Jeter Corporation had net income of $213,000 based on variable costing. Beginning and ending inventories were 6,100 units and 10,200 units, respectively. Assume the fixed overhead per unit was $5 for both the beginning and ending inventory. What is net income under absorption costing?
Jim Gilbert’s Computer Store in Lake Mary sells a printer for $200. Demand is constant during theyear, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas thecost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units each time).There are 250 working days per year, and the lead time is 10 days.a) Given the current policy of ordering 50 units at a time, what is the total of the annual ordering costand the annual holding cost?b) If the company used the absolute best inventory policy, what would be the total of ordering andholding costs?c) What is the reorder point?
DataDemand rate, DOrdering/Setup cost, SHolding cost, CDays of OperationDaily demand rate, dLead time in days, L 6006020 (fixed amount)2502.410 a) Given the current policy of ordering 50…
JetBlue had developed a proposal for operating three private deicing stations along with two hold locations in Logan Airport. One challenge with this proposal would be convincing JetBlue executives to invest in space owned by the airport.
The Decision
Deason needed to quickly make a decision about which option to select and present to JetBlue’s executive team. It was clear that control of the Earhart pad would be operationally advantageous, but was the benefit enough to justify the cost?
Jim fired an employee for creating what the manager called a poisonous relationship. Example whether or not the empioyee has a legitimate claim againts the company and the actions the company should take.
Jim Bowie owns a lot in Starr County and wants to build a house according to a certain set of plans and specifications. He solicits bids from three building contractors as follows: George Kimbell bids $ 175,000; Green Jameson bids $170,000; and, Davy Crockett bids $ 166,000. Bowie accepts Crockett’s bid and construction begins. A month into the work, Crockett advises Bowie that due to an unexpected rise in fuel and materials costs, he will need $ 15,000 more to complete the project. Bowie raises a fuss, but after discussing the situation with the out-bid contractors who indicate that they cannot finish the contract for less, he agrees. When the house is finished, he refuses to pay the extra money. Discuss whether Bowie is legally required to pay the additional amount.
Jim and Tom played against each other in a golf tournament. Jim’s final score was 6 under par, the average number of swings it should take a golfer to get his ball in the hole. Tom’s score was 1under par. Describe the outcome of their match.
Notes to Financial Statements:
1. Assets are stated at fair market value (rounded to even dollars).
2. Liabilities are stated at principal only (rounded to even dollars).
3. The adjusted basis of “The Grillenium Falcon” is $1,800,000.
4. Inherited Stock Portfolios have children designated as beneficiaries.
5. Jim’s whole life insurance policy has a death benefit of $2,000,000 and is
solely owned by Jim. The number in the table represents the cash
surrender value of the policy. The designated beneficiary is Pam. 6. PropertyOwnership:
a. CP-communityproperty(JimandPamhaveacommunity property interest)
QUESTIONS:
Assuming the facts given, answer the following questions. Use the gift and estate rates and exclusions at the time of the transfer. Use 2016 exclusions, credits, and tax rate for the estate tax. A table including the annual exclusion amounts is attached.
10.Assume that Pam dies on December 31, 2016 survived by Jim. Calculate the total value of the assets that will pass through Pam’s probate estate. For purposes of this question, assume that any gift tax paid was more than 3 years ago. (Value – 3 points)
11.Assume that Pam dies December 31, 2016. Calculate the marital deduction amount that will be available to Pam’s estate tax. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Pam’s death, she executed a will that bequeaths all her
property to Jim. e. Expenses:
i. Last Medical Expenses = $70,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
(Value – 6 points)
12.Assuming the same facts as #11, what amount of Pam’s exemption can pass to Jim under the principle of “portability”? (Value – 6 points)
13.Assume that Pam dies December 31, 2016. Calculate the estate tax due at Pam’s death. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Pam’s death, she executed a will that bequeaths all her
property to Jim. e. Expenses:
i. Last Medical Expenses = $70,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
f. Gift and Estate tax rate schedule for 2016 is located on page
215 in your textbook.
Hint: Use the layout provided in your book on page 226.
