Consider this scenario: The population of a city increased steadily over a six-year span. The following ordered pairs show the population and the year over the six-year span (population, year) for specific recorded years.

(3,700, 2000),    (3,900, 2001),    (4,800, 2003),    (5,950, 2006)

Use linear regression to determine a function y, where the year y depends on the population x, to five decimal places of accuracy. Use your function to predict when the population will hit 12,000. (Round your answer down to the nearest year.)

The population will hit 12,000 in the year ???? .

Consider this scenario: The population of a city increased steadily over a six-year span. The following ordered pairs show the population and the year over the six-year span (population, year) for specific recorded years.

(3,700, 2000),    (3,900, 2001),    (4,800, 2003),    (5,950, 2006)

Use linear regression to determine a function y, where the year y depends on the population x, to five decimal places of accuracy. Use your function to predict when the population will hit 12,000. (Round your answer down to the nearest year.)

The population will hit 12,000 in the year ???? .

Social Security Benefits Practice

In 2019, Evelyn is age 66 and unmarried. She receives $14,000 in social security benefits and $16,000 in taxable pension. She is in the 12% tax bracket and takes the standard deduction. She is thinking of selling stock she bought in 2006 and paid $5,000 for. The fair market value of the stock is $13,000. She has no other gains or losses.

Calculate and classify the gain or loss if Evelyn sells her stock in 2019.

Calculate any difference in her tax liability if Evelyn sells her stock in 2019.

Jaguar Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000. The useful life was expected to be 8 years and straight-line depreciation is used. At December 31, 2006 (Jaguar’s annual year-end), the book value of the machine was $35,000. Jaguar Corporation sold the machine for $32,000 cash on October 1, 2007.

Required: (A) Prepare the journal entry to record depreciation expense for 2007 at Oct 1, 2007 for the machine. Round the amount to the nearest dollar. (B) Prepare the journal entry to record the sale of the machine on Oct. 1, 2007.

Consumers can purchase nonprescription medications at food stores, mass merchandise stores such as Target and Wal-Mart, or pharmacies. About 45% of consumers make such purchases at pharmacies. What accounts for the popularity of pharmacies, which often charge higher prices?

A study examined consumers' perceptions of overall performance of the three types of stores, using a long questionnaire that asked about such things as "neat and attractive store," "knowledgeable staff," and "assistance in choosing among various types of nonprescription medication." A performance score was based on 27 such questions. The subjects were 196people chosen at random from the Indianapolis telephone directory. Here are the means and standard deviations of the performance scores for the sample.

(b) Give 90% confidence intervals for the mean performance for each type of store. (Round your answers to three decimal places.)

Broxton Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects. Assume the discount rate is 8 percent. Further, the company has only $16 million to invest in new projects this year.

Cash Flows (in $ millions)

a. Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. Calculate the NPV for each investment. (Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 1,234,567.89.)

Listed below are test grades for certain test.

27, 67, 85, 38, 92, 99, 87, 40, 56, 78, 88, 93, 97, 70, 66,

88, 45, 75, 90, 82, 65, 73, 85, 72, 65, 68, 90, 44, 56, 79 Given that the population mean is 72, and the population standard deviation is 19.

(1) Use the 68 − 95 − 99.7 rule to estimate the percentages of observations that lie with one, two, and three standard deviations of the mean.

(2) Use the data to obtain the exact percentages of observations that lie within one, two, and three standard deviations of the mean.

(3) Is it appropriate to use the 68 − 95 − 99.7 rule in this situation? Why?

(4) Regardless of your conclusion at (3). Suppose the grades of a test follows a Normal distribution with mean 72 and

standard deviation 19.

(a) What percentile are you in if your grade is 85?

(b) If you want to be in the top 5%, what grade do you need?

Broxton Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects. Assume the discount rate is 12 percent. Further, the company has only $22 million to invest in new projects this year. Cash Flows (in $ millions) Year L6 G5 Wi-Fi 0 −$ 8.0 −$ 14 −$ 22 1 11.0 12 20 2 7.5 27 34 3 5.5 22 22 a. Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Profitability index L6 G5 Wi-Fi b. Calculate the NPV for each investment. (Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 1,234,567.89.) NPV L6 $ G5 $ Wi-Fi $

How much revenue, if any, should the Company recognize through December 31, 20X1?

Customized Software, a software company (the “Company”), is contracted by a bank (the “Bank”) to provide a customized online platform for the Bank’s mortgage loan applications (the “Loan Platform”). Bank customers use the Loan Platform to complete online mortgage applications, which involves inputting relevant information (e.g., name, address, employment, income, assets) and uploading supporting documents (e.g., tax returns, bank statements). The Loan Platform enables both the Bank and the applicants to retrieve necessary information and documents as well as track the status of the lending process in real time. To develop the Loan Platform, the Company significantly modifies and customizes its proprietary loan application software to work with the existing systems used by the Bank’s credit, customer service, and accounting departments.

To create a Loan Platform that meets the Bank’s specifications, the Company is contractually required to perform the following specific software development activities (the “Software Services”):

• Conduct interviews with Bank personnel to understand system requirements and determine how to establish interfaces needed for the Bank to integrate the Loan Platform with its existing systems.

• Test the Loan Platform in a test environment using dummy transactions.

• Perform application program interface additions and modifications to the Loan Platform that are needed to support the Bank’s integration and data export requirements.

• Add custom functionalities to the Loan Platform (e.g., Bank-specific underwriting and reporting features, integration with the Bank’s customer service).

• Customize the design of the Loan Platform (e.g., Bank’s logo, branding, color scheme, preferred button placement).

Because the Loan Platform is highly customized, loan applicants perceive that they are accessing the Bank’s Web site and may be unaware of the Company’s involvement. The Bank does not have the ability to direct the use of the Loan Platform during the Software Services period and is not allowed to run the Loan Platform on Bank hardware at any time. Instead, after the Software Services are completed, the Company hosts the Loan Platform on its own servers, which allows the Bank and its loan applicants to access the software online (the “Processing Services”). The Company has no obligation to perform further work on the Loan Platform (e.g., customization, upgrades) after the Software Services are completed. Because the Loan Platform runs on the Company’s proprietary technology, no other vendor has the ability to perform the Software Services or Processing Services. The Loan Platform is delivered to the Bank as a service in the form of the Processing Services. That is, no software license is transferred to the Bank.

The Software Services commence on July 1, 20X1, and continue through December 31, 20X1. The Processing Services commence on January 1, 20X2, and continue for a term of five years. The contract requires the Bank to pay the Company nonrefundable fees of $3 million at the commencement of the Software Services (i.e., on July 1, 20X1) and $3 million over the period in which the Company will provide the Processing Services (i.e., equal monthly installments between January 1, 20X2, and December 31, 20X7). Neither party has a unilateral option to extend the contract, but the parties are free to negotiate an extension if desired.

The Company concludes the following:

• The provisions of FASB Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers (Topic 606), and related amendments are effective for the Company.

• The Company’s customer, as defined in FASB Accounting Standards Codification (ASC) Subtopic 606-10, Revenue From Contracts With Customers — Overall, is the Bank (as opposed to the mortgage loan applicants).

• The arrangement is within the scope of ASC 606-10 and meets the criteria in ASC 606- 10-25-1 to be considered a contract with a customer.

• Any explicit or implicit promises other than the Software Services and the Processing Services are immaterial in the context of the contract and need not be considered.

• The total transaction price, as described in ASC 606-10-32-3, is the sum of the contractually stated fees (i.e., $6 million).

• The Software Services are required to be performed to create the customized Loan Platform that the Company will use to provide the Processing Services to the Bank. In other words, the Software Services are integral to the Bank’s ability to derive its intended benefit from the Processing Services.

• The Bank does not derive value from the Software Services; rather, it derives value from the Processing Services. However, the Processing Services cannot begin until the Software Services are complete (i.e., until a Loan Platform that meets the Bank’s specifications has been developed).

Required:

How much revenue, if any, should the Company recognize through December 31, 20X1?