 2019?

LEARNING OBJECTIVES: CMPV.SWFT.2020.LO: 16-02 - LO: 16-02

POINTS: 10

Pacioli Partnership is owned 35% by Leo Corporation (March 31 year-end), 35% by Davinci Corporation (June 30 year-end), and 30% by Steve, an individual (December 31 year-end). What is the partnerships year-end? Why?

LEARNING OBJECTIVES: CMPV.SWFT.2020.LO: 16-01

POINTS: 10

Pacioli Partnership is owned 40% by Leo Corporation (March 31 year-end), 30% by Davinci Corporation (March 31 year-end), and 30% by Steve, an individual (December 31 year-end). What is the partnerships year-end? Why?

LEARNING OBJECTIVES: CMPV.SWFT.2020.LO: 16-01

POINTS: 10