In November 2005, Ms. Williamson obtained a loan in the amount of $750,000 from Investors Savings and Loan secured by her personal residence. The remaining principal amount of $476.171.49 became due and payable on November 1, 2015.

Williamson missed three payments on August, September, and October 2015 and did not pay off the loan when it came due. Commencing in June 2016, Investors Savings and Loan began foreclosure proceedings. On July 19, 2016, a notice of default and 90-day notice of foreclosure were served on Williamson.

In August 2016, Williamson applied to a branch of Investors Savings and Loan for a loan to refinance the loan. The loan application was sent to the loan department of Investors Savings and Loan on September 13, 2016. The loan application was rejected. Over the course of the next two months, Williamson attempted to allay the credit concerns, which had led to the rejection of her loan application.

On November 7, 2016, a 30-day notice of sale under foreclosure was recorded scheduling a sale of the property for December 7, 2016; the notice indicated $476.171.49 was still due on the loan, plus unpaid loan payments, accrued interest and late fees. On December 6, 2016, Williamson's loan application was approved subject to a confirming appraisal.

On December 2, 2016, Williamson was informed that she was required by federal regulations to post a $2,400 deposit for the bank appraisal. Instead of posting the appraisal deposit, which she believed was excessive, Williamson had already obtained her own appraisal of the property. Williamson's appraiser valued the property at between $650,000 and $700,000. This appraisal was submitted to Investors Savings and Loan on December 4, 2016.

Williamson was informed that her appraisal did not comply with federal regulations and, again, she was required to deposit $2,400 for a bank appraisal. Williamson requested the amount necessary to pay off the loan and was informed the amount owing was $215,451.02. Williamson believed this amount was excessive. Williamson asked for the amount to be provided to her in writing; an unnamed Investors Savings and Loan employee told Williamson she would do this and told Williamson not to worry about the foreclosure sale. Williamson neither deposited the $2,400 appraisal sum nor paid off the loan.

After confirming that neither amount had been received, Investors Savings and Loan authorized the foreclosure sale to go forward. Ms. Jordan, a speculator, bought the property at the foreclosure sale for $476.171.49, the principal balance of the debt. She was the sole bidder.

Williamson learned of the sale later that same day. Williamson obtained a cashier's check for the amount of the debt $476.171.49 and sent the check to the bank.

All the while, Williamson had available cash deposits at the Investors Savings and Loan of $600,000. She thought Investors Savings and Loan could deduct the loan payments from her other accounts, but Investors Savings and Loan did not do so even though she called them on the phone in December and said it would be OK with her. The cashiers check was returned to Williamson.

Q. Provide 3 reasons why Investor Savings and Loan declined to deduct the money Williamson owed from her other accounts when she called them on the phone in December and said it would be OK with her?

Sue, a single taxpayer, purchased a principal residence in 2005 for $300,000.  That was her only home for 10 years. In 2015, she sold the house for $336,000. She paid real estate commissions of  $5,000 to get the property sold.

How much gain must she recognize on her 2015 Federal income tax return for this sale?

5. A national survey conducted in 2005 on Canadian undergraduate students with a questioner asking them whether they do part-time jobs. 1250 students participated in the survey and 802 students said they do part-time jobs. In 2020, researcher claims that there is an increase in undergraduate students doing part-time jobs due to increase in tuition fees. In January 2020, he found 963 students out of randomly selected 1420 students do part-time jobs. Do a hypothesis test at 7% significance level to test the researcher’s claim. Answer the following to do the test:

   1. State null and alternative hypotheses.

   2. State your decision rule.

   3. Calculate the test statistic.

   4. State your conclusion.

   5. Find the p-value of the test.

The winning time for the 2005 annual race up 86 floors of the Empire state building was 10 min and 49 seconds. The winner's mass was 60 Kg.

A) if each floor was 3.7 m high, what was the winners change in gravitational potential energy?

B) If the efficiency in climbing stairs is 25%, what total energy did the winner expend during the race?

C)How many food Calories did the winner burn in the race

D) Of those calories, how may were converted to thermal energy?

E) What was the winner's metabolic power in watts during the race up the stairs?

