Problem 4. Masagana Corporation has a PI,500,000 credit balance of Accumulated Profits (Losses) in 20A. The following transactions are taken from the 20B operations: a) net loss, P250,000 b) purchase of treasury shares at cost, P120,000 c) overstatement of depreciation in 20A, P40,000. d) declaration of dividends, P450,000. e) reversal of appropriation reserve for plant expansion, P500,000. f) understatement of inventory in 20A; P75,000. Required: 1. Journalize the above transactions 2. Compute the adjusted accumulated profits (losses) at the end of the year

4. Reed Corporation has a deficit in accumulated E & P of $300,000 and has current E & P of $225,000. On 12/31/19, Reed distributes $250,000 to its sole shareholder, Sam, who has a basis in his stock of $55,500. Required: Calculate the following at the Corporation level. a. Dividend distributionb. ROCc. Ending Accumulated E&P at 12/31/19. 5. Tan Corporation has Accumulated E & P of $250,000. Current year E&P of 50,000.It distributes land with a fair market value of $75,000 (adjusted basis of $90,000) to its sole shareholder, Troy: a. What is Troy’s Dividend income?b. How much is added/subtracted in calculating Tan’s E&P

Bayelsa Corp. had the following transactions in the current year: Short term capital gain Short term capital loss Long term capital gain Long term capital loss If Bayelsa has taxable income of $70,000 before considering the capital transactions, what is Bayelsa's net capital loss that cannot be deducted in the current year? O SO $12,000 -$3,000 $5,000 -$16,000 O $19,000 net capital loss O $11,000 net capital loss O $2,000 net capital loss

Arizona Corp. had the following account balances at 12/1/19:  Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000.   Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000.   Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000.     Imagine you are the decision maker at Inglewood Inc.   Prepare a fair value allocation and goodwill schedule at the date of the acquisition.    Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationa