1. Suppose that firms face 40% income tax rate on positive profits and that net losses receive no credit. (Thus, if profits are positive, after-tax income is (1 – 0.4) * profit, while if there is a loss, after-tax income is the amount lost.) Firms A and B have the same cash flow distribution as in problem 5 above. Suppose the appropriate effective annual discount rate for both firms is 10%?
   1. What is the expected pre-tax profit for A and B?
   2. What is the expected after-tax profit for A and B?
   3. What would Firms A and B pay today to receive next year’s expected cash flow for sure, instead of the variable cash flows described above?

Here I attach problem 5, so you can see the info for problem 6, problem 6 is the one that I want to get the answer.

Problem 5.

1. Suppose that firms face 40% income tax rate on all profits. In particular, losses receive full credit. Firm A has 50% probability of a $1000 profit and a 50% probability of a $600 loss each year. Firm B has a 50% probability is a $300 profit and a 50% probability of a $100 profit each year.

Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given:

rev: 06_09_2020_QC_CS-215744

3. Assume that sales in Chicago increase by $57,000 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.

a. Prepare a new segmented income statement for the company.

Mila De Jong is your client. She has emigrated from the Netherlands and has lived in the United States for the last 10 years. She is a naturalized U.S. citizen. Mila owns a small flower shop, which she runs as a sole proprietorship and reports her earnings on Schedule C. Mila usually keeps her receipts in a digital file and brings you a Excel spreadsheet in which she tracks her income and expenses by month for the year.

However, Mila does not understand the U.S. tax system and laws very well because in the Netherlands, there is a Value-Added Tax (VAT) system in which you can either deduct items or you cannot. She is not used to the “either or” scenario that standard deductions and itemized deductions present.

She has an appointment to come to your office this week. However, she will not be alone. She will be bringing her recently naturalized parents and her brother to file their tax returns as well. They too are equally confused about U.S. tax law. Excited at the prospect of two new returns that you can charge for, you decide to create a PowerPoint presentation for the family to explain things.

Explain the following points.

• Determining net business income and how it translates to personal income
• The rules governing the difference between standard and itemized deductions

EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat’s results for the last fiscal year are shown in the following statement.

EZ-Seat currently uses labor costs to allocate all overhead, but management is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining costs.

Required:

a. Complete the income statement using the preceding activity bases.

c. Restate the income statement for EZ-Seat using direct labor costs as the only overhead allocation base.

Sock Problem:
Your sock drawer is very unorganized! No socks are paired, and they are all just thrown randomly into the drawer. You do know that the drawer has four red socks and four blue socks in it. You want to get some socks to wear in the morning, but you do not want to turn on a light for fear of waking up your family.

If you draw two, what is the probability of a red pair match?

If you draw two, what is the probability of a match of any color?

If you draw three, what is the probability of a match of any color?

Describe your thinking and process

Can I have a two-page summary of the book of "Theory and Design for Mechanical Measurements", Sixth Edition starting from Chapter one to chapter seven? In your summery please show in your answer how each chapter is interconnected to each other

Can I have a two-page summary of the book of "Theory and Design for Mechanical Measurements", Sixth Edition starting from Chapter one to chapter seven? In your summery please show in your answer how each chapter is interconnected to each other