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.

14-15

Problem 14-15 Part 2

2. You decide next to assess the company’s stock market performance. Assume that Lydex’s stock price at the end of this year is $98 per share and that at the end of last year it was $66. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate and final answers to 2 decimal places.)

a. The earnings per share.

b. The dividend yield ratio.

c. The dividend payout ratio.

d. The price-earnings ratio.

e. The book value per share of common stock.

An 85-year-old woman named Harriet, passes away. Her will, executed 1 year prior to her death, directs that her entire estate should pass to the home-health care worker who assisted her the last two years of her life. Harriet's two sons were very disappointed that they were excluded from the will. Is this a case of undue influence, such that the sons could successfully contest the will and receive the estate's assets? Please provide detained explain detailed explanation.

Storm, Inc. purchased the following available-for-sale securities during Year 1, its first year of operations:

The market price per share for the available-for-sale security portfolio on December 31, Year 1, was as follows:

Required:

Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s home for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $107,500 and contributed $6,400 of it to a qualified retirement account (a for AGI deduction). She also received $16,500 of alimony from her former husband. Finally, Camille paid $17,400 of expenditures that qualified as itemized deductions. Use 2018 standard deduction rates.

b.  What would Camille’s taxable income be if she incurred $12,950 of itemized deductions instead of $17,400?

c. Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $7,400. Kaly provided $4,440 of her own support, and Camille provided $7,400 of support. What is Camille’s taxable income?

12-3
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

1. The loss on the cash sale of equipment was $5,125 (details in b).
2. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
3. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,000 cash by signing a short-term note payable.
5. Paid $50,125 cash to reduce the long-term notes payable.
6. Issued 2,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $50,100.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Additional Information on Year 2017 Transactions

1. Net income was $114,975.
2. Accounts receivable increased.
3. Inventory increased.
4. Prepaid expenses decreased.
5. Accounts payable decreased.
6. Depreciation expense was $20,750.
7. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. This yielded a loss of $5,125.
8. Purchased equipment costing $96,375 by paying $30,000 cash and (i.) by signing a long-term note payable for the balance.
9. Borrowed $4,000 cash by signing a short-term note payable.
10. Paid $50,125 cash to reduce the long-term notes payable.
11. Issued 2,500 shares of common stock for $20 cash per share.
12. Declared and paid cash dividends of $50,100.

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $5,125 (details in b).
2. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
3. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,000 cash by signing a short-term note payable.
5. Paid $50,125 cash to reduce the long-term notes payable.
6. Issued 2,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $50,100.

Required:
Prepare a complete statement of cash flows; report its operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.)

  
Required:
Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)
  

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.)

2018

*The delivery truck is not a luxury automobile

a. What is the allowable MACRS depreciation on Evergreen’s property in the current year assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

b. What would be the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation?

If you operated for 325 days/year, assuming 50 burgers sold/day; VC = $3.50; FC = $65.3K/year; and SP = $7.00, your total cost per burger would be?

Select one:

a. $7.09

b. $7.15

c. $7.52