Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives on June 30, 2020, and which gave them the right to purchase shares of Ferry's stock at an option price of $35 per share. The average market price of Ferry's common stock for 2020 was $50. Net income was $1,000,000. SHOW ALL COMPUTATIONS>

1. Compute EPS.
2. Compute DEPS.

            Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives on June 30, 2020, and which gave them the right to purchase shares of Ferry's stock at an option price of $35 per share. The average market price of Ferry's common stock for 2020 was $50. Net income was $1,000,000. SHOW ALL COMPUTATIONS>

1. Compute EPS.
2. Compute DEPS.

E11.3  

(LO 1, 2 ) (Depreciation Computations—SYD, DDB—Partial Periods) Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds' accounting period is the calendar year.

Instructions

a.  

Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method.

b.  

Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.

b. Audio Waves Ltd. has five employees who have been extremely busy during the current fiscal year, which ends on December 31, 2020. Each employee is entitled to 2 weeks' vacation in return for working 50 weeks. Audio Waves has a weekly payroll of $10,000, and as of December 31, 2020, none of the employees has taken vacation leave. How should this liability be reported on the company's statement of financial position on December 31, 2020?

JJJ Corporation owns a number of shopping centers used to produce rental income. In 2020, the corporation received an advanced rental payment of $20,000 from one of the tenants. The advance payment represented the payment of the rent for the year 2021.

A. If JJJ Corporation used the cash method of accounting, indicate the amount of income, if any, the corporation would need to report in 2020.

B. If JJJ Corporation used the accrual method of accounting, indicate the amount of income, if any, the corporation would need to report in 2020.

Using the three-step method, compute the dirty price (to 3 decimal places) of a $100 face-value bond maturing on 15-Feb-29, paying a 5%pa semi-annual coupons with a yield to maturity of 3%pa for settlement on 05-May-20. Set out the intermediate calculations for each of the three steps.

(Note there are 102 days between 05-May-20 and 15-Aug-2020. There are 182 days between 15-Feb-2020 and 15-Aug-2020)

Caldor Health accrued $140,000 for a warranty liability related to sales made in 2020. Warranties cover defects for 2 years from the date of sale. Claims in 2020 were $60,000 and in 2021 were $70,000. Warranty expense fro 2020 and 2021 are:

A) $60,000 and $70,000

B)$60,000 and $80,000

C)$140,000 and $0

D)$140,000 expense and $10,000 income

Please give specific reason for every choice that why it is correct and why it is wrong if you can. Thank you so much!!!!!

1. From the table above, calculate the inflation rate from 2015 to 2016 (5 points)

2. Use the table above to answer:  If you were earning $40,000/year in 2012, how much would you need to be earning in 2019 to have the same purchasing power?. (5 points)

3. Use the table above to answer:  If average college tuition was $10,000 per year in 2010, what would that be equivalent to in 2019? (5 points)

4. Price inflation in 2021 is expected to be 3%, but because of an economic slowdown as the result of COVID shutdowns, inflation in 2021 was actually only 1%.  

Hourly-wage worker agrees on January 1, 2021, to a three-year union contract at a local factory. A fixed cost-of-living adjustment (COLA) of 3 percent per year is built into the contract.

Is the worker a winner or a loser? (4 points)

As of December 31, 2009, a company’s assets consisted of $60,000 of cash, $120,000 of marketable securities, $200,000 of accounts receivable, $300,000 of inventory, and $1,200,000 of net plant and equipment. Its liabilities consisted of $50,000 of accounts payable, $20,000 of accruals, $70,000 of notes payable, and $600,000 of long-term debt. As of December 31, 2010, the company’s assets consisted of $70,000 of cash, $140,000 of marketable securities, $250,000 of accounts receivable, $400,000 of inventory, and $1,300,000 of net plant and equipment. Its liabilities consisted of $65,000 of accounts payable, $15,000 of accruals, $75,000 of notes payable, and $600,000 of long-term debt. In 2010, the company’s annual sales were $4,700,000, earnings before interest and taxes were $800,000, it paid $60,000 of interest, and its tax rate was 30%. The company’s weighted average cost of capital is 11% per year and it has 500,000 shares of common stock outstanding. The company expects its free cash flow to grow forever at a rate of 6% per year. Estimate the value per share of the company’s common stock.