Mrs. Newford is a 74-year-old patient who lives in a retirem…

Mrs. Newford is a 74-year-old patient who lives in a retirement community, where she happily participates in activities with other residents. Her medications include a beta blocker, anti-inflammatories for arthritis, and a diuretic. She also says she takes over-the-counter antacids frequently for heartburn. When you ask how many times a day she takes the anti-inflammatories, she hesitates before answering, “Two, I think.” Which of the following actions might you take to help Mrs. Newford?

Question 18  (6% total) Given the following situations, iden…

Question 18  (6% total) Given the following situations, identify whether each would require retrospective accounting treatment or prospective accounting treatment: Switching from FIFO to Average Cost for inventory when it is practical to estimate the change.   Switching from a 3 year useful life to a 5 year useful life to depreciate a machine.   Switching from percentage of completion to completed contract method for revenue recognition of long-term projects.   Switching from double-declining balance to straight line for depreciation.   Switching from expecting 3% of Accounts Receivable to be uncollectible to 5%.   Selling shares in another company that reduces our ownership stake from 30% to 15%.

Question 19 (7% total) HoneyBunny, Inc. purchased a machine…

Question 19 (7% total) HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000.  At the time of the purchase, they estimated that the machine would last 6 years and have a salvage value of $90,000.  They begin depreciating the machine using the straight-line depreciation method.  On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years.    19) What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine? 

Questions 9 – 12 (15% total) On 1/1/2012, Marcellus Inc ente…

Questions 9 – 12 (15% total) On 1/1/2012, Marcellus Inc enters into a 10-year non-cancellable lease for a piece of machinery owned by Mia, Inc.  The lease calls for annual payments of $10,000, payable at the beginning of each year of the lease (first payment due 1/1/2012).  At the end of the lease, ownership transfers to Marcellus, Inc.  Mia, Inc purchased this machine on 12/31/2011 for $50,000, and the economic life of the machine is thought to be 20 years.  Marcellus uses a 6% discount rate for present value calculations, while Mia uses 8%.  9)What type of lease is the from the perspective of Mia, Inc?    10) What (if any) journal entries should Mia, Inc. record on 1/1/2012 (ignoring depreciation)?          11) What (if any) journal entries should Mia, Inc. record on 12/31/2012, assuming Mia prepares financial statements annually on 12/31?  (ignoring depreciation)           12) How much is Mia, Inc.’s net income impacted as a result of this lease in 2012?  (ignoring depreciation)