Part 1:
Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.
3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck.

Est. Life … 4 Orig. Cost Basis 26,300.00 Est. Residual Value 1,500.00 Est. total mileage 100,000 miles driven, Yr 1 23,400 miles driven, Yr 2 20,100 miles driven, Yr 3 33,100
miles driven, Yr 4 23,400

Part 2:
Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)
assume it was sold for: 8,750.00

Scenario:

Melissa Denton is a 68-year old individual who retired from Vanguard Corporation last year. Vanguard is a multi-national corporation employing over 10,000 employees. She worked for the company for over 20 years, and was fully insured for purposes of Social Security retirement benefits, which she began receiving at age 63. At age 65, her Medicare Part A coverage began, and she opted to receive Medicare Part B coverage. Melissa has come to you with the following questions regarding her Medicare coverage

Answer the following questions:

1. What types of costs are covered under Medicare Part A?

2. What types of costs are covered under Medicare Part B?

I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow.

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $426,400. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor-hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1.

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit (loss) for year 2.

c. Should Dolan Products drop Yellow for year 3?

ond yields

One year ago Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065, and it now sells for $1,270.

1. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
   %
   
   What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
   %
   
   Would an investor be more likely to earn the YTM or the YTC?
   -Select-Since the coupon rate on the bond has declined, the bond is not likely to be called.Since the YTM is above the YTC, the bond is likely to be called.Since the YTC is above the YTM, the bond is likely to be called.Since the YTM is above the YTC, the bond is not likely to be called.Since the YTC is above the YTM, the bond is not likely to be called.Item 3
   
2. What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places.
   %
   
   Is this yield affected by whether the bond is likely to be called?
   1. If the bond is called, the current yield and the capital gains yield will remain the same.
   2. If the bond is called, the capital gains yield will remain the same but the current yield will be different.
   3. If the bond is called, the current yield and the capital gains yield will both be different.
   4. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different.
   5. If the bond is called, the current yield will remain the same but the capital gains yield will be different.
   
   -Select-IIIIIIIVVItem 5
   
3. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calcuation, if reqired. Round your answer to two decimal places. Enter a loss percentage, if any, with a minus sign.
   %
   
   Is this yield dependent on whether the bond is expected to be called?
   1. If the bond is expected to be called, the appropriate expected total return is the YTM.
   2. If the bond is not expected to be called, the appropriate expected total return is the YTC.
   3. If the bond is expected to be called, the appropriate expected total return will not change.
   4. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called.
   5. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called.

Google stock rose from $208 at year-end 2005 to $770 per share at year-end 2015. Google has made sizable profits but never paid a dividend. Why were people willing to pay such a high price knowing that they might not get dividends for many years?

On January 1, Year 1, Bryson Company obtained a $39,000, four-year, 10% installment note from Campbell Bank. The note requires annual payments of $12,303, beginning on December 31, Year 1.

a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4.

Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out.

b. Journalize the entries for the issuance of the note and the four annual note payments.

Note: For a compound transaction, if an amount box does not require an entry, leave it blank. For the Year 4 entry (due to rounding), adjust Notes Payable up or down to ensure that debits equal credits.

c. How will the annual note payment be reported in the Year 1 income statement?
  of $fill in the blank 4b0e5904d024042_2 would be reported on the income statement.

Bond yields One year ago Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060, and it now sells for $1,300.

a. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. %

What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. %

Would an investor be more likely to earn the YTM or the YTC?

b. What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places. %

Is this yield affected by whether the bond is likely to be called?

1.If the bond is called, the capital gains yield will remain the same but the current yield will be different.

2.If the bond is called, the current yield and the capital gains yield will both be different.

3.If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different.

4. If the bond is called, the current yield will remain the same but the capital gains yield will be different.

5. If the bond is called, the current yield and the capital gains yield will remain the same.

c. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calcuation, if reqired. Round your answer to two decimal places. Enter a loss percentage, if any, with a minus sign.%

Is this yield dependent on whether the bond is expected to be called?

1.The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called.

2.If the bond is expected to be called, the appropriate expected total return is the YTM.

3.If the bond is not expected to be called, the appropriate expected total return is the YTC.

4.If the bond is expected to be called, the appropriate expected total return will not change.

5.The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called.

Danielle and her 3-year-old daughter Kyra lived with her mother all year. Danielle is 25 years old, unmarried, and her adjusted gross income (AGI) is $18,000. Danielle’s mother's AGI is $15,000. Kyra's father did not live with Danielle or her daughter. Also, Danielle has not signed Form 8832 (or a similar statement) to release claiming the child as a dependent to the noncustodial parent. Because Danielle’s mother's AGI is not higher than hers she cannot claim Kyra as a qualifying child on her income tax return. Only can Danielle can claim Kyra as a qualifying child and is entitled, if additional eligibility requirements are met, to which of the following tax benefit?

A. The Child Tax Credit

B. The Credit for Child and Dependent Care Expenses

C. Head of household filing status

D. All of the above

Given the following information: Year 1 free cash flow: 40 million Year 2 free cash flow 90 million Year 3 free cash flow 100 million After year 3, expected FCF growth is expected to be 4% The cost of capital is 9% Short term investments is 50 million Debt is currently 25 million Preferred shock is 5 million There are 20 million outstanding stock shares.

1. Calculate the intrinsic stock price

. If the current stock price was $100.00, would you buy the stock? Why/ why not.

Recommend a retirement plan to your 50-year-old single client who earns $100,000 a year. Provide support for your recommendations.