A currently conducts a computer software manufacturing business as a sole proprietorship. With the assistance of B, a wealthy investor, A plans to incorporate and then expand the business. A will contribute the assets and liabilities of her proprietorship and B will invest enough cash to give him a 49% interest in the corporation. After numerous appraisals, lengthy negotiations and considerable expense, A and B have agreed that the net worth of A's proprietorship is $510,000, B thus will contribute $490,000 cash for his 49% interest.

To what extent do the following expenses incurred in connection with the incorporation constitute organizational expenditures that are either currently deductible or amortizable under §248.

(a) $3,000 in fees paid by A for appraisals of her proprietorship for purposes of the negotiations with B.

(b) Is there any difference in (a), if the appraisal fees are paid by the corporation?

(c) Legal fees paid by the corporation for the following services:

(i) Drafting the articles of incorporation, by laws and minutes of the first meeting of directors and shareholders.

(ii) Preparation of deeds and bills of sale transferring A's assets to the corporation.

(iii) Application for a permit from the state commissioner of corporations to issue the stock and other legal research relating to exempting the stock from registration under federal securities laws.

(iv) Preparation of a request for a §351 ruling from the Internal Revenue Service.

(v) Drafting a buy-sell agreement providing for the repurchase of shares by the corporation in the event A or B dies or becomes incapacitated. (d) Same as (c), except the legal fees are all paid by A.

(i) Drafting the articles of incorporation, by laws and minutes of the first meeting of directors and shareholders.

(ii) Preparation of deeds and bills of sale transferring A's assets to the corporation.

(iii) Application for a permit from the state commissioner of corporations to issue the stock and other legal research relating to exempting the stock from registration under federal securities laws.

(iv) Preparation of a request for a §351 ruling from the Internal Revenue Service.

(v) Drafting a buy-sell agreement providing for the repurchase of shares by the corporation in the event A or B dies or becomes incapacitated.

Define total revenue, marginal revenue, and average revenue. Discuss why the demand curve is represented by the marginal revenue curve for a perfectly competitive firm

Discuss the events that have contributed (or will continue to contribute) to the nursing shortage, or that contribute to a shortage in a region or specialty. Discuss at least one way that the nursing profession is currently working toward a resolution of this problem. In replies to peers, offer different examples of how the nursing shortage has been addressed in your state, community, or specialty area.

Allah, Ballah and Callah formed a Chartered Accountancy Firm in 2002. Their partnership agreement provided for the following:

1. Profits and Losses are to be shared as follows: Allah takes half, Ballah takes one-third and Callah takes the remainder.
2. Interest is to be charged on the partners’ drawings and capital balances at 3.5%vand 5% per annum respectively.
3. Allah, the administrative partner, is to be paid a monthly salary of GH¢2,400
4. Drawings by the partners were effected as follows:

Allah         GH¢36,000 on April 1,2004

Ballah        GH¢48,000 on June 30,2004

Callah        GH¢43,200 on September 30, 2004

In order to increase his capital contribution, Ballah, on July1,2004 released one of his private cars with a value of GH¢50,000 for exclusive use of the firm. He accordingly transferred the ownership of the car to the firm on the same date. On September 30,2004 it was further agreed that Allah should withdraw GH¢10,000 from his capital, while Callah should increase his capital by GH¢8,000.

The net profit for the year under consideration was GH¢71,565.

The partners credit balances as at January1, 2004 were as follows:

                                          Capital Account          Current Account

Allah                                 GH¢180,000                 GH¢10,500  

Ballah                                GH¢90,000                   GH¢8,200    

Callah                                GH¢62,000                    GH¢7,900   

Required: Prepare for the year ended 31^st December,2004

1. Profit and Loss Appropriation Account.
2. The Capital and Current Accounts of the partners in a columnar form.

In 1993, Nash Company completed the construction of a building at a cost of $2,040,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $59,200 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $510,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $20,400.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

Compute the annual depreciation that would have been charged from 2004 through 2022.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

In 1993, Windsor Company completed the construction of a building at a cost of $2,160,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $65,600 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $540,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,600.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

Compute the annual depreciation that would have been charged from 2004 through 2022.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

2. To raise awareness of its capabilities, FedEx developed a sales promotion that was sent to selected offices. To assess the possible benefit of the promotion, FedEx pulled the shipping records for a random sample of 50 offices that received the promotion and another random sample of 75 that did not and collected data on the number of mailings. They want to see if those who received the sales promotions shipped more mailings. The complete set of results is provided below (promotions columns). a. State the null and alternate hypotheses. b. Run the test. Paste the test output and state your decision (minitab - Stat-paired T-Test and CI). c. What is the best estimate for the population difference in means for the number of mailings between offices with the promotion and offices without the promotion? (Be 90% confident in your estimate for the confidence interval). d. Interpret the confidence interval in part c. e. What is the margin of error associated with 90% confidence interval?

