1. Lisa owns 70% of Doh’s stock (S-corporation) throughout the year. Lisa’s beginning of the year stock basis is $45,000. Lisa has an additional stock purchase (investment) this year of $10,000. Lisa loans the Corporation $5,000 this year. Doh Corporation has beginning AAA of $210,000. Doh Corporation’s Form 1120S shows the following information.

Sales 400,000

Charitable contribution 9,500

Long Term Capital Loss 3,000

Tax Exempt Interest Income 1,500

Cost of Goods Sold 280,000

a. What is Lisa’s end of the year stock basis?

b. What is Doh Corporation’s end of the year AAA balance?

1. Luna owns 80% of Good stock (S-corporation) throughout the year. Luna’s beginning of the year stock basis is $25,000. Luna has an additional stock purchase (investment) this year of $15,000. Luna loans the Corporation $150,000 this year. Good Corporation has beginning AAA of $163,000. Good Corporation’s Form 1120S shows the following information.  

Sales                                                      600,000                                

Long Term Capital Loss                  6,000                                  

Cost of Goods Sold                          350,000                                

Tax Exempt Interest Income           5,000                                

Charitable contribution                    60,000               

Distribution to Luna                           40,000

1. What is Luna’s end of the year stock basis?
2. What is Good Corporation’s end of the year AAA balance?

Consider two bonds, a 3-year bond paying an annual coupon of 6.60% and a 10-year bond also with an annual coupon of 6.60%. Both currently sell at a face value of $1,000. Now suppose interest rates rise to 10%. a. What is the new price of the 3-year bonds? b. What is the new price of the 10-year bonds?

Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:

1. Provided $76,000 of services on account.
2. Collected $45,600 cash from accounts receivable.
3. Paid $26,000 of salaries expense for the year.
4. Adjusted the accounts using the following information from an accounts receivable aging schedule:

Required
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement for Vulcan Service Co. for Year 1.
c. What is the net realizable value of the accounts receivable at December 31, Year 1?

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

Your borrowing rate is 15% per year. Your lending rate is 10% per year. The project costs $5000 and has a rate of return of 12%.

1. Should you take the project if you have $2000 to invest?

2. Briefly discuss the concept of market imperfections in the context of this question.

Tara is 26-year-old individual with an adjusted gross income of $37,000 in Year 1. Tara had the following unreimbursed medical and dental expenses in Year 1: Laser eye surgery $ 5,000 Doctor visits 350 Crutches 75 Over-the-counter medications 250 Allergy shots 600 Prescription medications 750 Dental services: Teeth cleanings 200 Cavity fillings 500 Teeth whitening 200 Total $ 7,925 What amount, if any, of Tara’s medical and dental expenses are deductible on Schedule A of Form 1040 for Year 1? A) $0 B) $3375 C) $4025 D) $7475

On July 1, Year 1, Danzer Industries Inc. issued $30,000,000 of 10-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $28,130,684. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. *Refer to the Chart of Accounts for exact wording of account titles.

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.

2a. Journalize the entry to record the first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)

3. Determine the total interest expense for Year 1

Comparative financial statement data for Carmono Company follow:

For this year, the company reported net income as follows:

This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year.

Required:

1. Using the indirect method, prepare a statement of cash flows for this year.

2. Compute Carmono’s free cash flow for this year.

last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and face value of $1000. the bonds yield to maturity was 11% then. a year past and the market interest rate increases by 1 percentage point. your one-year holding period return is____% (rounded with two decimal places)