The following table exhibits the age of antique furniture and the corresponding prices. Use the table to answer the following question(s). (Hint: Use scatter diagram and the Excel Trendline tool where necessary).

What is the expected value for a 90 year-old piece of furniture?

a. $934.56

b. $1029.36

c. $1002.45

d. $1033.21

Suppose you are given the following end of year stock price data for Random Inc. stock. Assume the returns are normally distributed, calculate the probability that an investor will earn more than 1.5% in a given year (e.g. Prob(Ret>1.5%)). (Enter percentages as decimals and round to 4 decimals). Year Price 2005 50.25 2006 66.49 2007 79.72 2008 83.81 2009 88.38 2010 84.39 2011 91.1 2012 82.17 2013 86.39 2014 76.35 2015 85.47 2016 86.07

Create a class called Car (Car.java). It should have the following private data members:

• String make

• String model

• int year

Provide the following methods:

• default constructor (set make and model to an empty string, and set year to 0)

• non-default constructor Car(String make, String model, int year)

• getters and setters for the three data members

• method print() prints the Car object’s information, formatted as follows:

Make: Toyota

Model: 4Runner

Year: 2010

public class Car {

}

Sherrod, Inc., reported pretax accounting income of $74 million for 2021. The following information relates to differences between pretax accounting income and taxable income:

1. Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023.
2. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022.
3. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $68 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

4. For tax purposes, warranty expense is deducted when costs are incurred. The balance of the warranty liability was $1 million at the end of 2020. Warranty expense of $3 million is recognized in the income statement in 2021. $2 million of cost is incurred in 2021, and another $3 million of cost anticipated in 2022. At December 31, 2021, the warranty liability is $2 million (after adjusting entries).
5. In 2021, Sherrod accrued an expense and related liability for estimated paid future absences of $14 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($8 million in 2022; $6 million in 2023).
6. During 2020, accounting income included an estimated loss of $2 million from having accrued a loss contingency. The loss is paid in 2021, at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2021, were $0.8 million and $1.5 million, respectively. The enacted tax rate is 25% each year.

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Journal entry worksheet

2. What is the 2021 net income? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50)

3.Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet. (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50

ABC Inc. decided to issue a bond on January 1^st, 2019 with a market interest rate of 6%. However, ABC Inc. decided to pay a coupon rate of 8%. The "face-value" of the bond was 10,000 dollars. This bond will be due on December 31^st, 2020 and will be paid semi-annually on June 30^th, and December 31^st. ABC Inc. uses the effective interest method.

On April 1^st, 2019, ABC Inc. also found out that the $14,000 value of Goodwill in Clearwater Inc. is actually worth $25,000 as ClearWater's brand popularity has increased a lot.

On Apr 30th, 2019, ABC Inc. receives a notice from a real estate agent that the market value of the land that it bought from ClearWater Inc. for $10,000 is now worth $25,000 even after all the usage and wear and tear that happened on the land for the 4 months since Jan 1st, 2019. The land is expected to be used for 25 more months.

On May 15^th, 2019 ABC Inc. gets hit with a major lawsuit from Hang Hau Inc. that accuses it of copying its patent for making screwdrivers. ABC Inc. believes that it has a 45% chance of losing the case and would end up paying $15,000 if it lost. The case will end December 31^st, 2019.

On May 31^st, 2019 ABC Inc. gets hit with a major lawsuit from Mong Kok Lawyers Inc. because of injuries caused to its workers who used the screwdrivers. ABC Inc. believes that it has a 51% chance of losing the case and would end up paying $10,000 if it lost. The case will end December 31^st, 2019.

Record all journal entries between January 1^st, 2019 and December 31^st, 2020. Please create the Extracted part of balance sheet, income statement, and cash flow statement of ABC Inc. as of June 30^th, 2019, only when any items affect them. (18 points)

ABC Inc. hires a new accountant who believes that the effective interest method is "ineffective" and straight-up tells the CFO that she believes that ABC Inc. needs to use the straight-line method. (10 points total)

1)   By how much would the net-income of ABC Inc. change under this new method for the time period of January 1^st, 2019 through December 31^st, 2019 relative to the effective interest method? (2 points)

2)   By how much would the net-income of ABC Inc. change under this new method for the time period of January 1^st, 2020 through December 31^st, 2020 relative to the effective interest method? (2 points)

3)   By how much would the cash flow from operations of ABC Inc. change under this new method for the time period of January 1^st, 2019 through December 31^st, 2019 relative to the effective interest method? (2 points)

4)   By how much would the total liabilities of ABC Inc. change under this new method for the time period as of December 31^st, 2019 relative to the effective interest method? (2 points)

5)   By how much would the total liabilities of ABC Inc. change under this new method as of December 31^st, 2020 relative to the effective interest method? (2 points)

Abbotsford Tile Ltd. (ATL) is a wholesaler of high quality glass, ceramic and marble tiles. In November 2019 the owner of ATL agreed to sell the company to Barrie Tile Inc. (BTI) another tile wholesaler. Each company is owned and operated by a single individual who originally founded his company. The owner of ATL decided to sell his business because he was beginning to get too old to run the store. The owner of BTI wants to purchase ATL to expand the size of his business. The two men agreed over lunch that BTI would buy ATL for an amount equal to five times ATL’s net income before tax for the year ended December 31, 2019. The deal is to be finalized on March 1, 2020. Closure of the deal requires that BTI approve of the financial statements prepared by ATL. The two men agreed that any disputes regarding the financial statements would be settled by negotiations and, if necessary, by arbitration by an independent third party. It is now January 15, 2020. You have been called by BTI’s owner to help him understand and assess a number of transactions that are reported in ATL’s December 31, 2019 financial statements. The owner of BTI explained that he does not have much experience working with financial statements but based on his examination, along with information obtained from other sources, he is concerned about a number of transactions reported in ATL’s statements. The owner has asked you for a detailed report explaining the impact of each event on the purchase price of ATL and your assessment of each of the issues. BTI’s owner said that he would like a full explanation of the implications of each event, your evaluation of the accounting used by ATL, and your supported recommendation of the appropriate treatment for each event. Your explanations are important because they will be used in negotiations with the owner of ATL and, if necessary, presented to the arbitrator.

The owner of BTI provided you with the following information about the events that are of concern to him:

a) GTL paid a $60,000 non-refundable fee on October 15, 2019 to their delivery company as a prepayment for services from November 1 2019 – November 1, 2020. The contract between the delivery company and GTL is for 2 years. The delivery company charges GTL $20,000 each month, less $5,000 which has been paid up front as the deposit. The $60,000 has been recorded as a prepaid asset. The delivery expense for the year ended December 31, 2019 totaled $30,000.

b) In August 2019, ATL entered into a long term contract with another tile retailer, Great Tile Ltd (GTL). As part of the agreement, GTL agreed to order products from ATL on a monthly basis. In November 2019 GTL placed a large tile order that will be delivered evenly over a 5- month period. The order totaled $350,000, and GTL paid an upfront non-refundable deposit of $150,000. The fee was recorded as revenue. The first order, with $70,000 worth of goods was shipped to GTL on November 20, 2019. The second order was scheduled to ship on December 20, however, due to the busy holiday season and staffing issues, GTL requested that the order be held at ATL’s facility until after the winter break. Since the shipment was ready to go, ATL placed the tiles in a separate part of their facility. ATL recognized revenue for both the November and December orders in 2019, totaling $140,000.

Time Value of Money Concept

The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1. Janelle Carter deposited $9,610 in the bank on January 1, 2000, at an interest rate of 15% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$__________

2. Mike Smith deposited $23,480 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $42,049. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
__________ %

3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 10% compounded annually. On January 1, 2017, the deposit has accumulated to $17,750. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.
$_________

4. Nancy Holmes deposited $4,740 in the bank on January 1 a few years ago. The bank pays an interest rate of 8% compounded annually, and the deposit is now worth $9,475. How many years has the deposit been invested? Round to the nearest whole year.
_________years

Time Value of Money Concept The following situations involve the application of the time value of money concept. Use the full factor when calculating your results. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. Janelle Carter deposited $9,510 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar. $ 65,296 2. Mike Smith deposited $22,540 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $48,662. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent. % 3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 5% compounded annually. On January 1, 2017, the deposit has accumulated to $15,630. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar. $ 4. Nancy Holmes deposited $4,760 in the bank on January 1 a few years ago. The bank pays an interest rate of 10% compounded annually, and the deposit is now worth $13,581. How many years has the deposit been invested? Round to the nearest whole year. years

Time Value of Money Concept

The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1. Janelle Carter deposited $9,790 in the bank on January 1, 2000, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$

2. Mike Smith deposited $21,410 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $42,117. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
%

3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 7% compounded annually. On January 1, 2017, the deposit has accumulated to $12,070. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.
$

4. Nancy Holmes deposited $6,930 in the bank on January 1 a few years ago. The bank pays an interest rate of 8% compounded annually, and the deposit is now worth $12,827. How many years has the deposit been invested? Round to the nearest whole year.
years