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general business data bank

Question



 

 

 
True/False
 
 

 

 
 

 

 
 

 

 

 

 

 
Indicate
 whether the statement is true or falsewith A for true and B for false.
 
 

 

 

 

 

 
____
 
 

 
1.
 
 

 
Interest paid by a corporation
 is a tax deduction for the paying corporation, but dividends paid are not
 

 

 

 

 
 

 

 
 

 
deductible. This
 treatment, other things held constant, tends to encourage the use of debt
 financing by
 

 

 

 

 
 

 

 
 

 
corporations.
 
 

 

 
 

 

 

 

 

 
____
 
 

 
2.
 
 

 
According to the Capital Asset
 Pricing Model, investors are primarily concerned with portfolio risk, not the
 

 

 

 

 
 

 

 
 

 
risks of individual
 stocks held in isolation. Thus, the relevant risk of a stock is the stock's
 contribution to the
 

 

 

 

 
 

 

 
 

 
riskiness of a well-diversified
 portfolio.
 
 

 

 

 

 

 
____
 
 

 
3.
 
 

 
The major advantage of a
 regular partnership or a corporation as a form of business organization is
 the fact
 

 

 

 

 
 

 

 
 

 
that both offer
 their owners limited liability, whereas proprietorships do not.
 
 

 

 

 

 

 
____
 
 

 
4.
 
 

 
Midway
 through the life of an amortized loan, the percentage of the payment that
 represents interest is equal
 

 

 

 

 
 

 

 
 

 
to the percentage
 that represents principal repayment. This is true regardless of the original
 life of the loan.
 

 

 

 
____
 
 

 
5.
 
 

 
The inventory
 turnover ratio and days sales outstanding (DSO) are two ratios that are used
 to assess how
 

 

 

 

 
 

 

 
 

 
effectively a firm
 is managing its assets.
 
 

 

 







Multiple Choice

Identify the choice
that best completes the statement or answers the question.



____
6. You recently sold to your brother 200 shares of Disney stock, and the
transfer was made through a broker, and the trade occurred on the NYSE. This is
an example of:



a.
A
futures market transaction. 



b.
A
primary market transaction. 

c.
A
secondary market transaction. 



d.
A
money market transaction. 



e.
An
over-the-counter market transaction. 



____
7. Ten years ago, Levin Inc. earned $0.50 per share. Its earnings this year
were $2.20. What was the growth rate in Levin's earnings per share (EPS) over
the 10-year period?

a.
15.17%


b.
15.97%




c.
16.77%




d.
17.61%




e.
18.49%




____
8. Amram Company's current ratio is 1.9. Considered alone, which of the
following actions would reduce the company's current ratio?

a.
Borrow
using short-term notes payable and use the proceeds to reduce accruals. 



b.
Borrow
using short-term notes payable and use the proceeds to reduce long-term debt. 



c.
Use
cash to reduce accruals. 



d.
Use
cash to reduce short-term notes payable. 



e.
Use
cash to reduce accounts payable. 



____
9. Northwest Lumber had a profit margin of 5.25%, a total assets turnover of
1.5, and an equity multiplier of 1.8. What was the firm's ROE?



a. 12.79%










 

 

 
b.
 
 

 
13.47%
 

 

 

 
c.
 
 

 
14.18%
 

 

 

 
d.
 
 

 
14.88%
 

 

 

 
e.
 
 

 
15.63%
 






 

 

 
____
 
 

 
10. Ripken Iron Works believes the following
 probability distribution exists for its stock. What is the coefficient
 

 

 

 

 
 

 
of variation on the company's
 stock?
 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 

 
 

 
State of the
 
 

 
Probability of
 
 

 

 
 

 
Stock's
 

 

 

 

 
 

 

 
 

 
Economy
 
 

 
State
 Occurring
 
 

 
Expected
 Return
 

 

 

 

 
 

 

 
 

 
Boom
 
 

 
0.25
 
 

 
25%
 
 

 

 

 

 

 

 
 

 

 
 

 
Normal
 
 

 
0.50
 
 

 
15%
 
 

 

 

 

 

 

 
 

 

 
 

 
Recession
 
 

 
0.25
 
 

 
5%
 
 

 

 

 

 

 

 
 

 
a.
 
 

 
0.4360
 
 

 

 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 
b.
 
 

 
0.4714
 
 

 

 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 
c.
 
 

 
0.5068
 
 

 

 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 
d.
 
 

 
0.5448
 
 

 

 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 
e.
 
 

 
0.5856
 
 

 

 
 

 

 
 

 

 
 

 

 

 

 

 
____
 
 

 
11. You have the following data on three
 stocks:
 
 

 

 
 

 

 
 

 

 

 

 

 

 
 

 

 
 

 

 
 

 
Stock
 
 

 
Standard Deviation
 
 

 
Beta
 

 

 

 

 
 

 

 
 

 

 
 

 
A
 
 

 
0.15
 
 

 
0.79
 
 

 

 
 

 

 

 

 

 

 
 

 

 
 

 

 
 

 
B
 
 

 
0.25
 
 

 
0.61
 
 

 

 
 

 

 

 

 

 

 
 

 

 
 

 

 
 

 
C
 
 

 
0.20
 
 

 
1.29
 
 

 

 
 

 

 





As a risk minimizer,
you would choose Stock ____ if it is to be held in isolation and Stock ____ if
it is to be held as part of a well-diversified portfolio.



a.
A;
A. 



b.
A;
B. 

c.
B;
C. 



d.
C;
A. 



e.
C;
B. 



____
12. Ewert Enterprises' stock currently sells for $30.50 per share. The stock's
dividend is projected to increase at a constant rate of 4.50% per year. The
required rate of return on the stock, rs, is 10.00%. What is
Ewert's expected price 3 years from today?



a.
$31.61




b.
$32.43


c.
$33.26




d.
$34.11




e.
$34.81




____ 13. You were hired as a consultant
to Kroncke Company, whose target capital structure is 40% debt, 10% preferred,
and 50% common equity. The after-tax cost of debt is 6.00%, the cost of
preferred is 7.50%, and the cost of retained earnings is 13.25%. The firm will
not be issuing any new stock. What is its WACC?

a.
9.48%




b.
9.78%




c.
10.07%




d.
10.37%




e.
10.68%










____
14. To help finance a major expansion, Delano Development Company sold a
noncallable bond several years ago that now has 15 years to maturity. This bond
has a 10.25% annual coupon, paid semiannually, it sells at a price of $1,025,
and it has a par value of $1,000. If Delano's tax rate is 40%, what component
cost of debt should be used in the WACC calculation?



a.
5.11%


b.
5.37%


c.
5.66%




d.
5.96%


e.
6.25%




____
15. Thompson Stores is considering a project that has the following cash flow
data. What is the project's IRR, NPV and Payback if the WACC is 10%? Note that
a project's projected IRR can be less than the WACC (and even negative), in
which case it will be rejected.




