For which of the following transactions would the present value of an annuity due concept be most appropriate for calculating the present value of the asset acquired or liability assumed?
A) A rental agreement is entered into with the initial payment due immediately.
B) A rental agreement is entered into with the initial payment due one month from the signing of the agreement.
C) A note payable is obtained from a bank requiring monthly payments for six years, beginning at the end of the current month.
D) A machine is acquired by paying $20,000 cash and agreeing to pay equal annual amounts of $10,000 each at the end of the next three years.
A
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Mike's Models Inc. is a modeling agency registered in Delaware, specializing in Central and South American women for print, runway, and other modeling work. The company's manager of the Venezuelan territory, Jose, a Venezuelan citizen, has discovered Sonja and believes that she has the potential to be a supermodel. Because permission for her to travel to the United States could take weeks and Mike's wants her for a car show in 10 days, Jose offers the head of Venezuelan immigration services the use of the company's New York City penthouse and personal use of the company's limousine the next time the official visits the United States in exchange for putting Sonja's papers through quickly. The official turns him down. Has the Foreign Corrupt Practices Act been violated? Fully explain why or
why not. What will be an ideal response?
Dynamic comparative advantage involves
a. industrial policy to create comparative advantage. b. less governmental involvement in the economy. c. reduced rules and regulations imposed by foreign governments. d. accepting and working with existing resources.
When callable preferred stock is called and surrendered, the shareholder is entitled to all of the following except
a. dividends in arrears. b. a prorated portion of the current period's dividend. c. a call premium. d. the market value of the stock.
Tundra Co incurred research and development costs in 2014 as follows: Equipment acquired for use in various research and development projects ............................... $500,000 Depreciation on the above equipment .................. 67,500 Materials used ....................................... 100,000 Compensation costs of personnel ...................... 250,000 Outside consulting fees
.............................. 75,000 Indirect costs appropriately allocated ............... 125,000 The total research and development costs charged in Tundra's 2014 income statement should be a. $425,000. b. $542,500. c. $617,500. d. $925,000.