Depreciation by Two Methods; Sale of Fixed Asset

New lithographic equipment, acquired at a cost of $718,750 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $61,800. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.

On March 4 of Year 5, the equipment was sold for $105,300.

Required:

1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

b. Double-declining-balance method

2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $90,400 instead of $105,300. If an amount box does not require an entry, leave it blank.

A professor in the School of Business wants to investigate the prices of new textbooks in the campus bookstore and the Internet. The professor randomly chooses the required texts for 12 business school courses and compares the prices in the two stores. The results are as follows:

a)At the .01 level of significance, is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the classical method.

1. Hyps: H₀:  

2. H₁:

3. Test(s):
4. Decision rule:

5. analysis

6. conclusion:(1)

   (2)

   (3)

   (4)

   b) What assumptions are necessary to perform this test?

   c)Find the p-value in (a)? Using the p-value, Is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the p-value method and alpha = 1%.

   1. Hyps: H₀: 2. H₁:

7. Test(s):

8. analysis

9. p- value

10. conclusion:(1)

    (2)

    (3)

    (4)

Question 2 There are 6 cities in Kilroy County.  The county must determine where to build central fire stations.  The county wants to build the minimum number of central fire stations needed to ensure that at least two fire stations are within 20 minutes (driving time) of each city. The times (in minutes) required to drive between the cities in Kilroy County are given in the table. Formulate a model that will tell Kilroy how many fire stations should be built and where they should be located.

Decision variables (1 mark):

Objective function (1 mark):

Constraints :

Additional constraint :Either City 1 or City 2 (or both) must be selected to build a fire station in if both City 3 and City 4 are selected to build fire stations in.

QDM Question 2 There are 6 cities in Kilroy County.  The county must determine where to build central fire stations.  The county wants to build the minimum number of central fire stations needed to ensure that at least two fire stations are within 20 minutes (driving time) of each city.  The times (in minutes) required to drive between the cities in Kilroy County are given in the table. Formulate a model that will tell Kilroy how many fire stations should be built and where they should be located.

Decision variables (1 mark):

Objective function (1 mark):

Constraints :

Additional constraint : Either City 1 or City 2 (or both) must be selected to build a fire station in if both City 3 and City 4 are selected to build fire stations in.

Depreciation by Two Methods; Sale of Fixed Asset

New lithographic equipment, acquired at a cost of $625,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $53,700. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.

On March 4 of Year 5, the equipment was sold for $91,500.

Required:

1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight-line method

b. Double-declining-balance method

2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.

3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $78,600 instead of $91,500. If an amount box does not require an entry, leave it blank.

Jennifer enjoys bowling and miniature golf. The extent of her enjoyment is revealed by the following utility schedule:

a) Compute Jennifer’s marginal utility for each activity.

b) Assume that initially that the price for a bowling game is $2 and for a miniature golf game is $1 per game. Given a budget of $8, how many games of each should Jennifer play to maximize her total enjoyment from playing?

c) How many games of each should Jennifer play if the price of golf game remains $1 but the price of a game of bowling decreases to $1 per game?

d) Draw Jennifer's demand curve for bowling games.

3. From the following information on costs of production of the ABC corporation, calculate a) Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Total Cost (ATC).

Quantity Produced        Total Cost

         0                         $ 120
         1                            135
         2                            149
         3                            162
         4                            174
         5                            188
         6                            204
         7                            224
         8                            247
         9                            275

exercise 1. you have n Elements in [0,1] uniformly distributed and independent.The decision maker sees all n Elements simultaneously and wants to take the best of of them. Prove that for the case n=3 the exepected value Emin(3)=1/4,Emax(3)=3/4 and Emed(3)=2/4, where Emin=E(min{x1,x2,x3}) and Emax=E(max{x1,x2,x3})

Please Provide an answer ASAP,

Thanks

A stock was trading at $125.10 at the end of year 1. It was trading at the end of year 2 at $118.40 immediately after giving a dividend of $5.00. At the end of year 3. it was trading at $128.60 immediately after giving a dividend of $5.20. Finally, it was trading at $138.70 at the end of year 4 without giving out any dividend. What was the arithmetic average annual return of this stock for the three years between years 1 and 4?

Question 4 options:

The real risk-free rate of interest is 1%, inflation is expected to be 1.5% this year, 2% next year, and 3% per year for the next 5 years. The maturity risk premium is a function of time to maturity = 0.2* (1-t) %. The default risk premium on a corporate bond is 0.9%; and liquidity premium is 0.5%.

a. What is the IP over the next 4 years?

b. Find the yield on a 4-year T-bond.

c. Find the yield on a 4-year corporate bond.