Problem 1-19 Filing Status and Tax Computation (LO 1.5) In the "Yes or No" column, select "Yes" if the filing status listed is available to unmarried individual taxpayers or "No" if it is not. Then, in the "Circumstance" column, select the circumstance under which the status can be used or select "Not applicable". a. Single b. Head of household c. Qualifying widow(er) Yes or No Circumstance

Exercise 4 (LO 3, 6) Fair value hedge with forward contract. Stark, Inc., placed an order for inventory costing 500,000 FC with a foreign vendor on April 15 when the spot rate was 1 FC $0.683. Stark received the goods on May 1 when the spot rate was 1 FC = $0.687. Also on May 1, Stark entered into a 90-day forward contract to purchase 500,000 FC at a for- ward rate of 1 FC = $0.693. Payment was made to the foreign vendor on August 1 when the spot rate was 1 FC = $0.696. Stark has a June 30 year-end. On that date, the spot rate was 1 FC = $0.691, and the forward rate on the contract was 1 FC = $0.695. Changes in the current value of the forward contract are measured as the present value of the changes in the forward rates over time and no separate accounting is given the time value of the contract. The relevant discount rate is 6%. %3D %3D %3D %3D 1. Prepare all relevant journal entries suggested by the above facts assuming that the hedge is designated as a fair value hedge.

Helen has just graduated from SFA with a degree in accounting and received two job offers: one from Deloitte with salary $105,000 per year, and the other from KPMG for $85,000. But Helen rejected both offers and stayed in East Texas to pursue her passion of teaching others to ride horses. She spends $25,000 per year on feed and supplies for her horses. Suppose Helen has 30 clients per year who each pay her $8,000 for a year of riding lessons. a. What are her accounting profits? b. What are her economic profits?

Ali is a member of a family that consists of him, his father, his mother and his older brother. Each member of the family has his own mobile phone. Each mobile phone is on a post-paid plan, for which a monthly bill is received at the end of each month. The electricity, on the other hand, is provided to the entire house in general, with one bill is received at the end of each month. The father has recently received the electricity bill for the month. and wishes to do some analysis of electricity consumption. Assuming that the value of the electricity bill is calculated based on a constant monthly subscription fee. In the above information, the cost of electricity to Ali is: а. A direct fixed cost O b. An indirect fixed cost Ос. An indirect, variable cost O d. A direct, variable cost е. An indirect mixed cost