The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek Isabel Meredith George $600,000 640,000 500,000 500,000 2 years 3 years Today 1 year Required:Assuming an annual discount rate of 9%, which of the four actors is actually being paid the most?

The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek Isabel Meredith George $600,000 640,000 500,000 500,000 2 years 3 years Today 1 year Required:Assuming an annual discount rate of 9%, which of the four actors is actually being paid the most?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 4RE

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Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows:Benefit CostHealth insurance—single $ 5,000Health insurance—with spouse $ 8,000Health insurance—with spouse and dependents $ 11,000Dental and vision $ 1,500Dependent care—any specified amount up to $5,000 VariableAdoption benefits—any specified amount up to $5,000 VariableCash—any specified amount up to $15,000 plan benefit Variable401(k)—any specified amount up to $10,000 VariableFor each of the following independent circumstances, determine the amount of income Matt must recognize and the amount of deduction Fresh may claim: (Leave no answer blank. Enter zero if applicable.)Problem 12-49 Part b (Static) a) Matt elects the single health insurance benefit and places 10,000 dollars in his 401Kb) Matt selects the single health insurance benefit, is reimbursed $5,000 for dependent care,…
Doctors Mobey, Oak, and Chesterfield have been in a group practice for several years. Mobey and Oak are family practice physicians, and Chesterfield is a general surgeon. Chesterfield receives many referrals for surgery from his family practice partners. Upon the partnership’s original formation, the three doctors agreed to a two-part formula to share income. Every month, each doctor receives a salary allowance of $3,000. Additional income is divided according to a percent of patient charges the doctors generate for the month. In the current month, Mobey generated 10% of the billings, Oak 30%, and Chesterfield 60%. The group’s income for this month is $50,000. Chesterfield has expressed dissatisfaction with the income-sharing formula and asks that income be split entirely on patient charge percents. Required 1. Compute the income allocation for the current month using the original agreement. 2. Compute the income allocation for the current month using Chesterfield’s proposed agreement.…
Stockton Labeling Company has a retiree health care plan. Employees become fully eligible for benefits after working for the company eight years. Stockton hired Misty Newburn on January 1, 2021. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $15,000. The actuary’s discount rate is 10%. Required:Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2021-2028. (Due to rounding 2020 EPBO may not equal to total total expense. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
3. Please complete the journal entries for this St. Joseph’s Hospital began operations in December 2023 with patient service revenues totaling $980,000 (based on customary rates) for the month. Of this, $207,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third-party payors, including insurance companies and government health care agencies. St. Joseph’s estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment. The hospital’s fiscal year ends on December 31. Required: Prepare the journal entries for December 2023. Assume 15 percent of the amounts billed to patients will be reduced through implicit price adjustments. Prepare the journal entries for 2024 assuming the following: $102,000 is collected from the patients during the year, and $9,800 of price adjustments are granted to individuals. Actual contractual adjustments total $157,000. The remaining receivable from…
Stockton Labeling Company has a retiree health care plan. Employees become fully eligible for benefits after working for the company eight years. Stockton hired Misty Newburn on January 1, 2021. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to Newburn during her retirement years to have a present value of $18,000. The actuary’s discount rate is 10%.Required:Prepare a schedule that shows the EPBO, the APBO, the service cost, the interest cost, and the postretirement benefit expense for each of the years 2021–2028.
Oregon Co.‘s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and they have completed 35 years of service. The benefits provide 15 years reimbursement for health cate services of $35,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 2000 by Oregon after turning age 22 and is expected to retire at the end 2038 (age 60). The discount rate is 5%. The plan is I funded PVOA $1 n=15 I=5% 10.37966 PV $1 n=2 i= 5% is .90703 With respect to Ralph, what is Oregon’s expected postretirement benefit obligation at the end of 2036, rounded to the nearest dollar?
Mo Salah is employed by Liverpool Limited. The normal working week is 45 hours. Mo Salah worked for 48 hours during the last week of March 2022. He is remunerated at R90 per hour during normal working hours. Overtime is calculated at 1.5 times the normal rate. The following are her deductions for the week:· Medical aid fund R400· Pension fund 8% of the normal wages· Income tax R850Liverpool Limited contributes the same amount as the employees towards the medical aid fund and pension fund.Required:Calculate the net wage of Mo Salah for the last week of March 2022.
As part of the most recent collective bargaining agreement with employees, an employer must offer medical insurance at "reasonable, non-profit rates." The employer plans to self-insure in place of using a private insurance company. Statistical evidence suggests that the average household currently spends $450 per year for medical bills and $80 for health screening and routine check-ups. Administrative costs are expected to average $30 per family. The collective bargaining agreement dictates that the plan's coverages and rates be fixed for a period of two years. The auditor considers the choice of the plan to be extremely important. Consequently, the auditor has asked you to evaluate the three proposals listed below. Proposal A would charge a $350 premium with no deductible. Coverage is extended to pre-existing conditions, but to cover the non-deductible clause, health screening and routine check-ups are not covered. Proposal B charges a $250 premium with a $200 deductible. The…
A company recently appointed a senior manager from a main competitor. As part of the benefits discussion between the new manager and the company, it was agreed that a defined benefit scheme would be for a single member, the new manager, and consist of the following benefits: members will receive 4% of their final salary for each year of service. The manager earned a salary of £700,000 for the year 2020 and will increase at a rate of 2% per year beginning in 2021. The new manager has signed a 10 year contract and, subsequently, there is considered to be no possibility of the manager resigning or retiring before the end of the 10 year period. The discount rate applicable to the pension scheme is 10%. Kindly do the table, journal entries and slight expalnations and how does it affect Statement of profit or loss and Statement of financial position.
Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows: Benefit Cost Health insurance—single $ 5,000 Health insurance—with spouse $ 8,000 Health insurance—with spouse and dependents $ 11,000 Dental and vision $ 1,500 Dependent care—any specified amount up to $5,000 Variable Adoption benefits—any specified amount up to $5,000 Variable Cash—any specified amount up to $15,000 plan benefit Variable 401(k)—any specified amount up to $10,000 Variable For each of the following independent circumstances, determine the amount of income Matt must recognize and the amount of deduction Fresh may claim: (Leave no answer blank. Enter zero if applicable.) ANSWER IS NOT 5,250 or 5,000, or 0 for Fresh may deduct b. Matt selects the single health insurance benefit, is reimbursed $5,000 for dependent care, and takes the remainder in cash. Matt must…
Markie is employed by Holy Cross as an ambulance driver with a salary of Php. 20,000 a month. In addition, he is given free meals with a monthly value of Php. 4,500 and living quarters within the hospital compound with an equivalent value of Php. 2,000 a month. The monthly taxable compensation income of Markie is: A. Php. 20,000 B. Php. 24,500 C. Php. 26,500 D. Php. 22,500. Asap
The 40-year-old makes a contract by paying the 6500 TL he has to the insurance company. If the evaluation is made with 3% interest rate, how much can the person receive when he reaches the age of 70?