On January 1, 2020, Holland Corporation paid $9 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $8.00 per share both before and after the acquisition by Holland. Zeeland’s acquisition date balance sheet follows: Current assets $ 14,200 Liabilities $ 215,000 Property and equipment (net) 328,200 Common stock 100,000 Patents 192,600 Retained earnings 220,000 $ 535,000 $ 535,000 On January 1, 2020, Holland assessed the carrying amount of Zeeland’s equipment (5-year remaining life) to be undervalued by $57,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $295,400. Zeeland’s acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland’s acquisition-date fair value over its book value was attributed to goodwill. The companies’ financial statements for the year ending December 31, 2021, follow: Holland Zeeland Sales $ (663,900 ) $ (430,500 ) Cost of goods sold 336,800 201,000 Depreciation expense 83,000 33,800 Amortization expense 14,200 20,800 Other operating expenses 52,800 62,900 Equity in Zeeland earnings (42,636 ) 0 Separate company net income $ (219,736 ) $ (112,000 ) Retained earnings 1/1 $ (820,400 ) $ (301,900 ) Net income (219,736 ) (112,000 ) Dividends declared 50,000 30,000 Retained earnings 12/31 $ (990,136 ) $ (383,900 ) Current assets $ 125,200 $ 83,500 Investment in Zeeland 589,212 0 Property and equipment (net) 839,000 261,000 Patents 149,400 149,500 Total assets $ 1,702,812 $ 494,000 Liabilities $ (392,676 ) $ (10,100 ) Common stock—Holland (320,000 ) 0 Common stock—Zeeland 0 (100,000 ) Retained earnings 12/31 (990,136 ) (383,900 ) Total liabilities and owners equity $ (1,702,812 ) $ (494,000 ) At year-end, there were no intra-entity receivables or payables. Compute the amount of goodwill recognized in Holland’s acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance. Prepare a worksheet to determine the amounts that should appear on Holland’s December 31, 2021, consolidated financial statements.

Robert was diagnosed with hypertension at the age of 39. In taking better care of himself., Robert a former college athlete found himself eating poorly, consuming too much alcohol, smoking, and spending too much time sitting in front of the TV since graduating. His personal habits have also caused him to gain a significant amount of weight. Robert is now on two high blood pressure medications to try and control his blood pressure. He also modified his lifestyle to include regular exercise, stopping smoking and moderate alcohol consumption and a sodium diet.

Robert’s, father had died earl from renal failure due to hypertension he took his lifestyle changes seriously. Robert now 56, is a triathlon athlete and very competitive and strived to first in his age group. In order to gain the edge, he needs, he hired a certified clinical trainer, Carmen. Robert was experiencing dehydration and fatigue while exercising, so he wanted help to find a way to drink enough fluids while training.

Carmen designed a way for Robert to assess his physiological status (PS)before, during, and after his workouts. A urinalysis was done before, right after, and six hours after a two-hour training run to determine his renal status a measure of his PS.

The table below shows Robert’s urinalysis data.

Questions

1. What does the color of Robert’s urine tell him about how concentrated or dilute it is? How does the urine color/concentration relate to the urine specific gravity at the same time?

2. The urine color and specific gravity can give Carmen information as to the hydration status of Robert’s body at three different times. What can she conclude from the information based on color and specific gravity?

3. Antidiuretic hormone (ADH) regulates the formation of concentrated or dilute urine. When is Robert releasing the greatest amount of ADH? Explain your answer.

4 Proteinuria (protein in the urine) after intense exercise is physiological (normal). However, protein is typically not present in urine. Why is that?

5. Trace glucose that was found in Robert’s urine six hours after his exercise, this concerned Carmen, however, Robert had a large meal an hour before the urinalysis. How could this affect the glucose in Robert’s urine?

6. Intense exercise can cause lactic acid to accumulate. How can Carmen tell Robert’s kidneys are trying to prevent acidosis? Describe this mechanism.

7. After reviewing Robert’s urinalysis data, do you think he should drink more water prior to starting his training to make sure he stays adequately hydrated? Explain your answer.

8. One of the medications the Robert takes to control his blood pressure is called an angiotensin converting enzyme inhibitor (ACE inhibitor), which inhibits the activation of angiotensin II. What are two of the mechanisms by which angiotensin II targets the kidneys to increase extracellular fluid volume, there are several?

