ACCT 7080 Project 2 Fall 2023
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University of Memphis *
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7080
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Finance
Date
Apr 3, 2024
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xlsx
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4
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Project 2
Question #1
Question #2
Question #3
Question #4
Question #5
Question #6
How does Home Depot define what Goodwill is?
Question #7
How does Home Depot calculate its liability for returns?
Question #8
Question #9
What was Home Depot's Gross Profit Margin in 2021?
Question #10
What method (LIFO, FIFO, Average Cost) does Home Depot use to value a majority of its inventories?
Describe how COVID-19 affected how Home Depot conducted their physical inventories in 2020.
What method (Straight-line, accelerated) does Home Depot use to depreciate Buildings, furniture, and equipment?
What are the useful lives of Home Depot's property and equipment.
Using the Consolidated Statements of Cash Flows describe what impacted Home Depot's cash position in 2021.
What merchandising department at Home Depot had the highest percentage of Net Sales in 2021?
What percentage of Home Depot's Net Property and Equipment is located in the U.S.?
Question #11
What percentage of Home Depot's Net Sales are Services?
Question #12
What costs are included in Home Depot's Cost of Sales?
Question #13
Question #14
Question #15
In 2021 what was the average ticket at Home Depot?
Question #16
At what point does Home Depot expense advertising costs? In 2021 what percentage of Home Depot's Net Sales were in the U.S.?
Under the heading, Selected Section of Management Discussion and Analysis, you will see that Net Earnings in 2021 increased to 10.9% of Net Sales. Provide commentary as to how Home Depot achieved this increase from 2020.
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Related Questions
Part One DaYs Sales Outstanding Data:
2018: 26.05
2019: 32.25
2020: 29.69
2021:36.43
2022: 35.05
Based on your analysis from Part One, which of the following transactions and events would result in an improvement in Days Sales Outstanding in year 2022?
A) recognising the impairment of plant & equipment
B) the recognition of income tax expense owing at the end of the period
C) recognising the increase in market value of land
D) A and B only
E) A and C only
F) B and C only
G) All of the above
H) None of the above
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Q6. Identify the correct statement in each group? Note: There is one correct answer in each group of 3 - select the appropriate letter(i) If Property, plant and equipment is revalued upwards at the start of the year it will resultin:A. A higher profit for the yearB. No change to profit for the yearC. A lower profit for the year(ii) Property, plant and equipment revaluations:D. The revaluation gain is released to the Statement of profit or loss when the asset is soldE. PPE can only be revalued if a fair value can reliably be determinedF. Where a policy of revaluation is chosen, the asset must be revalued each year
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question 1
part 1
A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis.
Part BOMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A…
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1
part 1
A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis.
Part BOMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A motor…
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Part C1 and C2
C1
Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
C2
Assume that this equipment account represents the cost of 5 identical machines. Prepare the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2019, for $60,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019:
December 31, 2020
December 31, 2019
Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019.
$
273,375
$
334,125
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QUESTION 3
MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years.
The fair values of the property were measured as below:
Date
RM (in million)
31/12/2015
72
31/12/2016
74
31/12/2017
78
31/12/2018
83
Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%.
REQUIRED:
Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors.
Prepare the…
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1. ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following:
Net income
Net assets
2018
P 2,000,000
P 7,800,000
2019
2,500,000
8,700,000
2020
3,900,000
9,000,000
Goodwill is measured by capitalizing excess earnings at 25% with normal on average net assets at 20%
How much is the goodwill?
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Question 1Part 1A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. (16 marks)ii. State two reasons for the difference. ( 2 marks)iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis. (2 marks).20 marks Part BOMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal…
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Question 1
ABC Ltd has the following land and buildings in its financial statements as of 30 June 2022:
Residential land, at cost
2,305,483
Factory land, at valuation 2020
2,074,935
Buildings, at valuation 2020
1,844,386
Accumulated depreciation
-230,548
On 30 June 2022, the balance of the revaluation surplus is $922 193, of which $691 645 relates to the factory land and $230 548 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values on 30 June 2022 are:
Residential land, previously recorded at cost
2,536,031
Factory land, previously revalued in 2020
1,613,838
Buildings, previously revalued in 2020
2,074,935
Required:
Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies residential…
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q15
Which of the following are circumstances that may indicate that the asset may be impaired?
