An automobile insurance company claimed that, because of the Covid-19 pandemic, resulting in less automobile driving, they have reduced the monthly premiums that they charged per automobile by at least $50 per month on average. To test this claim, a random sample of 22 automobile policies were allowed to be looked at. This random sample compared the monthly premiums in June, 2020, with the monthly payment before the pandemic (February, 2020) and it was calculated that the monthly premium in June dropped by an average of $44 and that the standard deviation in this this drop in premiums was calculated to be $12.00. At the .05 level of significance, is there sufficient evidence that the insurance company’s claim is false? In answering this question, complete the following in the spaces provided (including diagrams):

Please provide hypothesis, test staistic, decision rule, p-value, and conclusion.

Facts:

There is a home you want to purchase with a selling price of $220,000. You have saved $42,000 for a down payment. The bank charges 2 points on the balance of the note (before taking fees into account) in exchange for a 3% rate. The bank also charges financing fees of $800. You request that the fees and points be added to the balance of the mortgage, which the bank agrees to.

Required:

Based on the preceding facts, prepare an amortization table for the mortgage assuming a 30 year note, and another amortization table assuming a 15 year note. Assume you take the loan out on July 1, 2020, and the first payment is due July 31, 2020. For each note, calculate the effective interest rate assuming the note is held to maturity.

CP 9‐5

Paul’s Roofing Corporation paid monthly corporate income tax

installments of $500 commencing February 15, 2019. The company’s

income before income taxes for the year ended December 31, 2019

was $15,000. The corporate income tax rate is 40%. Paul’s Roofing paid

the 2019 corporate income taxes owing on January 31, 2020.

CHAPTER NINE / Debt Financing: Current and Non‐current Liabilities First US Edition

Required:

1. Record the February 15, 2019 payment.

2. Record the 2019 corporate income tax expense.

3. Record the January 31, 2020 payment.

Descriptions and general ledger account numbers are not necessary.

Show calculations where applicable.

Whispering Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $104,000 40 % 2020 (234,000) 40 % 2021 260,000 20 % 2022 130,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Whispering began business. The tax rates from 2019–2022 were enacted in 2019. Partially correct answer iconYour answer is partially correct. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Whispering expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2021 2022 eTextbook and Media List of Accounts Partially correct answer iconYour answer is partially correct. Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Whispering Inc. Income Statement (Partial) $ $ eTextbook and Media List of Accounts Partially correct answer iconYour answer is partially correct. Prepare the portion of the income statement, starting with “Income before income taxes,” for 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Whispering Inc. Income Statement (Partial) $ $ $

only journal entries

The following information was available to reconcile Montrose Company’s book balance of Cash with its bank statement balance as of October 31, 2020:

a. After all posting was completed on October 31, the company’s Cash account had a $13,219 debit balance but its bank statement showed a $29,355 balance.
b. Cheques #296 for $1,334 and #307 for $12,754 were outstanding on the September 30 bank reconciliation. Cheque #307 was returned with the October cancelled cheques, but cheque #296 was not. It was also found that cheque #315 for $893 and cheque #321 for $2,000, both written in October, were not among the cancelled cheques returned with the statement.
c. In comparing the cancelled cheques returned by the bank with the entries in the accounting records, it was found that cheque #320 for the October rent was correctly written for $4,090 but was erroneously entered in the accounting records as $4,900.
d. A credit memo enclosed with the bank statement indicated that there was an electronic fund transfer related to a customer payment for $21,400. A $120 bank service charge was deducted. This transaction was not recorded by Montrose before receiving the bank statement.
e. A debit memo for $3,251 listed a $3,202 NSF cheque plus a $49 NSF charge. The cheque had been received from a customer, Jefferson Tyler. Montrose had not recorded this bounced cheque before receiving the statement.
f. Also enclosed with the statement was a $74 debit memo for bank services. It had not been recorded because no previous notification had been received.
g. The October 31 cash receipts, $6,856, were placed in the bank’s night depository after banking hours on that date and this amount did not appear on the bank statement.

1. Matt recently deposited $30,000 in a savings account paying a guaranteed interest rate of 5 percent for the next 10 years. If Matt expects his marginal tax rate to be 22 percent for the next 10 years, how much interest will he earn after-tax after the seventh year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns?

1. Dana intends to invest $25,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax. Dana’s federal marginal rate is 25 percent and her marginal state rate is 10 percent. What is the amount by which the yield on the corporate bond exceeds the yield on the Treasury bond.  Assume that Dana itemizes her deductions and that any state income tax would be fully deductible.  

1. Hayley recently invested $55,000 in a public utility stock paying a 3 percent annual dividend. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in four years if the dividends paid are qualified dividends? (Hayley’s marginal income tax rate is 32 percent.)

1. John bought 1,000 shares of Intel stock on October 18, 2018 for $35 per share plus a $750 commission he paid to his broker. On December 12, 2020, he sells the shares for $48.50 per share. He also incurs a $1,000 fee for this transaction. What is the gain/loss for John on the sale of his Intel stock?

Heather owns a two-story building. The building is used 40% for business use and 60% for personal use. During 2020, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed.

If an amount is zero, enter "0".

a. Determine the business and personal gain or loss in regard to the building and its contents.

b. Heather's AGI is $100,000 before considering the effects of the fire. Determine her itemized deduction and AGI after considering the effects of the fire.

Two 1.9 kg balls are attached to the ends of a thin rod of negligible mass, 62 cm in length. The rod is free to rotate in a vertical plane about a horizontal axis through its center. With the rod initially horizontal as shown, a 0.42 kg wad of wet putty drops onto one of the balls with a speed of 3.2 m/sec and sticks to it.

1)

What is the ratio of the magnitude of angular momentum of the entire system just after the collision to just before the collision? (|L|_after/|L|_before)

2)

What is the angular speed of the system just after the putty wad hits?

rad/sec

3)

What is the ratio of the kinetic energy of the entire system just after the collision to just before the collision? (KE_after/KE_before)

4)

Through what angle will the system rotate until it momentarily stops?

1. Are professional jobs held in the computing industry independent of the number of years a person has worked in the industry? Suppose 246 workers are interviewed. Use the results to obtained to determine whether type of professional job held in the computer industry is independent of years worked in the industry. Take a = 0.0

Professional position