Bobcat​ Company, U.S.-based manufacturer of industrial​ equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won8,000 million. Won1,000 million has already been​ paid, and the remaining Won7,000 million is due in six months. The current spot rate is Won1,104/$ and the​ 6-month forward rate is Won1,162/$. The​ 6-month Korean won interest rate is 15% per annum, the 6-month U.S. dollar rate is 3.5% per annum. Bobcat can invest at these interest rate, or borrow ar 2% per annum above those rates. A 6-month call option on won with a Won 1,200/$ strike rate has a 3.2% premium, while the 6-month put option at the same strike rate has a 2.5% premium.

Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 11%. Compare alternate ways below that Bobcat might deal with its foreign exchange exposure.  

a.) How much in U.D Dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be (1) Won1,104/$? (2) Won 1,162/$?

b) How much in U.S. dollars will Bobcat pay in 6 months with a forward market​ hedge?

c) How much in U.S. dollars will Bobcat pay in 6 months with a money market​ hedge?

d) How much in U.S. dollars will Bobcat pay in 6 months with an option hedge if the expected spot rate in 6 months is assumed to be less than (1) Won1,200/$ (2) To be 1,300/$

e) What do you​ recommend?

Garfield Company pays its general manager an annual bonus. For the year 2020, the company reported profit of P 8,000,000 before deductions for bonus and corporate income taxes. The corporate income tax is 30%.

REQUIRED: Determine the amount of bonus under each of the following assumptions:

a.) Bonus is 8% of profit before deductions for both bonus and income taxes.

b.) Bonus is 8% of profit after deduction for bonus but before deduction for income taxes.

c.) Bonus is 8% of profit before deduction for bonus but after deduction for income taxes.

d.) Bonus is 8% of profit after deduction for both bonus and income taxes.

Metlock Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $240,000. The fair value of the asset at January 1, 2020, is $240,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,323, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2020. 5. Collectibility of the lease payments by Metlock is probable.

Assuming the lessor desires a 15% rate of return on its investment, calculate the amount of the annual rental payment required. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and the final answer to 0 decimal places e.g. 5,275.) Amount of the annual rental payment $enter the Amount of the annual rental payment in dollars METLOCK LEASING COMPANY (Lessor) Lease Amortization Schedule. Prepare an amortization schedule that is suitable for the lessor for the lease term. (Round answers to 0 decimal places e.g. 5,275.) Date Annual Lease Payment Plus URV Interest on Lease Receivable Recovery of Lease Receivable Lease Receivable 1/1/20 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount 1/1/20 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/21 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/22 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/23 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/24 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 1/1/25 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 12/31/25 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount for this column $enter a total amount for this column $enter a total amount for this column

Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor’s annual accounting period ends on December 31, and it does not use reversing entries.Record journal entries in the order presented in the problem.)

choose the correct Date	Account Titles and Explanation	Debit	Credit
1/1/2012/31/201/1/2112/31/21	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the lease on January 1 2017	enter a debit amount	enter a credit amount
	(To record the lease)
1/1/2012/31/201/1/2112/31/21	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	enter an account title To record the receipt of lease payment on January 1 2017	enter a debit amount	enter a credit amount
	(To record the receipt of lease payment)
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1 2018	enter a debit amount	enter a credit amount
1/1/2012/31/201/1/2112/31/21	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31 2017	enter a debit amount	enter a credit amount

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Larkspur Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2.		The fair value of the asset at January 1, 2020, is $74,000.
3.		The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $3,000, none of which is guaranteed.
4.		The agreement requires equal annual rental payments of $24,716 to the lessor, beginning on January 1, 2020.
5.		The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee.
6.		Larkspur uses the straight-line depreciation method for all equipment.

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)

Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Shamrock Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2.		The fair value of the asset at January 1, 2020, is $62,000.
3.		The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed.
4.		The agreement requires equal annual rental payments of $20,250 to the lessor, beginning on January 1, 2020.
5.		The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee.
6.		Shamrock uses the straight-line depreciation method for all equipment.

