how an expenditure that is capitalized will affect the financial statements in the year the expenditure is incurred

A company will submit a bid for the price per year it would charge to a new development for the next five years.
The company would have to buy new equipment for $110,000. The equipment would be depreciated straight-line to its estimated salvage value of $10,000 over its five-year useful life. At the end of the project, the company will be able to sell its equipment for $10,000. Also the company would use 3 trucks it currently has, which it could sell now for $50,000. These trucks are already fully depreciated, and will likely be sold in 5 years for a $10,000.
Working capital will increase by $30,000 to begin the project, and increase by an additional $10,000 in Year 1.
Total labor and other costs would be $80,000 a year. The tax rate is 25% percent and cost of capital is 10 percent.

What the minimum bid price per year need to be if the company wants to wind the bid and at least cover its cost of capital?

A 10-year loan of 120,000 is to be repaid with payments at the end of each month. Interest is at an annual effective rate of 6.00%.

The first monthly payment is 800. Each additional payment will be k more than the previous month payment. Find k.

(e) The balance of the value of each group at the end of the taxable year is the total of the balance of the value of the group at the end of the previous taxable year after the depreciation deduction in accordance with this Article for the previous taxable year, and fifty percent (50%) of the cost base of assets in use added to the group in the current and previous taxable years after the deduction of fifty percent (50%) of the compensation received from the assets disposed of during the current and previous 11 taxable years, provided that the balance does not become in the negative.

Required:

1. Discuss In Detail This Article
2. Give a numerical example explaining the applicability of the paragraph (e) in the article 17 of the Saudi income tax.

1- The price of a 20 year, 12% bond is $875. There is an option, and the firm may purchase the bond back in 4 years. Derive the yield to maturity and the yield to call.

2- Compute the price of a 30 year 9% bond, if yields to maturity are 6% presently. Convince that the price is reasonable.

those are the full questions

While deciding on the strategy for the coming year, Nitin is faced with the challenge on how to mitigate the currency risk. In the past, there have been instances where Nitin has quoted the price at the prevalent currency rate and by the time the export proceeds were realised, he received a lesser value for his goods. Nitin extracted the data of Foreign Exchange Rates for the past year and, on analysis, found that there had been an average 5-7 per cent fluctuation in the foreign currency rates against the Indian Rupee on a daily basis. Nitin was unable to decide whether to hedge the foreign currency or not. Narayan advised Nitin that there were two ways of hedging the currency risk:

1. A forward contract between a bank and a customer calls for a delivery, at a fixed future date, of a specified amount of one currency against another currency at an exchange rate fixed at a time the contract is entered into.

2. An option is a financial instrument that gives the holder the right but not the obligation to sell or buy another financial instrument at a set price and expiration date.

Recommend the best method of hedging currency risk and explain why you chose it.

( B ) : In each quarter of every year, the maximum capacity of the "MBA

Co." is 4000 hours available for sorting and re-packing two sorts of imported apples in special boxes where each box contains only one ton of either the red or the yellow apples. The monthly common committed fixed costs of the company is L.E. 100000, and the following estimates are presented in relation to the coming quarter which will start July 1, 2015 :-

eqrequired :

Use appropriate traditional managerial accounting marginal analysis techniques to determine the optimal imports mix the   company should consider for the third quarter of 2015, then prepare this quarter's expected detailed income statement.

Explain the effect of an expectation of a raise NEXT year on net borrowers