midkey04j

midkey04j - 7 6:13 mam I "-1 . V Easy/'5 IMWRKM...

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Unformatted text preview: 7 6:13 mam I "-1 . V Easy/'5 IMWRKM Jam/14m 0&7/ BTOLK “QT-E / ‘ (NW-Tu 4(43‘7; - ML ‘SIC‘QS - ()1 11°! U P’Ucfi- (\Oodoowxlo: 4 lagooox \ ,Ioon‘ (‘23 pm; ( v L L If QM ' (3°°:° "' (.2003 4 3e duo 5: 1511ou k Jx ' H x, 505009 1— 1, 1 'I. a. I P“ / V ‘(M J" MIMI-1’ ls L65; on ‘LPANLAMT a6 6300M.“ <&&¢I1$o-3aowo) TCoI'LQUE (a WW 5/ P ' 1 iv AW ' I D —o -@ W“- .wmmw WWW WWW“. - , - 7, EWJ C) (11—!) fidfiusc V“ ‘ ' @ (a: V gym/{x 6(— $LDQ 25-11900 on > ; 37,5110 141 “(WM 05 En. C (new: -: \ 7 N“ «a: “3;. (.u‘uuo (:83 )Av.N\.\€; [Queue 5 1 RA: D ‘(IL \ ' , ELSE? @ 2mm” Z”) “9 “kw-unto (LEMLH Um 0.)) z‘bfiw ‘ Wm? WM \( ~—-“._ww._._._ U\ ‘n; _ Q _ 63 3Q')‘ 1’) ~‘:AM§L‘(\1W o; QM“ 55b 0 Ado.» -_ M J Awe/«7,14%, or» (LV_ 2003;, —6 ’3 {X'MDM‘LAmUaL o? ‘q‘LMfiflMxL PuMMM UH» ' Eiw $4M MW 0 @. \(9' Dim!» MOW.) @an X357Xi Awmx o? a row. Aug/\T- cg 'PATFM ' éw+ ' mmww» _,__52._@. A“ . firm. «MM 5, Jun“ WU“ \L (F U354 7.557. m. —. M7- «0% ‘nm «em '\“":Lu r mnmwgmchW-MWM 3.».- M 3 W /Low 8/ 3 WIMF‘ 300009 . r 7' I T: Wren 66m Mug?) W57» @ , “(flak/JV.M’WJc (AT 9“”3 30050 0M6 (new; («fix 0? Ame/L'T'Imknud Nib)» $9300 @ Tampa, \NmpflnbLEr . '9) (“If c AN. (Ra Jamaumog m: mg 3 mam: of- Mc/m‘zlmuo u 11; human Tm “mu/nu. m [Mum Wu “rm-.— kssur Tb ‘5‘”!ro T141; MAJ-cqu {wuupfitwflr Dewar“ G ‘ mm Nor hem/n. my. meuo m. smug/g @ma mam?) ' vb ' é ’ @gwflw om Puma Ana-Mm) DO DUILL I'NDEF woa}, w 9.41.11, 0 {’mc H W . W 'D/wc 5 5" 5° 7 b J X26 WFW‘V (uDLr (NIHLT IUEWM /.-I '77 +5“! \/ ml Al- that'do not reflect 111 am or‘loés measurel e t fiE’cénomic Loss: Elna: 8t. ,9 G) THEY 0006001; Pest wms’r (£130 /—:@ \MT RETR— Jt women mutual" Cw!) b‘tuc. / 5 ' I 073’5’0 2 new toting) indicate that this is troubletl debt with substantially (F m 1 flagonditions so this is a restructure ‘1 (HM 2' CV of old note at 7/1/3 is: original principle 1,000,000 2- + Accrued interest (year 2) 80,000 3’ . 2/ + (year 3) 1,080,000 x 8% x 1/2 43 2003‘ If 40:00” 5 CV of note 1,123,200 * 0- PV of new note at 15%: PV -$1-15%~5 oer V v (balloon) 1,000,000 x .49713 = 4 497,180 @ x.06 L PV-OA—15%~511er } c “’ 3 3 (int pymts) 60,000 3.35216 201,130 ' M" , Total PV of payments at 15% is: 698,;10 Economic Loss for Bank 5 424,890 Economic Gain for Ace 3 424,890 Wmting Loss: - 040V— CV of Old note 7/ 1/3 4 1,123,200 . \ mtnik, PV of new note at 8%: PV ¢$l-S%-5 Er " % (balloon) 1,003,000 x 68058 = 4 680,580 \ x. 06 1 PV-OA-8%-SDer ‘ '(int pymts) 60,000 ' 3.99271 239563 920,143 u Accountin Loss for Bank:@ 203,057 i “’1 Accounting Gain for Ace: (Total new