A person establishes a sinking fund for retirement by contributing $5,000 per year at the end of each year for 5 years. For the next 10 years, equal yearly payments are withdrawn, at the end of which time the account will have a zero balance. If money is worth 4% compounded annually, what yearly payments will the person receive for the last 10 years?

In the following separate cases, answer the questions independently.

1. In the year 2018, a director was dismissed and he commenced an action against the company claiming substantial damages for wrongful dismissal. The company's lawyer advised that the ex-director was likely to succeed with his claim estimated to be $1,000,000. In 2019, this case was still unsettled and the company has just found some new evidence showing that the possibility of success of the ex-director's claim was lower, around 30% as advised by the company's lawyer.

Required:

What was the accounting treatment for the claim for 2018 and 2019? Justify your answer. Provide journal entries where applicable. Limit your answer to 50 words.

2. Simple limited is preparing its financial statements for the year ended 31 December 2019. Before the authorization of financial statements for issue, the following material events took place: Limit your answer to 50 words for (a) and (b) respectively.

(a) Simple Limited holds a portfolio of shares listed on the Hong Kong Stock Exchange as at the reporting date. The fair value of the investment portfolio of shares on the reporting date was $3.5 million. The value of such investments had deteriorated by 30% since the reporting date.

(b) Simple Limited carries its inventory at the lower of cost and net realizable value. On 20 January 2020, the company entered into an agreement to sell part of its inventory for $1 million. The cost of inventory as reported in its statement of financial position was $1.5 million.   

The Statements of Financial Position of Dream Limited for the year ended 31 December 2015 are provided below:

Additional information:

1. The depreciation expense is included in cost of sales.
2. During the year, a machine costing $120,000 was sold for $40,000. The accumulated depreciation up to the date of disposal for this machine amounted to $100,000. The profit or loss on disposal of this machine was already included in operating profit for the year of 2015.
3. The revaluation reserves were arising from revaluation of land. There is purchase, but no sale of land during the year.
4. During the year, $18,000 debentures were settled by way of issuing 10,000 new ordinary shares. Other debentures repaid were by cash.
5. All accounts payable relate to inventory purchases.
6. The company declared dividends in 2015. Net income for 2015 is 402.
7. Retained profits were affected only by net profit and dividends declared during the year.
8. The company classified interest payment, dividend received and interest received as cash flow from operating activities and dividend payment as cash flow from financing activities.

Required:

The company prepares the cash flow statement for the year ended 31 December 2015, using indirect method. Please answer the following questions.

1. In the cash flow of operating activities, the adjustment for depreciation expense should be (all numbers in thousands, for example, 100 means 100,000; same rule applies for MC question1-5):

1. Add 140
2. Add 240
3. Add 380
4. None of the above

2. In the cash flow of operating activities, the adjustment for profit on disposal of fixed asset should be:

1. Subtract 20.
2. Add 20.
3. Subtract 80
4. Add 80.

3. In the cash flows from investing activities, “purchase of fixed asset” (including both land and PPE) should be___.

1. Subtract 580.
2. Subtract 590.
3. Subtract 710
4. None of the above.

4. In the cash flows from financing activities, “repayment of debenture” should be ___.

1. Subtract 2.
2. Subtract 20.
3. Subtract 160.
4. None of the above.

5. In the cash flows from financing activities, “dividend paid” should be ___.

1. Subtract 50.
2. Subtract 282.
3. Subtract 302.
4. None of the above.

The current price of a stock is $40. The price of a one-year European put option on the stock with a strike price of $30 is quoted at $2 and the price of a one-year European call option on the stock with a strike price of $50 is quoted at $3.

1. (2 points) Investor D wants to own the shares but wants to reduce his initial investment cost. So he buys the stock and shorts the call option on 100 shares.
   1. Draw a diagram illustrating how the investor’s profit varies with stock price. What are his max profit and max loss per share?
   2. Compute his dollar profit and return if the share price is $25, $42, or $56 in one year.
2. (2 points) Investor E wants to bet on the possible share price fluctuations in the coming year. He buys the put option and the call option on 100 shares.
   1. Draw a diagram illustrating how the investor’s profit varies with stock price. What are his max profit and max loss per share?
   2. Compute his dollar profit and return if the share price is $25, $42, or $56 in one year.

