On January 1, 2016, Billips Corporation purchased equipment having a fair value of $72,054.94 by issuing a $90,000 note, payable in three $30,000 annual installments beginning December 31, 2016.

Required:

General Journal

Prepare the journal entry to record the purchase of the equipment on January 1, 2016 and a single entry on December 31, 2016, 2017 and 2018 to record the annual interest expense and the installment payment on the note. Additional Instructions

PAGE 2016PAGE 2017PAGE 2018

GENERAL JOURNAL

Analysis

Prepare a schedule to compute the annual interest expense. Additional Instructions

Davidson Industries, a sole proprietorship, sold the following assets in 2018:

1. The following questions relate to the sale of the warehouse:
   (1) What is the adjusted basis of the warehouse?
   (2) What is the realized gain on the warehouse?
   (3) What amount of the gain is taxed according to § 1250 rules?
   (4) What amount is considered a § 1231 gain before netting?
2. The following questions relate to the sale of the truck:
   (1) What is the adjusted basis of the truck?
   (2) What is the realized gain on the truck?
   (3) What amount of the gain is taxed according to § 1245 rules?
   (4) What amount of the gain is taxed as ordinary income?
3. The following questions relate to the sale of the computer:
   (1) What is the adjusted basis of the computer?
   (2) What is the realized gain or loss on the sale?
   (3) Which IRC section code applies to this asset?

Depreciation must be recorded for the year given the following information:

Assets Acquisition Date Cost Estimated Life Salvage Depreciation Method

Building 7/1/08 $306,000 25 years $20,000 straight-line

Star ship #1 4/1/09 $28,000 60,000 parsecs $3,100 units of production (parsecs) (7,000 parsecs this yr.)

Star ship #2 9/1/11 $33,000 60,000 parsecs $4,200 units of production (parsecs) (6,000 parsecs this yr.)

Star Destroyer #2 3/29/09 $40,000 10 years $5,000 straight-line

Star Destroyer #3 9/16/10 $43,000 10 years $5,500 straight-line

Office Equipment 11/15/09 $32,800 7 years $0 straight-line

Supercomputer 12/21/14 $18,000 4 years $300 Double Declining Balance

(note: the company takes 1/2 year's depreciation in the year of acquisition)

Round to the nearest dollar for total depreciation.

Depreciation Expense: Debit #
Accumulated Depreciation Building: Credit #
Accumulated Depreciation Equipment: Credit #
Accumulated Depreciation Spaceships: Credit #

Question 1) In table 1, Calculate the marginal product of labor and average product of labor.

Table 1: Surfboard Production

Question 2) Surfboard Production Costs

1. Fill in the missing numbers from Table above for Total Fixed Costs (TFC), Total Costs (TC), Marginal Costs (MC), Average Variable Costs (AVC), Average Fixes Costs (AFC) and Average Total Costs (ATC).

Frequency Table

Give the 5-number summary of these data

Using the answer from question a), make a box plot of these data. Make sure to use a numbered axis.

Using a value width of 10, starting from 0 (e.g. 0 – 10), make a histogram of these data. Label your axes.

What is the interquartile range?

Are there any outliers?

Please show work

Let X and Y have the following joint distribution:

Further, suppose σx = √(1664/625), σy = √(3111/2500)

a) Find Cov(X,Y)

b) Find p(X,Y)

c) Find Cov(1-X, 10+Y)

d) p(1-X, 10+Y), Hint: use c and find Var[1-X], Var[10+Y]

(2) 1. Can the null hypothesis or the alternate hypothesis state that the mean of the population is equal to a value? Explain.

(2) 2. If the null hypothesis is that the mean is less than or equal to 4, what is the alternate hypothesis?

(2) 3. What is the power of the test? Explain what beta is.

(2) 4. Explain the difference between a type I and a type II error.

(2) 5. Can you use both Tchebysheff's Rule and the Empirical Rule for flat data? Why or why not?

(2) 6. Suppose I have flat data with a mean of 14 and a standard deviation of 2. What can you tell me about the data between 12 and 16?

(2) 7. Suppose I have mound-shaped data that is symmetrical with a mean of 14 and a standard deviation of 2. What can you tell me about the data between 10 and 14?

On January 1, 2016, Flash and Dash Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The following information is available about the plan:

Required:

Prepare the entries to record:

PAGE 1

GENERAL JOURNAL

Analysis

Compute the OPRB expense for 2016 if the company uses the average remaining service life to amortize the prior service cost.

OPRB expense: _______________

Glendora Ridge Company has a project opportunity that requires $576.32 initial investment (cash outflows) today and this project is expected to generate cash inflows of $150 in year 1, $175 in year 2, $200 in year 3, and $X in year 4. If the project rate of return is 8%, calculate the project cash inflow in year 4 (calculate what is $X)?

1) You want to buy a $24,000 car. The company is offering a 3% interest rate for 48 months (4 years). What will your monthly payments be?

2) Suppose you want to have $800,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?