(i) A motor vehicle has been damaged in an accident
(ii) A debtor is in financial difficulty
(iii)Consumer tastes have changed in the market and sales prices of the inventory have been reduced so that the goods will have to be sold at much lower prices, if at all
(iv) Cost prices of raw materials used in production have increased
Select one:
a. (i), (ii), (iii) and (iv)
b. (i), (ii), (iv) only
c. (i) and (iv) only
d. (iv) only
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When an asset is held for sale:
Question 10 options:
the asset is remeasured at the lower of carrying (book) value and fair value less costs to sell.
it must related to discontinued operations.
the company continues to record depreciation on the asset.
the asset is remeasured at the lower of fair value and carrying (book) value.
The matching principle is best demonstrated by:
Question 11 options:
measuring expenses correctly.
not recognizing any expenses until some revenue has been received.
recognizing prepaid rent as revenue.
associating effort (expenses) with accomplishment (revenues).
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1-What will be the total operating expense?
a.41200
b.53200
c. 19700
d. 21500
2-What will be the net income?
a. 56000
b. 338000
c. 16000
d. 72000
3-What will be the total Selling and distribution expense?
a. 41200
b. 17200
c. 19700
d. 14800
4-What will be the Gross Profit at the end of the year December 2019
a. OMR 338,000
b. OMR 16000
c. OMR 336,000
d. OMR 56000
5-What is the Gross Margin in terms of Percentage?
a. Cannot be determined
b. 20.66
c. 16.66
d. 16.56
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Question # 6
Waqar is a sole trader. He provides the following financial information in respect of his business.
Income statement for the year ended 31 December 2019
Sales
3380000
Cost of sales
(2000000)
Expenses
(1200000)
Profit for the year
180000
Statements of financial position at:
31 December 2018
31 December 2019
Non-current assets
Freehold land
2000000
3500000
Plant and machinery at cost
900000
1020000
Less: depreciation
(500000)
(470000)
Net book value
400000
550000…
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May I ask for an explanation and solution to the question for a better understanding. Thank you!
3. Pierce Corporation has the following gross profits for 2018 and 2019: Sales = 2019 - P810,000; 2018 - P792,000. Cost of sales = 2019 - 480,000; 2018 - 464,000. Gross profit = 2019 - P330,000; 2018 - P328,000. Sales price was 10% lower during 2019. The decrease in gross profit due to decrease in selling price must be:
a. P72,000
b. P79,200
c. P81,000
d. P90,000
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EIL.25 (LOS)) (Revaluation Accounting) Pengo Ltd. owns land that it purchased at a cost of V400 million in 2017. The company chooses to use revaluation accounting to account for the land. The land's value fluctuates as follows (all amounts in thousands as of December 31): 2017, V450,000; 2018. V360,000, 2019, V385,000; 2020, ¥410,000, and 2021, V460,000.
Instructions
Complete the following table below.
Value at Other Comprehensive Accumulated Other Recognized December 31 Income Comprehensive Income Net Income 2017
2018
2019
2020
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Question C5
Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows:
Income statement
OMR in million
Revenue
312
Cost of sales
(177)
Gross profit
135
Distribution expenses
(36)
Administrative expenses
(15)
84
Rental income
14
Operating profit
98
Interest payable
(13)
Profit before taxation
85
Taxation
(18)
Profit for the year
67
Balance sheet as at 31st Dec 2020 and 2019
2020
2019
OMR in million
OMR in million
Non – current assets
Property, plant and equipment
Land and buildings
155
155
Plant and machinery
157
163
312
318
Current assets
Inventories
18
21
Trade receivables
73
70
Current liabilities…
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1. A restaurant has traditionally used the straight line method to depreciate all its heavy duty kitchen equipment. This year it decides to start using the double declining balance depreciation method on the same equipment. This change must be announced in the financial statements due to the _______ principle.
