1. On October 1, a company received $3,600 for services to be performed over the next 6 months, with an equal amount of work to be completed each month. If no adjusting entry is made on December 31,

Select one:

a. net income will be understated by $3,600

b. net income will be understated by $1,800

c. net income will be overstated by $1,800

d. net income will be overstated by $3,600

e. net income will be understated by $2,400

2. At the end of the fiscal year, the usual adjusting entry to update Prepaid Insurance for the portion of the benefit that was used up / expired was accidentally omitted. Which of the following statements is true?

Select one:

a. Total assets at the end of the year will be understated.

b. Stockholders' Equity at the end of the year will be understated.

c. Net Income for the year will be overstated.

d. Insurance expense will be overstated.

e. None of the above.

On October 1, 2015, Illini Company purchased a truck for $42,000. The truck is expected to have a salvage value of $3,000 at the end of its 3-year useful life. If the company uses the straight-line method, the depreciation expense recorded during the year ending December 31, 2015, will be _____.

Brown Inc. acquired a delivery van on October 1, 2017 at a cost of $45,000. The useful life of the van was 12 years with a residual value of $3,000. Assume that the company used straight-line method with fractional years rounded to the nearest whole month. The delivery van was traded-in with a new one as of end of the year of 2018 (December 31, 2018). The list price of the new delivery van was $56,000. The Brown Inc. accepted a trade-in allowance of $40,850 and paid the remaining amount in cash to get the new van. In recording the trade-in, which of the following is correct?(3 Points)

Accumulated depreciation of the old van is debited by $3,375

Accumulated depreciation of the old van is debited by $4,375

Accumulated depreciation of the old van is credited by $4,375

Accumulated depreciation of the old van is credited by $3,375

Due October 25. Let R denote the set of complex numbers of the form a + b √ 3i, with a, b ∈ Z. Define N : R → Z≥0, by N(a + b √ 3i) = a 2 + 3b 2 . Prove: (i) R is closed under addition and multiplication. Conclude R is a ring and also an integral domain. (ii) Prove N(xy) = N(x)N(y), for all x, y ∈ R. (ii) Prove that 1, −1 are the only units in R.

Bramble Company purchased equipment for $220,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Bramble uses the equipment for 500 hours and the equipment produces 1,100 units.

Compute depreciation expense under each of the following methods. Bramble is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)

An October 25, 2012 article in the New England Journal of Medicine reports the results of a study examining aspirin and survival among patients with colorectal cancer. The following pieces of text are taken directly from the article abstract: (my edits are in italics) “METHODS We obtained data on 964 patients with rectal or colon cancer from the Nurses’ Health Study and the Health Professionals Follow-up Study, including data on aspirin use after diagnosis and the presence or absence of PIK3CA mutation…… RESULTS Among patients with mutated-PIK3CA colorectal cancers, regular use of aspirin after diagnosis was associated with superior colorectal cancer–specific survival (adjusted relative risk for cancer-related death, 0.18; 95% confidence interval [CI], 0.06 to 0.61; P<0.001 by the log-rank test) and overall survival (adjusted relative risk for death from any cause, 0.54; 95% CI, 0.31 to 0.94; P = 0.01 by the log-rank test). In contrast, among patients with wild-type PIK3CA, regular use of aspirin after diagnosis was not associated with colorectal cancer–specific survival (adjusted relative risk, 0.96; 95% CI, 0.69 to 1.32; P = 0.76 by the log-rank test) ) or overall survival (adjusted relative risk, 0.94; 95% CI, 0.75 to 1.17; P = 0.96 by the log-rank test)” The authors present the following graphic as part of the article: (on the next page) Statistical Reasoning in Public Health 1, 2016: Ho

1. What is the outcome of interest for this study?

2. What is the primary predictor of interest for this study?

3. What type of study design is this?

4. Describe the findings with regards to aspirin and survival in patients with colorectal cancer with respect to the presence or absence of the PIK3CA mutation.

5. Even though the authors estimated the association between aspirin and survival separately for the mutated-PIK3CA and wild-type PIK3CA, each of the two associations was adjusted for multiple factors including age, sex, year of diagnosis etc… Why was it potentially necessary to do this adjustment?

A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This machinery is estimated to have a useful life of seven years.

B. Alex purchased a Holden car on 1 May, 2019 at a cost of $63,000, estimated to have a useful life of five years.

Required: With reference to relevant legislation and case law, discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery and the Holden car discussed above, using both Prime cost and Diminishing value methods.

Monty Corp. purchased a new machine on October 1, 2019, at a cost of $124,000. The company estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 10,000 working hours during its 4-year life.

Compute the depreciation expense under straight-line method for 2019. (Round answer to 0 decimal places, e.g. 2,125.)

Compute the depreciation expense under units-of-activity for 2019, assuming machine usage was 1,860 hours. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answer to 2 decimal places, e.g. 2,125.25.)

Compute the depreciation expense under declining-balance using double the straight-line rate for 2019 and 2020. (Round answers to 0 decimal places, e.g. 2,125.)