1. For a market to occur, there must be:

1. A building such as a retail store.
2. Government oversight.
3. Third parties such as brokers and agents.
4. Buyers and sellers.
5. Perfect information.

2. The law of diminishing marginal returns means that, as you increase the number of units of a variable input, after some point:

1. Marginal output will fall.
2. Total output will fall.
3. Costs of production will fall.
4. Demand will fall.
5. Supply will fall.

3. Which set of characteristics best identifies an oligopoly market?

1. Many firms, homogeneous product, significant barriers to entry, significant non-price competition, and considerable power over price.
2. Few firms, differentiated product, no barriers to entry, the absence of non-price competition, and considerable advertising.
3. One firm producing a product with no close substitutes, significant barriers to entry, and considerable power over price.
4. Many firms, differential product, few barriers to entry, and non-price competition.
5. Few firms, differentiated product, significant barriers to entry, and significant amounts of non-price competition.

4. An oligopolistic market is one with:

1. Firms having no power over price.
2. Few buyers.
3. Few sellers.
4. Product groups.
5. Several monopolists operating simultaneously.

5. How many sellers constitute a monopoly market?

1. 1.
2. 2 or 3.
3. 4 or 5.
4. More than 5.
5. Many.

Calculation of Value-Added and Non-Value-Added Costs, Activity Volume and Unused Capacity Variances

Maquina Company produces custom-made machine parts. Maquina recently has implemented an activity-based management (ABM) system with the objective of reducing costs. Maquina has begun analyzing each activity to determine ways to increase its efficiency. Setting up equipment was among the first group of activities to be carefully studied. The study revealed that setup hours was a good driver for the activity. During the last year, the company incurred fixed setup costs of $456,300 (salaries of 13 employees). The fixed costs provide a capacity of 30,420 hours (2,340 per employee at practical capacity). The setup activity was viewed as necessary, and the value-added standard was set at 2,340 hours. Actual setup hours used in the most recent period were 28,300.

Required:

1. Calculate the volume and unused capacity variances for the setup activity. Enter all amounts as positive values.

2. Prepare a report that presents value-added, non-value-added, and actual costs for setup.

The nearest Facebook server from UNT DP is in Fort Worth, TX. The copper cable connection between UNT DP and the Facebook server is 60 km long and the propagation speed through the copper cable is 2.5 x 108 m/s. The transmit rate and receive rate is 500 Mbps. Now consider the HTTP protocol and suppose that initial downloaded page from Facebook server is 5,000 bits in size, and that the initial downloaded page contains 6 referenced objects from the Facebook server. Each referenced object is 20,000 bits long. Assume packets containing only control signals (ACK or handshaking) are 200 bits long. Answer the below questions. Assume that N parallel connections each get 1/N of the link bandwidth.

a. What would be the total time required to download the complete page using non-persistent HTTP? (7 Points)

b. What would be the total time required to download the complete page using 2 parallel instances of non-persistent HTTP? (7 Points)

c. What would be the total time required to download the complete page using persistent HTTP? (7 Points)

d. Which is better non-persistent HTTP, parallel instances of non-persistent HTTP, or persistent HTTP? (1 Point)

The outstanding share capital of Pronghorn Corporation consists of 3,500 shares of preferred and 6,900 common shares for which $248,400 was received. The preferred shares carry a dividend of $5 per share and have a $100 stated value.

Assuming that the company has retained earnings of $77,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are non-cumulative and non-participating.

Assuming that the company has retained earnings of $77,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and non-participating.

Assuming that the company has retained earnings of $77,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and participating. (Round answers to 0 decimal places, e.g. 5,275.)

Assume that Pronghorn’s current year net income was $95,400. Calculate the current year payout ratio under each of the conditions below. (Round answers to 2 decimal places, e.g. 52.75.)

The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common shares for which $281,200 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value.

Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are non-cumulative and non-participating.

Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and non-participating.

Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and participating. (Round answers to 0 decimal places, e.g. 5,275.)

Assume that Flint’s current year net income was $93,000. Calculate the current year payout ratio under each of the conditions below. (Round answers to 2 decimal places, e.g. 52.75.)

Compaq Ltd has a net income after tax of $2 000 000 for the year ended 30 June 2018. At the beginning of the period Compaq Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 January 2018 Compaq Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2018 Compaq Ltd made a one-for-five bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Compaq Ltd also had 500 000, $1.00, 5% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2017 was $1.50 per share.

Required: a) Calculate the basic EPS amount for 2018.

b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Ayres Services acquired an asset for $96 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows: ($ in millions) 2018 2019 2020 2021 are as

Required:

Required: Determine (a) the temporary book–tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Show all amounts as positive amounts. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

On January 1, 2018, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2019. The company borrowed $2,100,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2018:

Construction expenditures incurred during 2018 were as follows:

Required:
Calculate the amount of interest capitalized for 2018 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
  

Prepare the answer to the following question by either entering text directly or uploading an Excel or Word file. Do NOT upload a .pdf or .jpg file or you will receive zero credit. Show computations. The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has an unadjusted $2,000 balance at the same point in time. Some policies that were in effect have expired. Some of those were renewed and some were not. The following policies are in effect at December 31, 2018: Policy Date Policy Total Premium Type Acquired Term Paid when acquired Liability 1-31-17 2 years $48,000 Auto 6-30-18 2 years 9,000 Business interruption 8-1-18 1 year 840 Determine the adjusted balance in prepaid insurance at December 31, 2018. 2.Determine the amount of total insurance expense (you need not separate the expense by policy type) to report on the income statement for the year ended December 31, 2018.

Prepare the answer to the following question by either entering text directly or uploading an Excel or Word file. Do NOT upload a .pdf or .jpg file or you will receive zero credit. Show computations.

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has an unadjusted $2,000 balance at the same point in time. Some policies that were in effect have expired. Some of those were renewed and some were not. The following policies are in effect at December 31, 2018:

Policy                                                                 Date                 Policy            Total Premium

  Type                                                               Acquired             Term         Paid when acquired

Liability                                                              1-31-17          2 years         $48,000

Auto                                                                   6-30-18             2 years             9,000

Business interruption 8-1-18              1 year                 840

1. Determine the adjusted balance in prepaid insurance at December 31, 2018.

2.Determine the amount of total insurance expense (you need not separate the expense by policy type) to report on the income statement for the year ended December 31, 2018.