From the following Account Balance and additional information, you are required to prepare for the year ended 30 June 2016. All figures exclude GST where relevant.

(a) Manufacturing Statement showing each element of cost;

(b) Income Statement.

1. Officials for the Lexington Company are preparing financial statements for Year One. The company is reporting net income of $900,000. The company had 100,000 shares of common stock outstanding at the beginning of the year but a stock split on October 1 doubled that number to 200,000. In the previous year, the company issued 10,000 convertible bonds with a face value of $1,000 each that will come due in ten years. Each bond is convertible into 15 shares of common stock (adjusted for the stock split). These bonds pay 4 percent interest but were sold for 93 percent of face value to generate a higher interest rate for the buyers. The tax rate for the company is assumed to be 30 percent. The bond discount is being amortized by the straight-line method. What should the company report as its diluted earnings per share (rounded)?

1. When the purchase of a material sevenminus year depreciable asset is recorded by debiting an expense​ account, which one of the following statements is​ correct?

A. It is a selfminus correcting error and no adjustment is necessary.

B. Since it affects only the income​ statement, no adjustment is required.

C. The error will eventually selfminus ​correct, but the financial statements will be in error for seven years.

D. If the company uses a rapid depreciation​ method, the error will selfminus correct quickly so no adjustment is necessary.

2. On January​ 1, Year​ 1, Davenport Corporation granted an employee

40 comma 000

options to purchase

40 comma 000

shares of​ Davenport's $10 par common stock at​ $30 per share. The options became exercisable on December​ 31, Year​ 3, after the employee completed three years of service. The option was exercised on February​ 1, Year 4. The market prices of​ Davenport's stock were as​ follows: January​ 1, Year​ 1, $40; December​ 31, Year​ 3, $60; and February​ 1, Year​ 4, $55. An options pricing model estimated the value of the options at

$ 12

each on the grant date. For Year​ 1, Davenport should recognize compensation expense of​ ________. (Do not round intermediate calculations. Only round your final answer to the nearest​ dollar.)

A.

​$0

B.

$ 160 comma 000

C.

$ 480 comma 000

D.

$ 400 comma 000

3.

Which of the following measures of benefit obligations does the FASB require for pension​ computations?

A.

accumulated benefit obligation

B.

future benefit obligation

C.

vested benefit obligation

D.

projected benefit obligation

4.

When using the indirect method to prepare the operating section of a statement of cash​ flows, which of the following is added to net income to compute cash flows from operating​ activities?

A.

bond discount amortization

B.

gain on sale of

longminus

term

asset

C.

decrease in deferred tax liability

D.

All of the above.

5. Tomminus

Kat

​Inc.'s income before taxes is

$ 390 comma 000

and its tax rate is

40

​%.

Tomminus

Kat

included

$ 40 comma 000

of interest from municipal bonds in the

$ 390 comma 000

.

There are no other

bookminus

tax

differences. What is the journal entry to record income tax​ expense?

A.

B.

C.

D.

A 42-year old female presents with a complaint of a papule on her left forearm for the past 2 months that “looks funny”. Denies itching, scaling, drainage, or other complaints.

Discuss what questions you would ask the patient, what physical exam elements you would include, and what further testing you would want to have performed, In SOAP format, list Pertinent positive and negative information, differential and working diagnosis, treatment plan, including Pharmacotherapy with complementary and OTC therapy, diagnostics (labs and testing), health education and lifestyle changes, age-appropriate preventive care, and follow-up to this visit.

A 62 year-old inmate is admitted to the hospital from prison with a complain of chest pain. The patient is being worked up for possible myocardial infarction and admitted to the cardiac unit. Because the patient is an inmate, while he is in the hospital a prison guard will be posted outside of the patient’s room and he patient will be hand cuffed to the bed rail. During the initial assessment, the admission nurse finds the patient to be withdrawn. The nurse discovers the patient has a past medical history significant for abuse of multiple substances. . the patient describes how the addictive behaviours led to his incarceration and estrangement from his family. The patient expresses to the nurse interest in meeting with a chaplain while in the hospital.

• QUESTION

Describes examples of the how a nurse can provide care to this patient as guided by each of the 10 caritas processes.