A group of music lovers in a large urban area incorporate a company, Mozart Holdings Ltd., in order to purchase land and build a music hall that they claim will be “a glittering jewel in the cultural crown” of the city. The corporation selects an architectural firm that will design the building, a construction company that will construct the music hall, and chooses other suppliers who will provide goods and services necessary to the planning and development of a unique structure. One of the contracts that Mozart enters into is with an artist, Paige Presley, who is commissioned to produce an artistic work for the main lobby of the music hall. Presley is to be paid the sum of $50 000 for the work, and Mozart stipulates that the work is to be in any medium, but it must be permanently affixed to the north wall of the lobby, and must be of a size no less than 10 metres by 15 metres. The artist and the corporation enter into a written contract whereby the artist agrees to create the artistic work, warrants that it is her original work, and transfers the work to Mozart Holdings Ltd., in consideration of payment of the agreed‐upon contract price. No mention is made of moral rights. Presley designs and creates an artistic work that is an abstracted representation of musicians, musical instruments and musical notes on a scale. The work is created out of a series of more than two hundred 30 cm by 30 cm ceramic tiles that are made by the artist by hand and fired in her kiln in her studio. The artist and two assistants install the work on the north wall of the lobby, in time for the official opening of the music hall. The work is titled “The Song of Ages.” Presley attends the official opening for the music hall, at which many dignitaries are present. Media representatives are present, and photographers take pictures of the lobby, the people present, and Presley’s artistic work. At a table in the lobby, Presley notices a brochure that solicits funds from donors, asking them to contribute to the operation of the music hall. Donors are promised various “gifts” for donations at different levels of giving, ranging from music CDs for donations of $50 to $100, up to the “benefactor” level. Those who make a donation at the benefactor level will have their name inscribed in one of the tiles that form the work “The Song of Ages.” Question (8): Presley is incensed and embarrassed that her art would be defaced in this fashion. She considers commencing a court action, seeking an injunction. Evaluate the situation and advise what chances of success she has and on what grounds?
In: Operations Management
"Environmental 'Science' Makes No Sense" "Well, the left-wing, environmentalist wackos have done it again! The so-called 'Environmental Conference' hosted by University 'X' last week was nothing more than a transparent attempt to indoctrinate the students and community with false information about the environment. Firstly, the environmentalists claim that global warming is real, but that can't be true because there are parts of the world that are getting colder! That's why they've started calling it 'climate change' instead. Second, why were no persons who disagree with this supposed environmental 'science' invited to the conference? During my time there, I heard no speakers who oppose global warming or climate change. I guess none of these "green" loonies decided to invite any of them. Third, if we tried to affect climate change, the only thing that would happen would be economic disaster. Environmentalists want to pressure oil companies to find 'cleaner' sources of energy, and also to force businesses and schools to use 'greener' products and offer 'eco-friendly' services. But if we did those things, then we'll have less money than we do now. The government will have to control our lives more, and eventually we'll be living in a dictatorship ruled by the United Nations and we'll have no money to buy things, so the economy will destroyed. Why do they want to destroy America? Lastly, I noticed also that everyone who attended the conference was a liberal. The person I sat next to in the auditorium told me he was one, and I overheard some more people of the liberal persuasion talking about their love for Obama on the elevator when going to lunch. So those of you who, like me, are definitely not liberals (and no one really wants to be like those people, do they?) should ask themselves why they would want to waste their time at conferences such as this? For the rest of us true Americans, the choice is clear: either we oppose this liberal agenda with all our might or we can kiss American democracy goodbye. Sincerely, Citizen 'Y'" Write a letter to the editor that responds to the letter above. This letter should explain all the fallacies that are contained in citizen Y's letter. (Make sure that you not only mention the fallacies, but also explain why you think specific points in the letter are fallacious.)
In: Psychology
A construction company is purchasing a new Tractor for over the
road use. The IRS classifies this as 3-year property. The truck
costs $297000.
a) Determine the depreciation allowance for each year using SLN
method.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
b) Determine the depreciation allowance for each year using DDB
method.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
c) Determine the depreciation allowance for each year using
MACRS.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
d) Using a 10% MARR calculate the present worth of the depreciation
for each of the 3 methods above.
PWa = $
PWb = $
PWc = $
In: Economics
A construction company is purchasing a new Tractor for over the road use. The IRS classifies this as 3-year property. The truck costs $280000.
a) Determine the depreciation allowance for each year using SLN method.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
b) Determine the depreciation allowance for each year using DDB method.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
c) Determine the depreciation allowance for each year using MACRS.
Year 1 $
Year 2 $
Year 3 $
Year 4 $
d) Using a 10% MARR calculate the present worth of the depreciation for each of the 3 methods above.
PWa = $
PWb = $
PWc = $
In: Economics
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $93,420. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,700. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
a. Straight-line method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
b. Units-of-output method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
c. Double-declining-balance method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 |
$ Can you break this problem down in the simplest form. Thanks |
In: Accounting
A firm had year end retained earnings of $64,100,000. It forecasts net income for thecoming year to be $9,400,000. If it plans to pay out 40% of its net income as dividends, what is theestimated balance in retained earnings at the end of the coming year?
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: The projected balance of accounts payable at the end of the first year of operation is?
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: The projected balance of accounts receivable at the end of the first year of operations is?
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: In the first year of operations, Mr. Burn Out's drawings will amount to?
In: Accounting
A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years.
Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals.
When Mr. Burn Out learned that you are an accountant, he confessed that he is excited with his planned investment project, but very much afraid because he cannot afford to fail and lose his hard-earned retirement pay.
You advised that a Feasibility Study be prepared for his planned investment project. The study, you said, would determine the viability of his proposed business undertaking. it would cover key areas, such as marketing, production or purchasing, and finance, among others. You emphasized that the financial aspect is the most critical of them all.
Mr. Burn Out requested you to prepare a feasibility study for his proposed business. You immediately started and gathered the following relevant data.
1. Projected sales for the first year of operations are $288,000, spread evenly during the year. All sales will be on account with an average collection period of one month.
2. The cost ratio will be 60% of sales.
3. At the end of the first year, the acid-test ratio will be 1:1, while the current ratio will be 2:1.
4. Once the business is underway, purchases will replace the stock sold each month. The average payment period for accounts payable arising from the purchases of merchandise will be two (2) months.
5. Mr. Burn Out will open an account with the nearest bank and deposit $260,000 to start the business.
6. Various fixed assets will be acquired for cash at a total cost of $240,000. These fixed assets will be depreciated at the rate of 10% per year using the straight-line method.
7. Operating expenses, other than depreciation, are estimated at $70,000 per year. There will be no accruals and prepayment at year-end.
8. Mr. Burn Out will make drawings in excess of the amount necessary to meet the above plans.
Question: What is the projected cash balance at the end of the first year of operations?
In: Accounting