A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is projected that the acquisition of this equipment will increase revenue by $10,000 per year. Operating costs for the machine will average $2,600 per year. The machine will be depreciated using the MACRS method, with a recovery period of 7 years. The company uses an after-tax MARR rate of 10% and has an effective tax rate of 30%.

2. Now, suppose that the duration of the project is six years and that an estimate of the value of the equipment cannot be obtained from the marketplace.

2.4. What is the tax on the disposal transaction?

Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Multiple Choice

• $2,980

• $2,460

• $2,850

• $2,590

• $5,440

As a long-term investment, Fair Company purchased 20% of Midlin Company’s 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000. 1. Assume no significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjustment for the investment’s fair value, if appropriate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Effect of Subsidiary Preferred Stock

Snow Corporation issued common stock with a par value of $100,000 and preferred stock with a par value of $80,000 on January 1, 20X5, when the company was created. Klammer Corporation acquired a controlling interest in Snow on January 1, 20X6.

Required:

What does Klammer's controller need to know about the preferred stock to determine the proper allocation of consolidated net income to the controlling and noncontrolling interests? What ethical factors should be considered, if any ?

Please be detailed and explain why the missing information is required.

Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year. Parker Inc. acquired 20% of Small's outstanding voting stock on January 1, 2017 for $630,000. At December 31, 2017, Parker determined the fair value of the shares in small to be $615,000. Parker reported operating income of $540,000.

instructions: Compute Parker's net income for 2017 assuming it uses the following methods to account for its investment.

a. equity method in accounting for its investment in Small

b. fair value method in accounting for its investment in Small

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.

Multiple Choice

• $6,460

• $5,740

• $5,950

• $6,330

• $6,540

Asia Pacific Ltd started operating on 1 July 2017 with 12 employees. Three years later all of those employees were still with the company. On 1 July 2019 the company hired 15 more people but by 30 June 2020 only 10 of those employed at the beginning of that year were still employed by Asia Pacific Ltd.

All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years of employment with Asia Pacific Ltd.

At 30 June 2020 Asia Pacific Ltd estimates the following:

•  The aggregate annual salaries of all employees hired on 1 July 2017 is now $1,200,000.

•  The aggregate annual salaries of all current employees hired on 1 July 2019 is now $800,000.

•  The probability that employees hired on 1 July 2017 will continue to be employed for the duration

  of the conditional period is 40 per cent.

•  The probability that employees hired on 1 July 2019 will continue to be employed for the duration

  of the conditional period is 20 per cent.

•  Salaries are expected to increase indefinitely at 1 per cent per annum.

  The interest rates on high-quality corporate bonds are as follows:

  Corporate bonds maturing in seven years 6% Corporate bonds maturing in eight years 8% Corporate bonds maturing in nine years 8% Corporate bonds maturing in ten years 10%

  At 30 June 2019 the provision for long-service leave was $12,000.

  Required:

1. a) Calculate the total accumulated long-service leave benefit as at 30 June 2020.

Part A) For investment perspective you are analyzing the company which is working under the Fertilizer Sector Engro Fertilizer (EFERT). A long time ago, it was considered as one of the best company by investors due to high dividend payouts though investors are always willing to invest in this company. Two years ago, position of this company’s cashflows become worst which impact the overall profitability on the company and the financial health amid ongoing situation of worst financial board of directors taken decision to cut down the dividends payments to the shareholder and share price also gradually declining in the market. After recent financial results, board of directors showed their positive expectations for revival of the company where new strategies implement to boost the sales and re-gain its market share. You are again want to investment in this company after analyzing the historical dividends payout patterns. Which are mentioned below:

Further, you gathered the information pertaining to sales growth expectations and net margins which are analysis consensus for next 5 years.

Currently company’s sales for the year ended FY 2020 stood at 89.54mn. You will apply the dividend discount model to value the company after calculation of the dividends properly. For calculation of cost of equity you can use the CAPM model (hint: use risk free rate as a 5-years PIB yield and Risk premium upto 7% while beta can be calculated through statistical variance methodology as explained in the class). This calculated cost of equity you can input in your formula to find out the intrinsic value and use sustainable growth rate 5.5% for dividends growth). (at least 250 words write up required)

Part B) This party is linked with part A, use the data from the part A and sensitize the intrinsic value by changes in cost of equity and growth projections so how it will impact on the company’s intrinsic value.

Instructions:

You are required to calculate the intrinsic value of each part and then compared the calculated prices along with logical reason.

If you had to decide on one health care system for the U.S., which system would you choose and why?

Which three areas of the current U.S. health care system would you add to the system you have chosen for the U.S.? Explain why.

Use the ADAS model to explain the likely short run impacts on U.S. GDP and the aggregate price level. What do you anticipate to happen to U.S. consumption expenditures and U.S. employment? Explain your reasoning for each of your predictions and show graphically as appropriate.