69% of all students at a college still need to take another math class. If 41 students are randomly selected, find the probability that a. Exactly 30 of them need to take another math class. b. At most 27 of them need to take another math class. c. At least 29 of them need to take another math class. d. Between 23 and 29 (including 23 and 29) of them need to take another math class.

2. A trihybrid testcross yielded the following progeny: (10pts)

a+c / abc          21                                +bc / abc         77

abc / abc          400                              a++ / abc         71

ab+ / abc         1                                  +++ / abc         402

+b+ / abc         27                                ++c / abc         1

Total = 1000  

1. Which genes if any are linked?

b. If the genes are linked what is the gene order?  

c. If any genes are linked what are the map units between the them? Include coefficient of coincidence and interference.

Sanjeev enters into a contract offering variable consideration. The contract pays him $1,850/month for six months of continuous consulting services. In addition, there is a 70% chance the contract will pay an additional $3,500 and a 30% chance the contract will pay an additional $1,500, depending on the outcome of the consulting contract. Sanjeev concludes that this contract qualifies for revenue recognition over time.

Assume that Sanjeev estimates variable consideration as the most likely amount. After Sanjeev has recognized revenue for two months of the contract, he changes his assessment of the chance the contract will pay him $5,000 to 50%. What adjustment to revenue should Sanjeev recognize to account for that change in estimate?

Multiple Choice

• Debit of $500

• Credit of $1,850

• Debit of $1,850

• Credit of $500

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assured, and bad debt losses cannot be reasonably predicted. It is unlikely that repossessed merchandise is in condition to be re-sold. Therefore, Reliable uses the cost recovery method. Merchandise costing $30,000 was sold for $55,000 in 2020. Collections on this sale were $20,000 in 2020, $15,000 in 2021, and $20,000 in 2022.

In its 2021 year-end balance sheet, Reliable would report installment receivables (net) of:

Multiple Choice

• $0.

• $20,000.

• $4,000.

• $15,000

Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2020, Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2020, $300,000 in 2021, and $300,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000. Lake collected $500,000 in 2021, $400,000 in 2022, and $400,000 in 2023 associated with those sales. In 2023, Lake also repossessed $200,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $75,000 at the time they were repossessed.

In 2022, Lake would recognize realized gross profit of:

Multiple Choice

• $0.

• $300,000.

• $310,000.

• $700,000.

Holmgren Seafoods, Inc. catches and processes salmon and tuna caught off the coast of Maine. In May 2021, it placed 100 freshly caught wild salmon with a retail price of $75 each in Joe’s Fish Shop. Holmgren’s contract with the shop stipulates that the shop will earn a 15% commission on each salmon sold. Joe’s is responsible for purchasing any fish that remain unsold at the end of a three-day period.

Required:
During the three-day period, Joe’s Fish Shop was able to sell 88 of the 100 salmon. How much revenue should Holmgren recognize with respect to this transaction?

2. The more complete the transfer, the more likely tax goals will be accomplished.

5. Larry just completed signing all the documents and transferring stocks and bonds worth $400,000 in trust to Martin. The irrevocable trust terms require the income to be accumulated or distributed to John and Jane in such portion as Martin thinks reasonable. When both John and Jane are deceased the trust is to terminate and the assets distributed to Wally. Wally's right to receive the assets upon termination make him the:

9. In UPC states an omitted child who is born after his or her parent's will was executed has better claim to a portion of the decedent's estate than an omitted child who was alive when it was executed.

10. In states that have adopted the UPC, a divorce automatically revokes an insurance beneficiary designation to the ex-spouse when such designation was made prior to the divorce.

11. Carl had four children, Martha, Terry, Ann, and Rick. Martha and Rick predeceased Carl. Martha has one child surviving. Rick has five surviving children. Terry has two surviving children and Ann has one surviving child. There are no great-grandchildren. If Carl's estate is left per capita at each generation to his issue, each of Rick's children will receive what fraction of Carl's estate?

12. Some community property states, such as California, allow property owned by the decedent to pass to a surviving spouse without being probated.

13. States adopting the UPC require a per capita at each generation distribution rather than per stirpes where there are issue surviving but no spouse.

14. For the all gift tax problems use the following annual exclusions: $10,000 for pre-2002; $11,000 for 2002 - 2005; $12,000 for 2006-2008. At the time these problems are written it is uncertain whether the exclusion will reach $12,000 in 2006 or 2007 but the guess is in 2006.

In 2005, Juantonio made a $1,250,000 gift ($1,240,000 taxable) to his brother and paid gift taxes of $. Two years later (2007) he gave his parents a home worth $754,000. Determine the gift tax for 2007:

15. For transfer taxes, a credit of $1 and a deduction of $1 imply the same tax saving.

16. For the all gift tax problems use the following annual exclusions: $10,000 for pre-2002; $11,000 for 2002 - 2005; $12,000 for 2006-2008. At the time these problems are written it is uncertain whether the exclusion will reach $12,000 in 2006 or 2007 but the guess is in 2006.

Maria died in 2006 leaving her entire estate to her three children. The value of her property was $3,340,000. The total debts and expenses deducted on the estate tax return were $220,000. The estate tax is:

17. In 2007, the estate tax for a taxable estate of $2,010,000 (with no prior taxable gifts) is $1,800, because subtracting the $2,000,000 applicable exclusion amount leaves just $10,000 subject to taxation at the marginal tax rate of 18 percent.

18. D transferred a term life insurance policy (on his own life) to the trustee of an irrevocable life insurance trust two years before he died. D had neither retained interests nor any power to appoint the corpus of the trust. The policy was worth only $100 when he transferred it. The trustee collected $7,000 when D died.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

19. Tara transferred stock to her minor daughter using the state's Uniform Transfer to Minor's Act provisions to complete the gift. Six years later, while still acting as custodian of the gift, Tara died.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

20. Just eight months before he died, D transferred land with a small house on it to X. It was worth a little over $2 million at the time and D paid the $435,000 in gift taxes. Toxic waste was discovered on the land shortly before D died so it was valued at just $500,000 at the time of D's death.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

21. Ila transferred separate property term insurance policy on her life to the independent trustee of an irrevocable life insurance trust. The terms of the trust create a life estate for Ila's husband and remainder to their children. The policy had a face (proceeds) amount of $200,000. Ila continued to pay the premiums on the policy and died five years after the transfer. All, or a portion, of the proceeds are in Ila's estate because:

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

22. A taxable gift of life insurance will arise at the insured's death whenever the insured, the owner, and the beneficiary are three different parties.

23. A commercial annuity contract purchased by Don and given to his niece, Bernice, is a gift partly of a present interest and partly of a future interest because payments are spread out over a period of years.

24. On January 1, 2006, Bell died. His will left "$120,000 to Sara Smith, but if she predeceases me, then to her issue by right of representation." On June 10, 2006, Sara wrote Bell's executor the following note, "I don't need Bell's money, give it my kids, Kevin, Diane, and David. Signed, Sara Smith" Kevin, Diane, and David are Sara's only children. Which of the following are true statements?

(1)If Sara had waited more than nine months after Bell's death, the law will not allow her to give up her right to the inheritance.
(2)Sara has made a taxable gift of $40,000 to each child, no annual exclusion is allowed, because the probate must close before the children get the money.
(3)Sara has made a taxable gift of $30,000 to each child, their interests vest immediately, hence an annual exclusion.
(4)The disclaimer is tax effective even though it directs the transfer, since the children are next in line anyway according to Bell's will.

25. In 2007, Max gave each to his three children property worth $130,000 ($390,000 total). His wife, Mindy, gave $6,000 of her own property to one of the children. Assuming gift splitting, and no other gifts, Max's gift tax return will report taxable gifts of

2. The more complete the transfer, the more likely tax goals will be accomplished.

5. Larry just completed signing all the documents and transferring stocks and bonds worth $400,000 in trust to Martin. The irrevocable trust terms require the income to be accumulated or distributed to John and Jane in such portion as Martin thinks reasonable. When both John and Jane are deceased the trust is to terminate and the assets distributed to Wally. Wally's right to receive the assets upon termination make him the:

9. In UPC states an omitted child who is born after his or her parent's will was executed has better claim to a portion of the decedent's estate than an omitted child who was alive when it was executed.

10. In states that have adopted the UPC, a divorce automatically revokes an insurance beneficiary designation to the ex-spouse when such designation was made prior to the divorce.

11. Carl had four children, Martha, Terry, Ann, and Rick. Martha and Rick predeceased Carl. Martha has one child surviving. Rick has five surviving children. Terry has two surviving children and Ann has one surviving child. There are no great-grandchildren. If Carl's estate is left per capita at each generation to his issue, each of Rick's children will receive what fraction of Carl's estate?

12. Some community property states, such as California, allow property owned by the decedent to pass to a surviving spouse without being probated.

13. States adopting the UPC require a per capita at each generation distribution rather than per stirpes where there are issue surviving but no spouse.

14. For the all gift tax problems use the following annual exclusions: $10,000 for pre-2002; $11,000 for 2002 - 2005; $12,000 for 2006-2008. At the time these problems are written it is uncertain whether the exclusion will reach $12,000 in 2006 or 2007 but the guess is in 2006.

