To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer’s adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow.

Use Excel - no hand calculations.

1. Write the regression equation.

2. Interpret the regression constant and regression coefficient.

3. Forecast a value for the dependent variable, test the significance of the regression coefficient at an alpha level of .05

4.Test the overall significance of the regression model, and Interpret the coefficient of determination.

State the method ( Winter's additive or multiplicative) which is the most accurate to forecast for 2018 according to the data set?

Cannon Construction (Cannon or the “Company”), an SEC registrant, is a construction company that manufactures commercial and residential buildings. On March 1, 2017, the Company entered into an agreement with a customer, Thornock Square Apartments, to construct a residential apartment building for a fixed price of $1.5 million. The Company estimates that it will incur costs of $1 million to complete construction of the apartment building. The apartment building will only transfer to Thornock Square Apartments once the construction of the entire building is complete. In addition, Thornock Square Apartments has various design requirements that would require Cannon to incur significant costs to rework the building prior to selling it to a customer other than Thornock Square Apartments.
To construct the apartment building, Cannon acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Thornock Square Apartments’ residential buildings. These standard materials remain interchangeable with other items until they are deployed in Thornock Square Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress:
A. As of June 30, 2017, in total, Cannon has purchased $75,000 of component parts. As of June 30, 2017, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Cannon has incurred $12,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended June 30, 2017.
B. During the three months ended September 30, 2017, Cannon purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, $325,000 remain in inventory and $200,000 have been integrated into the project during the three months ended September 30, 2017. During the three months ended September 30, 2017, Cannon incurred an additional $50,000 of direct costs to integrate the component parts into the Thornock Square Apartments construction project.
C. As of September 30, 2017, Cannon determined that the project was over budget and revised its cost estimate from $1 million to $1.25 million.
D. As of December 31 2017, the construction project was completed. During the three months ended December 31, 2017, Cannon purchased an additional $425,000 of generic component parts ($1 million in total). Of the $1 million component parts, $0 remain in inventory and $750,000 were integrated into the project during the three months ended December 31, 2017. Cannon has incurred $187,500 of direct costs to integrate the component parts into the Thornock Square Apartments construction project during the three months ended December 31, 2017.
If Thornock Square Apartments cancels the contract, Cannon will be entitled to reimbursement for costs incurred for work completed to date plus a margin of 20 percent, which is considered to be a reasonable margin. Cannon will not be reimbursed for any materials that have been purchased for use in the contract but have not yet been used and are still controlled by Cannon.

Question from scenario:

1)Does the performance obligation meet any of the criteria for recognition of revenue over time? Discuss which criteria (if any) is met and how is met.

2)How should the entity recognize revenue for the satisfaction of its performance obligation? What amount of revenue should be recognized for the following periods: a. The three months ended June 30, 2017? b. The three months ended September 30, 2017? c. The three months ended December 31, 2017?

3) create a schedule summarizing your calculations to arrive at revenue to be recognized each year.

Explain the distinction between correlation and causation in policy analysis. Give three examples related to policy that can be found in normal day bases (such as newspaper). Be concreate and use statistic approach. It can be anywhere between half a page to page.

R. J. Reynolds Tobacco Company (RJR) operated a customer rewards program, called Camel Cash, from 1991 to 2007. Under the terms of the program, RJR urged consumers to purchase Camel cigarettes, to save Camel Cash certificates included in packages of Camel cigarettes, to enroll in the program, and, ultimately, to redeem their certificates for merchandise featured in catalogs distributed by RJR.

The plaintiffs were 10 individuals who joined the Camel Cash program by purchasing RJR’s products and filling out and submitting signed registration forms to RJR. RJR sent each plaintiff a unique enrollment number that was used in communications between the parties. These communications included catalogs RJR distributed to the plaintiffs, containing merchandise that could be obtained by redeeming Camel Cash certificates.

From time to time, RJR issued a new catalog of merchandise offered in exchange for Camel Cash, which it either sent on request or mailed to consumers enrolled in the program. The number of Camel Cash certificates needed to obtain merchandise varied from as few as 100 to many thousands, and this encouraged consumers to buy more packages of Camel cigarettes and to save Camel Cash certificates to redeem for more valuable items.

RJR honored the program from 1991 to 2006, and, during that time, Camel’s share of the cigarette market nearly doubled, from approximately 4 percent to more than 7 percent. In October 2006, however, RJR mailed a notice to program members announcing that the program would terminate on March 31, 2007. The termination notice stated: “As a loyal Camel smoker, we wanted to tell you our Camel Cash program is expiring. C–Notes will no longer be included on packs, which means whatever Camel Cash you have is among the last of its kind. Now this isn’t happening overnight—there will be plenty of time to redeem your C–Notes before the program ends. In fact, you’ll have from OCTOBER ’06 through MARCH ’07 to go to camelsmokes.com to redeem your C–Notes. Supplies will be limited, so it won’t hurt to get there before the rush.”

Beginning in October 2006, however, RJR stopped printing and issuing catalogs and told consumers that it did not have any merchandise available for redemption. Several of the plaintiffs attempted, withoutPage 198 success, to redeem C–Notes or obtain a catalog during the final six months of the program. The plaintiffs had saved hundreds or thousands of Camel Cash certificates that they were unable to redeem.

In November 2009, the plaintiffs filed a class action complaint against RJR. They alleged breach of contract and promissory estoppel, among other claims, because RJR’s actions had made the plaintiffs’ unredeemed certificates worthless. The defendant argued that it had no bilateral contract to breach because the plaintiffs had not promised to do anything. The trial court agreed and dismissed the complaint. The plaintiffs appealed. How do you think the appellate court ruled, and why? [Sateriale v. R.J. Reynolds Tobacco Co., 697 F.3d 777, C.A.9 (Cal. 2012).]

1. Calculate the following white cell count if the dilution of 1/100. Show your calculations. (3pts)

Side #1                                                               Side #2

Square 1 = 30 white cells             Square 1 = 27 white cells

Square 2 = 28 white cells             Square 2 = 27 white cells

Square 3 = 25 white cells             Square 3 = 24 white cells

Square 4 = 27 white cells             Square 4 = 24 white cells

1:

Marginal revenue product equals

2:

The long-run is a period of time

3:

Marginal cost equals

4:

The unique characteristic of a firm in perfectly competitive market equilibrium is

5:

The distinction between a firm and an industry does not exist in

6:

In a perfectly competitive market

The birth of the Internet in the 1990s led to the creation of a new industry of online retailers such as Amazon, Overstock.com, and PCM, Inc. Many of these companies often act as intermediaries between the manufacturer and the customer without ever taking possession of the merchandise sold. Revenue recognition for this type of transaction has been controversial.

Assume that Overstock.com sold you a product for $200 that cost $150. The company’s profit on the transaction clearly is $50. Should Overstock recognize $200 in revenue and $150 in cost of goods sold (the gross method), or should it recognize only the $50 in gross profit (the net method) as commission revenue?

Required:
1. Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that indicates what an entity assesses to determine whether the nature of its promise is to act as a principal or agent?

2-a. What indicators does the Codification list that suggest an entity is a principal?

2-b. Determine the specific nine-digit Codification citation (XXX-XX-XX-XX).

3. Using EDGAR (www.sec.gov), access Alphabet, Inc.’s 2017 10-K. Locate the disclosure note that discusses the company’s revenue recognition policy with respect to ads placed on Goggle Network Members' properties.

4. Do you agree with Alphabet’s reasoning with respect to choosing whether it reports revenue gross versus net with respect to these advertising services? Indicate “yes” or “no,” and explain.

Work for the first variable, X:

2. Construct a frequency table, containing at least 5 classes, but no more than 8 classes. [2]

3. Make the following graphs, using Stat Crunch.

1. histogram [2]

2. frequency polygon [2]

3. cumulative frequency polygon [2]

4. stem and leaf [2]

5. box plot [2]

4. Obtain the descriptive statistics. [1]

1. The three fifth compromise

1. Declared that the state would pay three-fifths of the Revolutionary War debt and the federal government would pay the rest.
2. Determined that three out if every fiver slaver would be counted for purposes of representation and taxation.
3. Determine the ratio between free states and slave states.
4. Determined that all American citizens would pay three-fifths of their incomes to the federal government in taxes every year