1. Consider the purchase of a new farm truck (automobile). The specific information is:

Total Purchase cost = $150,000.00              Purchase date = Jan 1, 2020

Useful life = 6 years                                      Salvage value = $50,000.00

Note: each highlighted box is worth 1 point

Complete each depreciation table.

ECONOMIC DEPRECIATION:

1. Fill in the table using the straight-line depreciation method for economic depreciation. (5 points)

1. Sky High Incorporated reported the following ($ in millions) as of December 31, 2020. All accounts have normal balances.

Retained earnings                  $6,000

Common stock                        4,000

Paid-in capital-excess of par        62,000

Treasury stock (at cost)                800

During 2021 ($ in millions), net income was $18,000, 50% of the treasury stock was resold for $1,800; cash dividends declared were $1,000; cash dividends paid were $800.

What ($ in millions) was shareholders’ equity as of December 31, 2020?

What ($ in millions) was shareholders’ equity as of December 31, 2021?

56. Sweet Air Flow sells prepaid HVAC contracts. When a contract is sold, cash is debited and contract revenue is credited. As of December 31, 2020, the year end, the following information was available regarding contract sales:

Date Sold      Amount          Contract Term

August 1        $72,000          1 year

October 1      $69,600          6 months

November 1 $42,000          3 months

The unadjusted balance of unearned contract revenue has a credit balance of $10,000. This represents contracts that expired during 2020. Give the adjusting entry needed for contract revenue.

Bond ABC is currently (year 2020) selling at 105% of par value, it matures by the end of 2030 but callable by the end of 2025.

When it is called in 2025, there is 6% call premium. The annual coupon rate is 8%. It is an annual coupon bond, and 2020's coupon has not been distributed to investors yet.

What is Bond ABC’s Yield to Call if you purchase it right now? (Please round up your answers to two decimals and write in percentage points without the sign. e.g. If your answer is 12.859%, type 12.86 without the percentage sign)

1. In 120 to 150 words (at least 120 but not more than 150), describe how the responsibilities and expectations from Financial Analysts have evolved from 2000 to 2020
2. In 120 to 150 words (at least 120 but not more than 150), contrast the two occupations (a) Securities, Commodities, and Financial Services Sales Agents and (b) Financial Analysts
3. Tell us which of the (a) Securities, Commodities, and Financial Services Sales Agents, (b) Financial Analysts, and (c) Personal Financial Advisors (as defined by U.S. BLS in 2020) may appeal to you; and why

Lee Furniture Company manufactures office chairs. The 2020 operating budget is based on sales of 50,000 units at $65 per chair. Budgeted variable costs are $40 per unit, fixed costs are $800,000, and operating income is projected to be $450,000. Regarding actual results, 54,000 units were sold at $70 each, actual variable costs were $38 per unit and fixed costs were $750,000. Resulting in 2020 actual income of $978,000.

Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.

combos Company purchases a delivery truck for $12,000 on January 1, 2019. combos expects to use the truck only two years and to sell it for $4,000. The company’s policy is to use straight-line depreciation but depreciation in 2019 is not recorded. Rather, the accountant charges the entire cost to delivery expense in 2019. The controller discovers the error late in 2020.

REQUIRED:

Provide the 2020 entries to record depreciation and the error correction and indicate the amounts of the prior period adjustments appearing in the 2019 and 2020retained earnings sections of the statement of stockholders’ equity. The tax rate is 25%.

Assume you have been given $400,000 CAD with access to all listed stocks, bonds, futures, and options worldwide. You can trade in options and futures, in combination with the underlying asset. Assume today is Feb 1, 2020 and you have been given $400,000 CAD fake money to trade until April 20, 2020.

Perform a hedging trade; identify and invest in an underlying asset in the market and carry out the hedge with futures contracts (hedging strategy)

Describe the trade and provide the reason for such trade.

Please provide table and or/ graph.

2. Suppose a hurricane hits south Florida in any given year with probability 0.2. Describe the distribution of the following random variables, including both the name of the distribution and the parameters (such as X~Bernoulli(0.4)). (2 points each)

a.Let X be the number of years until the next hurricane hits South Florida.

b.Let X be the number of hurricanes that will hit south Florida in the next 10 years.

c.Let X indicate whether a hurricane will hit south Florida in 2020.

d.Let X indicate whether south Florida will avoid getting a hurricane in 2020.