Required: For each of the following independent errors, indicate the effect on net income on the Income Statement and the stockholders’ equity section of the Balance Sheet over a two-year period. NOTE: If you are having trouble clicking on any field, try using the Tab key to switch between fields. A. Ending inventory in 20X2 overstated. 20X2 Income Statement [1] 20X2 Balance Sheet [2] 20X3 Income Statement [3] 20X3 Balance Sheet [4] B. Failed to accrue 20X2 interest revenue. 20X2 Income Statement [5] 20X2 Balance Sheet [6] 20X3 Income Statement [7] 20X3 Balance Sheet [8] C. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to maintenance expense in 20X2. 20X2 Income Statement [9] 20X2 Balance Sheet [10] 20X3 Income Statement [11] 20X3 Balance Sheet [12] D. Failed to count office supplies on hand at 12/31/X2.  Cash expenditures have been charged to an office supplies expense account during the year 20X2. 20X2 Income Statement [13] 20X2 Balance Sheet [14] 20X3 Income Statement [15] 20X3 Balance Sheet [16] E. Failed to accrue 20X2 wages. 20X2 Income Statement [17] 20X2 Balance Sheet [18] 20X3 Income Statement [19] 20X3 Balance Sheet [20] F. Ending inventory in 20X2 understated. 20X2 Income Statement [21] 20X2 Balance Sheet [22] 20X3 Income Statement [23] 20X3 Balance Sheet [24] G. Overstated 20X2 depreciation expense; 20X3 expense correct. 20X2 Income Statement [25] 20X2 Balance Sheet [26] 20X3 Income Statement [27] 20X3 Balance Sheet [28]

The Rebels Partnership, consisting of partners Jarrus, Bridger, and Orrelios, liquidated its business in 20X1. Due to an expected long liquidation period, a cash distribution plan was developed. The initial sale and realization of cash from noncash assets resulted in partner Jarrus properly getting $24,000. No other partners received cash along with Jarrus. Based on this information, which of the following statements is correct? I. Jarrus’s loss absorption potential (LAP) was higher than Bridger’s LAP and Orrelios’s LAP.II. Jarrus’s net capital interest was substantially larger than the net capital interests of Bridger and Orrelios.

In the Galaxy partnership (consisting of three partners – Tatooine, Naboo, and Coruscant), Tatooine’s capital is $80,000, Naboo’s is $75,000, and Coruscant’s is $50,000. They share income in a 3:2:1 ratio, respectively. Coruscant is retiring from the partnership. At the time of withdrawal, Galaxy conducted an appraisal and recorded a $12,000 decrease in the value of land. Coruscant is then paid $60,000 and no goodwill is recorded. What is Tatooine’s capital balance after Coruscant withdraws from the partnership?

Net income for “These Are the Droids You’re Looking For” Partnership (consisting of partners C-3PO and R2-D2) for 20X1 was $125,000. C-3PO and R2-D2 have agreed to distribute partnership net income according to the following plan: In addition, the partnership agreement provides that as part of the distribution of partnership net income, C-3PO is to receive 22% of net income as a salary and R2-D2 is to receive 24% of the net income after interest of average capital balances and the bonus as a salary. Additional information for 20X1: C-3PO began the year with a capital balance of $75,000. On March 1, C-3PO invested an additional $25,000 into the partnership, resulting in an average capital balance of $95,833. R2-D2 began the year with a capital balance of $100,000. On September 30, R2-D2 invested an additional $20,000 into the partnership, resulting in an average capital balance of $105,000. Required:  Complete the chart below to show the distribution of partnership net income between the partners for 20X1. Round all dollar amounts to the nearest dollar. Do NOT include the dollar sign ($). NOTE: If you are having trouble clicking on any field, try using the Tab key to switch between fields. C-3PO R2-D2 Interest on capital balances [1] [2] Bonus [3] — Salary [4] [5] Residual [6] [7]

Darth Vader Co. is in the process of determining its reportable segments for the year ended December 31, 20X1. As the person responsible for this determination, you gather the following information: With reference to the 75% comprehensive disclosure test, to the nearest whole percent, what is the percentage of external sales, rounded to the nearest whole percent, is ultimately separately reported after application of the revenue test, the operating profit and loss test, and the assets test?

Luke Skywalker, Inc. compiled the following information for the first three quarters of 20X1. Information regarding Quarters 1 and 2: Quarter 1 operating income = $150,000 Quarter 2 operating income = $250,000 The estimated effective tax rate for each of the first two quarters was 32%. Information regarding Quarter 3: Quarter 3 operating income = $200,000. The operating expenses factored into the calculation of third-quarter operating income include $72,000 incurred during the third quarter for an advertising campaign. Management expects that 75% of the benefit will occur in the third quarter and 25% of the benefit will occur in the fourth quarter. At the end of the third quarter, the estimated annual operating income is $950,000. Luke Skywalker, Inc. estimated its permanent differences between accounting income and taxable income and concluded that a dividend exclusion of $48,000 and an $80,000 payment of life insurance premiums were anticipated. The combined federal and state tax rate is 40%. What is the provision for income taxes (i.e., the income tax expense (benefit)) for the third quarter of 20X1? Round your answer to the nearest dollar.

FOR MULTIPLE CHOICE QUESTIONS: Select the response that best completes the statement or answers the question. Unless stated otherwise, round to the nearest dollar and assume all companies have a calendar year. FOR SHORT ANSWER QUESTIONS: Enter the response that best completes the statement or answers the question. Unless stated otherwise, round to the nearest dollar and assume all companies have a calendar year. FOR FREE-RESPONSE QUESTIONS: You should clearly support your answers with calculations, explanations, schedules, etc. Your final answer should be clearly designated as such. Unless stated otherwise, round to the nearest dollar and assume all companies have a calendar year. Your journal entries should be in the correct format. See the Journal Entry Formatting Guide below for reference. If you are not comfortable using the Table function, it is acceptable to use spaces or tabs to format your journal entries appropriately. You must use correct and complete account titles. At the discretion of the instructor, the use of any unapproved and unacceptable abbreviations may result in the loss of points. If you decide to present your numbers in thousands, please indicate so and be consistent throughout the exam. Journal Entry Formatting Guide: Debit account 1 Debit amount 1 Debit account 2 Debit amount 2 Credit account 1 Credit amount 1 Credit account 2 Credit amount 2 FAILURE TO FOLLOW THESE INSTRUCTIONS WILL RESULT IN THE LOSS OF POINTS. By selecting “True” below, you certify that you have read and understood the above exam instructions.

The main reason for corporate involvement in community health is due to:

To retrain, re-educate, and rehabilitate a patient who has already incurred a disability is:

Porous, water-saturated layers of underground bedrock, sand, and gravel that can yield economically significant amounts of water are referred to as: