An Endowment Fund has a $5.0 million one time commitment in 2018. It expects $7.0 million in annual contributions in 2018 and $3.0 million in endowment expenses. The current income tax rate is 30%. What is the endowment’s liquidity requirement?

a) $3.0 million

b) $5.6 million

c) $1.0 million

d) $2.2 million

e) $6.0 million

On July 31, 2018, a company purchased a two-year insurance policy for $27,000, paying cash and debiting Prepaid Insurance for the entire two-year premium amount. The adjusting entry on December 31, 2018 includes a:

credit to Prepaid Insurance $5,625.

credit to Insurance Expense $5,625.

debit to Prepaid Insurance $6,750.

debit to Insurance expense $6,750.

At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2018, the company switched to the double-declining-balance depreciation method.

What is depreciation on the building for 2018?

For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2018. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.

How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment?
McKenzie's § 179 expense deduction is $ for 2018. His § 179 carryover to 2019 is $

8) You purchase a commercial building and lot for $350,000 on May 2nd, 2017. The lot is estimated to be worth $80,000 when you buy it. You sell it for $500,000 in September 15th of 2018. What is your allowable TAX depreciation amount for 2017?

Using the data from problem #8, what is your allowable TAX depreciation amount for 2018?

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $950,000 in the common stock account and $6.55 million in the additional paid-in surplus account. The 2018 balance sheet showed $885,000 and $8.3 million in the same two accounts, respectively. If the company paid out $550,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?

ABC Corp purchased and placed in service the following assets in 2018:

a. $ 2,000,000 of 7 year property on 4/15/18, and

b. $2,000,000 of 5 year property on 8/15/18

Calculate ABC's 2018 maximum depreciation deduction under MACRS, sec 170 and bonus depreciation if ABC elects out of bonus depreciation for the 5 year property.

The stock market provided the following return over the last 3 years.

1. What is the arithmetic average return?
2. What is the geometric average return?
3. Suppose you invested $1000 at the beginning of each of 2016,2017,2018 and withdrew all funds at the end of 2018, what is your average return (IRR)