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)

SHAMROCK COMPANY (Lessee) Lease Amortization Schedule
Date		Annual Lease Payment		Interest on Liability		Reduction of Lease Liability		Lease Liability
1/1/20		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
1/1/20		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/21		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/22		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount for this column		$enter a total amount for this column		$enter a total amount for this column

Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record the lease	enter a debit amount	enter a credit amount
	enter an account title To record the lease	enter a debit amount	enter a credit amount
	(To record the lease)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	(To record lease payment)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	(To record interest expense)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	(To record amortization of the right-of-use asset)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To reverse interest expense	enter a debit amount	enter a credit amount
	enter an account title To reverse interest expense	enter a debit amount	enter a credit amount
	(To reverse interest expense)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	(To record lease payment)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	(To record interest expense)
choose a transaction date                                                                      1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	(To record amortization of the right-of-use asset)

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Kingbird Company. The following information relates to this agreement.

1.		The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2.		The fair value of the asset at January 1, 2020, is $78,000.
3.		The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $6,000, none of which is guaranteed.
4.		The agreement requires equal annual rental payments of $25,178 to the lessor, beginning on January 1, 2020.
5.		The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee.
6.		Kingbird uses the straight-line depreciation method for all equipment.

Click here to view factor tables.
(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Part 1

Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)

KINGBIRD COMPANY (Lessee) Lease Amortization Schedule
Date		Annual Lease Payment		Interest on Liability		Reduction of Lease Liability		Lease Liability
1/1/20		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
1/1/20		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/21		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
1/1/22		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount for this column		$enter a total amount for this column		$enter a total amount for this column

Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record the lease	enter a debit amount	enter a credit amount
	enter an account title To record the lease	enter a debit amount	enter a credit amount
	(To record the lease)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	(To record lease payment)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	(To record interest expense)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	(To record amortization of the right-of-use asset)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To reverse interest expense	enter a debit amount	enter a credit amount
	enter an account title To reverse interest expense	enter a debit amount	enter a credit amount
	(To reverse interest expense)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	enter an account title To record lease payment	enter a debit amount	enter a credit amount
	(To record lease payment)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	enter an account title To record interest expense	enter a debit amount	enter a credit amount
	(To record interest expense)
choose a transaction date1/1/2012/31/201/1/2112/31/21During 2020During 2021 1/1/2012/31/201/1/2112/31/21During 2020During 2021	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	enter an account title To record amortization of the right-of-use asset	enter a debit amount	enter a credit amount
	(To record amortization of the right-of-use asset)

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Sheridan Company. The following information relates to this agreement.

1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.

2. The fair value of the asset at January 1, 2020, is $77,000.

3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $9,000, none of which is guaranteed.

4. The agreement requires equal annual rental payments of $23,907.43 to the lessor, beginning on January 1, 2020.

5. The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee.

6. Sheridan uses the straight-line depreciation method for all equipment.

Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit enter an account title

(to record the lease)

(to record lease liability)

(to record expenses)

XYZ Company began operations on January 1, 2020. The company has the following items included in the owners' equity section of its balance sheet. 8% Preferred Stock, $100 par, 100,000 shares authorized, 25,000 shares issued and outstanding $2,500,000 Common Stock, $3 par, 500,000 shares authorized; 150,000 shares issued and outstanding 450,000 Additional paid-in capital 2,250,000 Total dividends declared and paid were: 2020 $170,000 2021 210,000 2022 240,000 A. Referring to the information above, if XYZ Company's preferred stock were CUMULATIVE, provide the dividends paid for 2022: 6 points, show your work for credit: Preferred Shareholders Common Shareholders 2022 B. Provide the payments for 2021 assuming XYZ Company's preferred stock is noncumulative, 4 pts: