16. Teresa leased a house from Lawrence for two years, ending on January 31, 2020. She paid a security deposit of $2,000, and they signed a written lease. Teresa took possession, and lived there without incident for the entire period, always paying her rent on time. She left the house in clean condition, on January 31, 2020. Lawrence has not returned the security deposit, and has not responded to Teresa’s multiple requests for the money.

a. Teresa should just forget about the deposit.

b. Teresa has no statutory protection here – just a common-law right to sue her formerlandlord.

c. Teresa has statutory protection, under Washington’s Residential Landlord-Tenant Act. If she sues her former landlord, she will be entitled to get her security deposit back, but that’s all.

d. Teresa has statutory protection, under Washington’s Residential Landlord-Tenant Act. If she sues her former landlord, the court can award Teresa up to twice the amount of her security deposit.

17. An “S-Corporation” can have up to 300 shareholders. True/False

18. True or False General Partners in a General Partnership each have unlimited personal liability for all obligations of the partnership.

Facts for Questions 19 & 20:
Roberto and Maria are general partners in a general partnership. They have entered into a partnership agreement which provides as follows: 1. Roberto is to contribute $100,000 to the partnership. 2. Maria is to contribute $200,000 to the partnership. 3. Roberto is to have a 1/3 ownership interest; and Maria is to have a 2/3 ownership interest. 4. Roberto is to receive 40% of all profits earned by the partnership, and Maria is to receive 60% of all profits. 5. Roberto and Maria are to each be responsible for 50% of all losses or other obligations of the partnership. Roberto has a net worth of about $400,000, all in bank accounts. Maria has a net worth of about $4 Million, all in a stock-brokerage account.

In Year 1 of operations, the company has a disastrous year financially! They lose $500,000. Roberto and Maria each contribute another $250,000, to make up for the loss, reducing Roberto’s net worth down to $150,000, and Maria’s net worth down to $3.75 Million. In Year 2, they lose another $400,000! Roberto pays into the business all that he can - $150,000. Maria pays in the other $250,000, so the company can keep going. In Year 3, the company finally breaks even, but a customer sues for $2 Million in physical harm when the product they sell explodes and results in the customer losing both of his legs. The customer wins in court, and gets a judgment against the partnership for the full $2 Million. The company has virtually no assets left.

19. The customer can take his judgment and:
a. claim $2 Million of Maria’s stocks. Maria will have to seek reimbursement from Roberto for his 50% responsibility.

b.   claim $1 Million of Maria’s stocks. The customer will have to get the rest from Roberto when (and if) Roberto ever gets any more net worth.

c. claim $1 Million of Maria’s stocks. The customer will have a claim on any assets that Roberto gets in the future, until his $1 Million is paid off. In the meantime, the customer can get a portion of Roberto’s monthly paychecks by turning in a “garnishment” order to his payroll office.

20. True or False If Maria and Roberto had set up a corporation or LLC, instead of a general partnership, they could have limited their individual liability for debts of the company, to just what they had invested.

The following information is taken from Lisa Corporation's financial statements:

Prepare a statement of cash flows for Lisa Corporation for the year 2021. (Use the indirect method.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The following table presents selected details from the balance sheet of Davis Corporation:

Additional information:

• Sold land with a book value of 145,000 for 170,000
• Bonds with a net book value of 175,000 were paid off early by paying 172,500 cash
• Stock option compensation expense was 1,000
• Purchased trading securities for 15,000
• Equipment costing $25,000 with a book value of 5,000 was sold for 3,500
• Amortization of bond premium was 3,000
• Issued new common stocks for 100,000
• Paid cash dividends of $24,000
• Net income was $58,000

Present the 2020 CFO (indirect method). List all items and total. Indicate next to each item whether it is a cash inflow (I), a cash outflow (O), a reversal of non-cash revenue/gain (RR), or a reversal of non-cash expense/loss (RE).

LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Wildhorse, Inc. for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment.

Prepare LBJ’s journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is unknown, and LBJ’s incremental borrowing rate is 4%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Click here to view factor tables.

Flint Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3 years. The lease calls for annual lease payments of $13,000 at the beginning of each year. The lease does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. In addition, the economic life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment.

Prepare Flint’ journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is 8%, and this is known to Flint. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to "0" decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

As COVID-19 virus spread from December 2019 through May 2020 in the whole world , 3 million patients were diagnosed with the disease, and 202 thousand of these patients died. An additional 1 million individuals were found to have antibodies to COVID-19 virus but did not have any clinical symptoms. Of those infected, 959 thousand were from USA, which has a population of about 331 million people.

Using this information and the calculations described calculate the following values for this COVID-19 outbreak:

1. Incidence in USA:  new cases/  people in the population/  months

2. Prevalence in USA:  %

3. Morbidity World wide :  %

4. Mortality world wide:  %

5. Case fatality ratio world wide:  %

Extract from the ledger of Casper Limited on 30 June 2020:

R
Capital: Bruce   400 000
Capital: Lee 300 000
Current a/c: Bruce (01 July 2019) 45 000 CR
Current a/c: Lee (01 July 2019) 42 000 DR
Drawings: Bruce 95 000
Drawings: Lee 110 000

The following must be taken into account:
1. On 30 June 2020 the Profit and Loss account reflected a net profit of R940 000.

2. Partners are entitled to interest at 14% p.a. on their capital balances.
Note: Bruce decreased his capital contribution by R90 000 on 01 July 2019. This capital decrease has been recorded.
3. Partners are entitled to the following monthly salaries:
 Bruce R13 000 for the first ten months of the financial year and R15 000 for the next two months.
 Lee R10 000 per month throughout the year.

4. Partner Lee is entitled to a bonus equal to 10% of the net profit before any of the above appropriations have been taken into account.
5. The remaining profit/shortfall must be shared equally between Bruce and Lee.

REQUIRED
Prepare the Statement of Changes in Equity for the year ended 30 June 2020.

1. ead the following: “From 2020, ship-owners must clean up their act as part of sweeping plans designed to reduce the industry’s greenhouse gas emissions by at least 50 per cent by 2050 compared with 2008. In January a sulphur cap will be adopted and later carbon emissions will be tackled. While industries such as road transport, power and even aviation have made environmental progress, shipping is one of the last bastions of the old fossil-fuel world order… S&P Global Platts analysts say the rule change could cost the global economy $1tn over five years….[] Most ship-owners will switch to lower-sulphur fuel oil while others, such as Mr. Norton’s company, are installing exhaust scrubbers to strip out the sulphur from their vessels’ emissions. While some systems store the waste on board until it can be treated on land, others discharge it into the ocean.” (Pollution: the race to clean up the shipping industry, Anjli Raval, Josh Spero and Chris Campbell, London, May 30 2019)

Answer the following based on the article extract above:

1. (3pts) Which link in the market mechanism will be impacted first by what you read above (i.e. supply, demand or freight rate)? Supply will be impacted first

2. (3pts each) What will happen to the following shipping industry stakeholders as a result of the Sulphur cap implementation?
   1. Supply
   2. Demand
   3. Ports
   4. Canals (like the Suez and Panama)
   5. Regulators like IMO
   6. World Fleet
   7. Shipping investors
   8. viii.Freight Rate

on jan1 2020 we leased equipment from finning tractor.we follow ifrs.the lease term is 4years, with payment of $69000due at the begining of each year. Included in the payment is a maintenance fee of$2800.The interest rate on the lease is 9%. there is also a bargain purchase option of $60,000 at the end of the lease.the estimated economic life of the equipment is 10years.calculate the pv of the minimum lease payments.