The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$5 par value, 100,000 shares authorized, 30,000 shares issued and outstanding $ 150,000 Paid-in capital in excess of par value, common stock 110,000 Retained earnings 340,000 Total stockholders’ equity $ 600,000 Stockholders’ Equity (December 31) Common stock—$5 par value, 100,000 shares authorized, 35,000 shares issued, 5,000 shares in treasury $ 175,000 Paid-in capital in excess of par value, common stock 155,000 Retained earnings ($40,000 restricted by treasury stock) 400,000 730,000 Less cost of treasury stock (40,000 ) Total stockholders’ equity $ 690,000 The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10. July 5 Declared a $0.40 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock’s market value was $14 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10. Required: 1. How many common shares are outstanding on each cash dividend date? What is the total dollar amount for each of the four cash dividends? What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend? What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places.) How much net income did the company earn this year?

What is the duration of a 4 year coupon bond with a face value of $1000, a coupon rate of 8% and interest rate is 10%?

A) 3.12

B) 3.56

C) 3.48

D) 3. 89

The records of Boomer Corp, in its first year of operations, at the end of 20X8, provided the following data related to income taxes.

a. Golf club dues expense in 20X8, $10,000, properly recorded for accounting purposes but not tax deductible at any time

b. Investment revenue in 20X8, $325,000, properly recorded for accounting purposes, but not taxable at any time.

c. Estimated expense for warranty costs, $70,000; accrued for accounting purposes at the end of 20X8; to be reported for income tax purposes when paid. There were no warranty cost incurred in 20X8

d. Gain on disposal of land, $240,000; recorded for accounting purposes at the end of 20X8; to be reported as a capital gain for income tax purposes when collected at the end of 20X10

e. Costs incurred for development costs, $50,000; deducted for income tax purposes; recognized for accounting purposes as depreciated. There was no depreciation of development costs in 20X8

f. Equipment purchase in 20X8, $1,500,000; depreciation $100,000 recorded for accounting purposes in 20X8; CCA of $150,000 was deducted for income tax purposes in 20X8

Accounting earnings (from the SCI) for 20X8 was $1,200,000; the income tax rate is 38%. There were no deferred tax amounts as of the beginning 20X8

Required:

1. Are the individual differences listed above permanent differences or temporary differences? Explain why.

2. Calculate Taxable Income and Tax payable.

3. Prepare the journal entry to record income tax at the end of 20X8

New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.

In the first week of the fifth year, the equipment was sold for $134,570.

Required:

1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

b. Double-declining-balance method

Todd’s Turtles is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. The last dividend was $1, the required return is 12%, what is the current price of the stock? A. $6.90 B. $8.67 C. $10.10 D. $13.72 E. $13.04

thanks

1.      A company anticipates a depreciation deduction of $70,000 in year 4 of a project. The company's tax rate is 40% and its discount rate is 12%. The present value of the depreciation tax shield resulting from this deduction is closest to:

          A)     $17,808

          B)     $29,000

          C)     $21,000

          D)     $13,356

2.      (Ignore income taxes in this problem.) Nevland Corporation is considering the purchase of a machine that would cost $120,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $43,000. The company requires a minimum pretax return of 19% on all investment projects. The net present value of the proposed project is closest to:

          A)     $32,966

          B)     $26,376

          C)     $64,902

          D)     $30,040

3.      (Ignore income taxes in this problem) The management of Elamin Corporation is considering the purchase of a machine that would cost $305,745 and would have a useful life of 9 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $51,000 per year. The internal rate of return on the investment in the new machine is closest to:

          A)     9%

          B)     11%

          C)     12%

          D)     10%

4.      (Ignore income taxes in this problem.) The management of Solar Corporation is considering the following three investment projects:

          Rank the projects according to the profitability index, from most profitable to least profitable.

          A)     M,N,L

          B)     L,N,M

          C)     N,L,M

          D)     N,M,L

5.      (Ignore income taxes in this problem.) The management of Lanzilotta Corporation is considering a project that would require an investment of $368,600 and would last for 8 years. The annual net operating income from the project would be $66,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $15,000. The payback period of the project is closest to:

          A)     3.8 years

          B)     2.6 years

          C)     2.7 years

          D)     4.0 years

6.      Dunn Construction, Inc., has a large crane that cost $35,000 when purchased ten years ago. Depreciation taken to date totals $25,000. The crane can be sold now for $8,000. Assuming a tax rate of 40%, if the crane is sold the total after-tax cash inflow for capital budgeting purposes will be:

          A)     $7,400

          B)     $10,000

          C)     $8,800

          D)     $8,000

The price today of a European put option that matures in one year and has a strike price of $70 is $7. The underlying stock price today is $71. A dividend of $1.50 is expected in four months and another dividend of $1.50 is expected in eight months. The continuously compounded risk free rate of interest is 4% per annum for all maturities. Using put-call parity:

1. a) ComputethepricetodayofaEuropeancalloptionwhichmaturesinoneyearandhasa strike price of $70.

2. b) Compute the price difference today between a put and a call on the stock, when both options mature in one year, are European, and have a strike price of $75.

Consider a bond with a $1000 face value, with a 20 year maturity and a coupon rate of 8% which pays coupons with a semi-annual frequency. The 4th coupon payment will be received in 1 second. Calculate   the value of the bond if the YTM is 4%, 6%, 8%, and 10% (APR with semi-annual compounding). Explain why there is a negative relation between bond price and YTM.

In a survey of 2015 adults in a recent​ year, 1337 say they have made a New​ Year's resolution.

Construct​ 90% and​ 95% confidence intervals for the population proportion. Interpret the results and compare the widths of the confidence intervals.