note CF > CV) a (@ €;:““""" ' ‘ (1,%,000>1,123,200) 7/1/32 A 7 ~ 1 —. (okay to record 400,00 1' 43,2001» be Gm” " 0 433.3% Q) 7,1, 6’73 6) 12/31/3: Interest Expense g? 200 x . /o x 1/2)“ @ Note Payable m“ a ‘ wofi Interest Payable (60,000 x .5) 30,000 94933 t E 232,59 3 gm . teres Xpense w 'b r i >_ Interest Payable - 30,000 v ,3 54 may” h ; Note Payable ‘ 0 “war. Cash 60,000 " , 6 ® ® <3) up? ,4?» ’ 12/3 1/4: Interest EEene(l, l 23,1“: ' zxflm) Kflulyemr "g mm! ® Interest Payable 30,000 6’2 Journal Entries for You Lose Bank: 7/ 1/3: Loss on Debt Restructure 203,057 W Note Receivable 203,05 12/3/3; Interest Receivable (60000 x 1,4!) 30,000 (5’3 Note Receivable Q @ (a) 6,805@ Interest Income (920,143 x 8% x 1/2) 36,805® LN 6/30/4: Cash 60,000 =— Note Receivable 6,805 " 9 3 “ Interest Receivable 30,000 v ' I; Interest Income 36,805 'P 3M 72/ 12/31/4: Interest Receivable 30,000 C?) 9 Note Receivable 7,350 6) Interest Income 37,350 ® (920 143+6805+6805=933753X8%X1/2) W 6;) CD F) Ace: ‘ BIS—12313 5 5 Wm” , wet“ Note Payab e (1,123,2004fl-6) , _ c » mere-{45+ Mable, ‘ 70692 r a . .900 L' ’ ‘ I/S —- Year3 6 k ( a. . 44 6 Interest Expense 43 ,2004 I W4) ‘ a - ' @591). e: 70 3 You Lose Bank: BIS — 12/31/3 5 5 W Note Receivable (920,143+6805) 926,948 ' Interest Receivable ’ 30,000 2" I/S- Year 3 ,-»"2‘.“\ 5 _ (Q Interest Income @figflgesesos) 80,005 ' Loss on Restructure 203,057 5 I I '1‘ EQIE)?"CF('13‘W U'TTL'E' ‘3 “FF ‘ " “ ' (I' a U0 NREL C 65 Fem. 0mm 0141' fldli (doubt) Rgeogunfi H C». a.) —_ { A Tom. c G _ {@ ‘ “‘13:,35‘3 " ['IOOOIGDO 1. $950.,“ > ‘. 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V 3m 3m, 09 _ I ‘77?{ .2 1 . . 1)) .\.r\~'-» I g @ , WM mug/B wau wanna: mg C _ a, H , t h \3 RR / 37' MW (MMMMW V’me mafia mwgmw, ,/ ‘ ' Econ 136B Midterm #2 Problem 4: Version 1: begins with The correct property tax pay .... 1. C 2D Beak, 3B 4. H (1/2 credit if E) 3A . v ma 2 g omsmwywwe *d*-JH*TiH*-i>-i LN g: Version 2: begins with Which of the following must be presented...... 1. H (1/2 credit ifE) 5 we IA; .AC/ 9%ww Q - > 99‘P'FP’NT‘ “339° __ Vw JUL-87*2BQ4 15:28 bEPHRTMENT OF ECONOMICS 885 893 8832 Problem V Short Answers (10 mins) 1. Itx.) l. What method do companies use to value a patented product on a balance sheet? Theoretically justify why this value is used, and how this tends to affect a reader’s understanding of the balance sheet and income statement. Explain where on a financial statement most companies present internally generated goodwill. Why is this so? 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midkey04j - 7 6:13 mam I &amp;quot;-1 . V Easy/'5 IMWRKM...

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