The information in this question is based on the previous question except that ABC Co. borrowed $1,500,000 and not $3,000,000 specifically for the construction of the complex. The facts are: ABC Co. would like to construct a new office complex. On January 1, 2017 ABC Co. borrowed $1,500,000 at 10% payable annually to finance the construction of the new complex. During 2017, ABC Co. made the following expenditures directly related to the construction project: April 1, $400,000 July 1, $1,800,000 October 1, $2,000,000 December 31, $1,000,000 The construction was completed in March, 2018. There were other debts outstanding during 2017 as follows: 10-year, 12% note payable, dated January 1, 2015. $2,000,000 5 year, 8%, $4,000,000 bond payable, January 1, 2010, interest payable annually. Determine the amount of interest to be capitalized in 2017 for the construction project

October

1. S.Erickson invested $50,000 cash, a $16,000 pool equipment, and $12,000 of office equipment in the company.

2. The company paid $4,000 cash for five months’ rent.

3. The company purchased $1,620 of office supplies on credit from Todd’s Office Products.

5. The company paid $4,220 cash for one year’s premium on a property and liability insurance policy.

6. The company billed Deep End Co $4,800 for services performed in installing a new pool

8. The company paid $1, 620 cash for the office supplies purchased from Todd’s Office Products on October 3.

10. The company hired Julie Kruitas a part-time assistant for $136 per day, as needed.

12. The company billed Deep End Co another $1,600 for services performed.

15. The company received $4,800 cash from Deep End Co as partial payment on its account.

17. The company paid $750 cash to repair pool equipment that was damaged when moving it.

20. The company paid $1,958 cash for advertisements published in the local newspaper.

22. The company received $1,600 cash from Deep End Co. on its account.

28. The company billed Happy Summer Corp $6,802 for consulting services performed.

31. The company paid $952 cash for Julie Kruit’s wages for seven days’ work.

31. S.Erickson withdrew $3,500 cash from the company for personal use.

November

1. The Company reimbursed S. Erickson in cash for business automobile mileage allowance (Erickson logged 1,500 miles at $0.32 per mile).

2. The company received $5,630 cash from Underground Inc. for consulting services performed.

5. The company purchased office supplies for $1,325 cash from Todd’s Office Products.

8. The company billed Slides R Us $7,568 for services performed.

13. The company agreed to perform future services for Henry’s Pool and Spa Co. No work has been performed.

18. The company received $2,802 cash from Happy Summer Corp as partial payment of the October 28 bill.

22. The company donated $450 cash to the United Way in the company’s name.

24. The company completed work and sent a bill for $4,800 to Henry’s Pool and Spa Co.

25. The company sent another bill to Happy Summer Corp for the past-due amount of$4,000.

28. The company reimbursed S. Erickson in cash for business automobile mileage(1,300miles at $0.32 per mile).

30. The company paid cash to Julie Kruit for 14 days’ work.

30. S.Erickson withdrew $1,500 cash from the company for personal use.

December

2. Paid $1,200 cash to West Side Mall for Splashing Around’s share of mall advertising costs.

3. Paid $350 cash for minor repairs to the company’s pool equipment.

4. Received $ 4,800 cash from Henry’s Pool and Spa Co. for the receivable from November.

10. Paid cash to Julie Kruit for six days of work at the rate of $136 per day.

14. Notified by Henry’s Pool and Spa Co. that Splashing Around’s bid of $10,000 on a proposed project has been accepted. Henry’s paid a $6,500 cash advance to Splashing Around

15. Purchased $1,400 of office supplies on credit from Todd’sOffice Products.

16. Sent a reminder to Slides R Us to pay the fee for services recorded on November 8.

20. Completed a project for Underground Inc and received $6,545 cash.

22–26. Took the week off for the holidays.

28. Received $4,500 cash from Slides R Us on its receivable.

29. Reimbursed S.Erickson for business automobile mileage (500 miles at $0.32 per mile).31.S.Erickson withdrew $2,500 cash from the company for personal use

Prepare an income statement for the three months ended December 31, 2019

Prepare a statement of owner’s equity for the three months ended December 31, 2019

Prepare a classified balance sheet as of December 31, 2019

Record the closing entries for Splashing Around

Post the closing entries to the general ledger under "closing entry"

Prepare a post-closing trial balance as of December 31, 2019.