 

 

 
Year:
 
 

 
0
 
 

 
1
 
 

 
2
 
 

 
3
 
 

 
4
 
 

 
5
 

 

 

 
Cash
 flows:
 
 

 
$1,000
 
 

 
$300
 
 

 
$295
 
 

 
$290
 
 

 
$285
 
 

 
$270
 





a.
IRR
- 11.16%, NPV = 96.72, Payback = 3.4 years 



b.
IRR=
13.78%, NPV = 125.232, Payback = 3.4 years 



c.
IRR=
13.78%, NPV = 96.72, Payback = 3.4 years 

d.
IRR
= 12.45%, NPV = 96.72, Payback 4.1 years 



e.
IRR
= 12.45%, NPV = 125.232, Payback = 4.1 years 

	

accounting assignment

Question
	Chapter 7:
1.	A stock is expected to pay a year-end dividend of $2.00, i.e., D1 = $2.00. The dividend is expected to decline at a rate of 5% a year forever (g = -5%). If the company’s expected and required rate of return is 15%, which of the following statements is CORRECT?

a.	The company’s current stock price is $20.
b.	The company’s dividend yield 5 years from now is expected to be 10%.
c.	The constant growth model cannot be used because the growth rate is negative.
d.	The company’s expected capital gains yield is 5%.
e.	The company’s stock price next year is expected to be $9.50.

2.	A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 2.0%, and if investors' required rate of return is 10.5%, what is the stock’s intrinsic value?

3.	E. M. Roussakis Inc.'s stock currently sells for $50 per share. The stock’s dividend is projected to increase at a constant rate of 4% per year. The required rate of return on the stock, rs, is 15.50%. What is Roussakis' expected price 5 years from now?

4.	Carter's preferred stock pays a dividend of $2.00 per quarter. If the price of the stock is $60.00, what is its nominal (not effective) annual expected rate of return?

5.	Schnusenberg Corporation just paid a dividend of $1.25 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The company's beta is 1.35, the required return on the market is 10.50%, and the risk-free rate is 4.00%. What is the intrinsic value for Schnusenberg’s stock?

6.	Rentz RVs Inc. (RRV) is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles. Management expects earnings and dividends to grow at a rate of 30% for the next 4 years, after which high gas prices will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company’s last dividend, D0, was $1.25. RRV’s beta is 1.20, the market risk premium is 5.25%, and the risk-free rate is 3.00%. What is the intrinsic value of RRV’s common stock?

7.	Using the information on Rentz RVs Inc. from problem 6, what is the dividend yield expected for the next year?

8.	The Wei Company's last paid dividend was $2.75. The dividend growth rate is expected to be constant at 2.50% for 2 years, after which dividends are expected to grow at a rate of 8.00% forever. Wei’s required return (rs) is 12.00%. What is the intrinsic value of Wei's stock?
9.	Using the information on Wei Company from problem 8, what should be the price of Wei’s stock at the end of Year 5?

10.	You are an analyst studying Beranek Technologies, which was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.50 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years with 50% dividend growth in year 4 and 25% dividend growth in year 5, and then to increase its dividend at a constant growth rate of 6.00% per year thereafter. Assuming a required return of 15.00%, what is your estimate of the intrinsic value of Beranek's stock?

Chapter 9:
11.	Schalheim Sisters Inc. has always paid out all of its earnings as dividends, and hence has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity. Its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would reduce its WACC?

a.	The market risk premium declines.
b.	The flotation costs associated with issuing new common stock increase.
c.	The company’s beta increases.
d.	Expected inflation increases.
e.	The flotation costs associated with issuing preferred stock increase.

12.	Hettenhouse Company’s (HC) perpetual preferred stock sells for $105.50 per share, and it pays a $9.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.50% of the price paid by investors. HC’s marginal tax rate is 30%. What is the company's cost of preferred stock for use in calculating the WACC?

13.	Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: the risk–free rate of return is 4.00%; the market risk premium is 6.00%; and Scanlon’s beta is 0.85. Based on the CAPM approach, what is the cost of equity from retained earnings?

14.	Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $1.90; P0 = $45.50; and g = 7.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

15.	P. Lange Inc. hired your consulting firm to help them estimate the cost of equity. The yield on Lange's bonds is 7.25%, and your firm's economists believe that the cost of equity can




15. P. Lange Inc. hired your consulting firm to help them estimate the cost of equity. The yield on Lange's bonds is 7.25%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 5.50% over a firm's own cost of debt. What is an estimate of Lange's cost of equity from retained earnings?


16. In their most recent fiscal year, XYZ, Inc. had net income of $20 million and total common equity of $200 million. Also, XYZ, Inc. pays out 40% of its earnings as dividends. Using the Retention Growth Model, what is your best estimate of XYZ’s expected growth rate?



17. Several years ago the Pettijohn Company sold a $1,000 par value, noncallable bond that now has 15 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $950, and the company’s tax rate is 34%. To issue new bonds, Pettijohn would incur 3% flotation costs. What is the component cost of debt for use in the WACC calculation?


18. LePage Co. expects to earn $2.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $22.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 7% would be incurred. What would be the cost of equity from new common stock?


19. You were hired as a consultant to Quigley Company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 13.25%, and the tax rate is 34%. The firm will not be issuing any new stock. What is Quigley's WACC?


20. Roxie Epoxy’s balance sheet shows a total of $50 million long-term debt with a coupon rate of 8.00% and a yield to maturity of 7.00%. This debt currently has a market value of $55 million. The balance sheet also shows that that the company has 20 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $8.50 per share; stockholders' required return, rs, is 15.00%; and the firm's tax rate is 35%. Based on market value weights, and assuming the firm is currently at its target capital structure, what WACC should Roxie use to evaluate capital budgeting projects?


