Olga is the proprietor of a small business. In 2019, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000.

Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2019, except for the cost recovery with respect to the new 7-year assets, is $95,000.

a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation?

b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?

c. What is Olga's total cost recovery depreciation deduction (including any § 179 deduction)?

d. What is the amount of any § 179 carryforward?

Alpha Corporation has earnings before interest and tax (EBIT) per annum in perpetuity of $200,000. The tax rate is 30%. The firm is funded $50,000 of debt and $150,000 of equity. The cost of equity is 18% and the cost of debt is 6%.

Given the information above, what is the appropriate discount rate if earnings before interest and after tax (EBIAT) are used to calculate the value of the firm?

2.

Which of the following statements is TRUE?

A firm is considering the introduction of a new automatic machine. The estimated costing data for this project
are shown below.
Initial cost of the machine $240,000
Planning horizon 4 years
Salvage value after 4 years nil
Income $100,000 p.a.
Operational & maintenance cost $20,000 p.a.
MARR 10% p.a.
Economic assessment method NPV
The firm is confident about the estimated values of the initial cost and salvage value, but it feels that the
income and the operational cost are subject to error.
a. Express NPV as a function of x (% change in operational cost) and y (% change in income) and plot y as
a function of x. Comment on the result.
b. If there is no error with operational cost, what is the maximum percentage change in annual income
before the project becomes unviable?
c. If there is no error with annual income, what is the maximum percentage change in operational cost
before the project becomes unvi

Speedy Pty Ltd operates a suburban delivery business. It is considering the replacement of a 2-ton van with a 3-ton van. Details of the respective vehicles are as follows:

2-ton truck

Remaining life3 years

Salvage Value now$4,000

Salvage Value in 3 years$0

Written down value now$6,600

Annual Depreciation for tax purposes$2,200

Annual net cash flows before tax$12,000

3-ton truck

Estimated life4 years

Salvage Value in 4 years$2,000

Annual Depreciation for tax purposes$6,000

Cost$24,000

Annual net cash flows before tax$20,000

The after-tax cost of capital 10%pa and the tax rate is 30%.

Management is considering the following alternatives: Replace now or Replace in three years. Which alternative should be accepted? Explain your decision.

Evelyn Kowalchuk, an 88 year old widow, and her son, Peter, put their savings into accounts managed by Matthew Stroup. Later, they initiated an arbitration proceeding before the National Association of Securities Dealers (NASD), asserting that Stroup fraudulently or negligently handled their accounts. They asked for an award of $832,000. After the hearing, but before a decision was rendered, Stroup offered to pay the Kowalchuks $285,000, and they e-mailed their acceptance. Stroup signed and faxed a settlement agreement to the Kowalchuks for their signatures. Meanwhile, the NASD issued an award in the Kowalchuks’ favor for $88,788. Stroup immediately told them that he was withdrawing his settlement “offer.” When Stroup did not pay according to its terms, the Kowalchuks filed a suit in a New York state court against him for breach of contract.

Did these parties have a contract? Why or why not?

What do Stroup’s actions suggest about his ethics?

Maple Cider County formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At year-end, before closing entries, the district had the following balances in its accounts. All accounts had normal balances. [Fund balance – unassigned is the balance after recording the budgetary entry but before reversing the budgetary entry].
Accounts Payable $ 187
Appropriations 2,958
Cash 998
Encumbrances 758
Estimated revenues 3,000
Expenditures 2,985
Fund balance – unassigned 630
Inventory 13
Grants receivable 125
Other financing sources 515
Other financing uses 9
Reserve for encumbrances 758
Revenues 2,962
Sales tax receivable 122
(a) Prepare a statement of revenues, expenditures, and changes in fund balances
(b) Prepare a balance sheet (post-closing)

public class Problem1 {

   public static void partition(int[] A)
   {
       /*Rearrange the array to have the following property:
       Suppose the first element in the original array has the value x.
       In the new array, suppose that x is in position i, that is data[i] = x.
       Then, data[j] <= x for all j < I and data[j] > x for all j > i.
       Thus, informally, all the values to the "left" of x are less than (or equal to) x
       and all values to the right are larger than x.
       */
       // Complete this method
      
      
      
   }
  

  
   public static void main(String[] args) {
       // TODO Auto-generated method stub

      
       int[] A = {4,3,9,2,7,6,5};
      
       System.out.println("Before partition:");
       for(int i = 0; i < A.length; i++)
       {
           System.out.print(A[i] + " ");
          
       }
      
       partition(A);
      
       System.out.println("After partition:");
      
       System.out.println("Before partition:");
       for(int i = 0; i < A.length; i++)
       {
           System.out.print(A[i] + " ");
          
       }
      
      
      
   }

}

Internal injuries in vehicular accidents may be due to what is called the "third collision" The first collision is the vehicle hitting the external object. The second collision is the person hitting something on the inside of the car, such as the dashboard or windshield. This may cause external lacerations. The third collision, possibly the most damaging to the body, is when organs, such as the heart or brain, hit the ribcage, skull, or other confines of the body, bruising the tissues on the leading edge and tearing the organ from its supporting structures on the trailing edge.

A) Why is there a third collision? In other words, why are the organs still moving after the second collision?

B) If the vehicle was traveling at 60 mph before the first collision, would the organs be traveling more than, equal to, or less than 60 mph just before the third collision?

Explain your answers in essay form:

A horizontal spring with a spring constant of 190 N/cm is compressed 6.3 cm. A wooden block with a mass of 1.5 kg is placed in front of and in contact with the spring. When the spring is released it pushes the block, which slides on a frictionless horizontal surface for some distance. The block then slides up a frictionless incline of 27 degrees above the horizontal and comes to a momentary stop before sliding back down. The system is the spring, the block, the incline, and the Earth. Ignore air resistance.

A) What is the potential energy of the spring before it is released?

B) What is the kinetic energy and the speed of the block as it slides on the horizontal surface after the spring has pushed it?

C) At what height does the block stop on the incline?

D) If the incline were rough, how would the stopping height of the block compare to the stopping height when the incline is frictionless? Explain using energy.

Speedy Pty Ltd operates a suburban delivery business. It is considering the replacement of a 2-ton van with a 3-ton van. Detail of the respective vehicles are as follows:

The after-tax cost of capital 10%pa and the tax rate is 30%. Management is considering the following alternatives: replace now or Replace in three years which alternative should be accepted? Explain your decision.