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1.Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent" ID operates a manufacturing plant that can produce 22,000 devices per year, but it normally produces 20,000. The costs to produce 20.000 devices follow Total Cost Cost per Device Production costs: Materials Labor Supplies and other costs that will vary with production Indirect cost that will not vary with production Variable marketing costs Administrative costs (will not vary with production) Totals $ 1,020,000 1,880,000 700,000 520, ese 1,700,000 1,080.000 $5.900,000 $ 51.00 94.00 35.00 26.00 54.00 $345.00 Based on these data, company management expects to receive $414.00 (+$345.00 x 120 percent) per monitor for those sold on this contract. After completing 2,000 monitors, the company sent a bill invoice) to the government for $828,000 (= 2,000 monitors $414.00 per monitor) The president of the company received a call from a state auditor, who stated that the per monitor cost should be Materials Labor Supplies and other costs that will vary with production $ 51.00 94.00 $ 180.00
Therefore, the price per monitor should be $216.00 = $180.00 x 120 percent). The state government ignored marketing costs be the contract bypassed the usual selling channels Required: For each of the four situations, calculate the cost basis per device based on the information shown above. (Round intermediate calculations and final answers to 2 decimal places.) Options A Only the differential production costs could be considered as the cost basis. B. The total cost per device for normal production of 20,000 devices could be used as the cost basis. C. The total cost per device for production of 22,000 devices, excluding marketing costs, could be used as the cost basis. D. The total cost per device for production of 22,000 devices, including marketing costs, could be used as the cost basis. Per device cost basis Recommended price per device Option A Option B Option Option D.

2.On January 1, 2020, Spalding Company sold 12% bonds having a maturity value of $1,000,000 for $1,075,815, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020 and they mature on January 1, 2025, with semiannual interest payable on July 1 and January 1 each year. The company uses the effective-interest method. Instructions:

a) Prepare a complete amortization schedule for these bonds in good form.

b) Prepare the journal entry needed to record the issuance of bonds on January 1, 2020.

c) Prepare the journal entry needed to record the payment accrual of interest on July 1, 2020. Show all calculations.

d) Determine how much interest expense will be on the income statement for the year ended December 31, 2020.

e) Show what will be on the balance sheet related to these transactions as of December 31, 2020. Indicate clearly if any assets or liabilities are current or noncurrent.

3.When preparing consolidated financial statements, examples of intragroup transactions include all of the following, except for:

a. The parent company rents an office building that it owns to one of its subsidiaries

b. A subsidiary sells some of its equipment to its parent company

c. A subsidiary provides consultation services to its parent company

d. A parent company pays dividends to its shareholders.

4.The Marigold, Inc. sold 9,310 season tickets at $1,940 each. By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017?
 

Current liability

5.Blossom Corporation ended its previous fiscal year with a defined benefit obligation of $132,372 and plan assets of $134,400. On January 1, 2020, the company amended its one-person defined benefit pension plan, resulting in a revised defined benefit obligation at that date of $149,989. As a result of this past service award, Blossom’s required contributions into the plan assets increase by $1,248 each year.

Determine the effect that the plan amendment has on Blossom’s 2020 pension expense reported in net income, assuming the company follows ASPE.

Pension expense will ( increase or decrese) and net income will (increasedecrease ) by $enter a dollar amount  in 2020 under ASPE.

  What if Blossom applies IFRS?

Pension expense will (decreaseincrease ) and net income will (decreaseincrease) by $enter a dollar amount  in 2020 under IFRS.