Convers Corporation (calendar-year-end) acquired and placed in service the following assets during the current tax year: Machinery: original basis = $84,000; placed in service on October 25 Computer equipment: original basis = $24,000; placed in service on February 3 Used delivery truck*: original basis = $37,000; placed in service on March 17 Furniture: original basis = $164,000; placed in service on December 22 *The delivery truck is not a luxury automobile. What is the applicable depreciation convention for the assets Convers placed in service this year assuming Convers elects out of bonus depreciation and does not take §179 expense?

6. The one-year risk-free interest rate in Mexico is 8%. The one-year risk-free rate in the U.S. is 3%. Assume that interest rate parity exists. The spot rate of the Mexican peso is $.15.

a. What is the forward rate premium or discount according to the IRP (using the exact formula)?

b. What is the one-year forward rate of the peso based on the answer from part (a)?

c. Based on the international Fisher effect (using the exact formula), what is the expected change in the spot rate over the next year?

d. If the spot rate changes as expected according to the IFE, what will be the spot rate in one year?

e. Compare your answers to (b) and (d) (6 points in total)

71. Last year Dania Corporation's sales were $525 million. If sales grow at 9.8% per year, how large (in millions) will they be 8 years later?

            a.         $1,142.39

            b.         $1,109.12

            c.         $1,364.22

            d.         $1,131.30

            e.         $842.93

72. How much would $1, growing at 13.7% per year, be worth after 75 years?

            a.         $18,248.03

            b.         $15,206.70

            c.         $15,358.76

            d.         $13,533.96

            e.         $18,704.24

73. How much would $100, growing at 5% per year, be worth after 10 years?

            a.         $130.31

            b.         $138.46

            c.         $162.89

            d.         $169.41

            e.         $193.84

74. You deposit $825 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 25 years?

            a.         $4,213.54

            b.         $4,001.10

            c.         $3,965.69

            d.         $3,540.79

            e.         $3,257.53

75. You deposit $500 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 40 years?

            a.         $6,274.29

            b.         $5,091.43

            c.         $3,857.14

            d.         $5,760.00

            e.         $5,142.86

76. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.0%, how much is the bond worth today?

            a.         $613.91

            b.         $564.80

            c.         $736.70

            d.         $466.57

            e.         $724.42

77. Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.4%, how much is the bond worth today?

            a.         $551.51

            b.         $768.18

            c.         $656.56

            d.         $518.68

            e.         $722.22

78. How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

            a.         $618.45

            b.         $656.09

            c.         $451.74

            d.         $537.78

            e.         $661.47

79. How much would $5,000 due in 20 years be worth today if the discount rate were 5.5%?

            a.         $2,004.96

            b.         $1,713.64

            c.         $2,039.24

            d.         $2,073.51

            e.         $1,353.78

80. Suppose a U.S. treasury bond will pay $1,050 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?

            a.         $852.72

            b.         $878.31

            c.         $750.40

            d.         $656.60

            e.         $673.65

B. Suppose a 48-year-old salesperson earning $50,000 a year (after taxes) is considering a career move. Specifically, this person – who plans to retire when (s)he turns 62 regardless of job – is thinking about quitting sales work for 2 years to earn an MBA degree. With MBA degree in hand, suppose this person can become an executive and earn $75,000 per year (after taxes). Suppose MBA tuition is $30,000 per year. Suppose the relevant discount rate is 3.5% per year. Based on this information, demonstrate and explain how one could reckon whether or not this change promises to be a good move. You are expected to show how one would set up and perform the calculation(s).

1. Interpret the table trend year by year comparing both company NP before tax?

Convers Corporation (calendar-year-end) acquired and placed in service the following assets during the current tax year: Machinery: original basis = $84,000; placed in service on October 25 Computer equipment: original basis = $24,000; placed in service on February 3 Used delivery truck*: original basis = $37,000; placed in service on March 17 Furniture: original basis = $164,000; placed in service on December 22 *The delivery truck is not a luxury automobile. What is the applicable depreciation convention for the assets Convers placed in service this year assuming Convers elects out of bonus depreciation and does not take §179 expense?

• 200% declining balance

• Mid-quarter convention

• Mid-month convention

• Full-month convention

• Half-year convention

3. When performing the physical examination, what objective data should the nurse inspect and palpate for the head and neck?

4. How might the physical examination vary given the patient’s age?

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

The loss on the cash sale of equipment was $10,125 (details in b).

Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash.

Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term note payable for the balance.

Borrowed $4,500 cash by signing a short-term note payable.

Paid $52,625 cash to reduce the long-term notes payable.

Issued 3,000 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $51,100.

Mrs. Johnson is a 70-year-old woman who had a stroke less than a year ago. Mrs. Johnson is alert and oriented. She feels the sensation to void but right-sided weakness prevents her from always being able to get to the bathroom in time. For this reason, she wears incontinence undergarments. Mrs. Johnson’s daughter, Amy stops by twice each day to check on her and prepare meals for her. There are times when Mrs. Johnson is incontinent and remains in a wet undergarment until Amy comes to visit.

While assisting Mrs. Johnson in the bathroom, Amy notices that Mrs. Johnson’s coccyx and perineal area are reddened and excoriated. Amy learns that Mrs. Johnson sometimes sits in a wet undergarment until she arrives. Mrs. Johnson explains, “I know I am wet. It is just easier to wait for you to get here than to try and change the undergarment myself.” Amy is concerned. She calls a local visiting nurses association to get some information about how to manage Mrs. Johnson’s incontinence and asks if there is any skin therapy to reduce the redness.

1. Describe at least three factors that affect voiding and may result in incontinence in an adult.
2. What is incontinence? Describe the characteristics of each of the six types of urinary incontinence: stress, reflex, urge, functional, total, and transient.
3. Which type of incontinence does Mrs. Johnson have and what data support the diagnosis?
4. Mrs. Johnson tells the nurse, “I try to limit the amount of fluid I drink to one of two small glasses a day so that I do not have to go to the bathroom as much.” What teaching should the nurse provide in response to this comment?
5. Explain at least three factors that are contributing to Mrs. Johnson’s impaired skin integrity.
6. What will the visiting nurse most likely tell Mrs. Johnson and Amy to consider in an effort to minimize Mrs. Johnson’s incontinent episodes?
7. What are three suggestions the visiting nurse will include while teaching Amy to care for Mrs. Johnson’s skin?
8. List five nursing diagnoses that are appropriate for Mrs. Johnson (three-part diagnoses).

The patient, Mrs. Z., is a sixty-year-old woman who received a kidney transplant approximately one year earlier. Her current hospitalization is for a urinary tract infection and dehydration. She had a similar hospitalization three months ago. She is characterized in the medical record as “non-compliant” with her medicines, and she does not drink enough fluids to maintain her hydration. In order to treat her infection and to rehydrate her, the hospital staff would like to place a peripherally inserted central catheter (PICC) line and also additional IV lines. These would need to remain in place for several days. The patient refuses the placement.

            The ethics consultant interviewed Mrs. Z and found her very difficult to engage in any sustained conversation. Mrs. Z would only offer that she “didn’t want any tubes” and that the reason was because “they hurt.” She repeated this line over and over when questioned. When asked whether she understood that these interventions might help her get better and that a lack of treatment could lead to her getting worse, she would say, “I don’t want to talk about that.” She would repeat these sentences or something similar in response to virtually any questions.

            She has a husband, whom she married about five years ago, and who is currently in a rehabilitation facility after suffering a stroke. He has difficulty speaking, but when contacted by telephone, he said that he thought, “everything should be done.” Hospital staff also contacted her twenty-four-year-old son, who is going to school in another state and was her kidney donor. He says his mother’s mental status has never been completely right since the transplant and deteriorates significantly when she gets an infection and is dehydrated. He says that she has been negative about treatment since the transplant but would likely have wanted this care if she were her “old self”. Armed with this information, the ethics consultant asked Mrs. Z if she could say how her son felt about her decisions or why he thinks she should agree to the PICC line and IV line placements. In response, she would turn away in bed and sometimes cover her head with the sheet.

Questions:

1. Do you think Mrs. Z has the capacity to make decisions about her care? Why or why not?
2. If Mrs. Z does not have decision-making capacity, who is the more appropriate surrogate decision-maker; her husband or her son? Specifically, what effect on being able to act as the surrogate decision-maker is created by either the husband’s stroke or the fact that the son is the donor of Mrs. Z.’s kidney?
3. Can a surrogate consent to restraining the patient to treat her?
4. Should Mrs. Z receive treatment for her dehydration and infection despite refusing this care?
5. If Mrs. Z is treated despite her refusal, would you characterize this as “weak” paternalism or “strong” paternalism?