On January 1, 2021, the company obtained a $3 million loan with a 11% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows:

On January 1, 2021, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $4,200,000 and $6,200,000 with interest rates of 6% and 8%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2021 and 2022 using the weighted-average method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2021 and 2022 income statements.

Suppose you own a small company that is contemplating construction of a suburban office block. The cost of buying the land and constructing the building is $755,000. Your company has cash in the bank to finance construction. Your real estate adviser suggests that you rent out the building for two years at $32,750 a year and predicts that at the end of that time you will be able to sell the building for $862,000.

Thus there are now two future cash flows--a cash flow of C₁ = $32,750 at the end of year 1 and a further cash flow of C₂ = ($32,750 + 862,000) = $894,750 at the end of the second year.

a. Calculate the NPV of the office building venture at interest rates of 7, 12, and 17%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. At what discount rate (approximately) would the project have a zero NPV? Check your answer by calculating the NPV at your approximate rate; it should be close to zero. (Enter your answer as a percent rounded to the nearest whole number.)

As of June 30, 2017, in total, Cannon has purchased $75,000 of component parts. As of June 30, 2017, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Cannon has incurred $12,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended June 30, 2017.

B. During the three months ended September 30, 2017, Cannon purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 2017. During the three months ended September 30, 2017, Cannon incurred an additional $50,000 of direct costs to integrate the component parts into the Thornock Square Apartments construction project.

C. As of September 30, 2017, Cannon determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.

D. As of December 31 2017, the construction project was completed. During the three months ended December 31, 2017, Cannon purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 2017. Cannon has incurred $187,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended December 31, 2017.

If Thornock Square Apartments cancels the contract, Cannon will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Cannon will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Cannon

How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods: a. The three months ended June 30, 2017? b. The three months ended September 30, 2017? c. The three months ended December 31, 2017?

As part of an environmental studies class​ project, students measured the circumferences of a random sample of 50 blue spruce trees near Brainard​ Lake, Colorado. The sample mean circumference was 30.4 inches. The population standard deviation is known to be around 7.1 inches. Find a 99% confidence interval for the population mean circumference of all blue spruce trees near this lake.

​A) What type of confidence interval are you to​ find?

A.

​1-Sample Mean Interval using Z

B.

​1-Sample Mean Interval using T

C.

None of the Above

​B) Confidence​ Interval: (

nothing

​,

nothing

​)

​(round each interval limit to two decimal​ places)

​C) Interpret the interval in the SHOW YOUR WORK area.

1) Does the U.S. have a monopoly problem? Why/not? Support your response with research.

2) Listen to the Planet Money Indicator podcast "Google's Mobile Monopoly" (Links to an external site.) and identify the barriers to entry in the tech industry that enable Google to realize it's monopoly/near monopoly. (remember to use additional resources as well)

3) Provide a separate example of a monopoly/near monopoly (natural or not) and comment on the barriers to entry in that industry. Please be specific.

4) Read "Anti Trust Laws - A Brief History" (Links to an external site.) and explore the resources below to comment on the field of antitrust in today's business climate. Should companies like Amazon have so much power (Links to an external site.)?  

2) A utility date presented here under contained a cost pf electricity (in $) during July 2014 for a random sample of 50 one-bedroom apartments in large city. 96 171 202 178 147 102 153 197 127 82 157 185 90 116 172 111 148 213 130 165 141 149 206 175 123 128 144 168 109 167 95 163 150 154 130 143 187 166 139 149 108 119 183 151 114 135 191 137 129 158

a) Construct a frequency distribution and percentage distribution that have class intervals with upper class boundaries $99, $199 and so on.

b) Construct a cumulative percentage distribution. c) Around what amount does the monthly electricity cost seem to be concentrated?

d) Draw a histogram e) Make a conclusion remark.

2) A utility date presented here under contained a cost pf electricity (in $) during July 2014 for a random sample of 50 one-bedroom apartments in large city. 96 171 202 178 147 102 153 197 127 82 157 185 90 116 172 111 148 213 130 165 141 149 206 175 123 128 144 168 109 167 95 163 150 154 130 143 187 166 139 149 108 119 183 151 114 135 191 137 129 158

a) Construct a frequency distribution and percentage distribution that have class intervals with upper class boundaries $99, $199 and so on.

b) Construct a cumulative percentage distribution. c) Around what amount does the monthly electricity cost seem to be concentrated?

d) Draw a histogram e) Make a conclusion remark.

Franklin Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients’ offices on the clients’ equipment. The only major expense FTS incurs is instructor salaries; it pays instructors $5,300 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $490 per student. Novak estimated that 20 students would attend the course.

Base your answers on the preceding information.

Required

a.Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost?

b.Determine the profit, assuming that 20 students attend the course.

c.Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability?

d.Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?

TRUE OR FALSE QUESTIONS

1. The ordinary, necessary, and reasonable expenses of a cocaine dealer are deductible. TRUE OR FALSE

2.A taxpayer wins the third place prize of $20 in a raffle. The income is excluded from gross income since it is less than $25. TRUE OR FALSE

4. The percentage depletion deduction is allowed even though the entire cost of the asset has been recovered (i.e., the basis of the asset is zero). TRUE OR FALSE

9.The percentage depletion deduction is allowed even though the entire cost of the asset has been recovered (i.e., the basis of the asset is zero). TRUE OR FALSE

10. In computing depreciation using MACRS, a taxpayer who elects to expense all or a portion of an asset must also reduce the basis of the asset by the same amount. TRUE OR FALSE

12. A taxpayer who leases an automobile for business purposes will be allowed to deduct the lease payments, but may have to include an imputed amount in income. TRUE OR FALSE

Fast Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars. Of the variable​ expense, 69​% is cost of goods​ sold, while the remaining 31​% relates to variable operating expenses. The company sells each carton of calendars for $19.50

1.) The Break Even Sale is ______ Cartoons?

2.) Monthly Sales Needed to Earn $338,000 in Operating Income is ______.

3.) Prepare the Company's Contribution Margin Income Statement for June for Sales of 470,000 Cartoons

Sales Revenue:

Variable Expenses:

Cost of Goods Sold:

Operating Expenses:

Contribution Margin:

Fixed Expenses:

Operating Income:

4.) What is​ June's margin of safety​ (in dollars)? What is the operating leverage factor at this level of​ sales?

5.) By what percentage will operating income change if​ July's sales volume is 14​% higher? Prove your answer. ​(Round the percentage to two decimal​ places.