Suppose a property has estimated real estate taxes for the
current year of $4,398.25 dollars and that taxes are paid at the
end of the year. If the property is
being sold on May 25 in a year with 365 days and the buyer and
seller agree to prorate the taxes at the time of closing with the
buyer being responsible for the
day of closing, what amount will be charged to the seller on the
settlement statement?
$1,000.00
$1,735.20
$2,663.05
None of the above
In: Finance
At the end of the current year (year 4), DIG company’s only temporary differences are deductible temporary differences in the amount of $4,000. The company determines that it is more likely than not that future taxable income will not be sufficient to realize a tax benefit of $1,000 of the $4,000. Pre-tax financial income, taxable income, and taxes paid for each of the years 1-4 are all positive, but relatively negligible, amounts. The statutory tax rate is 30% for all years. What is the amount of valuation allowance, if any, to be recorded by the company at the end of year 4?
A. $300
B. $1,000
C. $1,200
D. $0
In: Accounting
Your lender now offers you a 30-year fixed-rate mortgage with 3.6% interest rate per year. If you can afford a monthly payment of $1725, what is the maximum loan you can get? (round to nearest dollar.)
In: Finance
Gordon Company is highly automated and uses computerized controllers in manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of the time recorded to complete each job by the computerized controllers attached to each machine. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:
Machine time in hours .................................... 4,000
Manufacturing overhead cost ....................... $2,30,000
A severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year:
| Machine time in hours | 3,150 |
| Manufacturing overhead cost | $228,000 |
| Inventories at year-end: | |
| Raw materials | $20,000 |
| Work in Process | $32,000 |
| Finished Goods | $530,000 |
| Cost of Goods Sold | $428,000 |
Required
1. Compute the company's predetermined overhead rate for the year.
2. Compute the under applied or over applied overhead for the year.
In: Accounting
Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:
| Asset | Sales Price | Cost | Accumulated Depreciation |
| Building | $738,000 | $723,000 | $41,500 |
| Sparkle Corporation stock | 170,000 | 242,000 | n/a |
Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $812,000.
What are Shimmer's taxable income and tax liability for the year? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.)
| Taxable income | |
|
Tax liability |
In: Accounting
The 3-year spot interest rate is 4.15%, the 3-year
forward rate expected 3 years from now has been estimated to be
4.15%. What is the other spot rate you need to know to find the
forward rate given above using the pure expectations theory? Round
to the nearest 0.01%. E.g., if your answer is 5.783%, record it as
5.78.
The 8-year spot interest rate is 5.44%, the 2-year spot rate is
3.96%. What is the forward rate you can find using the pure
expectations theory? Round to the nearest 0.01%. E.g., if your
answer is 5.78%, enter it as 5.78.
In: Finance
Two random samples are taken, one from among first-year students and the other from among fourth-year students at a public university. Both samples are asked if they favor modifying the student Honor Code. A summary of the sample sizes and number of each group answering yes'' are given below:
First-Years (Pop. 1):Fourth-Years (Pop. 2):n1=84,n2=88,x1=43x2=38
Is there evidence, at an ?=0.08 level of significance, to conclude that there is a difference in proportions between first-years and fourth-years? Carry out an appropriate hypothesis test, filling in the information requested.
A. The value of the standardized test statistic:
Note: For the next part, your answer should use interval notation. An answer of the form (??,a) is expressed (-infty, a), an answer of the form (b,?) is expressed (b, infty), and an answer of the form (??,a)?(b,?) is expressed (-infty, a)U(b, infty).
B. The rejection region for the standardized test statistic:
C. The p-value is
D. Your decision for the hypothesis test:
A. Do Not Reject H0.
B. Reject H1.
C. Reject H0.
D. Do Not Reject H1.
2) 1. In a study of red/green color blindness,
550 men and 2150 women are randomly selected and tested. Among
the men, 50have red/green color blindness. Among the women, 4 have
red/green color blindness. Test the claim that men have a higher
rate of red/green color blindness.
The test statistic is
The p-value is
Is there sufficient evidence to support the claim that men have a
higher rate of red/green color blindness than women using the 0.05%
significance level?
A. No
B. Yes
2. Construct the 95% confidence interval for the difference between
the color blindness rates of men and women.
<(p1?p2)<
Which of the following is the correct interpretation for your
answer in part 2?
A. There is a 95% chance that that the difference
between the rates of red/green color blindness for men and women
lies in the interval
B. We can be 95% confident that the difference
between the rates of red/green color blindness for men and women
lies in the interval
C. We can be 95% confident that that the
difference between the rates of red/green color blindness for men
and women in the sample lies in the interval
D. None of the above
In: Statistics and Probability
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.)
| Date Placed | Original | ||
| Asset | in Service | Basis | |
| Machinery | 25-Oct | $ | 100,000 |
| Computer equipment | 03-Feb | $ | 40,000 |
| Used delivery truck* | 17-Mar | $ | 53,000 |
| Furniture | 22-Apr | $ | 180,000 |
| Total | $ | 373,000 | |
*The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $600,000.
Problem 10-54 Part a
a. What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)
b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)
In: Accounting
Consider the following time series data.
| Quarter | Year | 1Year2 | Year 3 | ||||||||
| 1 | 4 | 6 | 7 | ||||||||
| 2 | 2 | 3 | 6 | ||||||||
| 3 | 3 | 5 | 6 | ||||||||
| 4 | 5 | 7 |
8 b.) Use the following dummy variables to develop an estimated
regression equation to account for any seasonal and linear trend
effects in the data: Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1
if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise (to 3
decimals if necessary). Compute the quarterly forecasts for next year (to 2 decimals).
|
In: Statistics and Probability
The one-year risk-free rate in the U.S. is 3.060 percent and the one-year risk-free rate in Mexico is 4.88 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.262/$. What is the spot exchange rate? Assume interest rate parity holds.
rev: 05_17_2019_QC_CS-168753
Multiple Choice
MXN12.049/$
MXN12.479/$
MXN14.889/$
MXN12.262/$
MXN13.919/$
In: Finance