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:

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: When the performing the operating profit and loss test, the appropriate threshold is (i.e. the absolute value of each segment’s profit or loss must be equal to or greater than this amount to be separately reportable):

At the beginning of 2020, internal auditors discovered that Sarlacc, Inc. had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2017. The machine’s useful life was expected to be 5 years with no residual value. Straight-line depreciation is used by Sarlacc. The journal entry to correct the error will include a credit to accumulated depreciation of:

On January 1, 20X0, Boba Fett Inc. began operations and purchased equipment for use in his intergalactic bounty hunter enterprise for $20,000,000. Boba Fett uses a different depreciation method for financial reporting than it does for tax purposes. At December 31, 20X0, the carrying value of the equipment was $14,000,000 and its tax basis was $18,000,000. At December 31, 20X1, the carrying value of the equipment was $10,000,000 and the tax basis was $17,000,000. During 20X1, Boba Fett earned $5,000,000 in municipal bond income and paid $1,000,000 in fines and penalties for violating environmental laws regarding the appropriate disposal of space waste. Pretax accounting income for 20X1 was $25,000,000, which includes $2,000,000 of installment sales income that has yet to be collected. This income is expected to be collected evenly over the next four years. A tax rate of 32% applies to all years. Required: Use the field below to prepare the necessary journal entry(ies) regarding Boba Fett’s income taxes for 20X1.   Show well-labeled computations for the taxable income, income tax payable, and the beginning balance, ending balance, and change in the deferred tax accounts. Failure to show these computations will result in a loss of points.

Leia, Inc. has prepared the following comparative balance sheets for 20X3 and 20X4: Leia, Inc.’s income statement for 20X4 is as follows: Additional information: Leia sold equipment with cost of $40,000 and that was 50% depreciated for $30,000. Leia purchased patents valued at $30,000 by issuing 4,000 shares of common stock. Operating expenses on the income statement includes depreciation expense and amortization expense. Any inventory purchased is on account and recorded in the Accounts Payable account. The Accrued Liabilities account is used to record any payables associated with operating expenses. Required: Complete the following tasks. In good form, prepare a statement of cash flows (using the indirect method to depict operating cash flows) for Leia, Inc. for the year ended December 31, 20X4. Calculate the following cash flows to be shown in the cash flows from operating activities section of the statement of cash flows for 20X4 using the direct method. List your answers in the following order. Cash received from customers Cash paid to suppliers Cash paid for taxes Cash paid for operating expenses