#14 . Listed below are speeds (mi/h) measured from southbound traffic on I-280 near Cupertino, CA. This simple random sample was obtained at 3:30 p.m. on a weekday. Use a 0.05 significance level to test the claim of the highway engineer that the standard deviation of speeds is equal to 5.0 mi/h. (With a 95% confidence) 62 61 61 57 61 54 59 58 59 69 60 67

A) Construct a confidence interval using the confidence level provided.

B) Test the hypothesis

C) Enter the results in excel as following

confidence level critical value confidence interval

   XL^2

   XR^2

Choo sold his house for RM572,000 on 1 June 2019 and incurred agent’s fees of RM10,440 on the disposal.

He bought the house on 20 March 2015 for RM435,000. Choo incurred stamp duty amounting to RM6,700 on the purchase. In 2016 he built an extension to the house costing RM 52,660. In March 2017 he received a deposit of RM30,000 from an intended buyer who later called off the deal, thus forfeiting their deposit.

Choo has allowable loss brought forward from year 2018 amounted RM23,000.

A trainee attached to a tax agent’s firm was asked to compute the real property gains tax payable strictly following the provisions of the Real Property Gains Tax Act 1976 and produced the following:
RM RM
Disposal price 572,000
Consideration received 30,000
Add: Deposit forfeited 602,000

Acquisition price
Consideration paid 435,000
Less: Cost of extension to building (52,660)
           Agent's fees (10,440)
           Stamp duty (6,700) 365,200
Chargeable gains 236,800

Real property gains tax at 30% = RM71,040








Required:

(a) List and briefly explain, the errors and omission(s), if any, in the above tax computation.

(b) Compute the Real Property Gain Tax Payable by Choo for the year assessment 2019

Gönye&Cetvel Architects is a leading Turkish firm with operations in architectural design, construction, and real estate finance. This company competed with several other rivals in the Gigantic Tuzla Mall Project and won the project competition by presenting the most popular mall design. Thanks to this victory, Gönye&Cetvel Architects now has the right to build the Gigantic Tuzla Mall. For the sake of simplicity, we assume that this mall will be built over the next year. The construction of the mall will cost 190 million USD. Due to economic slowdown and low number of shoppers residing in Tuzla, such a mall is worth roughly 180 million USD today. If the economy recovers, the number of shoppers in Tuzla will increase and the mall would be worth 320 million USD a year from today. If economic slowdown gets worse, the mall would be worth 150 million USD a year from today. Gönye&Cetvel Architects can borrow and lend money at the risk free annual effective rate of 5%. Today, a local competitor named Dayioglu Insaat has offered Gönye&Cetvel Architects 20 million USD for the right to build the Gigantic Tuzla Mall. Should Gönye&Cetvel Architects accept this offer and sell the right to build the mall? Use a two-state model to value this real option.

Gönye&Cetvel Architects is a leading Turkish firm with operations in architectural design, construction, and real estate finance. This company competed with several other rivals in the Gigantic Tuzla Mall Project and won the project competition by presenting the most popular mall design. Thanks to this victory, Gönye&Cetvel Architects now has the right to build the Gigantic Tuzla Mall. For the sake of simplicity, we assume that this mall will be built over the next year. The construction of the mall will cost 190 million USD. Due to economic slowdown and low number of shoppers residing in Tuzla, such a mall is worth roughly 180 million USD today. If the economy recovers, the number of shoppers in Tuzla will increase and the mall would be worth 320 million USD a year from today. If economic slowdown gets worse, the mall would be worth 150 million USD a year from today. Gönye&Cetvel Architects can borrow and lend money at the risk free annual effective rate of 5%. Today, a local competitor named Dayioglu Insaat has offered Gönye&Cetvel Architects 20 million USD for the right to build the Gigantic Tuzla Mall. Should Gönye&Cetvel Architects accept this offer and sell the right to build the mall? Use a two-state model to value this real option.

Remmele and Little CPAs have decided to bid on the adult of Tanner, Inc., a local manufacturing firm. After learning all they can about the potential new client, the partners have estimated the following:

All staff, managers, and partners are paid on average 30 percent of the desired client billing rate ($75, $125, $250). Fringe benefits average 30 percent of the pay rate. other out-of-pocket costs include suppliers, travel, and clerical costs and are usually fairly accurate.

a.) if the firm normally marks up non labor costs by 20 percent to arrive at the client, fee, what should the bid price be?

b.) using the information available to you, compute the actual out-of-pocket cost to the CPA firm to complete this audit. Out-of-pocket costs do not include any profit built into the client billing rate.

c.) Using your answer in B, what is the lowest price the CPA firm could charge and not lose money?

d.) If Tanner, Inc., rejects the bid and states that it will pay no more than $100,000 for the audit, what are the options open to the CPA firm?

I am a potential source of investment. I combine small savers funds into a diversified portfolio of a targeted invest involving certain types of stocks or bonds, as advertised in a prospectus. I then pay my investors based upon the performance of the overall portfolio. Who am I?

