Problem 2:

The following events apply to Sam’s Seafood Restaurant for the year ended December 31, 2020, its first year of operations:

1. The company acquired $50,000 cash by issuing common stock.

2. Purchased a new cook top that cost $35,000 cash.

3. Earned $36,000 in cash revenue.

4. Paid $12,000 cash for salaries expense.  

5. Recorded depreciation expense on the cook top for 2020 using straight-line depreciation. The cooktop was purchased on January 1, 2020, the expected useful life of the cook top is four years, and the estimated salvage value is $3,000.  

Required: Answer the following questions.

1. What is the net income for 2020?   

2. What amount of depreciation expense would Sam’s report on the 2021 income statement?

3. What amount of accumulated depreciation would Sam’s report on the December 31, 2021, balance sheet?

4. Would the cash flow from operating activites be affected by depreciation in 2021?

5. If Sam’s Seafood Restaurant decided to sell the new cooktop in 2022 for $10,000, would the company realize a gain or loss? How much?  

In 2020, Pina Ltd., which follows IFRS, reported accounting income of $1,178,000 and the 2020 tax rate was 20%. Pina had two timing differences for tax purposes:

CCA on the company’s tax return was $476,500. Depreciation expense on the financial statements was $283,000. These amounts relate to assets that were acquired on January 1, 2020, for $1,906,000.

Accrued warranty expense for financial statement purposes was $138,100 (accrued expenses are not deductible for tax purposes). This is the first year Pina offers warranties.

Both of these timing differences will fully reverse over the next four years, as follows:

Prepare the journal entries to record income taxes for 2020

In 2021 the government announced a further tax rate reduction will be effective for the 2024 taxation year. The new rate will be 15%. Prepare the journal entry to adjust deferred taxes for the reduced rate.

1)Find the permutation and combination of the letters a, b, c, d taking 2 at a time.

Verify your answers with the permutation & combination formula.2)

2.An urn contains 10 marbles. 3 blues, 4 yellow and 3 red marbles. 6 marbles is selected at random. Find the probability of picking 1 blue, 3 yellow marbles and 2 red ones.

3) A computer operator has to issue passwords made up of a letter followed by two digits. How many passwords are possible? Give two random passwords

4) In how many ways can you mark a 5-question test True / False? Give a random selection

5) A recent U.S survey shows that, the probability of living in California is 12%, the probability

of being Hispanic is 11% and the probability of being Hispanic and living in California is 4%.

Let H represents the events of “Being Hispanic” and L for living in CA. Evaluate i) P(H/L), ii)P(H U L)

6) A single card is picked at random. Find the probability of picking a red card or a 10.

7) a)Define mutually vs not mutually exclusive events give an example of two events that are mutually exclusive and two that are not.

b)Define independent events and give an example of an independent event and a dependent one.

c)Define independent events and give an example of an independent event and a dependent one.

8) a)A coin is tossed three times, use a tree diagram to construct all the possible outcomes.

8b)The odds-maker give the Yankees a 10 to 1 shot of winning the 2020 World Series.

What is the probability that the Yankees will win the 2020 World Series?

9)In Spring valley, NY about 56% of days in a year are cloudy. Find the mean,
variance and standard deviation for the number of cloudy days during the month of June

10) The probability that Yankees will 2020 world series is 20%.

Find the odds in favor that they will in fact win the 2020 world series? .20 to 1-.20 which reduces to 1 to 4 odds.

11. A sample task was given to 150 elementary school children.

The following table includes the times in minute it takes to complete the task.

a) Construct a probability distribution for the random variable x

b) Graph the distribution using a histogram (Times in minutes VS probability)

c) Verify that the probability is in fact a probability distribution.

d) Find the mean, the variance and the standard deviation

12) The table shows the number of male and female students enrolled in nursing at University of Oklahoma Health Sciences center for a recent semester.

A student is selected at random. Find the probability of each event.

Nursing Majors     Non Nursing Majors     Total

Males                 94                    1104                             1198

Females             725                    1682                           2407

Total                  819                    2786                            3605

Calculate the probability of a) choosing a male or a nursing major is

b)      The student is a female or not a nursing major. c)The student is a female given that nursing major d) Calculate P(M U F), P( M n F)

15)The probability that a person in the United States has type A+ blood is 31%. Three people in the United States are selected at random. Find the probability that

a) All three has blood type A+   b) None of the three has blood type A+

c) At least one of the three has blood type A+. d)Which of the events can be considered unusual? Explain

Describe what sets an entrepreneur apart from a business founder and discuss how entrepreneurship can be a catalyst to social good

Assume the average age of an MBA student is 34.9 years old with a standard deviation of 2.5 years. ​a) Determine the coefficient of variation. ​b) Calculate the​ z-score for an MBA student who is 29 years old. ​c) Using the empirical​ rule, determine the range of ages that will include 99.7​% of the students around the mean. ​d) Using​ Chebyshev's Theorem, determine the range of ages that will include at least 91​% of the students around the mean. ​e) Using​ Chebyshev's Theorem, determine the range of ages that will include at least 87​% of the students around the mean.

Assume the average age of an MBA student is 30.7 years old with a standard deviation of 2.2 years.

​a) Determine the coefficient of variation.

​b) Calculate the​ z-score for an MBA student who is 26 years old.

​c) Using the empirical​ rule, determine the range of ages that will include 95​% of the students around the mean.

​d) Using​ Chebyshev's Theorem, determine the range of ages that will include at least 94​% of the students around the mean.

​e) Using​ Chebyshev's Theorem, determine the range of ages that will include at least 80​% of the students around the mean.

Splish Brothers Industries has the following patents on its December 31, 2019, balance sheet.

The following events occurred during the year ended December 31, 2020.

The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.)

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(a)

Compute the total carrying amount of Splish Brothers’ patents on its December 31, 2019, balance sheet.

B) Compute the total carrying amount of Marin' patents on its December 31, 2020, balance sheet.

Total carrying amount $

5. The United Nations Human Development Index (HDI) uses information about a country’s life expectancy at birth (health), expected years of schooling and mean years of schooling (education), and Gross National Income per capita (standard of living) to create a measure that ranges from 1 (very high) to 0 (very low). For 2017, the United States had a value of 0.924, compared to 0.926 for Canada and 0.922 for the United Kingdom – very similar values, although not the highest of all countries.

Suppose a developing country (such as Eritrea with a value of 0.440 or Haiti with a value of 0.498) asks for your advice on which country it should try to emulate in order to increase its level of development and economic growth. Which of the three countries above would you choose? Explain what additional information about each country would be important to making this assessment.

The United Nations Human Development Index (HDI) uses information about a country’s life expectancy at birth (health), expected years of schooling and mean years of schooling (education), and Gross National Income per capita (standard of living) to create a measure that ranges from 1 (very high) to 0 (very low). For 2017, the United States had a value of 0.924, compared to 0.926 for Canada and 0.922 for the United Kingdom – very similar values, although not the highest of all countries

Suppose a developing country (such as Eritrea with a value of 0.440 or Haiti with a value of 0.498) asks for your advice on which country it should try to emulate in order to increase its level of development and economic growth. Which of the three countries above would you choose? Explain what additional information about each country would be important to making this assessment.