Please answer the following questions, also see the attachment, please answer as well. Please show work if possible, I need right away. Question 1. 1. (TCO A) Amazon Building, Inc. won a bid for a new warehouse building contract. Below is information from the project accountant. Total Construction Fixed Price $12,000,000 Construction Start Date June 13, 2012 Construction Complete Date December 16, 2013 As of Dec. 31? 2012 2013 Actual cost incurred $3,500,000 $5,360,000 Estimated remaining costs $5,250,000 $- Billed to customer $5,000,000 $7,000,000 Received from customer $4,500,000 $6,500,000 Assuming Amazon Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013? (Points : 10) $3,140,000 $2,140,000 $1,256,000 $1,840,000 Question 2. 2. (TCO B) At the beginning of 2012, Annie, Inc. has a deferred tax asset of $7,500 and deferred tax liability of $10,500. In 2012, pretax financial income was $826,000 and the tax rate was 35%. Pretax income included: Interest income from municipal bonds $15,000 Accrued warranty costs, estimated to be used in 2013 $74,000 Prepaid rent expense, will be used in 2013 $31,000 Installment sales revenue, to be collected in 2013 $56,000 Operating loss carryforward $71,000 What is taxable income for 2012? (Points : 10) $727,000 $826,000 $915,000 $1,073,000 Question 3. 3. (TCO C) Presented below is pension information related to Amazing Goods, Inc. for the year 2013. Service cost $115,000 Interest on projected benefit obligation $60,000 Interest on vested benefits $32,000 Amortization of prior service cost due to increase in benefits $17,000 Expected return on plan assets $60,000 The amount of pension expense to be reported for 2013 is (Points : 10) $115,000. $164,000. $224,000. $132,000. Question 4. 4. (TCO C) Apple Dumpling Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013. Service cost $320,000 Contributions to the plan $285,000 Actual return on plan assets $215,000 Projected benefit obligation (beginning of year) $3,100,000 Fair value of plan assets (beginning of year) $3,600,000 The expected return on plan assets and the settlement rate were both 9%. The amount of pension expense reported for 2013 is (Points : 10) $275,000.00 $384,000.00 $320,000.00 $599,000.00 Question 5. 5. (TCO D) Animal, Inc. leased equipment from Zoo Enterprises under a 5-year lease requiring equal annual payments of $48,000, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 5-year useful life and no salvage value. Animal, Inc.?s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the amount of interest expense recorded by Animal, Inc. in the first year of the asset?s life? PV Annuity Due PV Ordinary Annuity 8%, 5 periods 4.31213 3.99271 10%, 5 periods 4.16986 3.79079 (Points : 10) 0 $16,559 $12,719 $15,332 Question 6. 6. (TCO E) On December 31, 2013, Bob's Trucking, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in an $800,000 increase in the beginning inventory at January 1, 2013. Assume a 40% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is (Points : 10) $-. $800,000. $480,000. $320,000. Question 7. 7. (TCO E) Which of the following is not a change in accounting estimate? (Points : 10) Change in the loss rate on warranty costs. Change from FIFO to LIFO inventory procedures. Change in residual value of a depreciable plant asset. Change from straight-line to sum-of-the-years'-digits method of depreciation. Question 8. 8. (TCO F) Amazing Glory, Inc. recognized a net income of $55,000 including $8,000 in depreciation expense. Additional changes from the balance sheet are as follows. Accounts Receivable $1,200 decrease Prepaid Expenses $600 decrease Inventory $14,600 increase Accrued Liabilities $1,000 decrease Accounts Payable $2,100 increase Compute the net cash from operating activities based on the above information. (Points : 10) $60,000 $36,100 $71,700 $51,300 Question 9. 9. (TCO G) Which of the following events that occurred after the balance sheet date but before issuance of the financial statements would generally require disclosure, but no adjustment of the financial statements? (Points : 5) Settlement of litigation when the event that gave rise to the litigation occurred prior to the balance sheet date Employee strikes Retirement of the company president Issue of a large amount of capital stock Question 10. 10. (TCO G) Adventure, Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013. Sales revenue Operating profit (loss) Identifiable assets A $9,000 $2,000 $60,000 B $32,000 $(14,000) $65,000 C $65,500 $130,000 $525,000 D $21,000 $8,000 $38,000 Required: For which of the segments would information have to be disclosed in accordance with professional pronouncements? (Points : 5) Segments B, C, and D Segments A, B, and C Segments A and B Segments C and D