Choices:
a. Full disclosure principle
b. Time period assumption
c. Materiality constraint
d. Cost Principle
e. Revenue recognition principle
f. Conservatism Constraint
g. Matching principle
h. Economic entity assumption
i. Monetary unit
j. Going concern
k. Some other answers
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part 1 A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USD Honda Motor car purchased in May 2022 38,000 Heavy Equipment 50,000 Computer (CPU) 4,000 Factory Buildings 72,000 i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis.
FIND
SWFT Comprehensive Volume 2019
42nd Edition
ISBN: 9780357233306
Author: Maloney
Publisher: Cengage
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Chapter 16 : Accounting Periods And Methods
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Section: Chapter Questions
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Problem 4RP
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Question 3
On 1 April 2018, Accra Ltd acquired office accommodation at a cost of GH¢45 million with a 30- year estimated useful life. During the year, the property market in the area slumped and the fair value of accommodation fell to GH¢37.5 million at 31 March 2019 and this was reflected in the financial statements. However, the market unexpectedly recovered quickly due to the announcement of major government investment in the area’s transport infrastructure. On 31 March 2020, the valuer advised Accra Ltd that the offices should now be valued at GH¢52.5 million. Accra Ltd has charged depreciation for the year but has not taken account of the upward valuation of the offices. Accra Ltd uses the revaluation model and records any valuation change when advised to do so.
Required:
Show how the above issues will be accounted for in the year ending 31 March, 2020 in the income statement and the statement of financial position
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a gain of $40.
a loss of $40.
a gain of $200.
neither a gain nor a loss.
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- Part One DaYs Sales Outstanding Data: 2018: 26.05 2019: 32.25 2020: 29.69 2021:36.43 2022: 35.05 Based on your analysis from Part One, which of the following transactions and events would result in an improvement in Days Sales Outstanding in year 2022? A) recognising the impairment of plant & equipment B) the recognition of income tax expense owing at the end of the period C) recognising the increase in market value of land D) A and B only E) A and C only F) B and C only G) All of the above H) None of the abovearrow_forwardQ6. Identify the correct statement in each group? Note: There is one correct answer in each group of 3 - select the appropriate letter(i) If Property, plant and equipment is revalued upwards at the start of the year it will resultin:A. A higher profit for the yearB. No change to profit for the yearC. A lower profit for the year(ii) Property, plant and equipment revaluations:D. The revaluation gain is released to the Statement of profit or loss when the asset is soldE. PPE can only be revalued if a fair value can reliably be determinedF. Where a policy of revaluation is chosen, the asset must be revalued each yeararrow_forwardquestion 1 part 1 A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis. Part BOMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A…arrow_forward
- 1 part 1 A company resident in Trinidad and Tobago purchased the following assets in 2022: Asset Cost $ USDHonda Motor car purchased in May 2022 38,000Heavy Equipment 50,000Computer (CPU) 4,000Factory Buildings 72,000i. What would be the difference in capital allowances for 2023 if this company was resident in Jamaica instead of Trinidad and Tobago. ii. State two reasons for the difference. iii. Explain two circumstances in which obtaining capital allowances on the reducing balance basis may be more beneficial than on the straight-line basis. Part BOMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the companyspent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A motor…arrow_forwardPart C1 and C2 C1 Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2021, for $60,000. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) C2 Assume that this equipment account represents the cost of 5 identical machines. Prepare the journal entry for the sale of the machine to calculate the gain or loss on the sale of one of the machines on January 2, 2019, for $60,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125arrow_forwardQUESTION 3 MacPro Property Bhd acquired an investment property on 1 January 2015 and measured it using the cost model. On 1 January 2018, MacPro Property Bhd changed the accounting policy and used the fair value model to measure investment property. The acquisition cost of the property was RM70 million and the estimated useful life was 35 years. The fair values of the property were measured as below: Date RM (in million) 31/12/2015 72 31/12/2016 74 31/12/2017 78 31/12/2018 83 Profit after depreciation on investment property but before tax for 2017 and 2018 were RM80 million and RM95 million, respectively. Retained earnings brought forward on 1 January 2017 and 2018, were RM150 million and RM210 million, respectively. Assume that tax rate for 2017 and 2018 was 25%. REQUIRED: Discuss the accounting treatment of the above transaction in accordance to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Prepare the…arrow_forward
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