In 1919, Pasha Patel owned several acres of land in the Upper Peninsula of Michigan. Half a pond was located on Patel's land. The other half of the pond was located on land owned by Brooke Brookhaven. For a small consideration, Patel Transferred the right to cut ice on her side of the pond each winter to Fred Xavier. The contract was oral and supposed to last for the next five winters. Each day from early from early October to late March, Xavier would cut the ice and remove it. He would carefully carve the ice into large cubes that fit perfectly into the ice boxes located in the rental cabins dotting the Upper Peninsula. He then sold the ice to the cabin renters. one summer Brookhaven drained her part of the pond. In october, this action meant that ice was sparse, and what was available was sunk into the mud at the bottom of the lake and thus unusable for carving and sale. Xavier brought suit against Brookhaven, agruing that her action in draining the lake made his interest in the property worthless. The court asked for a copy of the written contract transferring the right to cut the ice to Xavier. When Xavier could not produce one, the judge dismissed the case. What will be the result of the case at this point? Explain.

State the null hypothesis.

State the alternate hypothesis.

What is (are) the independent variable(s)?

What is (are) the dependent variable(s)?

Objective

African-American adolescents are twice as likely to develop hypertension in early adulthood than adolescents from other racial groups. The purpose of this study was to determine the efficacy of a school-based health promotion intervention.

Method

Participants were African-American adolescents aged between 14 and 17 years attending an urban high school. The 9-week intervention program focused on the participants' knowledge, diet, exercise, and blood pressure.

Conclusions

The intervention program was efficacious in knowledge (p = .0001), exercise (p = .0001), as well as fruit and vegetable intake (p = .0001). Differences in systolic (p = .5548) and diastolic (p = .9719) blood pressure levels were not significant.

Wildcat’s stock is volatile, you expect its stock price either increases or decreases by 30% over
a year of time. suppose the current stock price is $100 and you have an American put option
with exercise price of $102. The option has two years to expiration. If the risk-free interest rate
is 10%.
a. What is the risk-neutral probability ππ for the up state?
b. Draw the binomial trees (two years) and mark the stock prices for each of the nodes.
c. For each of the nodes, work backwards and find the value of the option i) if it is kept, ii) if
it is exercised, and iii) the optimal choice.
d. Find the value of the American put option.
e. Is there any state in year one that the option holder would choose to exercise the option
early?

A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%.

(a) Use a three-step tree to value an 18-month American put option with a strike price of 1,000 when the volatility is 20% per annum.

(b) How much does the option holder gain by being able to exercise early? When is the gain made?

(c) What position in the stock is initially necessary to hedge the risk of the put option?

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

For example, electricity costs are $1,950 per month plus $0.20 per car washed. The company expects to wash 8,500 cars in October and to collect an average of $6.40 per car washed.

Auto Lavage’s actual level of activity was 8,600 cars. The actual revenues and expenses for October are given below:

Required:
1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,500 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

ESSAY QUESTION.

Rancho Inc. has recently become interested in acquiring a South American plant to handle many of its production functions in that market. One possible candidate is DAL SA, a closely held corporation, whose owners have decided to sell their business if a proper settlement can be obtained. DAL’s statement of financial position is as follows:

Rancho has hired Paribus Appraisal Corporation to determine the proper price to pay for DAL SA. The appraisal firm finds that the fair value - net income investments have a fair value of $75,000 and that inventory is understated by $40,000. All other assets and liabilities have book values that approximate their fair values. An examination of the company’s income for the last four years indicates that the net income has steadily increased. In 2017, the company had a net operating income of $110,000, and this income should increase by 15% each year over the next four years. Rancho believes that a normal return in this type of business is 15% on net assets. The asset investment in the South American plant is expected to stay the same for the next four years.

(b) DAL SA is willing to sell the business for $1 million. What advice should Paribus Appraisal give Rancho in regard to this offer?

A cruise company would like to estimate the average beer consumption to plan its beer inventory levels on future​ seven-day cruises.​ (The ship certainly​ doesn't want to run out of beer in the middle of the​ ocean!) The average beer consumption over 18 randomly selected​ seven-day was 81,903 bottles with a sample standard deviation of 4,585 bottles. Complete parts a and b below.

A. Construct a 95% confidence interval to estimate the average beer consumption per cruise.

The 95% confidence interval to estimate the average beer consumption per cruise is from a lower limit of _____ bottles to an upper limit of _____ bottles.

​(Round to the nearest whole​ numbers.)

B.What assumptions need to be made about this​ population?

A.The only assumption needed is that the population follows the​ Student's t-distribution.

B.The only assumption needed is that the population size is larger than 30.

C.The only assumption needed is that the population distribution is skewed to one side.

D.The only assumption needed is that the population follows the normal probability distribution.