14,       A residential property is acquired on the first day of the tax year for a purchase price of $300,000 plus acquisition costs of $15,000. The property is held for five years and sold on the last day of the tax year.

a. What is the cost-recovery deduction for each full year of acquisition?                                      

b. What is the annual cost-recovery deduction for each full year of ownership?                           

c. What is the cost-recovery deduction for the year of disposition?                                               

d. What is the total cost recovery taken during the recovery period?                     

Assumes that the marginal propensity to consume in Maldives is 0.9. For the next year it is estimated that the economy would receive investments worth of RF 50 million, government would purchase goods and services worth of RF 40 million, and taxes would be RF 40 million. Assumes exports and imports to be zero.

Questions:

If the government cuts its expenditure on goods and services by 30 million, what would be the change in equilibrium expenditure now?   

The government decided to purchase RF 40 million worth of goods and services, and to cut taxes to RF 30 million. What would be the change in equilibrium expenditure now?

The government simultaneously decided to cuts its’ both purchase of goods and services and taxes to RF 30 million. What would be the change in equilibrium, expenditure now?

You will be paying $9,000 a year in tuition expenses at the end of the next 3 years. Bonds currently yield 16%.

a What is the present value of your obligation ? __________________

b What is the duration of your obligation ? ______________________

c Suppose you wish to fund your obligation using 1-year zero-coupon bonds and perpetuity bonds. How much of 1-year zero __________________________ and how much of perpetuity bonds ____________________ (in market value ) will you want to hold to both fully fund and immunize your obligation?

d. Suppose you buy 1-year zero-coupon bonds and perpetuity bonds to immunize your obligation. Now suppose that rates immediately increase to 17%. What is your tuition obligation now? __________________________

BONUS POINTS What is the value of your position in perpetuities now? _________________________ What is the value of your position in 1-year-zero-coupon bonds now?______________

Changing the Cost Formula for a Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:   

Required:

If required, round calculations and answers to nearest dollar.

1. Develop an annual cost formula for airplane depreciation.

Total annual cost of airplane depreciation = ____ x ($__________)

Develop an annual cost formula for fuel.

Total annual cost of fuel = $_________×___________

Develop an annual cost formula for airplane maintenance.

Total annual cost of airplane maintenance = (___________x $___________) + ($__________×_____________)

2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 487,000 airplane flight hours.

Total annual cost of airplane depreciation $

Total annual cost of fuel $

Total annual cost of airplane maintenance $

This is has to be SBAR format ?

J.D. is a 32 year old male that was admitted into the acute psychiatric unit due to an acute exacerbation of paranoid schizophrenia due to aggressive behaviors in the public. Height 5’9, weight 175, vitals 131:80, pulse 64, resp 18, temp 98.7, full code, NKA, treatments: urine drug screens, IND transfer, married, catholic religion, nurse by occupation, no cultural background, no pain, regular diet, no oxygen, no wounds. Patients admitting diagnosis was psychosis NOS. J.D. past medical history includes, hypertension, insomnia, PTSD, GERD, chemical dependency concerns (i.e. alcohol). Patient’s current psychiatric diagnosis is paranoid schizophrenia. Treatments: Urine Drug Screens. Medications include; Haldol 5 mg PO BID, Haldol Deaconate IM injection 50 mg monthly, Vistaril 50 mg PO TID for agitation, Zyprexa 10 mg at HS, Antabuse 225 mg daily, trazadone 50 mg HS, omeprazole 20 mg at HS, prazosin 1 mg at HS, Neurontin 100 mg PO.

You are considering investing in a project in Mexico. The project will be a 2 year project, has an initial cost of 100K USD, and expected after tax profit of 1 million MXP per year. You expect the MXP to be valued at 0.12 USD/MXP. There are two major risks that you think have the potential to significantly affect project performance, which you assume are independent: * You think with probability of 0.17 that the MXP will depreciate to 0.1 USD/MXP. * You also think that with probability of 0.28 the Mexican economy will weaken substantially, in which case the project's after tax annual cash flow will be only 600K MXP. Your required return on the project is 18%. What is the expected value of the NPV of this project, as measured in USD?

L. A. and Paula file as married taxpayers. In August of this year, they received a $6,120 refund of state income taxes that they paid last year.

How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,700. (Leave no answer blank. Enter zero if applicable.)

a. Last year L. A. and Paula had itemized deductions of $10,600, and they chose to claim the standard deduction.
b. Last year L. A. and Paula claimed itemized deductions of $25,300. Their itemized deductions included state income taxes paid of $9,560.
c. Last year L. A. and Paula claimed itemized deductions of $19,750. Their itemized deductions included state income taxes paid of $10,200.

      The profits of a firm for the last five years were as follows.

1. Calculate the value of goodwill on the basis of four years’ purchase of weighted average profits based on weights 1,2,3,4 and 5 respectively to the profits for 2015, 2016, 2017, 2018 and 2019.                                                                         (3 marks)

2. Write any six need for valuation of goodwill                  (2 marks)

You are the president of High Power Corporation. At the end of the first year of operations (December 31, 2017), the following financial data for the company are available:
  

Required:
1. Prepare an income statement for the year ended December 31, 2017.

2. Prepare a statement of retained earnings for the year ended December 31, 2017.

3. Prepare a balance sheet at December 31, 2017.