A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)

Required

Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.

Check Year 4: units-of-production depreciation, $4,300; DDB depreciation, $12,187

Preparing Income Statements by Using Net Sales as the Base: Vertical Analysislt Jasmine Company provided the following income statements for its first 3 years of operation:

Year 1 Year 2 Year 3

Net sales $5,000,000 $4,500,000 $4,000,000

Less: Cost of goods sold (3,000,000) (3,250,000) (3,600,000)

Gross margin $2,000,000 $1,250,000 $400,000

Less: Operating expenses (1,420,000) (800,000) (165,000)

Income taxes (232,000) (180,000) (134,000)

Net income $348,000 $270,000 $101,000

Required: Prepare common-size income statements by using net sales as the base. Round answers to the nearest whole percentage.

Jasmine Company Income Statement

Year 1 dollars Year 1 percent Year 2 dollars Year 2 percent Year 3 dollars Year 3 percent $ % $ % $ % $ $ $ $ $ $

Assume that the real risk-free rate of return, r*, is 1%, and it will remain at that level far into the future. Also assume that maturity risk premium on Treasury bonds increase from zero for bonds that mature in one year or less to a maximum of 2%, and MRP increases by 0.2% for each year to maturity that is greater than one year – that is, MRP equals 0.2% for two-year bond, 0.4% for a three-year bond, and so forth. Following are the expected inflation rates for the next five years:

Compute the interest rate for 1, 2, 3, and 4-year bond.

If inflation is expected to equal 3% every year after 2021, what should the interest rate be for 5- through 20-year bond?

Draw a graph of the yield curve.

ou are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $400 per unit and sales volume to be 1,000 units in year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $225 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $165000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $35,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. (Use SL depreciation table)

can someone please check the code below? Thank you

Hunterville College Tuition

Design a program for Hunterville College. The current tuition is $20,000 per year. Allow the user to enter the rate the tuition increases each year. Display the tuition each year for the next 10 years.

For the programming problem, create the pseudocode and enter it below.

Enter pseudocode here

start

    Declarations

            num tuition

            num year            

            num TOTAL_YEARS = 10

            num INCREASE_RATE

            num CURR_TUTION = 20000

housekeeping()

    detailLoop()

      finish()

stop

housekeeping( )

            output “Enter rate the tuition will increase each year>”, INCREASE_RATE

return

detailLoop()

    while year <= TOTAL_YEARS

   tuition = tuition * (1 + INCREASE_RATE)

            output “In”, TOTAL_YEARS, “year(s) the tuition will be”, tuition

            year = year + 1

endwhile

return

finish()

    output “End of program”

return

3) Magic Co. holds 100% of the outstanding common stock of Jonson Co. and would like to prepare year-end (December 31, Year 2) consolidated financial statements. The separate financial statements of Magic Co. are prepared for fiscal year ending December 31, Year 2. Jonson Co. reports its separate financial statements for the fiscal year ending June 30, Year 1.

Research and cite a specific paragraph in the Accounting Standard Codification that can help Magic Co. to determine whether it can use the financial statements of Jonson Co. (from June 30, Year 1) for preparing the consolidated financial statements for the fiscal year ending December, 31, Year 2, without any adjustments. Unless specifically requested, your response should not cite implementation guidance and illustrations.

FASB ASC                               -                   -                   -

can someone please check the code below? Thank you

Hunterville College Tuition

Design a program for Hunterville College. The current tuition is $20,000 per year. Allow the user to enter the rate the tuition increases each year. Display the tuition each year for the next 10 years.

For the programming problem, create the pseudocode and enter it below.

Enter pseudocode here

start

    Declarations

            num tuition

            num year            

            num TOTAL_YEARS = 10

            num INCREASE_RATE

            num CURR_TUTION = 20000

housekeeping()

    detailLoop()

      finish()

stop

housekeeping( )

            output “Enter rate the tuition will increase each year>”, INCREASE_RATE

return

detailLoop()

    while year <= TOTAL_YEARS

   tuition = tuition * (1 + INCREASE_RATE)

            output “In”, TOTAL_YEARS, “year(s) the tuition will be”, tuition

            year = year + 1

endwhile

return

finish()

    output “End of program”

return

If Tony deposits $1,000 three years from now and then increases the deposit by $500 each year through year 10, calculate the amount that will be in the account in year 10 at an interest rate of 10% per year.

Assume the free cash flows of an investment, with a 13% discount rate, are $100 in year 1, $120 in year 2. $150 in year 3, and will grow 3% in perpetuity after year 3. (show work)

4. Find the Discounted Payback period for the following projects.

The discount rate is 7%.

Initial Outlay 17,827

Year 1 5917

Year 2 5484

Year 3 5968

Year 4 8405