Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the sole shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year and uses the accrual method of accounting).

A. In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $11,200, which represented a damage deposit of $4,480 and rent for two years ($3,360 annually).

B. GJ earned and collected $310,000 performing geological-related services and selling its specialized digging tool.

C. GJ received $70 interest from municipal bonds and $2,140 interest from other investments.

D. GJ purchased some new equipment in February for $44,500. It claimed depreciation on these assets during the year in the amount of $6,840.

E. GJ paid $7,200 to buy luxury season tickets for Jack’s parents for State U football games.

F. GJ paid Jack’s father $10,800 for services that would have cost no more than $6,480 if Jack had hired any other local business to perform the services. While Jack’s dad was competent, he does not command such a premium from his other clients.

G. In an attempt to get his name and new business recognized, GJ paid $7,200 for a one-page ad in the Geologic Survey. It also paid $15,400 in radio ads to be run through the end of December.

H. GJ leased additional office space in a building downtown. GJ paid rent of $28,000 for the year.

I. In November, Jack’s office was broken into and equipment valued at $5,200 was stolen. The tax basis of the equipment was $5,700. Jack received $2,080 of insurance proceeds from the theft.

J. GJ incurred a $4,100 fine from the state government for digging in an unauthorized digging zone.

K. GJ contributed $3,080 to lobbyists for their help in persuading the state government to authorize certain unauthorized digging zones.

L. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipment. The policy covers the period July 1 of this year through December 31 of next year.

M. GJ borrowed $20,000 to help with the company’s initial funding needs. GJ used $2,000 of funds to invest in municipal bonds. At the end of the year, GJ paid the $1,200 of interest expense that accrued on the loan during the year.

N. Jack lives 12 miles from the office. He carefully tracked his mileage and drove his truck 6,280 miles between the office and his home. He also drove an additional 7,200 miles between the office and traveling to client sites. Jack did not use the truck for any other purposes. He did not keep track of the specific expenses associated with the truck. However, while traveling to a client site, Jack received a $170 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket.

O. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,180. Jack took existing and prospective clients to the games to maintain contact and find further work. This was very successful for Jack as GJ gained many new projects through substantial discussions with the clients following the games.

P. GJ reimbursed employee-salespersons $3,580 for meals involving substantial business discussion.

Q. GJ had a client who needed Jack to perform work in Florida. Because Jack had never been to Florida before, he booked an extra day and night for sightseeing. Jack spent $440 for airfare and booked a hotel for three nights ($140/night). (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $65 per day. The client arranged for Jack’s meals while Jack was doing business. GJ reimbursed Jack for all expenses.

REQUIRED:

a. What amount will increase taxable income (positive) or reduce taxable income (negative) for each of the above scenarios?

b. As a C corporation, does GJ have a required tax year? If so, what would it be?

c. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what would it be?

d. If GJ were an S corporation, would it have a required tax year-end? If so, what would it be?

Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients, and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together, and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the sole shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year, uses the accrual method of accounting, and elects to account for inventory).

1. In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $14,500, which represented a damage deposit of $5,800 and rent for two years ($4,350 annually).
2. GJ earned and collected $365,000 performing geological-related services and selling its specialized digging tool.
3. GJ received $70 interest from municipal bonds and $2,250 interest from other investments.
4. GJ purchased some new equipment in February for $50,000. It claimed depreciation on these assets during the year in the amount of $7,665.
5. GJ paid $7,750 to buy luxury season tickets for Jack’s parents for State U football games.
6. GJ paid Jack’s father $13,000 for services that would have cost no more than $7,800 if Jack had hired any other local business to perform the services. While Jack’s dad was competent, he does not command such a premium from his other clients.
7. In an attempt to get his name and new business recognized, GJ paid $7,750 for a one-page ad in the Geologic Survey. It also paid $16,500 in radio ads to be run through the end of December.
8. GJ leased additional office space in a building downtown. GJ paid rent of $30,750 for the year.
9. In November, Jack’s office was broken into and equipment valued at $5,750 was stolen. The tax basis of the equipment was $6,250. Jack received $2,300 of insurance proceeds from the theft.
10. GJ incurred a $4,375 fine from the state government for digging in an unauthorized digging zone.
11. GJ contributed $3,300 to lobbyists for their help in persuading the state government to authorize certain unauthorized digging zones.
12. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipment. The policy covers the period July 1 of this year through December 31 of next year.
13. GJ borrowed $20,000 to help with the company’s initial funding needs. GJ used $2,000 of funds to invest in municipal bonds. At the end of the year, GJ paid the $1,200 of interest expense that accrued on the loan during the year.
14. Jack lives 12 miles from the office. He carefully tracked his mileage and drove his truck 6,280 miles between the office and his home. He also drove an additional 7,200 miles between the office and traveling to client sites. Jack did not use the truck for any other purposes. He did not keep track of the specific expenses associated with the truck. However, while traveling to a client site, Jack received a $225 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket.
15. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,400. Jack took existing and prospective clients to the games to maintain contact and find further work. This was very successful for Jack as GJ gained many new projects through substantial discussions with the clients following the games.
16. GJ paid $3,800 for meals when sales employees met with prospective clients.
17. GJ had a client who needed Jack to perform work in Florida. Because Jack had never been to Florida before, he booked an extra day and night for sightseeing. Jack spent $550 for airfare and booked a hotel for three nights ($195/night). (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $120 per day. The client arranged for Jack’s meals while Jack was doing business, but GJ paid all expenses.
18. GJ paid a total of $25,000 of wages to employees during the year, and cost of goods sold was $30,000.