In 2005, Juantonio made a $1,250,000 gift ($1,240,000 taxable) to his brother and paid gift taxes of $. Two years later (2007) he gave his parents a home worth $754,000. Determine the gift tax for 2007:

15. For transfer taxes, a credit of $1 and a deduction of $1 imply the same tax saving.

16. For the all gift tax problems use the following annual exclusions: $10,000 for pre-2002; $11,000 for 2002 - 2005; $12,000 for 2006-2008. At the time these problems are written it is uncertain whether the exclusion will reach $12,000 in 2006 or 2007 but the guess is in 2006.

Maria died in 2006 leaving her entire estate to her three children. The value of her property was $3,340,000. The total debts and expenses deducted on the estate tax return were $220,000. The estate tax is:

17. In 2007, the estate tax for a taxable estate of $2,010,000 (with no prior taxable gifts) is $1,800, because subtracting the $2,000,000 applicable exclusion amount leaves just $10,000 subject to taxation at the marginal tax rate of 18 percent.

18. D transferred a term life insurance policy (on his own life) to the trustee of an irrevocable life insurance trust two years before he died. D had neither retained interests nor any power to appoint the corpus of the trust. The policy was worth only $100 when he transferred it. The trustee collected $7,000 when D died.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

19. Tara transferred stock to her minor daughter using the state's Uniform Transfer to Minor's Act provisions to complete the gift. Six years later, while still acting as custodian of the gift, Tara died.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

20. Just eight months before he died, D transferred land with a small house on it to X. It was worth a little over $2 million at the time and D paid the $435,000 in gift taxes. Toxic waste was discovered on the land shortly before D died so it was valued at just $500,000 at the time of D's death.

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

21. Ila transferred separate property term insurance policy on her life to the independent trustee of an irrevocable life insurance trust. The terms of the trust create a life estate for Ila's husband and remainder to their children. The policy had a face (proceeds) amount of $200,000. Ila continued to pay the premiums on the policy and died five years after the transfer. All, or a portion, of the proceeds are in Ila's estate because:

Select the letter corresponding to the IRC section which causes all or a portion of the property, or of the gift tax paid, to be included in the decedent's gross estate. If both 2035(a) and 2036 &/or 2038 apply select 2035(a). Note, IRC 2036 &/or 2038 are listed together because they often overlap.
(1)IRC section 2035(a) which requires inclusion of certain transfers made within three years of death.
(2)IRC section 2035(b) which requires grossing up of certain gift taxes.
(3)IRC section 2036 which requires inclusion of transfers with retained life estate, etc. or IRC section 2038 which requires inclusion of revocable transfers, etc.
(4)IRC section 2041 which requires inclusion of property over which one has a general power of appointment.
(5)None of the above apply and the property is not part of the decedent's gross estate.

22. A taxable gift of life insurance will arise at the insured's death whenever the insured, the owner, and the beneficiary are three different parties.

23. A commercial annuity contract purchased by Don and given to his niece, Bernice, is a gift partly of a present interest and partly of a future interest because payments are spread out over a period of years.

24. On January 1, 2006, Bell died. His will left "$120,000 to Sara Smith, but if she predeceases me, then to her issue by right of representation." On June 10, 2006, Sara wrote Bell's executor the following note, "I don't need Bell's money, give it my kids, Kevin, Diane, and David. Signed, Sara Smith" Kevin, Diane, and David are Sara's only children. Which of the following are true statements?

(1)If Sara had waited more than nine months after Bell's death, the law will not allow her to give up her right to the inheritance.
(2)Sara has made a taxable gift of $40,000 to each child, no annual exclusion is allowed, because the probate must close before the children get the money.
(3)Sara has made a taxable gift of $30,000 to each child, their interests vest immediately, hence an annual exclusion.
(4)The disclaimer is tax effective even though it directs the transfer, since the children are next in line anyway according to Bell's will.

25. In 2007, Max gave each to his three children property worth $130,000 ($390,000 total). His wife, Mindy, gave $6,000 of her own property to one of the children. Assuming gift splitting, and no other gifts, Max's gift tax return will report taxable gifts of

1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses = Net Income. c. Revenues - Expenses - Dividends = Retained Earnings. d. Assets = Liabilities + Stockholders’ Equity.

2. On January 1, Art Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock. During the year, the company earned net income of $92,000, paid a dividend of $15,200, and issued more common stock for $27,500. What is total stockholders' equity at the end of the year? a. $1,231,700. b. $1,097,000. c. $1,201,300. d. $1,588,300.

3. Which financial statement is typically prepared first? a. Balance sheet. b. Income statement. c. Statement of stockholders’ equity. d. Statement of cash flows.

