Solve the following questions .,,,
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2018, its scal-year end, based on a physical count. was determined to be $335,000. Capwell's unadjusted trial balance also showed the following account balances: Purchases, $710,000; Accounts payable; $255,000; Accounts receivable, $270,000; Sales revenue, $390,000. The internal audit department discovered the following items: 1. 2. Goods valued at $41,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase. Purchases from Xavier Corporation were incorrectly recorded at $61,000 instead of the correct amount of $16,000. The correct amount was included in the ending inventory. Goods that cost $34,000 were shipped from a vendor on December 28, 2018, terms f.o.b. destination. The merchandise arrived on January 3, 2019. The purchase and related accounts payable were recorded in 2018. One inventory item was incorrectly included in ending inventory as 190 units, instead of the correct amount of1,450 units. This item cost $50 per unit. The 2017 balance sheet reported inventory of $442,000. The internal auditors discovered that a mathematical error caused this inventory to be understated by $71,000. This amount is considered to be material. Comparative financial statements will be issued. Goods shipped to a customer fob. destination on December 25, 2018. were received by the customer on January 4, 2019. The sales price was $49,000 and the merchandise cost $25,500. The sale and corresponding accounts receivable were recorded in 2018. Goods shipped from a vendor fob. shipping point on December 27, 2018, were received on January 3, 2019. The merchandise cost $27,000. The purchase was not recorded until 2019. Required: 1. Determine the correct amounts for 2013 ending inventory, purchases, accounts payable, accounts receivable, and sales revenue. 2. Calculate cost of goods sold for 2018. 3. What was the effect of the error in ending inventory on 2017 before-tax income? Z Corporation purchased 90 percent of B Corporation's outstanding common stock for $1 million on January 1, 2006. Y, an individual, also purchased 10 percent of B Corporation's outstanding common stock for $111,111 on January 1, 2006. On June 15, 2016, B adopts a plan of liquidation and distributes assets with a fair market value of $1.2 million and a basis of $900,000 to Z. In that liquidation, B also distributes assets with a fair market value of $133,333 and a basis of $90,000 to Y. All the assets held by B that it distributes in liquidation were held by B for more than one year.21. As a result of the liquidating transaction, B Corporation has a recognized gain of: a. SO b. $43,333 C. $300,000 d. $343,333 22. What holding period does Y take in the assets that she receives? a. Brand new b.
