Joe wants to set one lump sum of money aside today to pay for his child’s college education, which will occur in 15 years and cost $50,000. If the current 15 year interest rate is 7%, then how much does Joe need to set aside today?
a. $18,122
b. $137,952
c. $3,333
d. $18,797
Joe used 16 ounces of dark chocolate while baking. He used to fifths of the chocolate to make some frosting and use the rest to make brownies. How much more chocolate did Joe used in the brownies then in the frosting?
St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at aprice of $60 per share. After issuance costs, St. Joe netted $57 per share. The companyhas a marginal tax rate of 40 percent.a. Calculate the after-tax cost of this preferred stock offering assuming that thisstock is a perpetuity.•b. if the stock is callable in 5 years at $66 per share and investors expect it to becalled at that time, what is the after-tax cost of this preferred stock offering?(Compute to the nearest whole percent.)
St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at aprice of $60 per share. After issuance costs, St. Joe netted $57 per share. The companyhas a marginal tax…
Joe the owner of the ice cream shop, purchases ice cream from two vendors. Over the years, he has developed good relationships with both vendors so they allow Joe to pay them biweekly for all purchases made during the preceding two-week period. Joe calls in ice-cream orders on Mondays and Thrusdays. The orders are delivered the next day. Joe buys ice-cream toppings from one of several local stores and pays for each such purchase at the time of sale with a check from the company’s main checking account. Draw an REA diagram, complete with cardinalities, for Joe’s expenditure cycle.
Joe teaches three classes, of the same subject. Below are the test scores from a recent test. Test to see if there are any differences in the three classes. Show all your work including the ANOVA table, F test, graph, rejection region, comparison F value and conclusion. You can take the answers for the ANOVA table from Excel or calculate the data manually. Test at α = 5%.
6. John and Mary are in their 50s, married, and have no children. They have salaries of a total of $100,000 with 18,000 in Federal withholding. They have the following other items of note:
Interest from Bank of Texas 10,000
Qualifying dividends 3,000
Non-qualifying dividends 2,000
Sales of the following securities:
Stock
Joe swims 2000 yards each day. For 23 days, he records his time (in minutes) and his pulse rate (in beats per minute) at the end of the 2000 yards. He finds a linear correlation. The equation of the least squares line is
pulse rate =209.9-0.695 (time) .
John and Janet Fonda, siblings and actors, decide to retire after years on the road. They remember a town in New Jersey they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that seems ideal. There is a great house and lots of land. The Fondas wish to convert the farm to a restaurant-hotel with a dinner theater. They contact the realtor by phone, and make arrangements to buy the parcel. The Fondas plan on traveling to New Jersey prior to the closing to look things over, but are unable to do so due to their touring schedule. The realtor, whose commission is technically paid by the proceeds to the seller, and who has a listing contract with the seller, advises the Fondas that she will handle everything. New Jersey custom, law, and practice does not require a purchaser of land to have an attorney. The realtor does only the bare minimum needed for title to transfer to the Fondas. On their behalf, she only has a minimal title search and minimal inspections done, and she obtains a minimal coverage title insurance policy. As the area near the farm was once occupied by a large chemical plant, when the realtor represents local purchasers, as a precaution, she advises the buyers to get the maximum possible title search and title insurance, and to get all possible inspections done. It is her regular practice to caution local purchasers who she represents about the former chemical plant.After closing on the property, the Fondas learn of the old chemical plant. They seek your advice as to their liability and the liability of any other parties
81. Joe operates a business that locates and purchases specialized assets for clients,among other activities. Joe uses the accrual method of accounting but he doesn’tkeep any significant inventories of the specialized assets that he sells. Joe reportedthe following financial information for his business activities during year 0. Determinethe effect of each of the following transactions on the taxable business income.a. Joe has signed a contract to sell gadgets to the city. The contract providesthat sales of gadgets are dependent upon a test sample of gadgets operatingsuccessfully. In December, Joe delivers $12,000 worth of gadgets to the citythat will be tested in March. Joe purchased the gadgets especially for thiscontract and paid $8,500.b. Joe paid $180 for entertaining a visiting out-of-town client. The client didn’tdiscuss business with Joe during this visit, but Joe wants to maintain goodrelations to encourage additional business next year.c. On November 1, Joe paid $600 for premiums providing for $40,000 of “keyman” insurance on the life of Joe’s accountant over the next 12 months.d. At the end of the year (year 1), Joe’s business reports $9,000 of accounts receivable.Based upon past experience, Joe believes that at least $2,000 of hisnew receivables will be uncollectible.e. In December of year 0, Joe rented equipment for a large job. The rentalagency required a minimum rental of three months ($1,000 per month), butJoe completed the job before year-end.f. Joe hired a new sales representative as an employee and sent her to Dallasfor a week to contact prospective out-of-state clients. Joe ended up reimbursinghis employee $300 for airfare, $350 for lodging, $250 for meals, and $150for entertainment. Joe requires the employee to account for all expendituresin order to be reimbursed.g. Joe uses his BMW (a personal auto) to travel to and from his residence tohis factory. However, he switches to a business vehicle if he needs to travelafter he reaches the factory. Last month, the business vehicle broke downand he was forced to use the BMW both to travel to and from the factory8-48 chapter 8 Business Income, Deductions, and Accounting Methodsand to visit work sites. He drove 120 miles visiting work sites and 46 milesdriving to and from the factory from his home.h. Joe paid a visit to his parents in Dallas over the Christmas holidays. Whilehe was in the city, Joe spent $50 to attend a half-day business symposium.Joe paid $200 for airfare, $50 for meals during the symposium, and $20 oncab fare to the symposium.
Question:Joe operates a business that locates and purchases specialized assets for clients, among otheractivities. Joe uses the accrual method of accounting but he doesn’t keep any significant…
John and Jane each have a budget of one hundreddollars to spend on apples and bananas at the local farmers market. Apples and bananas cost one dollareach. John and Jane have different preferences, represented by the utility functions
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