The "Needs Analysis Method" of determining how much life insurance to buy, which can also be used in determining the amount of disability coverage, consists of

A homeowner's policy typically covers a total loss to the home equal to

Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp. at fair market value. The fair market value of the building was determined to be $502,500; Luke built the building several years ago at a cost of $375,000. Luke had claimed $56,500 of depreciation expense on the building. The fair market value of the land was determined to be $254,000 at the time of the sale; Luke purchased the land many years ago for $147,750.

a. What is the amount and character of Luke’s recognized gain or loss on the building?

b. What is the amount and character of Luke’s recognized gain or loss on the land?

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Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as §1231 assets. The first is machinery and will generate a $16,250 §1231 loss on the sale. The second is land that will generate a $7,300 §1231 gain on the sale. Aruna’s ordinary marginal tax rate is 30 percent. (Input all amounts as positive values.)

a. Assuming she sells both assets in December of year 1 (the current year), what effect will the sales have on Aruna’s tax liability?

b. Assuming that Aruna sells the land in December of year 1 and the machinery in January of year 2, what effect will the sales have on Aruna’s tax liability for each year?
      

Pinnacle Custom Home Builders purchased a 40 foot articulating boom lift three years ago for $55,000. The equipment has been depreciated under the 5-year MACRS schedule (20%, 32%, 19%, 12%, 12% & 5%). The old equipment can be sold for $35,000.

Pinnacle is considering the purchase of a new 60 foot articulating boom lift that would allow the company to complete nearly all of its construction projects without the need for costly rental lifts. The new lift could be purchased for $127,000 and would also fall under the 5-year MACRS depreciation schedule.

Assume the old and new equipment would provide the following operating gains (or losses) over the next six years.

The firm has a 30 percent tax rate and a 7 percent cost of capital. Should the new equipment be purchased to replace the old equipment? Briefly justify your answer.

All interim calculations (including TVM) must be made using the built-in Excel functions and your submission should be in good form (i.e., neat and easy to follow with descriptive labels, etc.).

Case study: Crown clothing store chain (you need to right 700 words)

Ahmed and Ali are two of the most prominent businessmen in the Middle East. Mark and Thomas created a chain of clothing stores five years ago and your group was recently appointed to assess their cost cycle.
During a short discussion with the Procurement Manager, they were informed of the following:
"Our business is growing faster than we expected. As a result, many tasks and roles must be taken to keep our operations running. All of the suppliers we have approved since we started the store chain are still dealing with them and we have built a relationship based on mutual trust. Usually the necessary supplies are purchased from Every supplier using the phone After delivering the goods, suppliers send the invoice to us by email. Our policy of paying the invoices is to pay the invoice immediately upon receipt. The payment process is also easy as the checkbook of the facility is in my possession. For each bill on the check, then sign the check and send it by email. All the operations are simple and work smoothly to the best of my knowledge. "
Required:

The case should be read,
Determine the weaknesses in the Crown Garment Facility expenditures cycle based on the information provided by the Procurement Manager?
Please provide the necessary recommendations for each weakness?

The following multipart problem asks you to derive a number of characteristics of an extrasolar planetary system. Assume that the planet has been detected by Kepler with the transit method, and that the transits are periodic (as shown below, a dip in the lightcurve indicates that a planet has moved in front of the star).

(a) The star has 3 times the mass of the sun (i.e., M∗ = 3.0M⊙) and the period of the transits are 2.0 Earth years (i.e, the orbital period of the planet around its star is twice the orbital period of the Earth around the sun Tp = 2.0T⊕). To make things interesting, let’s imagine that the planet is in an elliptical orbit with eccentricity e = 0.3. What is the perihelion of the extrasolar planet to it’s star in a.u.? (Remember that the radius of the Earth’s orbit around the sun is a⊕ = 1 a.u., it might help to eliminate some constants).

(b) If the star has its maximum emission (observed flux per unit wavelength interval) at a wavelength of λp,∗ = 250nm what is the temperature of the star T∗? (Hint: note that the sun has it’s peak emission λp,⊙ = 500nm and has a temperature of T⊙ = 5, 800K, use ratios!)

(c) If the star has twice the radius of the sun R∗ = 3.0R⊙, what is the luminosity of the star relative to that of the sun L∗/L⊙?

(d) Now, using the relative luminosity of the star to the sun, L∗/L⊙, from part (c), the relative distances of the Earth to the sun, d⊕, and the average distance of the planet to its star, dp calculate the no-greenhouse temperature of the planet as follows: First, assume that all of the properties of the atmosphere and the planet’s surface (i.e., the emissivity, absorptivity, pollution, etc.) are the same as those of the Earth. Also assume that the radius of the planet is equal to twice that of the Earth Rp = 2R⊙. Solve for the ratio of the temperature of the planet to that of the Earth (Tp = T⊙). Then, use the average temperature of the Earth T⊕ = 256K to find Tp. Do you want to live on this planet? (Note: the no- greenhouse temperature is that temperature for which the total power absorbed by the planet, equals the total power re-radiated into space assuming the planet is a perfect black-body)