Required:

1. a. What is GJ’s net business income for tax purposes for the year?

2. b. As a C corporation, does GJ have a required tax year? If so, what would it be?

3. c. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what would it be?

4. d. If GJ were an S corporation, would it have a required tax year-end? If so, what would it be?

Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the sole shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year, uses the accrual method of accounting).

1. In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $17,500, which represented a damage deposit of $7,000 and rent for two years ($5,250 annually).
2. GJ earned and collected $415,000 performing geological-related services and selling its specialized digging tool.
3. GJ received $65 interest from municipal bonds and $2,350 interest from other investments.
4. GJ purchased some new equipment in February for $55,000. It claimed depreciation on these assets under tax basis during the year in the amount of $8,415.
5. GJ paid $8,250 to buy luxury season tickets for Jack’s parents for State U football games.
6. GJ paid Jack’s father $15,000 for services that would have cost no more than $9,000 if Jack had hired any other local business to perform the services. While Jack’s dad was competent, he does not command such a premium from his other clients.
7. In an attempt to get his name and new business recognized, GJ paid $8,250 for a one-page ad in the Geologic Survey. It also paid $17,500 in radio ads to be run through the end of December.
8. GJ leased additional office space in a building downtown. GJ paid rent of $33,250 for the year.
9. In November, Jack’s office was broken into and equipment valued at $6,250 was stolen. The tax basis of the equipment was $6,750. Jack received $2,500 of insurance proceeds from the theft.
10. GJ incurred a $4,625 fine from the state government for digging in an unauthorized digging zone.
11. GJ contributed $3,500 to lobbyists for their help in persuading the state government to authorize certain unauthorized digging zones.
12. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipment. The policy covers the period July 1 of this year through December 31 of next year.
13. GJ borrowed $20,000 to help with the company’s initial funding needs. GJ used $2,000 of funds to invest in municipal bonds. At the end of the year, GJ paid the $1,200 of interest expense that accrued on the loan during the year.
14. Jack lives 12 miles from the office. He carefully tracked his mileage and drove his truck 6,280 miles between the office and his home. He also drove an additional 7,200 miles between the office and traveling to client sites. Jack did not use the truck for any other purposes. He did not keep track of the specific expenses associated with the truck. However, while traveling to a client site, Jack received a $275 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket.
15. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,600. Jack took existing and prospective clients to the games to maintain contact and find further work. This was very successful for Jack as GJ gained many new projects through substantial discussions with the clients following the games.
16. GJ paid $4,000 for meals when sales employees met with prospective clients.
17. GJ had a client who needed Jack to perform work in Florida. Because Jack had never been to Florida before, he booked an extra day and night for sightseeing. Jack spent $650 for airfare and booked a hotel for three nights ($245/night). (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $170 per day. The client arranged for Jack’s meals while Jack was doing business, but GJ paid all expenses.
18. GJ paid a total of $35,000 of wages to employees during the year and cost of goods sold was $40,000.

Required:

1. a. What amount will increase taxable income (positive) or reduce taxable income (negative) for each of the above scenarios?

2. b. As a C corporation, does GJ have a required tax year? If so, what would it be?

3. c. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what would it be?

4. d. If GJ were an S corporation, would it have a required tax year-end? If so, what would it be?

Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the sole shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year and uses the accrual method of accounting). In January, GJ rented a small business office about 12 miles from Jack’s home. GJ paid $13,900, which represented a damage deposit of $5,560 and rent for two years ($4,170 annually). GJ earned and collected $355,000 performing geological-related services and selling its specialized digging tool. GJ received $60 interest from municipal bonds and $2,230 interest from other investments. GJ purchased some new equipment in February for $49,000. It claimed depreciation on these assets during the year in the amount of $7,515. GJ paid $7,650 to buy luxury season tickets for Jack’s parents for State U football games. GJ paid Jack’s father $12,600 for services that would have cost no more than $7,560 if Jack had hired any other local business to perform the services. While Jack’s dad was competent, he does not command such a premium from his other clients. In an attempt to get his name and new business recognized, GJ paid $7,650 for a one-page ad in the Geologic Survey. It also paid $16,300 in radio ads to be run through the end of December. GJ leased additional office space in a building downtown. GJ paid rent of $30,250 for the year. In November, Jack’s office was broken into and equipment valued at $5,650 was stolen. The tax basis of the equipment was $6,150. Jack received $2,260 of insurance proceeds from the theft. GJ incurred a $4,325 fine from the state government for digging in an unauthorized digging zone. GJ contributed $3,260 to lobbyists for their help in persuading the state government to authorize certain unauthorized digging zones. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipment. The policy covers the period July 1 of this year through December 31 of next year. GJ borrowed $20,000 to help with the company’s initial funding needs. GJ used $2,000 of funds to invest in municipal bonds. At the end of the year, GJ paid the $1,200 of interest expense that accrued on the loan during the year. Jack lives 12 miles from the office. He carefully tracked his mileage and drove his truck 6,280 miles between the office and his home. He also drove an additional 7,200 miles between the office and traveling to client sites. Jack did not use the truck for any other purposes. He did not keep track of the specific expenses associated with the truck. However, while traveling to a client site, Jack received a $215 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,360. Jack took existing and prospective clients to the games to maintain contact and find further work. This was very successful for Jack as GJ gained many new projects through substantial discussions with the clients following the games. GJ reimbursed employee-salespersons $3,760 for meals involving substantial business discussion. GJ had a client who needed Jack to perform work in Florida. Because Jack had never been to Florida before, he booked an extra day and night for sightseeing. Jack spent $530 for airfare and booked a hotel for three nights ($185/night). (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $110 per day. The client arranged for Jack’s meals while Jack was doing business. GJ reimbursed Jack for all expenses. GJ paid a total of $23,000 of wages to employees during the year and cost of goods sold was $28,000. Required: a. What amount will increase taxable income (positive) or reduce taxable income (negative) for each of the above scenarios? b. As a C corporation, does GJ have a required tax year? If so, what would it be? c. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what would it be? d. If GJ were an S corporation, would it have a required tax year-end? If so, what would it be?

Simon spends his income, $100, on food (f) and video games (v) with prices p_f= 7 and p_v = 1. Assume that f ≥ 0, v ≥ 0. His preferences are given by u(f, v) = f^0.7 *v^0.3 . Paul’s Marshallian demand is . (a) (11, 23) (b) (5, 65) (c) (10, 30) (d) (10, 25)

Consider the production function q=5L^(0.3) K^(0.5) The marginal product of labor is MPL=1.5L^(-0.7)K^(0.5) . Assume that capital is fixed at in the short run.

1. Derive the formula for the short-run total product and graph it. (Hint: Substitute in the production function

2. Derive the formula for the short-run average product of labor (Hint: Divide the short-run total product by)

Say I want to generate random variables from the probability distribution

p={ 2-2x 0<x<1

0 . elsewhere

My scheme is to generate U's from [0,1],double them and plug them into the probability distribution. So U = 0.3 gives me p(0.6)=0.8 as random variable. Prove my idea is right or wrong.

A merry go round (a disk I=(1/2) MR2, M=200 kg, R=2.0 m) rotates initially at 0.3 rad/s. A child of mass 40 kg is dropped onto the merry go round at a distance of 1.5 m from the axis of rotation. How fast is the child moving after it comes to turn with the merry go round?

Use for statements to find the values of x(t) = 3 cos (2?ft + 0.1) for t = 0,

01, 0.2, 0.3, 0.4 s when f =10, 15, and 20 Hz. Use one set ofstatements to compute the values for all three frequencies and store the results in a two-dimensional array. Use two nested for loops and double indexing.