1.On January 1 of the current year (Year 1), our company acquired a truck for $75,000. The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 and 27,000 miles in Year 2. What is the depreciation expense for the second year of use (Year 2) if we use the units of production method?

$14,000

$15,400

$16,800

$18,900

2.On January 1, our company purchased a truck for $85,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $5,000.

What is the depreciation expense for the second year of use if we use the double-declining balance method?

What is the balance in accumulated depreciation at the end of the second year of use if we use the double-declining balance method?

What is the book value at the end of the second year of use if we use the double-declining balance method.

3.On January 1, our company purchased a truck for $80,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $10,000. What is the depreciation expense for the third year of use if we use the straight-line method?

$17,500

$20,000

$35,000

$52,500

4.Our company uses the percentage of receivables method to estimate bad debt expense for the year. We had the following account balances on our unadjusted trial balance at the end of the year (December 31): accounts receivable, debit balance of $150,000; allowance for bad debts, debit balance of $1,000. We estimate that 3.5% of accounts receivable at the end of the year are uncollectible. What amount will be debited to bad debt expense when we record the adjusting entry?

$4,000

$4,250

$5,250

$6,250

5.Our company uses the percentage of sales method to estimate bad debt expense for the year. Our allowance for bad debts account has a credit balance of $1,000 prior to the adjusting entry for bad debt expense. We have estimated that 2% of net credit sales will be uncollectible for the current year. Net credit sales for the year totaled $200,000. What amount will be debited to bad debt expense when we record the adjusting entry?

3,000

$4,000

$5,000

$6,000

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,180,000 and will be sold for $4,040,000 at the end of the project.

  

Required:

If the tax rate is 33 percent, what is the aftertax salvage value of the asset?

Options

$3,743,496

$2,706,800

$4,336,504

$3,930,671

$3,556,322

Heights of 10 year olds. Heights of 10 year olds, regardless of gender, closely follow a normal distribution with mean 55 inches and standard deviation 6 inches. Round all answers to two decimal places.

1. What is the probability that a randomly chosen 10 year old is shorter than 48 inches?

2. What is the probability that a randomly chosen 10 year old is between 50 and 51 inches?

3. If the shortest 10% of the class is considered very tall, what is the height cutoff for very tall? inches

4. What is the height of a 10 year old who is at the 34 th percentile? inches

Ambrin Corp. expects to receive $5000 per year for 10 years and $6500 per year for the next 10 years. What is the present value of this 20 year cash flow? Use an 12% discount rate. Use Appendix D and Appendix B to calculate the answer. (Round your intermediate calculations to the nearest dollar value.)

Options below:

		$40,076
		$64,975
		$48,550.5
		none of these

Jack is the only shareholder of XYZ Corporation. At year-end, XYZ had $200 of current year earnings and profits and $600 of accumulated earnings and profits. If XYZ distributes cash of $200 to Jack, what is Jack’s tax liability on the dividend, if any? Assume Jack has a basis of $10 in XYZ shares. How does this result change if XYZ only has $50 of current earnings and profits and $100 of accumulated earnings and profits?

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined:

You plan to retire in year 20 Your retirement will last 25 years starting in year 21 You want to have $50,000 each year of your retirement. How much would you have to invest each year, starting in one year, for 15 years , to exactly pay for your retirement ,if your investments earn 6.00% APR (compounded annually)? a. 21.,349 b. 21, 546 c. 20,520 d. 20,930

Beginning of Year Assets: $26,000 $18,000

End of Year Liabilities: $62,000 $25,000

3) If the company issues common stock of $5,600 and pay dividends of $39,400, how much is net income (loss)?

4) If net income is $1,700 and dividends are $6,600, how much is common stock?

5) If the company issues common stock of $18,300 and net income is $18,400, how much is dividends?

6) If the company issues common stock of $42,700 and pay dividends of $3,400, how much is net income (loss)?

The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for $298,000.

a. What is the book value of the​ equipment?

b. If Jones sells the equipment today for $183,000 and its tax rate is 35 % what is the​ after-tax cash flow from selling​ it?

c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it? Explain.​ (Assume the new order will consume the remainder of the​ machine's useful​ life.)

Note​: Assume that the equipment is put into use in year 1.

Firm Abs will incur $5,000,000 in initial capital outlays in Year 1, $3,000,0000 in Year 2 and $1,000,0000 in Year 3. Since the company does not expect to be able to produce or sell its product until Year 2, it will not incur any labor and materials cost in Year 1. Based on marketing research and forecasting tools, Firm Abs to sell 6,000 units in Year 2 at a price of $320 and then expect that quantity to double in Year 3 and remain at that level in Years 5. However, they anticipate that the price will gradually reduce to $300, $270, and $240 in Years 3-5.

a. Calculate the costs and revenues over the five-year period without taking into the time value of money. What is the net profit of undiscounted costs and revenues?

b. Now calculate the net present value under the following scenarios and compare to your answer in a.

i. Calculate the net present value using discount rates of 10, 8, and 6 percent. Show your work.

ii. What would be your decision given your answers in i and ii? Explain. iii. Regardless of your answer in

iii., assume that your company decided to go forward with the investment. What would be the relevant costs to consider when deciding whether to shutdown at the beginning of Year 3? Year 4? Year 5?

We all know the cost of benefits typically increase year over year. For the past three years, those increases to benefits cost have grown more than what is comfortable for the employer to absorb. You are the Benefits Manager for a start-up company struggling to survive. You know that offering benefits may help you attract, retain and motivate a workforce…but you are not so sure about which discretionary benefits your workforce would prefer. Your company employs a diverse population of mostly young professionals (in their 20's and 30's) who are not very knowledgeable about benefits, but they think having benefits is a good idea. As the Benefits Manager, you are faced with making strategic and difficult choices about which discretionary benefits to drop because funds are limited and the annual increases are just too high (after years of double digit expense growth in discretionary benefits). You must make strategic choices on behalf of your organization. Rank order discretionary benefits, starting with the ones you would most likely drop and going up toward the discretionary benefits you would least likely drop. Explain your reasoning why and how you chose the benefits to drop.