Reporting Stockholders' Equity The Stockholders' Equity section of Nilsson Corporation's balance sheet as of December 31, 2,012, is as follows: Common stock (55 par, 500,000 shares authorized, 275.000 issued and outstanding) . $1,375,000 Pald-in capital in excess of par 550.000 Total paid in capital $1,925.000 Unappropriated retained earnings $1.335.000 Appropriated retained earnings 500,000 Total retained earnings 1,835.000 Total stockholders' equity $3.760.000 Nilsson Corporation had the following stockholders' equity transactions during 2,013 1. Make all necessary journal entries for Nilsson to account for the transactions affecting stockholders' equity. For compound entries, if an amount box does not require an entry, leave blank. Jan. 15 Mar. 3 May 18 June 19 July 31 * 5e ew Nov. 12 Dec. 31 Close NI Dec. 31 Dividend 2 Investment in Common Stock-Fair Value Less than Book Value JJJ Inc. purchased 35% of ABC Co. on January 4, 2,013, for $280,000 when ABC's book value was $810,000. On that day, the fair value of the net assets of ABC equaled their book values with the following exceptions: Book Fair Value 1 1 10 . . Equipment Buildings.. VEDERE .... ....................... .. . ........... $175,000 . 40,000 $140.000 65,000 . The equipment has a remaining useful life of 10 years, and the building has a remaining useful life of 20 years. ABC reported the following related to operations for 2,013 and 2.014: Net Income (Loss) Dividends NII - 150 $ 80.000 $15.000 .000 (10,000) Provide the entries made by JJJ Inc. relating to its investment in ABC for the year 2,013. Round to the nearest dollar. To record the initial purchase of 35% of the stock of ABC. To record 35% of the reported net income of ABC Focus Paragraph Styles To record the receipt of the dividends from ABC. LIO To record the amortization of excess book value 2 CD Styles Paragraph Provide the entries made by JJJ Inc. relating to its investment in ABC for the year 2,014. Round to the nearest dollar. To record 35% of the reported net loss of ABC. To record the receipt of the dividends from ABC. PRESS LE NILAI To record the amortization of excess book value D. Focus lidterm 1 (- Compatibility ... L e Search References Mailings Review View Help Table Design Layout AUT a A -A AaBbcc 1 Normal AaBbCcDc AaBb 1 No Spac... Heading 1 AaBb Aal Heading 2 TH EEE - Paragraph Styles Deferred Tax Asset Davidson Gasket Inc. computed a pretax financial loss of $15,000 for the first year of its operations, ended December 31, 20Y1. Analysis of the tax and book bases of its liabilities disclosed $55,000 in uneamed rent revenue on the books that had been recognized as taxable income in 20Y1 when the cash was received. Also disclosed was $20,000 in warranties payable that had been recognized as expense on the books in 20Y1 when product sales were made but that are not deductible on the tax return until paid These temporary differences are expected to reverse in the following pattern. AGE 5 Year Warranty Payments 2012...... 20Y3.. 2014. Rent Earned on Books $13,000 25.000 12.000 5.000 $55.000 $ 5.000 8.000 7.000 2045 Total $20.000 2. Prepare the income statement for Davidson Gasket Inc, beginning with Loss from continuing operations before income taxes for the year ended December 31, 20Y1. Davidson Gasket Inc. Partial Income Statement For the Year Ended December 31, 20Y1 NOL Carryback and Carryforward The financial history below shows the income and losses for rentree Company for the 10-year period 2,004-2,013. Assume that no adjustments to taxable income are necessary for purposes of the NOL carryback and that the company elects to use the carryback provisions of the tax code NOL Carryback and Carryforward The financial history below shows the income and losses for rentree Company for the 10-year period 2,004 2,013 Assume that no adjustments to taxable income are necessary for purposes of the NOL caryback and that the company elects to use the carryback provisions of the tax code. Taxable and Pretax Financial Income (before NOL) Year Income Tax Rate Income Tax Pald $ 14,200 $ 6.816 2004 2005 2006 8.448 8,610 2007 5.800 2008 2009 2010 2011 2012 2013 17.600 20.500 (29,300 13,900 (25.100 23.500 40,850 (84.400 72.000 1. Given the foregoing information, compute the amount of income tax refund for each year as a result of each NOL carryback and the amount of the carryforward (if any) Enter all answers as positive amounts. If there is no balance to report, place a zero in the answer box Income tax refund due in 2,007 Amount of operating loss carryforward Income tax refund due in 2,009 Amount of operating loss carryforward Income tax refund due in 2,012 Amount of loss carryforward 2. Calculate the amount of income tax paid, showing the benefit of the NOL carryforward, for the years 2,010 and 2,013. Enter all answers as positive amounts. 2,010: $ 2,013: $ 3. For 2,013, give the entry (or entries) to record income taxes, assuming that the deferred tax asset stemming from the 2012 NOL carryforward was fully recognized in 2,012. If an amount box does not require an entry, leave it blank. Accounts Debit