"Compute the depreciation each year of a machine that costs $30,000 to purchase and $5,300 to install with 10 years of life. Use DDB method (multiplier = 2) switching to straight line depreciation when appropriate. Assume a salvage value of $0. How much should be depreciated in year 9?"

Eleanor needs $40,000 a year to live on in retirement net of the income she will receive. She will be retiring in 22 years and is funding for a 25-year retirement. The inflation rate is expected to be 3.5 percent a year and the after-tax return on her investments 6 percent.

a) How much will she fall short to at the beginning of the retirement period?

b) What lump sum will she need at the beginning of the retirement period?

c) What is the required yearly savings?

Information for Entity A for the year ended December 31, 2019 ($ in millions):

  

Show work.

A. Prepare the appropriate journal entry to record income taxes. Show work where possible.

For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:

Question not attempted.

What is the outlook for consumer demand over the next year? Are the signals mixed or strong? Explain.

Is the residential real estate slump over? What is the outlook for autos?

Is consumer confidence strong today? By what measure?

[The following information applies to the questions displayed below.]

At the beginning of Year 2, the Redd Company had the following balances in its accounts:

During Year 2, the company experienced the following events:

1. Purchased inventory that cost $11,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $800 were paid in cash.
2. Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $8,000 for $13,500 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $1,200 and was sold to the customer for $2,100 cash. The customer was paid $2,100 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $800 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Sold the land for $3,500.
9. Recognized accrued interest income of $500.
10. Took a physical count indicating that $6,500 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.)

Post the beginning balances and the events to the T-accounts

A company is evaluating the replacement of an old machine with a new one. Last year, the company hired a consultant to conduct a feasibility study about this replacement project, which cost them $500,000 at that time. The consulting fees were expensed last year.
The old machine was purchased 2 years ago for $3 million and was being depreciated using MACRS 5-year class (20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%). The old machine can be sold for $1 million at this time. If the old machine is not replaced, it can be sold for $400,000 four years from now.
The replacement machine has a cost of $2 million, an estimated useful life of 4 years. This machine will be depreciated using straight-line method to 0 salvage value. The replacement machine would permit an output expansion, so sales would rise by $1 million per year; even so, the new machine’s much greater efficiency would cause operating expenses to decline by $250,000 per year. The new machine would require that inventories be increased by $1 million, but accounts payable and accrued expenses would simultaneously increase by $500,000 and 200,000 respectively. The interest expense on the debt component of the capital required for this project will be $250,000 annually. The new machine can be sold for $50,000 at the end of 4 years to another company.
The company’s marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
What is the CF1 (The cash flow to be used in NPV calculation)?
What is the CF4 (The cash flow to be used in NPV calculation)?
What is the NPV of the project?

4. The life expectancy of a person in 24 randomly selected countries for the year 2011 is in the table below.

   a.) What is the range of the life expectancy rates? b.) What is the median of the life expectancy rates?

   77.2	55.4	69.9	76.4	75.0	78.2
   73.0	70.8	82.6	68.9	81.0	54.2

   5) Cholesterol levels were collected from patients two days after they had a heart attack and are shown in the table below. (Show all work. Just the answer, without supporting work, will receive no credit.)

   270	236	210	142	280	272	160
   220	226	242	186	266	206	318
   294	282	234	224	276	282	360
   310	280	278	288	288	244	236

   1. a.) What is the sample mean?

   2. b.) What is the sample standard deviation? (Round your answer to two decimal

      places.

   3. 6) There are 4 black marbles and 6 red marbles in a box. Consider selecting one marble at a time from the box. What is the probability that the first marble is black and the second marble is also black. Express the probability in fraction format. (Show all work. Just the answer, without supporting work, will receive no credit.) a.) Assume the marble is selected with replacement. b.) Assume the marble is selected without replacement.

Executive officers of Jordan Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources:

Jordan’s past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 10 percent of the next quarter’s expected cost of goods sold as the current quarter’s ending inventory. This year’s ending inventory is $32,000. Next year’s ending inventory is budgeted to be $33,000.

Required

Prepare an inventory purchases budget using the sales manager’s estimate.

Prepare an inventory purchases budget using the marketing consultant’s estimate.

Required A

Required B

Prepare an inventory purchases budget using the sales manager’s estimate. (Round your final answers to nearest whole dollar amount.)

Required B

Prepare an inventory purchases budget using the marketing consultant’s estimate. (Round your final answers to nearest whole dollar amount.)

1) On July 25 of this year, Taylor sold land with a cost of $15,000 for $40,000. Taylor collected $20,000 this year and is scheduled to receive $5,000 each year for four years starting next year plus an acceptable rate of interest. Taylor's gain recognized this year is

2) Tom and Kristi are married and file a joint return for 2019 with taxable income of $100,000 and tax preferences and adjustments of $65,000 for AMT purposes. Their regular tax liability is $13,792. What is the amount of their total tax liability?