Equipment was acquired at the beginning of the year at a cost of $38,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $750.

a. What was the depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $8,900, determine the gain or loss on the sale of the equipment.
$  Loss

Feedback

Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.

Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Prior to adjustment at the end of the year, the balance in Trucks is $298,988 and the balance in Accumulated Depreciation—Trucks is $101,200. Details of the subsidiary ledger are as follows:

A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year.

**Only need help with credit accumulated depreciation**

B. Journalize the entry on Dec. 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

Enoch's endowment this year is such that he is a buyer of good 2 and a seller of good 1. If the price of good 2 decreases before he can buy or sell any of his original endowment, will he remain a buyer of good 2 or switch to become a seller of good 2?

You are given the following for TG Inc. for the last year:

1. What was its last year’s net income?

   	A.	2,610
   	B.	4,500
   	C.	5,910
   	D.	(730)
   	E.	(100)
   	F.	2,460

QUESTION 6

1. What was the TG Inc.’s operating cash flow last year?

   	A.	8,350
   	B.	(730)
   	C.	7,400
   	D.	(100)
   	E.	5,760
   	F.	2,610

QUESTION 7

1. What was the TG Inc.’s cash flow from assets last year?

   	A.	(780)
   	B.	(880)
   	C.	(100)
   	D.	5,750
   	E.	5,910
   	F.	2,610

QUESTION 8

1. What was the TG Inc.’s cash flow to creditors last year?

   	A.	5,910
   	B.	5,750
   	C.	(780)
   	D.	(100)
   	E.	2,610
   	F.	(880)

QUESTION 9

1. What was the TG Inc.’s cash flow to stockholders?

   	A.	(100)
   	B.	5,750
   	C.	(880)
   	D.	2,610
   	E.	(780)
   	F.	5,910

Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf.

a. Charlie uses the cash method and calendar year for tax purposes. Calculate Charlie’s gross income for the current year.

Gross income

b. Suppose that Ajax agrees to pay Charlie an additional $110,000 once Charlie completes five years of employment. Will this agreement alter Charlie’s gross income this year relative to your part (a) answer?

Yes

No

c. Suppose that in exchange for his promise to remain with the firm for the next four years, Ajax paid Charlie four years of director’s fees in advance. Will this arrangement alter Charlie’s gross income this year relative to your part (a) answer?

• Yes

• No

d. Assume that in lieu of a year-end bonus Ajax transferred 1,050 shares of Bell stock to Charlie as compensation.  Further assume that the stock was listed at $59 per share and Charlie would sell the shares by year-end, at which time he expected the price to be $68 per share. What would be the value of compensation and gain on sale which would be included in Charlie’s gross income?

Value of compensation

gain on sale

    
e. Suppose that in lieu of a year-end bonus Ajax made Charlie’s house payments (a total of $30,600). What would be the value of house payments which would be included in Charlie’s gross income?

Income

Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of​ course, your choice is not purely financial. ​ However, to make an informed decision you would like to know the financial implications of the two alternatives. ​ Let's assume that your alternatives are as​ follows:  

If you take the​ "get a​ job" route you expect to start off with a salary of ​$40,000 per year. There is no way to predict what will happen in the​ future, your best guess is that your salary will grow at 5 percent per year until you retire in 40 years. As a law​ student, you will be paying ​$25,000 per year tuition for each of the 3 years you are in graduate school. ​ However, you can then expect a job with a starting salary of ​$70,000 per year. ​ Moreover, you expect your salary to grow by 7 percent per year until you retire 35 years later.   ​

Clearly, your total expected lifetime salary will be higher if you become a lawyer. ​ However, the additional future salary is not free. You will be paying ​$25,000 in tuition at the beginning of each of the 3 years of law school. In​ addition, you will be giving up a little more than ​$126,000 in lost income over the three years of law​ school:  ​$40,000 the first​ year, $ 42,000 the second​ year, and ​$44,100 the third year.

a.  To start your analysis of whether to go to law​ school, calculate the present value of the future earnings that you will realize by going directly to​ work, assume a discount rate of 3 percent.

b.  What is the present value today of your future earnings if you decide to attend law​ school, assuming a discount rate of 3 ​percent? Remember that you will be in law school for 3 years before you start to work as a lawyer. ​ (Hint: assume that you are paid at the end of each year so that your first salary payment if you decide to go to law school occurs 4 years from​ now.)

c.  If you pay your law school tuition at the beginning of each​ year, what is the present value of your​ tuition, assuming a discount rate of 3 percent?

At the beginning of the baseball season in a particular year, the odds that the New York Yankees will win the American League pennant are 6 to 3.

(a) What are the odds that the Yankees will lose the pennant?
___________ to __________?

(b) What is the probability that the Yankees will win the pennant? Express your answer as a decimal.


(c) What is the probability that the Yankees will lose the pennant? Express your answer as a decimal.

what happens to credits in the comeback or Cary forward Year

A stock will pay a dividend of $9 at the end of the year. It sells today for $101 and its dividends are expected grow at a rate of 10%. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.