Fancy Company is a wholesaler distributor of automotive replacement parts. Initial amounts taken from accounting records on December 31, 2016 are as follows: Inventory on December 31, based on physical count, P1,250,000; accounts payable, P1,000,000; sales, P9,000,000.Parts held on consignment from another company to Fancy, the consignee, amounting to P165,000 were included in the physical count on December 31, 2016, and in accounts payable on December 31, 2016.P20,000 of parts which were purchased and paid for in December 2016, were sold in the last week of 22016 and appropriately recorded as sales of P28,000. The parts were included in the physical count on December 31, 2016 because the parts were on the loading dock waiting to be picked up by the customers Parts in transit on December 31, 2016 to customers shipped FOB shipping point on December 28 2016 amounted to P34,000. The customer received the parts on January 6, 2017. Sales of P40,000 to customers for the parts were recorded by Fancy on January 2, 2017Retailers were holding P210,000 at cost and P250,000 at retail of goods on consignment from Fancy Company on December 31, 2016Goods were in transit from a vendor to Fancy Company on December 31, 2016. The cost of goods was P25,000. The goods were shipped FOB shipping point on December 31, 2016.What is the correct amount of inventory?

*Please make sure to round discount factor to 3rd decima place as listed*

BONDS :

Huskies Corp. issued 9-year $750,000 bond on January 1, 2006 with coupon rate of 10%. The bond pays interest semiannually every June 30 and December 31, with the principal to be paid at the end of year 9. The effective market interest rate at the issuance date is 8%.

a. Calculate the proceeds and show clearly what you use for RATE, NPER, PMT, FV ?

b. What journal entry was recorded at issuance?

c. What annual coupon rate would Huskies have to offer in order to obtain total proceeds of $750,000 on the issuance of these bonds

d. UNRELATED to above. Labradors Inc. repurchased the bond which has been issued several years ago and which has a Face Value of $800,000 and unamortized premium of $42,000. The bond was repurchased at 106. Record the journal entry that the company made when it repurchased the bond.

BONDS – Problem

Huskies Corp. issued 9-year $750,000 bond on January 1, 2006 with coupon rate of 10%. The bond pays interest semiannually every June 30 and December 31, with the principal to be paid at the end of year 9. The effective market interest rate at the issuance date is 8%.

a. Calculate the proceeds and show clearly what you use for RATE, NPER, PMT, FV ?

b. What journal entry was recorded at issuance?

c. What annual coupon rate would Huskies have to offer in order to obtain total proceeds of $750,000 on the issuance of these bonds

d. UNRELATED to above. Labradors Inc. repurchased the bond which has been issued several years ago and which has a Face Value of $800,000 and unamortized premium of $42,000. The bond was repurchased at 106. Record the journal entry that the company made when it repurchased the bond.

6) In exchange, the Stars traded a whirlpool to the Rangers for a smaller 2002. The following information is provided to you:

Stars
Cost of a whirlpool and related accumulated depreciation (A/D). $850,000 (cost) and $640,00

Cash received from the Rangers $37,000

The fair value of Star’s whirlpool $270,000

Rangers
Cost of whirlpool and related accumulated depreciation (A/D) $ 930,000 (cost) and $ 630,000

Cash paid to the Stars $37,000
The fair value of Ranger’s whirlpool $ ?

Assume a fair exchange (both parties agreed as to the fair values) and lack of commercial substance.

1. What was the fair value of the Rangers’ whirlpool at the time of the exchange?

2. What is the amount of the gain (loss) on exchange recognized by the Rangers? (identify whether this is a gain or a loss).

3. How much Boot did the Rangers receive in this exchange?

4. How much is the total (implied) gain on the exchange for the Stars?

5. What percentage of this total implied Gain (in iv above) will the Stars recognize?

5. Apple Stock: The volume of a stock is the number of shares traded in the stock in a day. The mean volume of Apple stock in 2017 was 35.14 million shares. A stock analyst believes that the volume of Apple stock has increased since then. He randomly selects 40 trading days and determines the sample mean volume to be 41.06 million shares with sample std. deviation of 15.07 million shares. Test the stock analyst’s claim at the a = 0.10 level of significance using P-values & critical values.