The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.

A portion of the land owned by Timberline had been leased on April 16, 2018, to a service state operator at a yearly rental of $12,000. One year’s rent was collected in advance at the date of the lease and credited to Unearned Rental Revenue. The lease runs from April 16, 2018 through April 15, 2019.

The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.

Required: Prepare the adjusting entries needed by Timberline Lodge on April 30, 2018.

A bus to carry guests to and from the airport had been rented beginning early on

April 19 from Truck Rentals, Inc., at a daily rate of $60. No rental payment has

yet been made although the bus has been used for 12 days in April.

On April 17 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,533,000; $393,000 was allocated to the basis of the land and the remaining $1,140,000 was allocated to the basis of the building. Use MACRS.

a. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3?

B. What would be the year 3 depreciation deduction if the building was sold on February 9 of year 3?

c. Answer the question in part (a), except assume the building was purchased and placed in service on February 17 instead of April 17.

Year . Depreciation Deduction

1
2
3

d. Answer the question in part (a), except assume that the building is residential property.

Year . Depreciation Deduction

1
2
3

What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service April 17, 2001 (assume the same original basis)?

Consider the following. a. What is the duration of a four-year Treasury bond with a 4.5 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 4.5 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 4.5 percent semiannual coupon selling at par?

You are offered an investment that will pay you $150 at the end of year one, $250 at the end of year four, and $800 at the end of year eight. What is the total present value of these three cash flows if the discount rate is 6%?

There is a bond that pays $100 per year interest, with a $1,000 par value. It matures in 15 years. The market required yield to maturity on a comparable bond is 12%.

1. What is the value of the bond?
2. How does the value change if the yield to maturity on a comparable bond increase to 15%? What if it decreases to 8%.
3. Explain the above questions (part b) with the concepts of interest rate risk, premium bonds and discount bonds.
4. Recalculate the answer in b, with the assumption that the bond matures in 5 years (instead of 15 years).
5. Explain the above questions (part d) with the concepts of interest rate risk, premium bonds and discount bonds.

Clearly show which EQUATIONS could be used to solve the problem mathematically

Indicate the detailed steps on how to use FINANCIAL CALCULATOR or Equations from the Textbook to solve the problems.

To determine whether there is an attendance rate drop of a national conference this year (consider as 1) than last year (consider as 2), a sample of 400 people this year and a sample of 400 people last year were selected. Given α=0.01. The data are summarized below:

This Year Last Year Difference

Attending 359                                 378                        -19

Not Attending 41                                   22                             19

Total number 400                                400 400

(c) Is there sufficient evidence to indicate that there is an attendance rate drop of a national conference this year (consider as 1) than last year (consider as 2)?

Group of answer choices

No

Yes

Marc and Michelle are married and earned salaries this year of $68,000 and $13,500, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,000 from corporate bonds. Marc contributed $3,000 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,000. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $7,000 of expenditures that qualify as itemized deductions and they had a total of $6,100 in federal income taxes withheld from their paychecks during the course of the year. (Use the 2018 tax rate schedules.)

A) What is Marc and Michelle's gross income? $82,500

B) What is Marc and Michelle's adjusted gross income? $5,000

C) What is the total amount of Marc and Michelle's deductions from AGI?

D) What is Marc and Michelle's taxable income?

E) What is Marc and Michelle's taxes payable or refund due for the year?

Please answer C-E, and use tax information from 2018.