18. Armond is a shareholder of Brix and Mater Hotel Corporation. For the last few years, business has not been profitable for Brix and Mater. The firm has lost money on its operations. There has been some profit through sales of company assets, but the board of directors has refused to declare a dividend. This last year, the firm’s accountants failed to file fed­eral in­come tax returns and the board refused to pay the tax. Armond takes a close look at the firm and protests to the board, in particular over the fail­ure to declare a dividend, but the board ignores the complaint.

a. Which of these events, if any, would form a ground for a court to order the dissolution of Brix and Mater, on Armond’s petition?

b. If the court denies the petition, could Armond and the other shareholders dissolve Brix and Mater?

Work & Rest is an all inclusive hotel operating as a monopoly in a mid-sized community. The manager estimates that the hotel's total costs are described by the equation C = 0.1Q² + 20Q + 5000, where Q is the number or persons serviced and P is the price paid per person. Although it is located in a mid-sized community, it is close to a major highway that runs along the east coast. Often times, travelers would use the services of Work & Rest as a stop in their commute between two major citys. As such, the market demand for its service is described by the equation P = 170 - 0.2Q.

1. Given the current market conditions, Work & Rest's profit-maximizing quantity is  and the price charged per person is  ( 4 points)

Consider that after a series of reports from special interest groups, the local government decides to regulate Work & Rest by using the optimal pricing policy.

2. Given the successful implementation of the government's policy, Work & Rest's profit-maximizing quantity is  (2 points)

3. Given the successful implementation of the government's policy, what is Work & Rest's profit at its profit maximizing quantity?  (4 points)I

4. If the policy remains in place, and there are no further external shocks to the market, is it likely that West & Rest will continue to operate and provide service? (In the space provided enter will or will not)

In the long run, West & Rest  continue to provide service in this mid-sized community

• Assume you are working on budgeting for the room department of your hotel.
• Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2016. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year.
• Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $250,000 during 2016. For 2017, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2016.
• Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2016. For 2017, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

1. What will be the budgeted ‘Room Revenue (Sales)’ for 2017?

2. What will be the budgeted ‘Guest Supplies’ expenses for 2017?

3. What will be the budgeted ‘Salaries’ expenses for 2017?

Work & Rest is an all inclusive hotel operating as a monopoly in a mid-sized community. The manager estimates that the hotel's total costs are described by the equation C = 0.05Q² + 10Q + 15000, where Q is the number or persons serviced and P is the price paid per person. Although it is located in a mid-sized community, it is close to a major highway that runs along the east coast. Often times, travelers would use the services of Work & Rest as a stop in their commute between two major citys. As such, the market demand for its service is described by the equation P = 160 - 0.2Q.

1. Given the current market conditions, Work & Rest's profit-maximizing quantity is Blank 1 and the price charged per person is Blank 2 ( 4 points)

Consider that after a series of reports from special interest groups, the local government decides to regulate Work & Rest by using the optimal pricing policy.

2. Given the successful implementation of the government's policy, Work & Rest's profit-maximizing quantity is Blank 3 (2 points)

3. Given the successful implementation of the government's policy, what is Work & Rest's profit at its profit maximizing quantity? Blank 4 (4 points)I

4. If the policy remains in place, and there are no further external shocks to the market, is it likely that West & Rest will continue to operate and provide service? (In the space provided enter will or will not)

In the long run, West & Rest Blank 5 continue to provide service in this mid-sized community. (2 points)

The Krasnapolski is a top-of-the-line hotel in Amsterdam, the Netherlands. Among their many services, they rent bicycles to guests. The bicycle checkout is open 24 hours per day 7 days per week and has 50 bicycles on hand. On average, 10 guests request a bicycle each day, arriving completely randomly at all times of the day during the spring and summer seasons. Guests keep bicycles for four days on average, with a standard deviation of two days. Remember: any time you see the term "random" associated with the job arrivals it means the coefficient of variation is equal to one; that is, the standard deviation in the time between arrivals is equal to the mean time between arrivals.

How long does a guest on average have to wait for a bike?

1. Approximately 47 minutes

2. Approximately 4 days

3. Approximately 24 hours

4. Approximately 0.033 hours

Herman Swayne is a waiter at the Dixie Hotel. In his first weekly pay in March, he earned $360.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($700.00), and the employer withholds the appropriate taxes for the tips from this first pay in March.

Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, married, 2 allowances), social security taxes, and state income tax (2%).

Enter deductions beginning with a minus sign (-).

Click here to access the Wage-Bracket Method Tables.

B. Jane Botosan operates a Hostelworld in an area near Amsterdam. Depreciation on the hotel is $60,000 per year. Jane employs a maintenance person at an annual salary of $41,000 and a cleaning person at an annual salary of $24,000. Real estate taxes are $10,000 per year. The rooms rent at an average price of $60 per person per night including breakfast. Other costs are laundry and cleaning service at a cost of $10 per person per night and the cost of food which is $5 per person per night.

Instructions

1. DeterminethenumberofrentalsandthesalesrevenueJaneneedstobreak even using the contribution margin technique.

2. If the current level of rentals is 4,000, by what percentage can rentals decrease before Jane has to worry about having a net loss?

3. Jane is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional $3 for food costs per person per night. Jane feels she can increase the room rate to $68 per person per night. Determine the number of rentals and the sales revenue Jane needs to break even if the changes are made.

1-1

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $67,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $52,200. She proceeds with opening the restaurant, and it begins operations on May 1.

Determine the amount that Henrietta can deduct in the current year for investigating these two businesses.

In your computations, round the per-month amount to the nearest dollar and use rounded amount in subsequent computations.

a. The deductible amount of investigation expenses related to expansion of her hotel chain into another city: answer :$67000

b. The deductible amount of investigation expenses related to opening a restaurant: $ ???

what is b answer? thank you

1-2

Monty loaned his friend Ned $19,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was $16,150, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $16,150 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $6,460 and taxable income of $29,750. During the current year, Ned paid Monty $14,535 in satisfaction of the debt.

Determine Monty's tax treatment for the $14,535 received in the current year.

The nonbusiness bad debt of $16,150 would have been reported as a short-term capital loss , and $ ??? would be included in Monty's gross income this year.

1-1 b answer and 1-2 ??? answer.

Thank you for your help.