An eating disorders clinic would like to assess the efficacy of their 10-week mindfulness training program with clients who have Binge Eating Disorder (BED). The clinic researchers first measured the number of binges in the previous week for 16 clients through self-report. One month after the mindfulness training sessions were conducted, the clients were again asked to report the number of binges in the last week. The data are listed in the table below. The clinic researchers have set the significance level at α = .05. # of Binges per week Subject Before Training After Training

Part I. (25 points total) a) Identify the outcome (dependent) variable and the independent variable (that differentiates the two populations being compared). What are the “samples” in this paired-samples t test? (Or, what are the “means” in this dependent-means t test?) (1 point) b) The clinic researchers predict the number of binges per week will decrease after the mindfulness training. In other words, the researchers believe the mindfulness training will be helpful in reducing binge eating. What would be the null and alternative hypotheses in both words and symbol notations? c) Calculate the difference scores by subtracting the “before” scores from the “after” scores. (In other words, set up the columns to calculate after minus before.) Create a table below for “difference score.” d) Calculate the mean from the sample of the difference scores. e) Estimate the standard deviation of the comparison population (that represents the null hypothesis). f) Calculate the standard error (standard deviation of the sampling distribution). g) Calculate the t statistic for the sample. h) Because the hypotheses are directional, a one-tailed test can be performed. Determine the critical t value based on the degrees of freedom and the preset alpha level. Compare the t statistic with the critical t value. Is the calculated t statistic more extreme or less extreme than the critical t value? Then make a decision about the hypothesis test, stating explicitly “reject” or “fail to reject” accordingly. i) Interpret the result in 1-2 sentences (you may restate the hypothesis accepted or explain it in your own words). ( a) Calculate the raw and standardized effect size of this hypothesis test. The clinic researchers could also set up the hypothesis to see if there are any differences (increases or decreases) in binge eating behavior after mindfulness training. a) What would be the null and alternative hypotheses for this alternative analysis? Compose them in symbol notations only. b) Since a non-directional hypothesis is examined with a two-tailed test, determine the critical t values for the two-tailed test using the same alpha level and degree of freedom. c) Compare the t statistic with the critical t values. Is the calculated t statistic more extreme or less extreme than the critical t value? What is the decision of the hypothesis test now? d) Was the two-tailed test result (Part II) different from the one-tailed test result (from Part I)? Why or why not?

Your clints, Jamal and Chyna Gwynn, would like you to determine if they are on track to meet the education funding objective of their son Jarius. Jarius is currently 13 years of age. Jamal and Chyna have high hope for Jarius's future education. Use the following date to determine whether or not Jamal and Chyna need to save more to fund Jarius's educational needs.

* Combined federal and state marginal tax bracket: 29 percent

* After-tax rate of return before college: 7.90 percent

* Before-tax rate of return of 529 plan: 9.75 percent

* College expense inflation rate: 4 percent

* Year Jarius begins college: Age eighteen

* Number of years in college: four years.

* Yearly cost of college today: $60,000

* After-tax assets earmarked for Jarius's education: $25,000

* 529 plan assets earmarked for Jarius's education: $60,000

* After-tax educational annual savings: $0

* Annual tax-advantage educational savings: $18,000

* Annual education savings growth rate: 3 percent

a. Approximately how much will Jamal and Chyna need (gross need) on Jarius's first day of college?

b. After accounting for the future value of assets and savings, how much additional (if any) do Jamal and Chyna need of Jarius's first day of college?

c. Based on your answer to the question above, how much must Jamal and Chyna save annually in the 529 plan to meet the educational saving goal?

d. If instead, Jamal and Chyna decide to save outside of a 529 plan or other tax-advantage plan, how much must they save each year?

Multiple Product Planning with Taxes
In the year 2008, Wiggins Processing Company had the following contribution income statement:

HINT: Round the contribution margin ratio to two decimal places for your calculations below.

(a) Determine the annual break-even point in sales dollars.
$Answer

(b) Determine the annual margin of safety in sales dollars.
$Answer

(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $34,000?
Answer

(d) With the current cost structure, including fixed costs of $272,000, what dollar sales volume is required to provide an after-tax net income of $160,000?

Do not round until your final answer. Round your answer to the nearest dollar.
$Answer

(e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income.

Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.

A space station is approximately a ring of radius,R, and mass m, which rotates about its symmetry axis with angular velocity,~ω=ω0ˆe3. A meteor is traveling with momentum,~p, that is parallel to the original ˆe3, and strikes the space station at a point on the rim,transferring the entire momentum to the space station (an inelastic collision where the meteor sticks to the space station). Further, though the meteor has significant momentum,it is of very small mass so that the moment of inertia tensor elements are approximately the same before and after the collision

a) What is the vector angular momentum of the space station with respect to a coordinate system with origin at the center of the ring and one axis along ˆe3 just before the collision?

b) What is the vector angular momentum of the space station in the same coordinate system (and defining the ˆe2 axis as in the direction from the origin to the point of impact on the edge of the ring) just after the collision?

c) After the collision, there are no further torques acting on the space station. Assume that the angular momentum of the space station after the collision differs by only a small (vector) amount from the initial angular momentum. Write down equations of motion that describe how the components of~ωfor the space station evolve with time.

d) Use these equations to describe how the rotational velocity vector of the space station evolves with time. If you predict simple rotation about a new direction, say so and describe the new direction. If you predict precessional motion, say so and predict the precession frequency. If you think something else happens, say so and describe the motion. In all cases, Explain: Back up your prediction with reasoning and (possibly approximate) solutions of the equations from part (c).

Multiple Product Planning with Taxes
In the year 2008, Wiggins Processing Company had the following contribution income statement:

HINT: Round the contribution margin ratio to two decimal places for your calculations below.

(a) Determine the annual break-even point in sales dollars.
$Answer

(b) Determine the annual margin of safety in sales dollars.
$Answer

(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $60,000?
Answer

(d) With the current cost structure, including fixed costs of $260,000, what dollar sales volume is required to provide an after-tax net income of $190,000?

Do not round until your final answer. Round your answer to the nearest dollar.
$Answer

(e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income.

Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.

Facts: Opportunity Landscaping Inc. (Opportunity) appreciated your assistance in preparing their 2018 Federal income tax return. As a result, they have come to you for advice on acquiring new facilities for their manufacturing operations. They plan to take access to their new facilities on January 2, 2020.

The corporation has the opportunity to purchase an appropriate facility in suburban Chicago for $90,000,000 ($87,000,000 for the factory building; $3,000,000 for the land). If they purchase the facility, they would finance the acquisition via a 15-year mortgage at 3.5% interest with a $18,000,000 down payment (due at closing on January 2, 2020). The mortgage would be payable annually in arrears (i.e., the first mortgage payment would be due January 2, 2021). Real property taxes on the facility in 2020 would be $1,000,000 (the property taxes are also due annually in arrears with 2020 taxes due on January 2, 2021). Further, Opportunity estimates that property taxes will increase annually at a rate of 3% in years subsequent to 2020.

As an alternative, a local real estate investor has offered to purchase the facility and lease it to the corporation. The investor would require Opportunity to sign a 7-year non-cancelable lease. The first lease payment of $3,700,000 would be due on January 2, 2020. Lease payments will increase by 4% each year during the term of the lease with the final lease payment due on January 2, 2026. In addition, the lease would require a refundable deposit of $1,850,000 (payment due on January 2, 2020) against significant damages to the facility; this deposit will be refunded to the corporation on January 2, 2027 (when the occupancy ends and assuming that there are no significant damages).

Opportunity must decide whether to lease or buy the facility. In order to make a proper decision, the corporation will assume that it could sell the facility (building and land) on January 2, 2027 for $100,000,000. Under this scenario, they would make their final mortgage and property tax payments on January 2, 2027 and then sell the facility.

Opportunity’s Federal corporate tax rate is 21% and it uses a 7% discount rate to compute the present value of its future cash flows. For purposes of this analysis, assume that all cash flows occur at the beginning of the respective year.

Required:

1. Based on the above facts, which option (lease or buy) minimizes Opportunity’s after-tax cost of obtaining the facility?

2. The local real estate investor has provided an option for Opportunity to consider. Under this option, a payment of $12,000,000 is due on January 2, 2020. If this payment is made, no deposit is required and the payment is deemed to cover the first three years of the lease. On January 2, 2023, lease payments resume with a $4,000,000 lease payment due (and a 4% increase in the lease payment each year for the remainder of the lease term). Is this an alternative that Opportunity should consider? Read and apply the materials in text Section 6-2d as part of your analysis.

3. Opportunity’s CFO is not certain that the current 21% Federal tax rate will be maintained over the next seven years. She feels that an increase in the Federal rate to around 30% is likely at some point in the near term. As a result, she would like to know how your analysis would be affected if the Federal income tax rate increased to 30% on January 1, 2025.

I have calculated and found that the NPV for the lease option is ($19,516,098). I have also used the PMT function on excel and found that the annual mortgage payments are $6,251,405 (15 years; $72 million; 3.5% interest rate). I need help computing the NPV for the buy option in order to decide which option is best.

In early January 2010​, you purchased ​$45,000 worth of some​ high-grade corporate bonds. The bonds carried a coupon of 8 font size decreased by 1 font size decreased by 1 font size decreased by 1 5/8 %(one and five eighths) and mature in 2024. You paid 94.312 when you bought the bonds. Over the five years from 2010 through 2014​,

the bonds were priced in the market as​ follows:

Coupon payments were made on schedule throughout the​ 5-year period.

a. Find the annual holding period returns for2010 through 2014 ​(See Chapter 5 for the HPR​ formula.)

b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the​ market? Explain.

1: The holding period return for 2010,2011,2012,2013,2014 is_______%. ​(Round to two decimal​ places.)

2. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the​ market? Explain. (Select the best choice​ below.)

The market has outperformed the corporate bond investment. The average rate of return for the investment is_____​% versus the average market rate of____%.

The​ high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is______​% versus the average market rate of______​%.