An entity, a health club, enters into a one-year membership with a customer of low credit quality. The transaction price of the contract is $120, and $10 is due at the beginning of each month. The standalone selling price of the monthly service is $10. The entity’s usual business practice for a customer of this credit quality is to require that the customer pay for each month of access in advance.

Should the entity identify this as a contract under Topic 606? Please explain why or why not?

Bill Grignard was well for the first 10 months of his life. In the next year he had pneumonia once, several episodes of otitis media (inflammation of middle ear) and on once occasion developed erysipelas (skin streptococcal infection) on his right cheek. These infections were all treated successfully with antibiotics but seemed to his mother, a nurse, that he was constantly on antibiotics.

His mother had two brothers who all died, 30 years prior to Bill’s birth, from pneumonia in their second year of life, before antibiotics were available. She also had two sisters who were well; one had a healthy son and daughter and the other a healthy daughter.

Bill was a bright and active child who gained weight, grew and developed normally but he continued to have repeated infections of the ears and sinuses and twice again pneumonia. At 2 years 3 months his local pediatrician tested his serum immunoglobulin is. He found 80 mg/ dl IgG ( normal is 600-1500 mg/dl), no IgA (normal is 50-125 mg/dl) and only 10 mg/dl IgM (normal is 75-150 mg/dl).

Bill was started on monthly intramuscular injections of gamma globulin; his serum IgG level was maintained at 200 mg/dl. He started school at age 5 years and performed well despite prolonged absences because of recurrent pneumonia and other infections.

At age 9 he was referred to the Children’s Hospital because of atelectasis (partial lung collapse) and a chronic cough. On physical examination he was found to be a well-developed alert boy. He weighed 33.5 kg and was 146 cm tall (normal). The doctor noted he had no visible tonsils (he never had a tonsillectomy). With a stethoscope the doctor also heard rales (moist crackles) at both lung bases.

Further family history revealed that Bill had one younger sibling, John, a 7 year old brother who also had contracted pneumonia on 3 occasions. John had a serum IgG of 150 mg/dl.

Laboratory studies at the time of Bill/s visit to the Children’s Hosptial gave a white blood cell count of 5100/ ul (normal) of which 45% were neutrophils (normal), 43% were lymphocytes (normal), 10% were monocytes (elevated) and 2% were eosinophils (normal).

Flow cytometry showed of lymphocytes, 85% were T cells ( 55% CD4, 29% CD8), however there was a complete lack of B cells (CD19+, normal 12%). Serum IgG remained low at 155 mg/dl and serum IgA and IgM were still undetectable.

3. Read the description paragraph below and identify/diagnose what the patient is experiencing (ie disease or immunological problem).

2. Once you identify the problem, think over what we have covered in class and describe what the outcomes of the disease or immunological problem is in the context of the immune system and where might there be deficiencies or problems with the normal immune system function.

3. Lastly, describe how the immune system would be working in a healthy individual. This could include a brief description of how the specific part of the immune system identified as being deficient normally works in a stepwise pathway that we cover in class. You can either use words to describe these pathways or you can draw pictures well annotated with high detail and include them as pictures with your word document you submit.

A company began operations at the start of 2015. During the year, it made cash sales of $150,000 and credit sales totaling $500,000. $420,000 in cash from these credit sales was collected during the year. The company purchased land for $60,000 for a new location. Expenses totaled $339,000, of which $300,000 was paid in cash. Dividends of $10,000 were paid to stockholders.   What was net income for 2015?

Consider a project with free cash flows in one year of ​$145,769 or $167,218 with each outcome being equally likely. The initial investment required for the project is ​$108, 996 and the​project'scost of capital is 22 %.The​risk-freeinterest rate is 7 %

.a. What is the NPV of this​project?

b. Suppose that to raise the funds for the initial​investment,the project is sold to investors as an​all-equityfirm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this

waylong dashthat ​is,what is the initial market value of the unlevered​equity?  

c.Suppose the initial ​$108,996 is instead raised by borrowing at the​risk-freeinterest rate. What are the cash flows of the levered​equity,what is its initial value and what is the initial equity according to​MM?

SoPretty is a kid’s jeans manufacturer and the management are considering expanding their factory next year to add an adult line. In order to facilitate the expansion, the management identified two types of equipment at different price points. The firm requires a minimum rate of return on their investment of 8%. In addition, it should not take longer than 3.5 years for the firm to recover its initial investment. The cashflows of both types of equipment (project A and project B) are given below. If both projects are mutually exclusive, which one would you recommend to the management based on the IRR, the payback period and the discounted payback ratio

Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annualy for the next 11 years.

a.) What was the value of the IRA at the end of 12 years?

b.) What was the value of the investment at the end of the next 11 years?

An investor invests $11000. The investment pays $4000 at the end of year 1, $5000 at the end of year 2 and $4500 at the end of year 3. (a) Calculate the internal rate of return (IRR) of the investment. (b) Calculate the net present value (NPV) of the investment using interest preference rate of 8.5%.

Show all works, and please calculate it with math formula instead of financial calculator!! Thank you!

4. C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $400 in the partnership while D starts the year with an adjusted basis of $700.

(a) The partnership distributes cash of$ 500 to C and land, adjusted basis $300 fair market value $500 to D. The partnership thereafter continues operations. What consequences?

(b) Same as (a) except that the land had an adjusted basis of $800 (fair market value still $500). (c) Same as (a) except that the land had a fair market value of $600 and subject to liabilities of $100.

(d) Same as (c) (land has adjusted basis $300, fair market value $600, subject to a liability of $100) except that the distributions were in liquidation of the partnership.

Govermental Accounting

Compute The Expense and Expenditure for the Grambling Housing Development for the year ended December 31, 2016 based on the following data:

Grambling Housing Development, a small housing service nonprofit agency, began operations on January 1, 2016, with $40,000 cash and $150,000 Equipment, on which $60,000 was owed on a note to Chase Bank. The equipment was expected to have a remaining useful life of 25 years with no salvage value. During its first year of operations, ending December 31, 2016, Grambling Housing paid or accrued the following:2.Utilities, $24,0004.Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.

Salaries and other personnel costs, $100,000

Utilities $24,000

Debt service-interest $5,500 and payment on long-term note principal $10,000

Capital Outlay-additional houses were purchased on January 3, 2016 for $300,000 expected to have a 25 year useful life.

5. C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $300 in his partnership interest while D starts the year with an adjusted basis of $600. The partnership distributes cash of $200 and inventory, adjusted basis $450 fair market value $500, to C and cash of $200 and land, adjusted basis $300, fair market value $700, subject to a liability of $200, to D. The partnership continues operation thereafter. What consequences to the parties?