Exhibit 8.1 has a listing of the cost recovery periods used under the Modified Accelerated Cost Recovery System (MACRS) for various types of property. The exhibit indicates that there are express provisions for assets used in agriculture and transportation equipment. Also, on page 8-22, the text indicates that different recovery periods are used under the Alternative Depreciation System (ADS).

1.         What is the MACRS cost recovery period for each type of asset specifically identified by the IRS as being used in agriculture (including farming and ranching)?

2.         What is the MACRS cost recovery period for each type of asset specifically identified by the IRS as being used in railroad transportation?

3.         What are the ADS recovery periods for each type of asset in the answers to questions 1 and 2?

Please answer each question in complete sentences, and cite name and number of the IRS publication or form/instruction where you found each answer, and the page number on which the answer is found. Use your own words in the answer – do not copy the IRS’ language.

Wayco Industrial Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 8.5 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The firm has 1000 bonds that have a face value of $1,000 each and a market price of $1,012. The company's tax rate is 37 percent. What is the firm's weighted average cost of capital? A. 10.18 percent B. 13.1 percent C. 12.81 percent D. 12.35 percent

What is opportunity cost. What is your opportunity cost of attending college?

Please answer in 350 words and word format only.

{a}A firm's supply curve corresponds to its ________.
A.opportunity cost curve
B.marginal cost of production curve
C.total cost of production curve
D.production possibility frontier

{b}The goal of reducing the damages caused by the discharge of production and consumption residuals can be achieved by ________.
A.all of the choices are correct
B.reducing the residuals from production
C.reducing the quantity of goods and services produced
D.increasing recycling

{c}In the case of a negative externality like pollution where ________ is/are clearly defined and a small number of individuals are involved, bargaining and negotiations among these individuals can likely result in ________.
A.responsibility; a socially efficient outcome
B.property rights; a socially efficient outcome
C.property rights; equity
D.access; compensation

{d}A pollutant that stays in the environment in nearly the same amount that was originally released such that its stock in the environment builds up over time is known as ________.
A.an accumulative pollutant
B.a continuous emission
C.a non-point source pollutant
D.a global pollutant

{e}The total cost of producing a given level of output will fall as a result of technological progress.
A.True
B.False

{f}Consumers can influence production decisions leading to reduced residuals from production by ________.
A.recycling
B.demanding goods that are more environmentally friendly
C.buying and selling used goods
D.cutting back on consumption

{g}A ________ determined by the technical capacities in the economy together with the ecological facts of the natural system illustrates the possible ________ between goods produced and environmental quality.
A.production possibility frontier, trade-offs
B.production possibility frontier; incompatibilities
C.production function; incompatibilities
D.community indifference curve; trade-offs

The following cost functions apply to X Company's regular production and sales during the year:

  Cost of goods sold:   $6.57 (X) + $127,397

  Selling and administrative expenses:   $1.29 (X) + $84,709

where X is the number of units produced and sold. During the year, X Company sold 66,700 units for $18.00 each. At the end of the year, a company offered to buy 4,750 units but was only willing to pay $12.00 each. X Company had the capacity to produce the additional 4,750 units.

5. If X Company had accepted the special order, firm profits would have increased by ?

6. Consider the following three changes. Direct material costs on the special order would have increased by $0.74 per unit, direct labor costs on the special order would have decreased by $0.32 per unit, and X Company would have had to rent special equipment for $1,500. Independent of your answer to (5), the effect of these changes would have been to reduce profit on the special order by ?

7. In order to retain all of X Company's regular customers, it would have had to reduce the regular selling price by $0.39. If the selling price were reduced and next year's unit sales turned out to be the same as this year's sales, firm profits would have fallen by ?

The following cost functions apply to X Company's regular production and sales during the year:

  Cost of goods sold:   $6.05 (X) + $132,153

  Selling and administrative expenses:   $1.05 (X) + $76,167

where X is the number of units produced and sold. During the year, X Company sold 65,100 units for $19.00 each. At the end of the year, a company offered to buy 4,980 units but was only willing to pay $12.00 each. X Company had the capacity to produce the additional 4,980 units.

1. If X Company had accepted the special order, firm profits would have increased by?

2. Consider the following three changes. Direct material costs on the special order would have increased by $0.76 per unit, direct labor costs on the special order would have decreased by $0.49 per unit, and X Company would have had to rent special equipment for $1,500. Independent of your answer to (1), the effect of these changes would have been to reduce profit on the special order by?

3. In order to retain all of X Company's regular customers, it would have had to reduce the regular selling price by $0.59. If the selling price were reduced and next year's unit sales turned out to be the same as this year's sales, firm profits would have fallen by?

• 0.9091

• 0.6709

• 0.607

• 0.639

• 0.6645

1.
(a) What is cost behavior analysis?
(b) Why is cost behavior analysis important to management?
2.
(a) Scott Winter asks your help in understanding the
term "activity index." Explain the meaning and
importance of this term for Scott.
(b) State the two ways that variable costs may be
defined.
3. Contrast the effects of changes in the activity level on
total fixed costs and on unit fixed costs.

4. J. P. Alexander claims that the relevant range concept
is important only for variable costs.
(a) Explain the relevant range concept.
(b) Do you agree with J. P.'s claim? Explain.

5. "The relevant range is indispensable in cost behavior
analysis." Is this true? Why or why not?

.Explain the importance of ethics in cost accounting.
.Name three situations the cost accountant may face - in which
Your integrity as an accountant - and how you should deal with it - may be in question