Sharon made a $60,000 interest-free loan to her son, todd, who used the money to start a new business. todd’s only sources of income were $25,000 from the business and $490 of interest on his checking account. the relevant federal interest rate was 5%. based on the above information: a. todd’s business net profit will be reduced by $3,000 (.05 × $60,000) of interest expense. b.sharon must recognize $3,000 (.05 × $60,000) of imputed interest income on the below- market loan. c.todd’s gross income must be increased by the $3,000 (.05 × $60,000) imputed interest income on the below market loan. d.sharon does not recognize any imputed interest income and todd does not recognize any imputed interest expense. e.none of the above is correct.

Rats that received electric shocks were unlikely to develop ulcers if the

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.

At cooly cola, we are testing the appeal of our new diet one cola. in a taste test of 250 randomly chosen cola drinkers, 200 consumers preferred diet one cola to the leading brand. assuming that the sample were large enough, the large-sample 95% confidence interval for the population proportion of cola drinkers that prefer diet one cola would be: