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Estimating Useful Life and Percent Used Up
The property and equipment footnote from Tesla follows. Assume that 25% of the amount classified as "Land and buildings" pertains to the cost of the Land.

Property and Depreciation Our property, plant and equipment, net, consists of the following (in thousands):

Depreciation expense during the years ended December 31, 2018, 2017, and 2016 was $1.11 billion, $769.3 million, and $477.3 million, respectively.

a. Compute the average useful life of Tesla’s depreciable assets at year-end 2018. Round answer to one decimal place.
Answer

years

b. Estimate the percent used up of Tesla’s depreciable assets at year-end 2018. Round answer to one decimal place (ex: 0.2345 = 23.5%)
Answer

Answer to Question A) = 9.3 years

Answer to Question B) = 26%

Tru’s pretax accounting income for 2018 was $110 million. In its income statement, Tru reported interest income of $15 million, unrelated to the land sales, for which the company’s position is that the interest is not taxable. Accordingly, the interest was not reported on the tax return. There are no differences between accounting income and taxable income other than those described above. The enacted tax rate is 40 percent.

Management believes the tax position taken on the land sales has a greater than 50% chance of being upheld based on its technical merits, but the position taken on the interest has a less than 50% chance of being upheld. It is further believed that the following likelihood percentages apply to the tax treatment of the land sales ($ in millions):

Required:
1. What portion of the tax benefit of tax-free interest will Tru recognize on its 2018 tax return?
2. What portion of the tax benefit of tax-free interest will Tru recognize on its 2018 financial statements?
3-a. What portion of the tax on the $60 million income from the plots sold on an installment basis will Tru defer on its 2018 tax return?
3-b. What portion of the tax on the $60 million income from the plots sold on an installment basis will Tru defer in its 2018 financial statements?
4. Prepare the journal entry to record income taxes in 2018 assuming full recognition of the tax benefits in the financial statements of both differences between pretax accounting income and taxable income.
5. Prepare the journal entry to record income taxes in 2018 assuming the recognition of the tax benefits in the financial statements you indicated in requirements 1-3.

Sonia Inc. entered into a contract with Lala Inc. on July 1, 2018 to construct an office building. The total contract price for construction of the building is $400,000. The building was completed on December 31, 2020. Sonia’s fiscal year end is December 31.

Below is related information of Sonia Inc. regarding this construction:

Please answer each of the following questions and clearly label which question you are answering. You can prepare it in Word, in Excel, or handwrite it. Once completed, upload the completed Word or Excel document or a picture of the handwritten work (22 points).

Please use the percentage-of-completion method for items 1-5.

1. Prepare journal entries for the actual construction costs incurred and billings made in 2018. (4 points)

1. Calculate the amount of revenue and gross profit or loss to be recognized in 2018. Please show supporting calculations. (5 points)

1. Prepare the adjusting journal entry for 2018 to record revenue recognition and gross profit/loss. (3 points)

1. Prepare a partial balance sheet for 2018 relating to the contract. You do NOT need to include Cash and Accounts Receivable in your answer. Be sure to indicate whether an item is an asset or liability. Please show supporting calculations. (3 points)

1. Calculate the amount of revenue and gross profit or loss to be recognized in 2019. Please show supporting calculations. If needed, round the percentage calculation to the fourth decimal (e.g. 22.36%) and round the dollar amount to the whole dollar. (5 points)

Please use the completed contract method for item 6.

1. Using the completed contract method, how much revenue would be recognized in 2018? (2 points)

Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below. Balance Sheets: 2018 2017 Cash and equivalents $80 $65 Accounts receivable 275 300 Inventories 375 350 Total current assets $730 $715 Net plant and equipment 2,000 1,490 Total assets $2,730 $2,205 Accounts payable $150 $85 Accruals 75 50 Notes payable 130 155 Total current liabilities $355 $290 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 700 400 Total liabilities and equity $2,730 $2,205 Income Statements: 2018 2017 Sales $2,000 $1,500 Operating costs excluding depreciation 1,250 1,000 EBITDA $750 $500 Depreciation and amortization 100 75 EBIT $650 $425 Interest 62 45 EBT $588 $380 Taxes (40%) 235 152 Net income $353 $228 Dividends paid $53 $48 Addition to retained earnings $300 $180 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00% What is the firm’s 2018 current ratio? Round your answer to two decimal places. If the industry average debt-to-total-assets ratio is 30%, then Rosnan’s creditors have a cushion than indicated by the industry average. What is the firm’s 2018 net profit margin? Round your answer to four decimal places. % If the industry average profit margin is 12%, then Rosnan’s lower than average debt-to-total-assets ratio might be one reason for its high profit margin. What is the firm’s 2018 price/earnings ratio? Round your answer to two decimal places. Using the DuPont equation, what is the firm’s 2018 ROE? Round your answer to two decimal places. %

On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:

Enter the following transactions on Page 2 of the two-column journal:

Required:

1. Journalize and insert the posting references for each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank.

3. Prepare an unadjusted trial balance for Intrex Designs as of October 31, 2018. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses.For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example.

4. Determine the excess of revenues over expenses for October.
$

5. Why the amount determined in above might not be the net income for October?

Because the dividends are declared but not paid

Because the cash balance is incorrect.

Because the closing inventory balance is missing

Because necessary adjustment to expenses, like depreciation has not been made.

20)Categorize (give examples) the direct and indirect electronic effects.

1) Why do atoms bond?

2) What is electronegativity?

3) What do you mean by dipole moment? Explain, considering water molecule as an example.

4) Why chloroform (CHCl3) is polar whereas carbon tetrachloride (CCl4) is non-polar?

5) NH3 is a polar molecule but BF3 is non-polar—justify.

Your production line has an automatic scanner to detect defects. In recent production, 3% of items have been defective. Given that an item is defective, the scanner has an 90% chance of identifying it as defective. Of the non-defective items, the scanner has a 95% chance of identifying it correctly as non-defective.

Given that the scanner identifies a part as defective, find the conditional probability that the part is truly defective.

Discuss the perception of use and misuse of health services, including the practice of limiting mental health coverage sub-limits, and utilizing higher co-payments than for medical coverage. Discuss the issue of patient non-compliance, patient non-adherence and the correlation of the perception or fear of iatrogenic illness or iatrogenic consequences (such as misdiagnosis, missed-diagnosis, or fear of hospitals based on conditioning), and the factor of cost of prescribed medication.