1. For 19 years, Betty was hostess of the Tournament of Roses Parade (which is every year before the Rose Bowl). Of all the parades on television that exist, which is the favorite? A random sample of people was taken, with the results summarized below:

At the .05 level of significance, is there an association between gender and favorite parade on television?

A company must make payments of $10 annually in the form of a 10- year annuity- immediate. It plans to buy two zero coupon bonds to fund these payments. The first bond matures in 2 years and the second bond matures in 9 years, and both are purchased to yield 10% effective. What face amount of each bond should the company buy in order to be immunized from small changes in the interest rate (redington immunization)?

On August 1 of year 0, Dirksen purchased a machine for $29,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $27,750. (Use MACRS Table.) (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable.)

a. What is the amount and character of the gain or loss Dirksen will recognize on the sale?

b. What is the amount and character of the gain or loss Dirksen will recognize on the sale if the machine was sold on January 15 of year 1 instead?

27. G is a cash basis consultant. His balance sheet at the end of the year shows receivables of $100 and accounts payable for utilities of $30.

a) What is G’s basis in the receivables?

b) If G transfers the receivables to a new corporation in exchange for 100% of the stock and the corporation assumes the liabilities is G taxed on the transfer?

1. Mars is considered favorable for human habitation because

A. the length of day and year are similar to Earth

B. Mars has seasons like Earth

C. Mars tilts on an axis of rotation like Earth

D. all of the above

2. The mind is altered by each new event it encounters.

true

false

3. The neocortex overrides the primitive actions of the reptilian brain and limbic system, giving rise to rational thinking.

true

false

4. Warming Mars could be accomplished by

A. using PFCs

B. positioning mirrors to reflect sunlight onto the planet

C. transferring nitrogen from Venus or Titan

D. all of the above

Shelly is a healthy 12 year-old that is heavily involved in competitive gymnastics. At a recent meet she fell and broke her right arm. Upon X-ray it revealed a compound radial-ulnar fracture which was treated with an open reduction procedure. However, she had to remain in the hospital for 10 days due to an infection in the area of the skin breakage. Currently she is undergoing physical therapy to help regain full movement and muscle tone.

Please respond to each of the following in your reply:

1. Her break required a type of surgery called open reduction. What is meant by reduction? What is involved with open reduction?
2. What is meant by fixation (immobilization)? Explain the difference between Internal and External fixation.
3. During physical therapy Shelly is also having difficulty with her elbow. Her MRI shows a 3^rd degree sprain. Differentiate between levels of severity, and between a strain and a sprain.
4. Over the next few years Shelly continues to have pain in her elbow. It is determined she has post-traumatic arthritis. How might this be treated?

Sandy Corp. projects that it will have taxable income of $208,000 for the year before paying any fringe benefits. Assume Karen, Sandy’s sole shareholder, has a marginal tax rate of 35 percent on ordinary income and 15 percent on dividend income. Assume Sandy’s tax rate is 35 percent.

a. What is the amount of the overall tax (corporate level + shareholder level) on Sandy’s $208,000 of pre-benefit income if Sandy Corp. does not pay out any fringe benefits and distributes all of its after-tax earnings to Karen (ignore the net investment income tax)?

b. What is the amount of the overall tax on Sandy’s $208,000 of pre-benefit income if Sandy Corp. pays Karen’s adoption expenses of $10,000 and the payment is considered to be a nontaxable fringe benefit (ignore the net investment income tax)? Sandy Corp. distributes all of its after-tax earnings to Karen.

c. What is the amount of the overall tax on Sandy’s $208,000 of pre-benefit income if Sandy Corp. pays Karen’s adoption expenses of $10,000 and the payment is considered to be a taxable fringe benefit (ignore the net investment income tax and the additional Medicare tax)? Sandy Corp. distributes all of its after-tax earnings to Karen.

At the beginning of the year, Lopez Company had the following standard cost sheet for one of it's chemical products:

Direct Materials (4 lbs @ $2.80) - $11.20

Direct Labor (2 hrs @ $18.00) - 36.00

FOH (2 hrs @ $5.20) - 10.40

VOH (2 hrs @ $0.70) - 1.40

Standard Cost Per Unit - $59.00

Lopez computes its overhead rates using practical volume, which is 90,000 units.

The actual results for the year are as follows:

(a) units produced: 88,000

(b) direct labor: 170,000 hours

(c) FOH: $930,000 and

(d) VOH: $125,000

1. Compute the variable overhead spending variance.

2. Compute the variable overhead efficiency variance.

3. Compute the fixed overhead spending variance.

4. Compute the fixed overhead volume variance.

Bob the Builder purchased a land and building in Year 6 for $4,000,000. $1.6 million of the purchase price was allocated to the land, and the balance to the building. At the time of the purchase it was estimated that the building would have a useful life of 40 years but no residual value.

In Year 18, Bob exchanged the land and building for a piece of undeveloped land. The fair market value of the assets given up was estimated to be $6.2 million and the fair value of the land to be received was $6.1 million. To make up the difference in the fair values of the assets exchanged, Bob also received $100,000 cash

Bob depreciates his buildings using the straight-line method. Bob adopts half-year convention for depreciation.

(1) Prepare the journal entry to record the exchange of the asset in Year 18, for Bob the Builder, assuming that the transaction has commercial substance (general case).

(2) Prepare the journal entry to record the exchange of the asset in Year 18, for Bob the Builder, assuming that the transaction lacks commercial substance (exception case).