Chapter 10:

21. Projects C and D are mutually exclusive and have normal cash flows with an initial outflow followed by a series of positive cash inflows. Project C has a higher NPV if the WACC is less than 12%, whereas Project D has a higher NPV if the WACC exceeds 12%. Which of the following statements is CORRECT?


a. Project D has a higher IRR.

b. Project D is probably larger in scale than Project C.

c. Project C probably has a faste
r payback.

d. Project C has a higher IRR.

e. The crossover rate between the two projects is below 12%.




















































22. Frye Foods is considering a project that has the following cash flow data. What is the

project's IRR?




















Year:


0


1


2


3


4


5




Cash flows:


-$1,300


$325


$325


$325


$325


$325


























































































































23. Van Auken Inc. is considering a project that has the following cash flows:
























Year




Cash Flow














0




-$1,000














1




400














2




300














3




600














4




400




























The company’s WACC is 10%. What is the project’s ordinary payback?







































24. Babcock Inc. is considering a project that has the following cash flow and WACC data.

What is the project's NPV?














WACC:


14.00%








Year:


0


1


2


3


Cash flows:


-$950


$500


$300


$400












































25. Garvin Enterprises is considering a project that has the following cash flow and WACC

data. What is the project's discounted payback?
















WACC:


8.00%










Year:


0


1


2


3




Cash flows:


-$1,000


$500


$500


$500















































26. Hindelang Inc. is considering a project that has the following cash flow and WACC data.

What is the project's MIRR?


















WACC:


14.00%












Year:


0


1


2


3


4


Cash flows:


-$900


$300


$320


$340


$360



27. Hogwarts Inc. is considering a project with the following cash flows:


Initial cash outlay = $2,500,000

After–tax net operating cash flows for years 1 to 4 = $750,000 per year

Additional after–tax terminal cash flow at the end of year 4 = $450,000


Compute the profitability index of this project if Hogwarts’ WACC is 12%.



28. Anderson Associates is considering two mutually exclusive projects that have the following cash

flows:


Project A Project B

Year Cash Flow Cash Flow

0 -$10,000 -$8,000

1 2,000 7,000

2 2,000 3,000

3 6,000 1,000

4 8,000 1,000


At what cost of capital do the two projects have the same net present value? (That is, what is the crossover rate?)


29. Walker & Campsey wants to invest in a new computer system, and management has narrowed the choice to Systems A and B.


System A requires an up-front cost of $100,000, after which it generates positive after-ta
x cash flows of $60,000 at the end of each of the next 2 years. The system could be replaced every 2 years, and the cash inflows and outflows would remain the same.


System B also requires an up-front cost of $100,000, after which it would generate positive after-tax cash flows of $48,000 at the end of each of the next 3 years. System B can be replaced every 3 years, but each time the system is replaced, both the cash outflows and cash inflows would increase by 10%.


The company needs a computer system for 6 years, after which the current owners plan to retire and liquidate the firm. The company's cost of capital is 14%. What is the NPV (on a 6-year extended basis) of the system that adds the most value?


30. Using the information from problem 29 on Walker & Campsey, what is the equivalent annual annuity (EAA) for System A?



Chapter 11:
31. When evaluating a new project, firms should include in the projected cash flows all of the
following EXCEPT:
a.
Changes in net operating working capital attributable to the project.
b.
Previous expenditures associated with a market test to determine the feasibility of the project provided those costs have been expensed for tax purposes.
c.
The value of a building owned by the firm that will be used for this project.
d.
A decline in the sales of an existing product provided that decline is directly attributable to this project.
e.
The salvage value of assets used for the project at the end of the project’s life.
32. Taussig Technologies is considering two potential projects, X and Y. In assessing the projects’ risks, the company estimated the beta of each project versus both the company’s other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following numbers:
Project X
Project Y
Expected NPV
$350,000
$350,000
Standard deviation (sNPV)
$100,000
$150,000
Project beta (vs. market)
1.4
0.8
Correlation of the project cash flows with cash flows from currently existing projects.
Cash flows are notcorrelated with the cash flows from existing projects.
Cash flows are highlycorrelated with the cash flows from existing projects.
Which of the following statements is CORRECT?
a.
Project X has more stand-alone risk than Project Y.
b.
Project X has more corporate (or within-firm) risk than Project Y.
c.
Project X has more market risk than Project Y.
d.
Project X has the same level of corporate risk as Project Y.
e.
Project X has less market risk than Project Y.
33. Langston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average projects at 10%, and high-risk projects at 12%. The company is considering the following projects:
Project
Risk
Expected Return
A
High
15%
B
Average
12
C
High
11
D
Low
9
E
Low
6
Which set of projects would maximize shareholder wealth?
a.
A and B.
b.
A, B, and C.
c.
A, B, and D.
d.
A, B, C, and D.
e.
A, B, C, D, and E.
34. Which of the following statements is CORRECT?
a.
Since depreciation is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.
b.
Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.
c.
Corporations must use MACRS depreciation for both stockholder reporting and tax purposes.
d.
Using MACRS depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project’s forecasted NPV.
e.
Using MACRS depreciation rather than straight line normally has the effect of slowing down cash flows and thus reducing a project’s forecasted NPV.
35. Which of the following does NOT have incremental cash flow effects and thus should NOT be considered in capital budgeting decisions?
a.
A firm has a parcel of land that can be used for a new plant site, be sold, or be used for agricultural purposes.
b.
A new product will generate new sales, but some of those new sales will be from customers who switch from one of the firm’s current products.
c.
A firm must obtain new equipment for the project, and $1 million of costs for shipping and installing the new machinery will be required.
d.
A firm has spent $2 million on R&D associated with a new product. These costs have been expensed for tax purposes, and they cannot be recovered if the new project is rejected.
e.
A firm can produce a new product, and the existence of that product will stimulate sales of some of the firm’s other products.
36. You work for Athens Inc., and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 after-tax net operating cash flow?
Sales revenues
$15,000
Depreciation
$4,000
Cash operating costs
$6,000
Tax rate
39.0%
37. Fool Proof Software is considering a new project whose data are shown below. The equipment that will be used has a 3-year class life, and will be depreciated by the MACRS depreciation system. Revenues and Cash operating costs are expected to be constant over the project's 10-year life. What is the Year 1 after-tax net operating cash flow?
Equipment cost (depreciable basis)
$75,000
Sales revenues, each year
$70,000
Cash operating costs
$25,000
Tax rate
35.0%
38. Bing Services is now in the final year of a project. The equipment originally cost $20,000, of which 75% has been depreciated. Bing can sell the used equipment today for $7,000, and its tax rate is 35%. What is the equipment’s net after-tax salvage value for use in a capital budgeting analysis?
39. Thomson Media is considering investing in some new equipment whose data are shown below. The equipment has a 3-year class life and will be depreciated by the MACRS depreciation system, and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required, but it will be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?
WACC
12.0%
Net investment in fixed assets (depreciable basis)
$60,000
Required new working capital
$10,000
Sales revenues, each year
$75,000
Operating costs excl. depr'n, each year
$30,000
Expected pretax salvage value
$7,000
Tax rate
35.0%
40. A project's base case or most likely NPV is $50,000, and assume its probability of occurrence is
60%. Assume the best case scenario NPV is 50% higher than the base case and assume the worst
scenario NPV is 30% lower than the base case. Both the best case scenario and the worst case scenario
have a 20% probability of occurrence. Find the projects coefficient of variation.


