Cheyenne inc. was incorporated in 2019 to operate as a computer software service firm, with an accounting fiscal year ending august 31. cheyenne’s primary product is a sophisticated online inventory-control system; its customers pay a fixed fee plus a usage charge for using the system. cheyenne has leased a large, alpha-3 computer system from the manufacturer. the lease calls for a monthly rental of $52,000 for the 144 months (12 years) of the lease term. the estimated useful life of the computer is 15 years. all rentals are payable on the first day of the month beginning with august 1, 2020, the date the computer was installed and the lease agreement was signed. the lease is non-cancelable for its 12-year term, and it is secured only by the manufacturer’s chattel lien on the alpha-3 system. this lease is to be accounted for as a finance lease by cheyenne, and it will be amortized by the straight-line method. borrowed funds for this type of transaction would cost cheyenne 6% per year (0.50% per month). following is a schedule of the present value of an annuity due for selected periods discounted at 0.50% per period when payments are made at the beginning of each period. periods
(months)

present value of an annuity due
discounted at 1% per period

1 1.000
2 1.990
3 2.970
143 76.658
144 76.899

prepare all entries splish should have made in its accounting records during august 2017 relating to this lease. remember, august 31, 2017, is the end of splish’s fiscal accounting period, and it will be preparing financial statements on that date. do not prepare closing entries.

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.