Page 2 Question 1. 1. (TCO B) The Accent Corporation shows the following information. On January 1, 2012, Accent purchased a donut machine for $600,000. A) Pretax financial income is $3,200,000 in 2012 and $3,500,000 in 2013. B) Taxable income is expected in future years with an expected tax rate of 40%. C) The company recognized an extraordinary gain of $200,000 in 2013 (which is fully taxable). D) Tax-exempt municipal bonds yielded interest of $240,000 in 2013. E) Straight-line basis for 6 years for financial reporting (See Appendix 11A.) F) Half-year convention basis depreciation for 4 years for tax purposes Required: 1) Compute taxable income and income taxes payable for 2013. 2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013. 3) Prepare the deferred income taxes presentation for December 31, 2013 balance sheet. (Points : 40) Question 2. 2. (TCO D) Absolute Leasing, Inc. agrees to lease equipment to Allen, Inc. on January 1, 2012. They agree on the following terms: 1) The normal selling price of the equipment is $350,000 and the cost of the asset to Absolute Leasing Inc. was $275,000. 2) At the end of the lease, the equipment will revert to Absolute Leasing, Inc. and have an unguaranteed residual value of $25,000. Their implicit interest rate is 10%. 3) The lease is noncancelable with no renewal option. The lease term is 10 years (the same as the estimated economic life). 4) Absolute Leasing, Inc. incurred costs of $5,000 in negotiating and closing the lease. There are no uncertainties regarding additional costs yet to be incurred and the collectability of the lease payments is reasonably predictable. 5) The lease begins on January 1, 2012 and payments will be in equal annual installments. 6) Allen will pay all maintenance, insurance, and tax costs directly and annual payments of $55,000 on January 1 of each year. Required: a) Determine what type of lease this would be for the lessee and calculate the initial obligation. b) Prepare Allen, Inc.'s amortization schedule for the lease terms. c) Prepare all the journal entries for Allen, Inc. for 2012. Assume a calendar year fiscal year. (Points : 40) Question 3. 3. (TCO F) Cash flows from operating activities (indirect and direct methods). Presented below is the income statement of Angola, Inc. Sales $324,000 Cost of goods sold $214,000 Gross profit $110,000 Operating expenses $67,000 Income before income taxes $43,000 Income taxes $17,200 Net income $25,800 In addition, the following information related to net changes in working capital is presented. Cash $10,600 Debit Accounts receivable $2,400 Debit Inventories $3,600 Debit Salaries payable (operating expenses) $12,000 Credit Accounts payable $15,000 Credit Income taxes payable $1,400 Credit Depreciation expense for the year was $14,700 Deferred tax liability account increased $1,800 Required: Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows -(a) using the indirect method. -(b) using the direct method. (Points : 40) Question 4. 4. (TCO G) Selected financial ratios. The following information pertains to Allbright, Inc. Cash $53,000 Accounts receivable $186,000 Inventory $82,000 Plant assets (net) $320,000 Total assets $641,000 Accounts payable $85,000 Accrued taxes and expenses payable $12,000 Long-term debt $365,000 Common stock ($10 par) $120,000 Paid-in capital in excess of par $6,000 Retained earnings $150,000 Total equities $641,000 Net sales (all on credit) $980,000 Cost of goods sold $760,000 General & Admin Expenses $160,000 Net income $60,000 Required Compute the following: (It is not necessary to use averages for any balance sheet figures involved.) (a) Current ratio (b) Inventory turnover (c) Receivables turnover (d) Book value per share (e) Earnings per share (f) Debt to total assets (g) Profit margin on sales (h) Return on common stock equity (Points : 40) Question 5. 5. (TCO E) Discuss the three approaches for reporting changes in accounting principles. Include additional points about how these approaches may be impacted by the adoption of new IFRS standards. (Points : 40)