Promotion   Mailings
Promotions_NO   15
Promotions_NO   49
Promotions_NO   42
Promotions_NO   22
Promotions_NO   26
Promotions_NO   35
Promotions_NO   38
Promotions_NO   13
Promotions_NO   35
Promotions_NO   14
Promotions_NO   5
Promotions_NO   64
Promotions_NO   27
Promotions_NO   57
Promotions_NO   50
Promotions_NO   43
Promotions_NO   32
Promotions_NO   39
Promotions_NO   13
Promotions_NO   19
Promotions_NO   47
Promotions_NO   45
Promotions_NO   38
Promotions_NO   59
Promotions_NO   35
Promotions_NO   8
Promotions_NO   10
Promotions_NO   58
Promotions_NO   44
Promotions_NO   9
Promotions_NO   10
Promotions_NO   0
Promotions_NO   42
Promotions_NO   37
Promotions_NO   23
Promotions_NO   12
Promotions_NO   54
Promotions_NO   41
Promotions_NO   36
Promotions_NO   43
Promotions_NO   45
Promotions_NO   18
Promotions_NO   65
Promotions_NO   10
Promotions_NO   17
Promotions_NO   59
Promotions_NO   26
Promotions_NO   18
Promotions_NO   8
Promotions_NO   14
Promotions_NO   74
Promotions_NO   29
Promotions_NO   60
Promotions_NO   19
Promotions_NO   30
Promotions_NO   29
Promotions_NO   12
Promotions_NO   0
Promotions_NO   20
Promotions_NO   31
Promotions_NO   13
Promotions_NO   5
Promotions_NO   7
Promotions_NO   42
Promotions_NO   36
Promotions_NO   9
Promotions_NO   23
Promotions_NO   70
Promotions_NO   28
Promotions_NO   25
Promotions_NO   26
Promotions_NO   24
Promotions_NO   50
Promotions_NO   7
Promotions_NO   0
Promotions_YES   38
Promotions_YES   74
Promotions_YES   18
Promotions_YES   65
Promotions_YES   60
Promotions_YES   51
Promotions_YES   71
Promotions_YES   47
Promotions_YES   29
Promotions_YES   39
Promotions_YES   45
Promotions_YES   36
Promotions_YES   57
Promotions_YES   36
Promotions_YES   12
Promotions_YES   20
Promotions_YES   23
Promotions_YES   79
Promotions_YES   16
Promotions_YES   4
Promotions_YES   62
Promotions_YES   37
Promotions_YES   2
Promotions_YES   23
Promotions_YES   6
Promotions_YES   10
Promotions_YES   28
Promotions_YES   65
Promotions_YES   25
Promotions_YES   86
Promotions_YES   27
Promotions_YES   58
Promotions_YES   33
Promotions_YES   54
Promotions_YES   40
Promotions_YES   92
Promotions_YES   71
Promotions_YES   0
Promotions_YES   77
Promotions_YES   60
Promotions_YES   56
Promotions_YES   38
Promotions_YES   16
Promotions_YES   89
Promotions_YES   62
Promotions_YES   9
Promotions_YES   42
Promotions_YES   73
Promotions_YES   49
Promotions_YES   14

Wally’s Widget World is an online retailer that makes and sells widgets. There are three models of widgets, each with its own cost of materials and labor.

The widgets are all the same size and approximate weight, so shipping costs for each widget (regardless of model) are $2.50, and customers are charged $3.99 per widget. Wally’s Widget World has monthly costs below:

Rent                   $10,000
Utilities              2,000
Administrative salaries     6,000
Overhead/supplies      1,000

In addition, Wally’s budgets $3,000 each month on banner ads and search-engine marketing. Assuming the percentage of sales for each product in the product line remains constant, perform the following analyses:

Calculate the break-even volume

Calculate the break-even revenue

Wally’s Widget World has a monthly target profit of $5,000. What should be the target volume and revenue for this objective?

Is this a viable target profit? Explain using your calculations. Give an example of another target profit that you think would work and explain why