I

Imolicit interest rate l4o/o 4.r.,

Present value of an annuity of 1 in advance for 10 periods dt L4o/o 5.g5 2l) v 'r
Present value of an crdinary annuity of 1 for 10 periods 5.22
Present value of 1 for 1O periods at l4o/o o.27
!!{g$-g residual value loo,ooo L+(
48. How much is the depreciation expense for the year 2At7? ,rr,,ui lrr :,
-L;;,;')-
, a. 24o,7oa c. t92,2SO l€ z/ . ::_i 7..,_:_J..' _ n:{
' b. 2oo,5g3 d- 23a,7a0 t : 7r_
.. 49. How much should chicago company recosnize as losg*g.-!! tinpp-9-rs.1s!ft"- -ifi tJ? (E{J *ur" rc"="o asset is
r. Bro;Q9lftren returned io Bults
a. 30,000
Co.? 1ia-' i^::i
c. 100,000 l'.\ -
i, ,,
b. 70,000 d. 0 I .
,'.-,
\'- , *i-
Miami Company leased equjpment from Heat Inc. on J.u-iy-1, 2+L7-for an 8-year period. lqual
ir,- -payments
.
under the lease are
f900-,Q00tnd are due on.JY-) of each year. The first payment was made on fql-y \39t2. The interest rate conteqphted by Miami
and Heat is-10!. The carffirralue of the equipment on ileat's accounting reccrdsl5,p2,B0o,oo0. Residual ,uf uu fnrrgorgqOalir,"
end of lease term is guaranteed-by Miami. The lease is appropriately recorded as a sal6i$ftluas'e.

Present value of an annuity of 1 in advance for B periods at 10o/o 5.87 i;)i;<-

Present value of an ordinary annuity of 1 for 8 periods at 10o/o 5.33
Present value of 1 for B periods at 10o/o 0.47 41 ;
"t 50. How much is the d,e-aler's profit-that Heat Inc. should recognize for the year 2Ol7? ;p! 1,,ini tp'. i,us
a. 722,000 c. 769,000 'sq..L2 frva.n U21K
b. 3\a:) -
:^31a;
384,500 d. 48,063 ,

i 51. How much is the sales that shoutd be recognized by Heat Inc.?
1; ;;l t ..-)'.t'/
. ;- t
,):t<
, ,r/ r,-
ilr""t .,
3,522,000 c. 3,245,000
b. 3,569,000 d. 3,198,000 I

t- 52' How much is Ure SlEt-,olgoods sold. that should be recognized by Heat Inc. assuming the residual value is
urguqa-OieedZ-
e. 2.800.000 c.3,569,000
5. 2.753,CO0 d.3,522,000
Or !pr'! ':.20L7, Golden State Company ieased a delivery truck from Warriors Company under 6 five-fear operating
rent rcr ine terrn of the lease will be payable as follows: lease. Total
First 9 months at P 2OO,OOO/mo.
Next 18 months at 1O0,OOO/mo.
Next 12 months at BO,OOO/mo. iyi,^, Qp,Ni1',,,
Last 14 months at
Last 7 months at
50,000/mo.
70,000/mo.
_?'.,,- .Ir,r
:',
1-:.'rrt , 't- * ,l ,:: .fr?.;;
53' How much should Golden state company report as r9r!t grpgll,eg for the year ended December 3L, 2ol:7?
a. 862,500
b. 1,150,000
c. 1,800.000
d. 5,750,000

The accountant of Gambit Company presented to you the following information

income tax related balances:
in line with your 2015 audit of Gambit company,s

Pre-tax financial income

Impairment loss on Machinery
P 3,000,000 zt-:
50,000
Unearned rental income
Prepaid advertising expense
350,000 ,fr,I trn'i'i
-i6.j '?';'*
Interest income o,i ti"iu J.posit
it"'"1,y/i Rtl") ?ravn tlii.
250,000
80,000
*) ,'fr|';
Excess tax depreciation over accoUnting depreciation
Installment sale which will be recognized as taxable income upon collection
Bad debts expense using a method under accrual basis
420,000
900,000
75,000
k[:,9\il*
Provision for warranty
Income.tax rate is constant at 30o/o for all years
1BO,O00 ihr #[::H t

:r 54. How much is the deferred tax asset at December 31, 2O15?
ir a. 196,500 b. 47I,OOO c. 191,500 d. 495,000
,: 55. How much is the deferred tax liability at December 31, 2Ol5?
a. 196,500 b. 47L,OOA c. 1g1,50O d. 495,000

sorcerer's stone company had the foflowing ordinary share activity in 2417:
January 1- 5OO,0OO ordinary shares outstanding 5n,i *Lr ',1, ,7
i{-I--
March 1- Issued new 60,000 ordinary shares b1'r: .. ? I to'.,ru= int-
lune 1- Ordinary share was split 2 for 1
\
November 1- Reacquired 48,000 ordinary shares uik Y L,'i-L
r ('^
=
u * N(91_ '..1','{

PREWEEK-FATI BATCH 3' }