(Value – 6 points)
14.Assume that Jim dies December 31, 2016. Calculate the marital deduction amount that will be available to Jim’s estate tax. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Jim’s death, he executed a will that bequeaths all his
property to his children. e. Expenses:
i. Last Medical Expenses = $20,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
(Value – 6 points)
15.Assume that Jim dies December 31, 2016. Calculate the estate tax due at Jim’s death. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Jim’s death, he executed a will that bequeaths all his
property to his children. e. Expenses:
i. Last Medical Expenses = $20,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
f. Gift and Estate tax rate schedule for 2016 is located on page
215 in your textbook.
Hint: Use the layout provided in your book on page 226.
(Value – 6 points)
16.Assume that Pam dies December 31, 2016. Calculate the marital deduction amount that will be available to Pam’s estate tax. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Pam’s death, she executed a will that bequeaths one-
third of her property to the American Cancer Society, one-third of her property to Jim, and one-third of her property to her children.
e. Expenses(bornbythebeneficiariesoftheestateinproportion to their share of the estate):
i. Last Medical Expenses = $70,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
(Value – 3 points)
17.Assume that Pam dies December 31, 2016. Calculate the charitable deduction amount that will be available to Pam’s estate tax. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Pam’s death, she executed a will that bequeaths one-
third of her property to the American Cancer Society, one-third of her property to Jim, and one-third of her property to her children.
e. Expenses(bornbythebeneficiariesoftheestateinproportion to their share of the estate):
i. Last Medical Expenses = $70,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
(Value – 3 points)
18.Assume that Pam dies December 31, 2016. Calculate the estate tax due at Pam’s death. For purposes of this question, assume the following:
a. $0statedeathtaxcredit
b. $0 credit for prior transfers
c. $0foreigndeathtaxcredit
d. Prior to Pam’s death, she executed a will that bequeaths one-
third of her property to the American Cancer Society, one-third of her property to Pam, and one-third of her property to her children.
e. Expenses(bornbythebeneficiariesoftheestateinproportion to their share of the estate):
i. Last Medical Expenses = $70,000 ii. Administrative costs – $90,000
iii. Funeral expenses = $25,000
iv. Losses during administration = $0
f. Gift and Estate tax rate schedule for 2016 is located on page
215 in your textbook.
Hint: Use the layout provided in your book on page 226.
(Value – 6 points)
19.Jim and Pam are aware that estate taxes may be due upon either of their deaths. What strategies could be implemented to deal with the payment of those taxes? (Hint – at least 3 strategies must be addressed for full credit.) (Value – 6 points)
Jim and Laura Buyer visit the local car dealership because they are interested in buying a new car. The car they currently have is aging and is starting to have mechanical problems. Jim and Laura would share the new car, and use it to go back and forth to work and school. Before going to the dealership, Jim and Laura decide that they can only afford $400.00 a month in car payments.
Once at the car dealership, Jim and Laura meet Stan Salesman. Stan shows them several vehicles and Jim and Laura test-drive several of the cars. Jim and Laura particularly like the blue 4-door sedan. Therefore, they agree to give Stan Salesman a $100.00 deposit to hold the car for a day. Stan Salesman does not give them the receipt but guarantees that the $100.00 is refundable. No documents were signed.
The next day, Stan Salesman calls Jim and Laura to ask them when they would like to take delivery of the car. Jim and Laura, on the way home from the dealership, decided that they were not going to buy the car because they did not want to spend that money each month. Therefore, Jim and Laura tell Stan salesman that they have decided not to buy the car and request their $100.00 deposit back.
Stan insists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Stan is very persistent and insistent that Jim and Laura have contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car. Jim and Laura are shocked and angry as not only do they not want to spend the money, but now feel as though they are being duped by Stan Salesman.
Jim and Laura have an appointment to see a lawyer in a few days, but know you are a student taking a business law class and come to you for advice. They are very frazzled, and understandably upset that they may have just purchased a car. Since you have been taking business law, you have read and understand the elements of a contract and the defenses to a contract. Therefore, although you are not a lawyer, you provide some basic advice from what you’ve learned in your business law class.
In three to five (3-5) pages, advise Jim and Laura based on the above facts as presented, the material provided in the text, and material covered in the lecture. In your paper, be sure to address the following:
Jill was a limited partner in a retail limited partnership that was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Jills potential liability?
Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually. The bonds are selling at $962.13 today and have a face value of $1,000. If she buys this bond and holds it to maturity, what would be the yield? (USE EXCEL or FINANCIAL CALCULATOR. Round to the closest answer.)
Select one:
A. 10.80%
B. 11.80%
C. 12.50%
D. 12.25%
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