A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 3 percent per year thereafter. Assume that the appraiser would estimate the value in year 10 by using a 10 percent capitalization rate. The appraised value of the property is currently $1 million and the lender is willing to make a 90 percent LTV loan with a contract interest rate of 9 percent, and it will be amortized with fixed monthly payments over a 20-year term. It will be a convertible mortgage loan that will give the lender the option to convert the mortgage balance into a 60 percent equity position at the end of year 10. That is, instead of receiving the payoff on the mortgage, the lender would own 60 percent of the property. Assume that the borrower will default if the property value is less than the loan balance in year 10, in which case the property is transferred to the lender.

a. Calculate the investor’s before-tax IRR. Show and explain all calculations. Should the building be purchased? Why or why not?

b. Calculate the lender’s IRR. Show and explain all calculations.

c. Calculate the lender’s IRR if the property instead sells for only $1 million after 10 years. Show and explain all calculations. d. Calculate the lender’s IRR if the property instead sells for only $500,000 after 10 years. Show and explain all calculations.

A ) You have entered the following opening balances for the start of the financial year.

General Ledger:

Accounts Receivable $120,000

Accounts Payable $115,000

Subsidiary Ledger:

Unfortunately you cannot read the amount for the last name in each list. You are, however, able to calculate them as:

Select one:

a. Majam Pty Ltd 15,000 and Kahn Industries 25,000

b. Majam Pty Ltd 25,000 and Kahn Industries 25,000

c. Majam Pty Ltd 25,000 and Kahn Industries 15,000

d. Majam Pty Ltd 15,000 and Kahn Industries 15,000

B)

Select the most appropriate definition of an account:

Select one:

a. Detailed record of changes that have occurred

b. Basic summary device

c. Unsold goods on hand

d. Both a and b

D)

Select the most appropriate order of a transaction:

1 Post to subsidiary ledger

2 Post to general ledger

3 Transaction recorded in journal

4 Source documents gathered

Select one:

a. 4, 1, 2, 3

b. 4, 3, 1, 2

c. 4, 2, 3, 1

d. 4, 3, 2, 1

You are auditing payroll for the Harbor Creek Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year.

You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.

A firm is considering investing in a new product with a five-year life. To do this it will need to buy new equipment that costs $10 million and that has a salvage value of $500,000. This equipment depreciates straight-line over its five-year life. The product sells at $20 per unit. Sales are expected to start at 400,000 units and to grow at the rate of 5% per year. The variable cost per unit is $12. The firm’s tax rate is 40 and the firm requires an investment of $20,000 in working capital each year. Find the NPV, IRR, PI using a required return of 10%.

Consider the following.

a. What is the duration of a four-year Treasury bond with a 14 percent semiannual coupon selling at par?

b. What is the duration of a three-year Treasury bond with a 14 percent semiannual coupon selling at par?

c. What is the duration of a two-year Treasury bond with a 14 percent semiannual coupon selling at par?

Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year 1 at a cost of $100,000. The machine’s useful life is estimated at 10 years, or 500,000 units of product, with a $5,000 salvage value.

1. Prepare the journal entry to record the acquisition of the manufacturing machine.

b. Determine the depreciation expense on the machine at the end of year 1 year under the

straight-line method of depreciation. Also, record the journal entry to record depreciation expense.

c. Same facts as above, but now determine the depreciation expense on the machine at the end of year 1 year under the units-of-production method of depreciation. Assume 70,000 units of product were manufactured in year 1. Also, record the journal entry to record depreciation expense.

d. Same facts as above, but now Determine the depreciation expense on the machine at the end of year 1 year under the Double Declining Balance method of depreciation. Also, record the journal entry to record depreciation expense

On January 1 of this year, Ikuta Company issued a bond with a face value of $145,000 and a coupon rate of 7 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 8 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required:

1. Complete a bond amortization schedule for all three years of the bond's life.

2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2?

The following are some items of the balance sheet for Hofa, Inc., for the year ended December 31, 2019.

1. Prepare a balance sheet for December 31, 2019.
2. If the company is to announce 10% stock dividends, who do think this will impact the balance sheet?

Below is the income statement for Irwin Inc. in a single-step format.

Create a master budget for the first year of operations for a consulting business that offers training services. The master budget should include the operating budgets and the financial budgets. (make use of assumed figures)

 In a private unit a 15 year old boy is admitted voluntarily at the request of his parents because of violent, explosive behavior that seems to stem from his father’s recent remarriage after his parent’s divorce. A few days after admission, while in group therapy, he has an explosive reaction to a discussion about weekend passes for Mother’s Day. He screams that he has been abandoned and nobody cares about him. Several weeks later, on the day before his discharge, he elicits from the nurse a promise to keep his plan to kill his mother confidential.  ANA code of ethics, confidentiality, principles of psychiatric nursing, duty to warn.

1) Did the nurse use appropriate judgment in promising confidentiality?

2) Does the nurse have the duty to warn the client’s mother of her son’s threat?

3) Is the duty owed to the client’s father and stepmother?

4) Would a change in the admission status from voluntary to involuntary protect the client’s mother without violating the client’s confidentiality?  5) Do different states vary on this?

6) What nursing action, if any, should the nurse take after the disclosure by the client?