4. Which of the following would increase assets and increase liabilities? a. Provide services to customers on account. b. Purchase office supplies on account. c. Pay dividends to stockholders. d. Receive a utility bill but do not pay it immediately. 2 / 10

5. The Unearned Revenue account is shown in which statement? a. Income statement. b. Statement of cash flows. c. Balance sheet. d. Statement of stockholders’ equity.

6. Consider the following accounts: Utility Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with credits? a. One. b. Two. c. Three. d. Four.

7. Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as: a. Debit Equipment, credit Cash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable, credit Equipment. d. Debit Equipment, credit Notes Payable.

8. Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5. According to the revenue recognition principle, in which month should Air France have recognized this revenue? a. January. b. February. c. April. d. Evenly in each of the three months.

9. Which of the following regarding adjusting entries is correct? a. Adjusting entries are recorded for all external transactions. b. Adjusting entries are recorded to make sure all cash inflows and outflows are recorded in the current period. c. Adjusting entries are needed because we use accrual-basis accounting. d. After adjusting entries, all temporary accounts should have a balance of zero. 3 / 10

10. An adjusted trial balance: a. Is a list of all accounts and their balances after adjusting entries. b. Is a list of all accounts and their balances before adjusting entries. c. Is a list of all accounts and their balances after closing entries. d. Is a trial balance adjusted for cash-basis accounting.

1. What three organs or tissue types does Maximov describe as being “blood producing”?

2. Gail Martin used a teratoma formation in her paper on mouse embryonic stem cells. What is a teratoma?

3. Why is this assay relevant to her claim that she had isolated multipotent stem cells?

4. Multiple stem cell researchers used “fibroblast feeder cells” during their stem cell isolation experiments. What is a fibroblast?

5. Were the fibroblasts altered in any way, and if so, why?

6. What role did the fibroblasts provide to the co-cultured stem cells?

7. Takahashi and Yamanaka (2006) discovered that they could reprogram somatic tissues back to a “stem” state. Why did they choose to reprogramming cells from a pan-GFP mouse line? What proof did that bring to their studies?

8. What terms or phrases did you come across in Chapter 1 of the textbook that were confusing or difficult to understand?

Please Answer all questions!

Sonic, Inc., sells business software. Currently, all of its programs come on disks. Due to their complexity, some of these applications occupy as many as seven disks. Not only are the disks cumbersome for customers to load, but they are relatively expensive for Sonic to purchase. The company does not intend to discontinue using disks altogether. However, it does want to reduce its reliance on the disk medium.

Two proposals are being considered. The first is to provide software on computer chips. Doing so requires a $300,000 investment in equipment. The second is to make software available through a computerized “software bank.” In essence, programs would be downloaded directly from Sonic using telecommunications technology. Customers would gain access to Sonic’s mainframe; specify the program they wish to order; and provide their name, address, and credit card information. The software would then be transferred directly to the customer’s hard drive, and copies of the user’s manual and registration material would be mailed the same day. This proposal requires an initial investment of $240,000.

The following information pertains to the two proposals. Due to rapidly changing technology, neither proposal is expected to have any salvage value or an estimated life exceeding six years.

The only difference between Sonic’s incremental cash flows and its incremental income is attributable to depreciation. A minimum return on investment of 15 percent is required.

a. Compute the payback period of each proposal.

b. Compute the return on average investment of each proposal.

c. Compute the net present value of each proposal using the tables in Exhibits 26–3 and 26–4.

d. What nonfinancial factors should be considered?

Sonic, Inc., sells business software. Currently, all of its programs come on disks. Due to their complexity, some of these applications occupy as many as seven disks. Not only are the disks cumbersome for customers to load, but they are relatively expensive for Sonic to purchase. The company does not intend to discontinue using disks altogether. However, it does want to reduce its reliance on the disk medium.

Two proposals are being considered. The first is to provide software on computer chips. Doing so requires a $300,000 investment in equipment. The second is to make software available through a computerized “software bank.” In essence, programs would be downloaded directly from Sonic using telecommunications technology. Customers would gain access to Sonic’s mainframe; specify the program they wish to order; and provide their name, address, and credit card information. The software would then be transferred directly to the customer’s hard drive, and copies of the user’s manual and registration material would be mailed the same day. This proposal requires an initial investment of $240,000.

The following information pertains to the two proposals. Due to rapidly changing technology, neither proposal is expected to have any salvage value or an estimated life exceeding six years.

The only difference between Sonic’s incremental cash flows and its incremental income is attributable to depreciation. A minimum return on investment of 15 percent is required.

a. Compute the payback period of each proposal.

b. Compute the return on average investment of each proposal.

c. Compute the net present value of each proposal using the tables in Exhibits 26–3 and 26–4.

e. Which of Sonic’s employees would most likely underestimate the benefits of investing in the software bank? Why?