Income in 2010 before depreciation expense amount to $400,000 2. Depreciation expense on assets other than A, B, and C totaled $55,000 in 2010. 3. Income in 2009 was reported at $370,000 4. Ignore all income tax effects.
Add a graph of the resulting exposure to CAD. e. Assume now that GM decides to hedge 75% of its transactional exposure using three-month call options on CAD. Add a graph of the resulting exposure to CAD. f. Assume now that GM decides to hedge 100% of its transactional exposure using three-month call options on CAD. Add a graph of the resulting exposure to CAD.
Memo To: John & Jane Smith From: Date: 12/2/2014 Re: Summary of various tax issues Your first question is how is the $300,000 treated for purposes of federal tax income? In Code 61(a), income derived from services is one of the listed forms of taxable income. This includes fees, commissions, fringe benefits and similar items. Since the compensation was earned this year, even though you worked on the case for two years, you will include it as ordinary income this year. You can reduce your tax liability by deducting necessary business expenses that were paid in the same
Spouse’s Virginia withholding (filing status 2 only) ...........................................................18b 19. Estimated Tax Paid for tax year 2010 (from Form 760ES) ...........................................................19 (include overpayment credited from tax year 2009) 20. Extension Payments (from Form 760IP) ......................................................................................20 21. Tax Credit for Low Income Individuals or Earned Income Credit from attached Sch. ADJ, Line 17.....21 22. Credit for Tax Paid to Another State from attached Sch.
; 2,650 hrs. X $10.56 = $27,984 (d) | 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 = 55 OR | n(n + 1) | = | 10(11) | = 55 | | | 2 | | 2 | | 10 | x $264,000 x 1/3 = | $16,000 | 55 | | | 9 | x $264,000 x 2/3 = | 28,800 | 55 | | | | | | Total for 2013 | $44,800 | (e) | $279,000 x 20% x 1/3 = | $18,600 | | | | | [$279,000 – ($279,000 X 20%)] x 20% x 2/3 = | 29,760 | | | | | Total for 2013 | $48,360 | E11-8 (Depreciation Computation—Replacement, Nonmonetary Exchange) Goldman Corporation bought a machine on June 1, 2010, for $31,800, f.o.b. the place of manufacture. Freight to the point where it was set up was $200, and $500 was expended to install it. The machine’s useful life was estimated at 10 years, with a salvage value of $2,500.
I found that the present value of the proved developed and undeveloped reserves is worth $482 million, which isn’t a sufficient amount to attain the loan from the bank as it is less than $600 million. More precisely, it is 62% of proved reserved. Overall, this amount of debt financing is not consistent with the discussion at the end of the case material. Q2: The value of the MW Acquisition (Real option approach) In this case, I treated proved developed reserves as the company’s assets and other reserves (undeveloped, probable and possible) as real options. In addition, I have also added the value of other opportunities $25m to the valuation, since it was not taken into consideration in the separate projections.
Taking the option to abandon into account, what is the project’s NPV? (d) What is the value of the option to abandon? Solution: (a) Using an initial cash flow of -2.1 million followed by 10 cash flows of 420,000 each and a discount rate of 16%, calculate NPV. You should get NPV = -$70,044.46. (b) Since the opportunity cost of continuing the project is 1.4 million and the project has 9 years left, use your calculator with n=9, R=16%, PV=−1.4 million and FV=0.
$1,350 c. $1,470 d. $1,323 2. If Hayes pays the invoice on July 31, 1995, Jinks will record a sales discount of: a. $ -0- b. $ 30 c. $ 27 d. $177 3. Which of the following accounts is NOT used with the GROSS method of recording sales?
Income before income taxes was $2,767 million against $2,383 million a year ago. Net income attributable to the company $1,709 million or $3.89 per diluted share against $1,462 million or $3.30 per diluted share a year ago. Costco Wholesale Corporation announced sales results for the five weeks ended September 30, 2012 and seventeen weeks
Estimate the two- and three-year LIBOR zero rates. 2. A financial institution has agreed to pay 10% per annum (with quarterly compounding) and to receive 3-month LIBOR in return on a notional principal of $100 million with payments being exchanged every 3 months. The Swap has a remaining life of 5 months. The 2-month and 5-month zero rates are 9.9% and 10.2% with continuous compounding, respectively.