Zoysia University must purchase mowers for its landscape department. The university can buy four EVF mowers that cost $7,600 each and have annual, year-end maintenance costs of $1,675 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy six AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $6,600 and have annual, year-end maintenance costs of $1,875 per mower. Each AEH mower will have a resale value of $800 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 9 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower? (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

QUESTION 1 A machine that caps soda bottles was purchased April 1, 2020 for $96,000; estimated useful life of 10 years and salvage value of $6,000. It is also estimated that the machine could cap a total of 360,000 bottles over its entire life. Calculate depreciation expense under the following independent assumptions: 1. Straight line depreciation, for the year ended Dec. 31, 2020. 2. Double declining balance depreciation for the year ended Dec. 31, 2020 and 2021. 3. Units of production depreciation for 2020 assuming 34,000 bottles were actually capped between April 1, 2020 and December 31, 2020. Record your answers and calculations below

make journal entries for the following information. separate J E should be made for entries made: (1) Government Fund and (2) Government-Wide Statements. City acquired a computer system for $40,000 Completed construction of a new library incurring $500,000 in new costs. In the prior years, City had incurred $600,000 in construction costs. The project was accounted for in a capital project fund. City sold land for $17,000 that it had acquired four years ago with a sales price of $50,000. City acquired a new fire truck and traded in the old fire truck. The previous fire truck had an ending basis of $50,000 and that amount was what the City received in the value of the trade- City paid an additional $90,000 for the acquisition of the new fire truck

3020 Corp.'s balance sheet accounts as of December 31, 2020 and 2019 and information relating to 2020 activities are presented below.

                                                                                                                  December 31

                                                                                                          2020            2019

         Assets

         Cash                                                                                    $1,040,000    $   200,000

         Accounts receivable (net) 1,000,000      1,020,000

         Inventory 1,300,000      1,200,000

         Long-term investments(carried at cost) 400,000         600,000

         Plant assets 3,400,000      2,000,000

         Accumulated depreciation (800,000) (900,000)

         Patent                                                                                       180,000     200,000

                  Total assets                                                              $6,520,000   $ 4,320,000

         Liabilities and Stockholders' Equity

         Accounts payable and accrued liabilities $1,660,000    $1,440,000

         Notes payable                                                                          580,000                  —

         Common stock, $10 par 1,600,000 1,400,000

         Additional paid-in capital 800,000 500,000

         Retained earnings                                                             1,880,000      980,000

                  Total liabilities and stockholders' equity   $6,520,000    $4,320,000

Information relating to 2020 activities:

• Net income for 2020 was $1,500,000.
• Cash dividends of $________ were declared and paid in 2020.
• Plant Assets costing $1,000,000 and having a carrying amount of $320,000 was sold in 2020 for $360,000.
• A long-term investment was sold in 2020 for $320,000.
• 20,000 shares of common stock were issued in 2020 for $___________.
• Assume any other transactions involved cash entirely.

Be certain that you have justified and accounted for all the changes in the account line items.

QUESTION 1 (25 Marks: 45 minutes)
Hold – on Limited is a breakfast cereal producer and distributor company that has recently acquired a very reputable and popular brand of cereal. Through the company’s market research, the brand is expected to derive enormous value for the company, especially as the company has now opted to not only sell the brand of cereal locally, but internationally to South Africa, Botswana and Mozambique as well. The company has a sophisticated and functional distribution and logistics network to assist with the distribution of this cereal.
As part of the production of this new brand of breakfast cereal, the company purchased a machine for N$ 1 200 000 cash. The machine was delivered on the same day as the payment was made. It is expected to be used over a five year period to produce the already profitable brand of cereal. At the end of the five years, it is expected that the machine will be scrapped and thus has a zero residual value.
Required:
Discuss with reference to the Conceptual Framework, how the purchase of the machine should be recognized and measured. Your answer should include a discussion as to whether the machine should be recognized as either an asset or an expense.

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries:

A man came into Cutting Edge on 31 March 2020 to pay for repairs to his mower which he will bring in later. He paid $2,500 cash. The mower was arranged to be delivered to Cutting Edge on 10 April, 2020.

 Repair services of $6,250 were provided on 31 March 2020 but have not yet been recorded in the transactions. Payment has not yet been received.

 Billy-Bob did a count of the stock on hand of Workshop Supplies. He realised that only $5,500 of Workshop Supplies were used in March, instead of $7,000 as recorded on 31 March 2020 (in Practice Set 2).

 Jimmy-James’ last wages payment was on Friday 20 March. The next $1,000 fortnightly payment is on Friday 3 April. Jimmy-James only works Monday to Friday, being 10 days per fortnight.

 Annual insurance of $1,200 was paid on 1 February and recorded in the Prepaid Insurance account.

 From all sources of revenue (Sales Revenue and Service Revenue), $70,730 was cash sales.

 Add any other necessary adjusting entries based on the information provided under the accounting policies and procedures.

Kookaburra Ltd used the cost model to measure its machine. Machine Z had cost of $80 000 and had a carrying amount of $70 000 at 30 June 2020 and is depreciated on a straight-line basis over a 10-year period.

On 31 December 2020, the directors of Kookaburra Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine Z was revalued to $70 000 with an expected useful life of 8 years.

REQUIRED

Provide the numbers for the journal entries in the blanks below for Machine Z on 31 December 2020 and on 30 June 2021. Complete the four blanks.(You don't need to provide the numbers for "??")

-----

31 December 2020

a)

            Depreciation expense – Machine Z                          Dr   

                     Accumulated depreciation – Machine Z          Cr                                       

b)

            Accumulated depreciation – Machine Z                   Dr   

                     Machine Z                                                        Cr                                       

c)

            Machine Z                                                                 Dr    

                     Gain on revaluation – Machine Z (OCI)         Cr                                       

            Gain on revaluation – Machine Z (OCI)                  Dr ??

                     Asset revaluation surplus – Machine Z           Cr ??   

30 June 2021

d)

            Depreciation expense – Machine Z                          Dr   

                     Accumulated depreciation – Machine Z          Cr                                       

Among the 120 applicants for a job, only 80 are qualified. If 5 of these applicants are randomly selected for an interview, answer the following:

a. Identify the random process

b. Define a variable

c. Associate the random variable with a distribution and its parameters

Solve using Rstudio:

d. Find the probability that exactly 2 of the 5 are qualified for the job
e. Find the probability that at least 3 of the 5 are qualified for the job
f. Find the probability that at most 4 of the 5 are qualified for the job.