	

TECH 454 – Environmental Engineering

Question
	TECH 454 – Environmental Engineering 
Department of Engineering and Design
Eastern Washington University
Fall Quarter 2012
 Project 5 (45 points) 

Project Format: Each page must be typed in 12-point Times New Roman or similar typeface, 1” margins on all sides, double-spaced. Please remember to correct misspellings and grammatical errors. On the first page, in the upper right hand corner, place your name, class title (TECH 454 - Environmental Engineering), and the date. Also on the first page, below the name block, place the title: “Project 5”. For further explanation see the help sheet on Blackboard.

Write your answers to the following questions in Short Essay Format. Be sure to explain the information as required to support your answers. Cite examples.

Number your answers for each question.

1. (15 Points) From the information discussed in class on plastics, select one type of plastic from the seven recycling codes. Do some research and find the process steps that this particular plastic goes through; from the time it is discarded to when it has been completely recycled into a new product. Describe this process in your own words; a minimum of 5 steps will be required to receive full points. (The process of burning the plastic, as a fuel is not an acceptable process answer for this question.)


2. (15 Points) Even though all of the code 1 through code 7 plastics is recyclable, not all plastics are actively being recycled. Do some research and find 3 of the major issues that are currently blocking a more complete recycling process. Describe the issues.


3. (15 Points) Plastics can be burned for fuel at a waste to energy plant, just like paper products. However, the energy return from plastics is not the same as paper products. Do some research and find out which has the higher energy return rate; the plastics or the paper products? Discuss the pros and cons of burning plastics versus paper products for their energy.




Due Date: 11/28/2012

	

accounts data bank

Question


1. A bonus usually differs from a salary in
terms of:



A.
Amount and timing. 

B.
Base, timing, and
financial statement effect. 

C.
Tax implications. 

D.
Motivation effects. 

E.
Base, pool, and payment
terms. 



2. Of the three basic forms of management
compensation (salary, bonus, benefits), the fastest growing part of total
compensation is:



A.
Salary. 

B.
Bonus. 

C.
Benefits. 

D.
Salary and bonus. 



3. As a firm's strategy changes to respond to
different stages of a product's life cycle, compensation:



A.
Can be affected. 

B.
Is affected, but only to
a very limited extent. 

C.
Should change in
response to the new strategy. 

D.
Should increase. 

E.
Should decrease. 



4. Risk aversion by managers should be
recognized when revising compensation plans because:



A.
Compensation mix (salary, bonus) can
influence a manager's risk aversion. 

B.
Most companies want risk
averse managers. 

C.
Most companies want risk
taking managers. 

D.
It costs less to pay
risk averse managers. 



5. Due in part to the failure of many banks in
2008, executive compensation is getting increased oversight by:



A.
Audit committees of corporate boards 

B.
Top management 

C.
Compensation committees
of corporate boards 

D.
Banking regulators and
corporate compensation committees 

E.
Banking regulators such
as the SEC 



6. Any system of compensation:



A.
May encourage unethical behavior. 

B.
Must be approved by the
appropriate regulatory authority. 

C.
Should be designed by
top management. 

D.
Must be approved by the
auditor. 



7. The objectives of management compensation,
when compared to the objectives used to develop performance measurement
systems, are:



A.
More numerous. 

B.
Less specific. 

C.
Consistent in content. 

D.
Significantly broader in
scope. 

E.
More specific. 



8. In developing compensation plans, the
management accountant works to achieve fairness by making the plan:



A.
Precise, comprehensive and directive. 

B.
Simple, clear and
consistent. 

C.
Attractive. 

D.
Rewarding. 

E.
Selective. 



9. Bases for management bonus compensation often
include:



A.
Stock price performance. 

B.
Percentage of salary. 

C.
Achievement of
break-even sales. 

D.
Percentage of firm-wide
net income. 



10.
When strategic
performance measures or critical success factors are used to determine bonus
compensation, the bonus will usually depend either on the amount of improvement
in the measure or on: 



A.
Maintaining the current level. 

B.
Achieving a
predetermined goal. 

C.
Quality of work
completed. 

D.
Intensity of effort
expended. 



11.
Bonus plans should be tied to variable cost income which is not affected by
inventory level changes, rather than the conventional:









A.
Tax-based net income. 

B.
Marginal cost income. 

C.
Full cost income. 

D.
Operating income. 



12. The
balanced scorecard critical success factors (CSFs) provide strong motivation in
bonus compensation plans if the non-controllable factors are: 



A.
Emphasized. 

B.
Separated. 

C.
Recognized. 

D.
Excluded. 

E.
Controlled. 



13.
If fairness only is considered, unit managers prefer:



A.
Not to be evaluated. 

B.
A subjective measure. 

C.
A single, objective
measure. 

D.
A firm-wide pool over a
unit-based pool. 

E.
A unit-based pool over a
firm-wide pool. 



14.
Generally, the current
and deferred types of bonus payment options currently in use tend to focus the
manager's attention on short-term performance measures, most commonly: 



A.
Division profit. 

B.
After tax corporate
profit. 

C.
Cash flow. 

D.
Growth in firm value. 

E.
Stock price. 



15.
The stock option form of bonus payments to managers usually:



A.
Motivates well even in extended market
downturns. 

B.
Can lose some motivation
because of the delay in reward. 

C.
Focuses on the
short-term. 

D.
Is not consistent with
shareholder interests. 

E.
Has less risk than other
types of bonus payment plans. 



16.
The ideal compensation
plan would make all company contributions to the plan immediately
tax-deductible and all tax consequences for managers: 



