Quiz 3 (Unit 8)Student’s name: Neha Student’s id: 2019040200 Question 1 (15 marks)On January 2, Dundar Mifflin acquired 30% of the outstanding stock of Steve & Company for $105,000. For the year ending, December 31, Steve & Company earned income of $68,000 and paid dividend $16,000. 1.Prepare the entries for Dundar Mifflin for the purchase of the stock, share of Steve & Company income and dividends received from Steve &Company.
Question 2 (35 marks)Dundar Mifflin is considering the purchase of new printer and have narrowed down the possibilities to two models which perform equally well. However, the method of paying for the two models is different. Model A requires $8,000 per year payment for the next five years. Model Brequires the following payment schedule. YearPayment (Model 2)1$10,00029,00038,00045,00053,0001.Which model should you buy assuming 12% rate?PV