Stock options prices are affected by a number of factors and arbitrage arguments are used to find the fair values of these options.

(1)    Explain the three reasons why the early exercise of an American call option on a non-dividend paying stock is never optimal.

(approx. 100 words)

Raymond opened the Muscles Fitness Gym in August. The Following transactions occurred during the first month of the business:

a) Raymond invested P100,000 in cash and 30,000 in gym equipment in the business.

b) Paid P10,000 for the first month’s rent.

c) Purchased supplies costing P4,000 on credit.

d) Purchased exercise equipment costing P25,000 for 15,000 cash and the rest on account.

e) Recorded income for the first half of the month of P6,500 in cash and P3,500 on account.

f) Paid P2,750 to a creditor on account.

g) Received payment from a customer on account for P1600.

h) Raymond withdrew P500 for a graduation gift.

i) Paid aerobics instructor her salary, P3,000.

j) Paid miscellaneous expense P1,500

k) Recorded income for the second half of the month of P5,600 in cash.

Prepare a new accounting equation every time a transaction occurs.

Kozlov Corporation has provided the following data from its activity-based costing system:

The company makes 440 units of product A21W a year, requiring a total of 820 machine-hours, 50 orders, and 20 inspection-hours per year. The product's direct materials cost is $35.32 per unit and its direct labor cost is $29.32 per unit. According to the activity-based costing system, the average cost of product A21W is closest to:

$97.38 per unit.

$68.14 per unit.

$64.64 per unit.

$95.76 per unit.

$52.25 per unit.

Cost of Production and Journal Entries

Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March.

a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production.

a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.

a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

b. Determine the Work in Process—Papermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.
$

Please answer the following Question in 300 word count Please answer in your own Count. if citing source please add reference at the end of question.

You are the chief financial officer (CFO) at a community hospital. One of the comments that has come back from patient surveys is the need for a commercial 24-hour pharmacy within the hospital. In this way, patients or their families will be able to fill prescriptions and begin taking ordered medication right away instead of waiting until the following day. The chief executive officer (CEO) wants you to create a proposal for the first 3 months of operation utilizing time value of money tools for the development of this new revenue-generating department. The following points must be covered in your proposal:

• Include and discuss the need for working capital to include 2 months of startup drug inventory, vendor financing arrangements, personnel costs including salaries and benefits, renovations, disposable supplies, and cost of equipment

In determining the meaning of a contract under the UCC, which of the following will have first priority?

A. Course of Performance

B. Course of Dealing

C. Usage of Trade

D. Express Terms

1. Net Income:
2. Ending Balance Retained Earnings:
3. Total Assets or Total Liabilities and Owners’ Equity:

Hirsch Company buys inventory for $10,000 on terms of 1/10, n/30. It pays within the discount period.

Last year Strimmenos Inc. budgeted for production and sales of 9,000 units. The company actually produced and sold 8,640 units. Each units has a standard requiring 0.5 pounds of materials at a budgeted cost of $2.33 per pound and 1.36 hours of assembly time at a cost of $8.95 per hour. The items sell for $165 each. Actual cost for the production of 8,640 units included 4,538 pounds of materials at $2.3 per pound and $109,400 for labor at $9.24 per hour.

Required:

Calculate the following (label each result as favorable or unfavorable )

A. Material price variance

B. Material quantity variance

C. Material cost variance

D. Labor rate variance

E. Labor efficiency variance

F. Labor cost variance

Senior management has asked you, as a department manager, to evaluate 2 potential products for implementation at JCC Hospital. The hospital has provided $10,000 funding for the project and, in compliance with the board of director’s direction for a minimum return of 12%, will only accept a project meeting, or exceeding, this requirement. You best friend, the hospital controller, has helped to develop the projected cash flows for both the addition of a new patient service (option A) and a refurbishment of an existing CT scanner:

1. Addresses at least 3 capital budget measures (payback period, NPV, IRR, etc.) based on the hurdle rate.
2. Present what you believe to be the major advantages and potential risks for implementing a new service or refurbishing an existing asset.

suppose, your company typically charges $150 per pair of shoes sold. You have received an order from a foreign distributor to buy 10,000 pairs at $95 per pair. Should you accept this new order? How do you decide? What is the decision rule to follow?

What are some quantitative and qualitative factors that should be considered?

At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million attributable to a temporary book-tax difference of $100 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $64 million. Payne has no other temporary differences. Taxable income for 2021 is $180 million and the tax rate is 25%. Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2021.

Required:1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized.2. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.

.

.Need Answer ASAP

E14-19 (LO4) (Fair Value Option) Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay’s Bank and has the following data related to the carrying and fair value for these notes. Any changes in fair value are due to changes in market rates, not credit risk.

Instructions

(a)Prepare the journal entry at December 31 (Fallen’s year-end) for 2017, 2018, and 2019, to record the fair value option for these notes.

(b)At what amount will the note be reported on Fallen’s 2018 balance sheet?

(c)What is the effect of recording the fair value option on these notes on Fallen’s 2019 income?

(d)Assuming that general market interest rates have been stable over the period, does the fair value data for the notes indicate that Fallen’s creditworthiness has improved or declined in 2019? Explain.

Please copy and paste answer not attachment.

Problem 11-14 Measures of Internal Business Process Performance [LO11-3]

For its first year if operations, Altitude Inc. reports pretax GAAP income of $100,000 in 2020. Assume pretax income in 2021 and 2022 of $125,000 and $90,000 respectively. The enacted income tax rate in all years is 25%. The following additional information is available for the first three years of operation (with the exception of the one item in the 4th year).

• Prepaid rent in the amount of $20,000 was recorded on December 21, 2020 for 2021 rent.
• A warranty accrual of 30,000 was recorded on December 31, 2020. The warranty was paid evenly over the years 2021-2023.
• The company recorded interest revenue of $500 each of the three years on municipal bonds.

1. Compute the income tax payable each year for 202, 2021, 2022
2. Determined the balance of any deferred tax assets or deferred tax liabilities at the end of each year (2020, 2021, 2022)
3. Record the journal entry related to taxes in 2020, 2021, 20222