A.
Insignificant. 

B.
Deferred or avoidable. 

C.
Limited, but current. 

D.
Limited, but pre-paid. 



17.
In management compensation, the use of the balanced scorecard achieves:



A.
Fairness. 

B.
Alignment of manager's
incentives and the organization's strategy. 

C.
The desired ethical
environment. 

D.
Revenue generation and
cost control. 

E.
A specific non-financial
measurement. 



18.
The balanced scorecard evaluation of the firm is an especially strong financial
tool because of its:



A.
Use of qualitative measures. 

B.
Use of quantitative
measures. 

C.
Simplicity in use. 

D.
Ability to predict
change. 

E.
Use of multiple critical
success factors (CSFs). 



19.
The receivables turnover ratio is a measure of:



A.
Asset value. 

B.
Leverage. 

C.
Sales performance. 

D.
Profitability. 

E.
Liquidity. 



20.
Market value of equity is an objective measure which clearly shows what:



A.
The firm's financial statements show the
firm's value to be. 

B.
Investors think is the
firm value. 

C.
Stock analysts calculate
as the firm's value. 

D.
Is the sales value of
the firm. 

E.
Is the liquidation value
of the firm. 



21.
Analysts prefer the following three valuation methods over all others:



A.
EVA, cash flow multiplier and sales multiplier









B.
Enterprise value, discounted cash flow,
and sales multiple 

C.
Sales multiple, earnings
multiple, and discounted cash flow 

D.
EVA, return on equity
and discounted cash flow 

E.
Enterprise value,
earnings multiple, and sales multiple 



22. Since
it is based on cash flows, the discounted cash flow (DCF) method of valuation
has the added advantage that it is not subject to the bias of different: 



A.
Discount rates. 

B.
Internal rates of
return. 

C.
Monetary systems. 

D.
Accounting policies for
determining total assets and net income. 



23.
The multiplier used in
an earnings-based method of valuation of a firm is often estimated from the
price-to-earnings ratios of the stocks of comparable: 



A.
Taxable entities. 

B.
Industries. 

C.
Firms. 

D.
For-profit firms. 

E.
Publicly-held firms. 



24.
Which one of the following items is not a measure of a company's
liquidity?



A.
Accounts receivable turnover. 

B.
Return on equity. 

C.
Quick ratio. 

D.
Cash flow ratio. 

E.
Day's sales in
inventory. 



25.
Which one of the following forms of compensation is a based upon the
achievement of performance goals for current the period?



A.
Perk. 

B.
Stock option. 

C.
Performance shares. 

D.
Bonus. 

E.
Salary. 



26.
Which one of the following forms of compensation includes special services and
benefits for the employee?



A.
Perk. 

B.
Stock option. 

C.
Performance shares. 

D.
Bonus. 

E.
Salary. 



27. A
method for determining a bonus based upon the performance of the unit is a(n):



A.
Segment-based pool. 

B.
Unit-based pool. 

C.
Firm-based pool. 

D.
Activity-based pool. 

E.
Function-based pool. 



28. A
method for determining a bonus based upon the performance of the firm is a(n):



A.
Segment-based pool. 

B.
Unit-based pool. 

C.
Firm-based pool. 

D.
Activity-based pool. 

E.
Volume-based pool. 



29.
All of the following are listed as common payment options for bonus
compensation plans except:



A.
Performance shares. 

B.
Current bonus. 

C.
Deferred bonus. 

D.
Preferred bonus. 

E.
Stock options. 



30.
The profit multiplier is used to measure:



A.
Efficiency. 

B.
Effectiveness. 

C.
Net revenue. 

D.
Collectability. 

E.
Accountability. 



31.
Each one of the following is a method for directly measuring the value of a
firm's equity except:



A.
The discounted cash flow method. 

B.
Market value. 









C.
Sales multiple. 

D.
Earnings-based
valuation. 

E.
Enterprise value. 



32.
Which one of the following refers to the firm's ability to pay its current
operating expenses and maturing debt?



A.
Discounted cash flow. 

B.
Liquidity. 

C.
Earnings base. 

D.
Profitability. 

E.
Purchasing power. 



33.
Which one of the following develops the value of the firm as the discounted
present value of the firm's net free cash flows?



A.
Discounted cash flow method. 

B.
Liquidity method. 

C.
Multiples-based method. 

D.
Profitability method. 

E.
Purchasing power method.




34. A
deferred bonus consists of:



A.
Cash only. 

B.
Stock only. 

C.
Cash and/or stock. 

D.
Membership in a fitness
club. 



35.
Which one of the following computes value based on annual earnings?



A.
Discounted cash flow method. 

B.
Liquidity method. 

C.
Multiples-based method. 

D.
Profitability method. 

E.
Market value method. 



36.
Jackson Supply Company has a 2 to 1 current ratio. This ratio would increase to
more than 2 to 1 if the company:



A.
Purchased a marketable security for
cash. 

B.
Wrote off an
uncollectible receivable. 

C.
Sold merchandise on
account that earned a normal gross margin. 

D.
Purchased inventory on
account. 



37.
Benefits include all of the following except:



A.
Travel. 

B.
Life insurance. 

C.
Medical benefits. 

D.
Membership in a fitness
club. 

E.
Performance shares. 



38. A
current bonus consists of:



A.
Cash only. 

B.
Stock only. 

C.
Cash and/or stock. 

D.
Membership in a fitness
club. 



39.
In service firms, improvement in long term profitability is best measured by
all the following except:



A.
Staff utilization. 

B.
Net revenues. 

C.
Collections of customer
accounts. 

D.
Materials usage. 



40.



















	

IMPLEMENTATION OF THE IOM FUTURE OF NURSING REPORT

IMPLEMENTATION OF THE IOM FUTURE OF NURSING REPORT

Order Description In a formal paper of 850-1,000 words you will discuss the work of the Robert Wood Johnson Foundation Committee Initiative on the Future of Nursing and the Institute of Medicine research that led to the IOM report, “Future of Nursing: Leading Change, Advancing Health.” Identify the importance of the IOM “Future of Nursing” report related to nursing practice, nursing education and nursing workforce development. What is the role of state-based action coalitions and how do they advance goals of the Future of Nursing: Campaign for Action? Explore the Campaign for Action webpage: http://campaignforaction.org/states Review your state’s progress report by locating your state and clicking on one of the six progress icons for: education, leadership, practice, interpersonal collaboration, diversity, and data. You can also download a full progress report for your state by clicking on the box located at the bottom of the webpage. In a paper of 850-1,000 words: 1.Discuss the work of the Robert Wood Johnson Foundation Committee Initiative on the Future of Nursing and the Institute of Medicine research that led to the IOM report, “Future of Nursing: Leading Change, Advancing Health.” 2.Identify the importance of the IOM “Future of Nursing” report related to nursing practice, nursing education and nursing workforce development 3.What is the role of state-based action coalitions and how do they advance goals of the Future of Nursing: Campaign for Action? Summarize two initiatives spearheaded by your state’s Action Coalition. In what ways do these initiatives advance the nursing profession? What barriers to advancement currently exist in your state? How can nursing advocates in your state overcome these barriers? A minimum of three scholarly references are required for this assignment. Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center. The Future of Nursing in an Evolving Health Care System Course Contents Electronic Resource 1. Future of Nursing: Campaign for Action Video View the video located on the Future of Nursing: Campaign for Action website. http://thefutureofnursing.org/about 2. Nursing Shortage Fact Sheet Read the “Nursing Shortage Fact Sheet,” located on the American Association of Colleges of Nursing website. http://www.aacn.nche.edu/media-relations/NrsgShortageFS.pdf 3. The Future of Nursing: Leading Change, Advancing Health Read “The Future of Nursing: Leading Change, Advancing Health,” located on the Future of Nursing website. http://thefutureofnursing.org/sites/default/files/FutureofNursing2010ReportBrief.pdf 10/9/2015 Implementation of the IOM Future of Nursing Report http://academicassistersblog.com/implementation­of­the­iom­future­of­nursing­report­2/ 3/4 4. The Future of Nursing: Leading Change, Advancing Health: Report Recommendations Read “The Future of Nursing: Leading Change, Advancing Health: Report Recommendations,” located on the Future of Nursing website. http://thefutureofnursing.org/sites/default/files/ReportRecommendations.pdf e-Library Resource 1. Emergency Nursing Advocacy: Future-of-Nursing Report: The Impact on Emergency Nursing Read “Emergency Nursing Advocacy: Future-of-Nursing Report: The Impact on Emergency Nursing,” by Howard, from Journal of Emergency Nursing (2012). http://www.sciencedirect.com.library.gcu.edu:2048/science/article/pii/S0099176712003959 2. Redefining Health Care View “Redefining Health Care,” available through Films on Demand in the GCU Library. http://library.gcu.edu:2048/login? url=http://digital.films.com.library.gcu.edu:2048/PortalPlaylists.aspx?aid=12129&xtid=47302 3. Role of Professional Organizations in Advocating for the Nursing Profession Read “Role of Professional Organizations in Advocating for the Nursing Profession,” by Matthews, from Online Journal of Issues in Nursing (2012). http://library.gcu.edu:2048/login? url=http://search.ebscohost.com.library.gcu.edu:2048/login.aspx? direct=true&db=ccm&AN=2011507641&site=ehost-live&scope=site 4. The National Association of Clinical Nurse Specialists Response to the Institute of Medicine’s the Future of Nursing Report Read “The National Association of Clinical Nurse Specialists Response to the Institute of Medicine’s The Future of Nursing Report,” by Purvis, from Clinical Nurse Specialist (2012). http://library.gcu.edu:2048/login? url=http://gateway.ovid.com.library.gcu.edu:2048/ovidweb.cgi? T=JS&CSC=Y&NEWS=N&PAGE=fulltext&AN=00002800-201207000- 00010&LSLINK=80&D=ovft 5. What’s the Sound of 3 Million Nurses? Finding Our Voices Read “What’s the Sound of 3 Million Nurses? Finding Our Voices,” by Moffa, from American Journal of Nursing (2011). 1. Center to Champion Nursing in America Explore the Center to Champion Nursing in America website. http://championnursing.org/ 2. Future of Nursing: Campaign for Action Explore the Future of Nursing: Campaign for Action website. http://thefutureofnursing.org/

Economics Multiple Choice Questions

Question
	
1. (TCO 1) An SSU's (Points : 3) 
income and expenditures for the period are equal.
income for the period exceeds expenditures.
expenditures for the period exceed receipts.
spending is entirely financed by credit cards.

2. (TCO 1) When the financial system has achieved a high degree of efficiency
borrowers are able to finance at the highest possible cost.
surplus spending units are able to receive the lowest return on their savings.
transaction and intermediation costs are low.
lenders will have a limited choice of financial investments.

3. (TCO 1) Which of the following are economic units? (Points : 3) 
Households
Businesses
Governments
All of the above

4. (TCO 1) Most financial intermediaries (Points : 3) 
issue direct claims and purchase direct financial assets.
issue indirect claims and purchase indirect financial assets.
purchase large amounts of real, tangible assets.
purchase direct financial claims and issue indirect securities.

5. (TCO 1) All of the following are terms for or examples of financial claims except
bonds.
mortgage.
loans.
commodities.

6. (TCO 1) Intermediation, or ____ financing, involves ___ financial claim(s) linking SSU and DSU. (Points : 3) 
indirect; two
direct; two
indirect; one
direct; one

7. (TCO 1) ______ merely execute buy or sell orders for their clients; _______ make markets. (Points : 3) 
Dealers; brokers
Brokers; investment bankers
Dealers; financial institutions
Brokers; dealers

8. (TCO 1) The financial institution that is the largest issuer of commercial paper is
commercial banks.
finance companies.
property-casualty insurance companies.
pension funds.

9. (TCO 1) Federal agencies issue high quality securities and invest primarily in claims issued by (Points : 3) 
businesses that are too big to fail.
the U.S. Treasury to finance government deficits.
agricultural or housing-related sectors which have limited access to private credit.
foreign governments.

10. (TCO 1) The best synonym for financial intermediation is (Points : 3) 
direct finance.
investment banking.
market making.
transformation of claims.

11. (TCO 1) Corporations list their securities on exchanges in order to (Points : 2) 
pay an annual listing fee and disclose important information.
enhance the liquidity of their securities for investors.
sell more securities.
increase the size of the firm.

12. (TCO 1) Which of the following statements about the money market is true? (Points : 2) 
The money market is a dealer market linked by efficient communications systems.
Money market transactions are seldom over $1 million.
Market transactions include more primary than secondary market trades.
Most money market transactions are conducted by mail.

13. (TCO 1) The money market security represented by the largest dollar amount outstanding is (Points : 2) 
commercial paper.
treasury bills.
negotiable CDs.
None of the above 
14. (TCO 1) An S & L taking short-term deposits and financing local land development is engaging in (Points : 2) 
speculation.
maturity intermediation.
denomination intermediation.
currency transformation.
15. (TCO 1) Potential effects of yield fluctuations on security prices and reinvestment income represent (Points : 2) 
credit risk.
liquidity risk.
foreign exchange risk.
interest rate risk.
1. If productivity and wages both rise by 3 percent, then the price level will increase by 3%. (Points : 5) 
True
False
2. A fall in the value of the dollar relative to other currencies will: (Points : 5) 
increase demand for U.S. goods, shifting the U.S. aggregate demand curve to the right.
increase demand for U.S. goods, shifting the U.S. aggregate demand curve to the left.
decrease demand for U.S. goods, shifting the U.S. aggregate demand curve to the right.
decrease demand for U.S. goods, shifting the U.S. aggregate demand curve to the left.
3. Refer to the graph. The equilibrium level of real income is: 
(Points : 5) 
$200.
$600.
$800.
$1,000.
4. A fall in the price level: (Points : 5) 
reduces the value of money in peoples' pockets so amount of goods people buy falls.
reduces the value of money in peoples' pockets so amount of goods people buy rises.
increases the value of money in peoples' pockets so amount of goods people buy falls.
increases the value of money in peoples' pockets so amount of goods people buy rises.
5. The multiplier process works because when expenditures don't equal production: (Points : 5) 
businesses adjust prices.
businesses adjust production.
potential output adjusts.
the government steps in to adjust production.
6. Refer to the graph. An economy is in short-run equilibrium at point(s):
A only.
B.
C only.
Both A and C.
7. If consumption changes because of a change in a factor other than the price level, then: (Points : 5) 
the economy moves from one point on an AD curve to another point on the same curve.
the AD curve shifts.
the economy moves from one point on a short-run aggregate supply (SAS) curve to another point on the same curve.
the SAS curve shifts.
8. If autonomous expenditures are $1,000, income is $5,000, and the marginal propensity to expend is 0.6, then total expenditures according to the expenditure function would be: (Points : 5) 
$3,000.
$4,000.
$5,000.
$13,500.
9. In the equation AE = $2,000 + 0.8Y, autonomous expenditures are equal to 80 percent of income. (Points : 5) 
True.
False.
10. Which of the following factors will not shift the long-run aggregate supply curve? (Points : 5) 
An increase in capital accumulation
An increase in available resources
An increase in the price level
An improvement in production technology
	

The presidential election of 1912 was the most Progressive in US history

Question
	
The
presidential election of 1912 was the most Progressive in US history, with the
two frontrunners, Theodore Roosevelt and Woodrow...

The presidential
election of 1912 was the most Progressive in US history, with the two
frontrunners, Theodore Roosevelt and Woodrow Wilson, both espousing Progressive
philosophies. Although both Wilson and Roosevelt were Progressive, their
attitudes toward Progressivism differed, at least in theory. This paper will
provide an opportunity to review the complex nature of Progressivism, and to
explore how presidents’ policies while in office often differ from their
rhetoric on the campaign trail.



Using the primary sources below, compare and contrastthe two men’s principles based on their
writings, and then, using the textbook and at least one secondary source from
the library’s JSTOR or Project MUSE databases,compareeach presidents’ political principles with his actions while in
office—how well did their actions match their rhetoric?







Draw from the material in the AT LEAST ONEof the Following sources when writing your paper:

1.
Bull Moose Party.
(1912, Aug. 7). . Retrieved from

2.
Roosevelt, T. R.
(1910, Aug. 31). . Retrieved from

3.
Wilson, W. (1913,
March 4). . Retrieved from

4.
Wilson, W.
(1913). . In The new freedom: A call for the
emancipation of the generous energies of a people(Chapter II). New York: Doubleday, Page &
Company. Retrieved fromThe paper must be three to four pages in length and formatted
according to APA style. Cite your sources within the text of your paper and on
the reference page. For information regarding APA, including samples and
tutorials, visit the Ashford Writing Center, located within the Learning Resources
tab on the left navigation toolbar



5.
Due by Tuesday Oct 22

	

5 paragraph persuasive essay for high school US government class . I need this today sometime before 10 pm (I…

Question
	5 paragraph persuasive essay for high school US government class . I need this today sometime before 10 pm (I couldn't change the due date for this post) but the sooner the better! Thanks!

Election process

Visit Campaigns and Elections Magazine () and review two articles addressing election campaigning. After reading the articles:

Explain how the two issues addressed in the articles relate to each other (eg: Campaign Finance and Political Action Committees are related because PAC's raise money and give it to political candidates that support their positions.

Take a position on the issues that are addressed (e.g.: Campaign Finance and Political Action Committees—You favor campaign finance limits and restrictions on Political Action Committees during election years)

Explain your position in a persuasive essay (5 paragaphs or more) using at least two other sources than Campaigns and Elections Magazine, taking direct quotes from those sources, and citing those sources within the body of your essay (e.g.: According to George Will of Time Magazine, “.....”).	

Computers!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Question
	
Computers have become a staple in the lives of most people. There are many companies that provide computers on the market. Assume that you are planning to purchase a new laptop for your classes, work and home use. Please go to 2 of the following websites and make a selection.
HP
Acer
Apple
Once you have made your selection, please complete the following items and questions:
Compare the following items for your selections:

Price
Delivery Charges
Financing Options
Discounts
Coupons
Warranties
Installation Offered
Recycling of Old Components Offered
What are some factors that can impact the gross profit of a merchandise company?
One item that can help investors measure how effectively a business is using its assets to generate sales is the ratio of net sales to assets. The calculation explanation for this financial ratio is found on page 275 of the textbook. Use the following links to find the financial information needed to calculate the net sales to assets measures for your two selected companies. Which company has the better ratio? Why do you think this is the case? Please use the most recent annual report available. Also, make sure to use the same year’s annual report for your companies.

a. HP

b. ACER

c. Apple
	
,

		
Attachments
		
 (14.63 KB) 
		

Paul and Judy Vance’s 2012 federal income tax return

Question
	
TAX RETURN PROBLEM*
• Use the following information to complete Paul and Judy Vance's 2012 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.
• You may need the following forms and schedules to complete the project: Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 2106-EZ, Form 4562 (for the dental practice), Form 4562 (for the rental property), Form 4797, and Form 8863. The forms, schedules, and instructions can be found at the IRS Web site (). The instructions can be helpful in completing the forms.

