On January 1, 2021, Farmer Fabrication issued stock options for 360,000 shares to a division manager. The options have an estimated fair value of $8 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 2% in three years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 2% by the end of 2023.

Required: 1. What is the revised estimate of the total compensation?

2. What action will be taken to account for the options in 2022?

3. Prepare the journal entries to record compensation expense in 2022 and 2023.

A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete the table below to answer the following questions.

a) Find the quantity of output that maximizes the profit for the firm. Also calculate the profit at that level.

b) Find out the break-even quantity for the firm.

c) Find out the shutdown point for the firm.

31) The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018:

Requirements: (Show all work)

1. Total current assets?
2. Total current liabilities?

On January 1, 2016, the following information was drawn from the accounting records of Carter Company: cash of $350; land of $2,250; notes payable of $650; and common stock of $1,300.

Income statement dated December 31, 2016.

Revenue $620

Expenses -$360

Net Income $260

a. Prepare a statement of changes in stockholders’ equity dated December 31, 2016.

b. Prepare a balance sheet dated December 31, 2016.

c. Prepare a statement of cash flows dated December 31, 2016. (Amounts to be deducted should be indicated with a minus sign.)

d. What is the balance in the Revenue account on January 1, 2016?

Suppose a company's revenue function is given by R(q)=−q3+320q2R(q)=-q3+320q2 and its cost function is given by C(q)=290+20qC(q)=290+20q, where qq is hundreds of units sold/produced, while R(q)R(q) and C(q)C(q) are in total dollars of revenue and cost, respectively.

A) Find a simplified expression for the marginal profit function. (Be sure to use the proper variable in your answer.)

MP(q)=MP(q)=     

B) How many items (in hundreds) need to be sold to maximize profits? (Round your answer to two decimal places.)

Notice that the table is partial and doesn't start at 0, and also that it doesn't go in increments of one at a time (so marginal values are approximations rather than exact).

The firm sells its output for P = $6.50. See below:

What will the firm's profits or losses be at the profit-maximizing (loss-minimizing) quantity? Carefully follow all numeric instructions. Indicate profits with a positive number (no sign) and losses with a negative number (with negative sign).

The market demand for a particular good in city A is given by Q(A) = 32 ? 0.5P (for P ? 64). This market is served by a single firm (monopoly) whose marginal cost of production is 4 dollars per unit (so total cost of producing Q units is 4Q).

(a) Find the equation for the firm’s marginal revenue function. Draw the demand, marginal cost and marginal revenue curves on one graph.

(b) What are the profit-maximizing price and quantity for the monopolist?

(c) Calculate the monopoly profit and mark-up in city A.

(d) What is consumer surplus in this market? How large is the deadweight loss resulting from monopoly pricing?