You understand that the built-in gain on inherited property escapes taxation in almost all cases because (i) relatively few Americans die with estates large enough to attract the federal estate tax and (ii) beneficiaries receive inherited property with a FMV basis (not to mention the minor detail that inherited property is automatically long-term). What is your view of this specific aspect of the federal income tax system – i.e., the treatment of inherited property?

Week 5 Project

Built Right Bike Company (BRBC) is an established manufacturer of quality bicycles. They manufacture three styles of bicycles.

Bicycle A is a popular racing bicycle primarily sold to dealers in the bicycle racing circuit. Their material is lightweight and durable with detachable joints for easy disassembly and storage. This market has been declining over the past couple of years.

Bicycle B is a sturdy leisure bike typically sold to resorts for use by vacationers. This market is stable with regular replacement bikes ordered as well as new resorts and hotel expansions.

Bicycle C is the usual bicycle used by families and children and is the primary bicycle sold by the company outlet store Buy-Right Bike Shop (BRBS).

Budgeted financial Information is provided below.

Instructions:

Add two new sheets to your Excel workbook: one for BRBC calculations and one for BRBC Income Statement.

1) Compare using process costing, job costing, or activity-based costing to determine the best costing for BRBC.

2) Calculate the profitability of each product line if the volume increases by 10% each.

3) Calculate the profitability of each product line if the volume decreases by 10% each.

4) Explain the results of 1 & 2 above.

5) Based on this information determine the answers to the following:

a) Should BRBC stop making bicycle A? What is the impact of dropping Bike A from the line of products? Assume the other two product lines will not change in volumes or selling prices.

b) Should the price of Bike C be lowered? Consider the volume sold to sister company BRBS at only $52 per bike, which is eliminated when the corporation financial statements are consolidated. What happens if the price to all others is reduced to $75, and an additional 20,000 bikes were sold at this lower price (not counting the intercompany BRBS sales)

c) Should the company change its advertising focus? What would be the impact of increasing Bike C's volume and decrease in Bike A's volume by 10,000 units each? Disregard units sold to sister company BRBS.

d) Should the price of Bike C be lowered with the change to advertising focus? What is the impact if we lower the price of Bike C to $75 and shift advertising focus more to Bike C, potentially decreasing Bike A volume by 10,000 bikes and increasing Bike C volume by 30,000 bikes.

6) Based on your findings for a-d above, create the ACTUAL 2018 Income Statement for BRBC using your recommendations.

[The following information applies to the questions displayed below.]

Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $44,600 in accounts receivable; and a $4,600 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,600 per month), and rent ($6,100 per month).

Prepare a cash receipts budget for July, August, and September.

Prepare a cash budget for each of the months of July, August, and September.

41.      Which of the following can be calculated using built-in functions in spreadsheet programs?

42.      When using the internal rate of return to evaluate investment alternatives, which rate would analysts specify?

43.      What is a general type of long-term capital investment that companies make?

44.      Systematic feedback to planners based on audits creates an environment in which planners will find less temptation to

45.      What should a firm do to reduce the temptation for planners to inflate their estimates of the benefits associated with the project to get it approved?

Prompt

Ortelere, a retired teacher, has built up a substantial amount of funds in her retirement plan before she retired because of "involutional psychosis" (a form of mental illness).

She has previously specified that a lowered monthly retirement benefit would be paid to her so that her husband would get some benefit from the retirement plan if she died before he did.  After her mental problems began, she changed her payout plan and borrowed from the pension fund (....ok, lady, you're getting the money based on 'your' decision! We have relied on 'your' decision 'today'. Positions are changing, parties will be 'affected' based on 'representations'.)

As a consequence of the changes she made, her husband lost his rights to benefit. Two months after she made the changes, she died. The husband sued to reverse the changes his wife made, claiming she was not of sound mind when she made them.

• Will the changes in the plan be voided? Previously in Chapter 10 you only have the concept of 'consideration' and in chapter 11 we have 'competency'. Even if you argue competency, don't you find this very difficult to prove?
• Explain your answer. This is a good one, have some fun with this. You 'could' argue both sides, who has the stronger position?..... no free lunch, eh? Going to need an 'empathetic judge'?

Activity 2: Transcription

Imagine that you’re having a house built. The architect draws up a set of blueprints for the builder. The builder, in turn, has to hire several subcontractors for the electrical, plumbing, and heating systems. The builder doesn’t wish to give up the original set of blueprints, so copies are made for each of the subcontractors.

This same principle applies to a cell. The nucleus contains the master set of blueprints, the DNA. DNA molecules are needed to direct the activities that occur in the cytoplasm of each cell.

When other organelles need to manufacture materials for the cell, copies of the master blueprint are made, so that the originals are not damaged or lost. This process is referred to as transcription. The copies made by transcription will be in the form of another molecule called messenger RNA (mRNA)

There are several differences between DNA and mRNA:

In this activity you’ll transcribe a DNA code into mRNA. The DNA sequence in this activit represents a gene located on one of the chromosomes in the nucleus of a cell that codes for a specific protein.

1. Since thymine isn’t found in mRNA, the base pairing rule you learned in the previous activity must be altered. Complete Table 9-2 by entering the appropriate bases.

Table 9 – 2 mRNA Base pairing

2. Looking at Figure 9 – 2, you can see that column one contains the DNA sequence found along one side of a double helix.

Fill in the appropriate mRNA sequence in the second column.

3. The mRNA code is composed of a sequence of three bases along the mDNA molecule. The three bases are referred to as a codon.

ATG is the first triplet on the DNA sequence. What is the corresponding codon?

4. How many codons does your mRNA strand contain?
5. What is the base sequence of the fourth codon of your mRNA?

FIGURE 9-2

Activity 3: Translation and protein synthesis

Having copied the DNA into mRNA leaves the nucleus of the cell and travels to a ribosome.

Reminder: Ribosomes are the sites of protein synthesis within a cell

Proteins are composed of chains of amino acids. A chain of amino acids is also referred to as a polypeptide chain because the amino acids are held together with a type of covalent bond called a peptide bond.

Amino acids are brought to the ribosome by another type of RNA called transfer RNA (tRNA). The codons in the mRNA determine the sequence and number of amino acids being bonded into the corresponding protein.

1. Refer to the mRNA codons in Table 9-3 to determine the amino acid sequence for your protein.

To do this, just match each codon in your mRNA sequence to the corresponding amino acid as listed in the table.

Fill in column three of Figure 9-2 with the correct amino acids.

2. How many amino acids does your protein contain?
3. What is the sixth amino acid in the polypeptide chain?
4. If the sixth triple read GAA instead of GGA, would the sequence of amino acids change? Explain your answer.
5. If the sixth triple read GGC instead of GGA, would the sequence of amino acids change? Explain your answer.
6. What is the name of the bonds that attach the amino acids together within the polypeptide chain?

Condor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft required 25,000 hours to complete. Condor believes an incremental unit-time learning model with an 82% learning curve best reflects the company's production efficiency. Condor just received a contract to make fifteen identical aircraft. What will be the expected unit time for the sixteenth aircraft?

ABC Inc. formerly operated successfully as a proprietorship owned by Ms. Zhu. She has built the business herself by being a hands-on owner, involved in all aspects of the business. The business has never had any debt and this allowed the business to remain profitable even when the economy slowed down 3 years ago. Ms. Zhu has contacted a CPA firm to request an external audit. She has maintained a good relationship with her bank of several years, as the business has been successful and generates sufficient cash flow to meet the needs for operating, financing, and investing activities.

Required

a. Explain why you think that ABC Inc. does (or does not) require an external audit.
b. Ignore your answer to part a) and assume that the audit firm’s decision was that ABC Inc. does not

require an external audit. Explain whether the auditor’s responsibility as a CPA is to provide the audit services as the client requests, or to advise that an audit is not required.

You've built an inflight entertainment system with on-demand movie streaming.

Users on longer flights like to start a second movie right when their first one ends, but they complain that the plane usually lands before they can see the ending. So you're building a feature for choosing two movies whose total runtimes will equal the exact flight length.

Write a method that takes an integer flightLength (in minutes) and an array of integers movieLengths (in minutes) and returns a boolean indicating whether there are two numbers in movieLengths whose sum equals flightLength.

When building your method:

• Assume your users will watch exactly two movies
• Don't make your users watch the same movie twice
• Optimize for runtime over memory

==========================

import org.junit.Test;
import org.junit.runner.JUnitCore;
import org.junit.runner.Result;
import org.junit.runner.notification.Failure;

import static org.junit.Assert.*;

public class Solution {

public static boolean canTwoMoviesFillFlight(int[] movieLengths, int flightLength) {

// determine if two movies add up to the flight length
  

return false;
}

// tests

@Test
public void shortFlightTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {2, 4}, 1);
assertFalse(result);
}

@Test
public void longFlightTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {2, 4}, 6);
assertTrue(result);
}

@Test
public void onlyOneMovieHalfFlightLenghtTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {3, 8}, 6);
assertFalse(result);
}

@Test
public void twoMoviesHalfFlightLengthTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {3, 8, 3}, 6);
assertTrue(result);
}

@Test
public void lotsOfPossiblePairsTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {1, 2, 3, 4, 5, 6}, 7);
assertTrue(result);
}

@Test
public void notUsingFirstMovieTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {4, 3, 2}, 5);
assertTrue(result);
}

@Test
public void oneMovieTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {6}, 6);
assertFalse(result);
}

@Test
public void noMoviesTest() {
final boolean result = canTwoMoviesFillFlight(new int[] {}, 6);
assertFalse(result);
}

public static void main(String[] args) {
Result result = JUnitCore.runClasses(Solution.class);
for (Failure failure : result.getFailures()) {
System.out.println(failure.toString());
}
if (result.wasSuccessful()) {
System.out.println("All tests passed.");
}
}
}

=======================

PLEASE EXPLAIN THE LOGIC AND WRITE THE SOLUTION ALSO .

PROGRAMMING LANGUAGE : JAVA