FACTS:
1. Paul J. and Judy L. Vance are married and file a joint return. Paul is self-employed as a dentist, and Judy is a college professor. Paul and Judy have three children. The oldest is Vince who lives at home. Vince is a law student at the University of Cincinnati and worked part-time during the year, earning $1,500, which he spent for his own support. Paul and Judy provided $6,000 toward Vince's support (including $4,000 for Vince's fall tuition). They also provided over half the support of their daughter, Joan, who is a full-time student at Edgecliff College in Cincinnati. Joan worked part-time as an independent contractor during the year, earning $3,200. Joan lived at home until she was married in December 2012. She filed a joint return with her husband, Patrick, who earned $20,000 during the year. Jennifer is the youngest and lived in the Vances' home for the entire year. The Vances provide you with the following additional information:

o Paul and Judy would like to take advantage on their return of any educational expenses paid for their children.
o The Vances do not want to contribute to the presidential election campaign.
o The Vances live atXXXXX Cincinnati, OH 45211.
o Paul's birthday is XXXXX and his Social Security number isNNN-NN-NNNN
o Judy's birthday is XXXXX and her Social Security number isNNN-NN-NNNN
o Vince's birthday is XXXXX and his Social Security number isNNN-NN-NNNN
o Joan's birthday is XXXXX and her Social Security number isNNN-NN-NNNN
o Jennifer's birthday is XXXXX and her Social Security number isNNN-NN-NNNN
o The Vances do not have any foreign bank accounts or trusts.

2. Judy is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,260 of Social Security tax and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, Social Security tax of $420, and Medicare tax of $145.
3. The Vances received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. They paid interest of $1,100 on the loan. Paul received a dividend of $540 on General Bicycle Corporation stock he owns. Judy received a dividend of $390 on Acme Clothing Corporation stock she owns. Paul and Judy received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 2012 are qualified dividends.
4. Paul practices under the name “Paul J. Vance, DDS.” His business is located atXXXXX Cincinnati, OH 45211, and his employer identification number is XXXXX Paul's gross receipts during the year were $111,000. Paul uses the cash method of accounting for his business. Paul's business expenses are as follows: 
Advertising $??? 1,200
Professional dues 490
Professional journals 360
Contributions to employee benefit plans 2,000
Malpractice insuranc e 3,200
Fine for overbilling State of Ohio for work performed on welfare patient 5,000
Insurance on office contents 720
Interest on money borrowed to refurbish office 600
Accounting services 2,100
Miscellaneous office expense 388
Office rent 12,000
Dental supplies 7,672
Utilities and telephone 3,360
Wages 30,000
Payroll taxes 2,400

In June, Paul decided to refurbish his office. This project was completed and the assets placed in service on July 1. Paul's expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Paul elected to compute his cost recovery allowance using MACRS. He did not elect to use §179 immediate expensing, and he chose to not claim any bonus depreciation.

5. Judy's mother, Sarah, died on July 2, 2007, leaving Judy her entire estate. Included in the estate was Sarah's residence (325 Oak Street, Cincinnati, OH 45211). Sarah's basis in the residence was $30,000. The fair market value of the residence on July 2, 2007, was $155,000. The property was distributed to Judy on January 1, 2008. The Vances have held the property as rental property and have managed it themselves. From 2008 until June 30, 2012, they rented the house to the same tenant. The tenant was transferred to a branch office in California and moved out at the end of June. Since they did not want to bother finding a new tenant, Paul and Judy sold the house on June 30, 2012. They received $140,000 for the house and land ($15,000 for the land and $125,000 for the house), less a 6 percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. To compute depreciation on the house, the Vances had allocated $15,000 of the property's basis to the land on which the house is located. The Vances collected rent of $1,000 a month during the six months the house was occupied during the year. They incurred the following related expenses during this period:
Property insurance $500
Property taxes800
Maintenance 465

Depreciation (to be computed)?

6. The Vances sold 200 shares of Capp Corporation stock on September 3, 2012, for $42 a share (minus a $50 commission). The Vances received the stock from Paul's father on June 25, 1980, as a wedding present. Paul's father originally purchased the stock for $10 per share in 1967. The stock was valued at $14.50 per share on the date of the gift. No gift tax was paid on the gift.

7. Judy is required by Xavier University to visit several high schools in the Cincinnati area to evaluate Xavier University students who are doing their practice teaching. However, she is not reimbursed for the expenses she incurs in doing this. During the spring semester (January through April 2012), she drove her personal automobile 6,800 miles in fulfilling this obligation. Judy drove an additional 6,700 personal miles during 2012. She has been using the car since June 30, 2011. Judy uses the standard mileage method to calculate her car expenses.

8. Paul and Judy have given you a file containing the following receipts for expenditures during the year:
Prescription medicine and drugs (net of insurance reimbursement)$???376

Doctor and hospital bills (net of insurance reimbursement)2,468
Penalty for underpayment of last year's state income tax 15
Real estate taxes on personal residence 4,762
Interest on home mortgage (paid to Home State Savings & Loan) 8,250
Interest on credit cards (consumer purchases) 595

Cash contribution to St. Matthew's church 3,080
Payroll deductions for Judy's contributions to the United Way 150
Professional dues (Judy) 325
Professional subscriptions (Judy)245
Fee for preparation of 2011 tax return paid April 12, 2012 500

9. The Vances filed their 2011 federal, state, and local returns on April 12, 2012. They paid the following additional 2011 taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75.

10. The Vances made timely estimated federal income tax payments of $1,500 each quarter during 2012. They also made estimated state income tax payments of $300 each quarter and estimated city income tax payments of $160 each quarter. The Vances made all fourth-quarter payments on December 31, 2012. They would like to receive a refund for any overpayments.