A. prepare a differential analysis dated december 3 to determine whether sloan should lease (alternative 1) or purchase (alternative 2) the equipment. refer to the lists of labels and amount descriptions for the exact wording of the answer choices for text entries. for those boxes in which you must enter subtracted or negative numbers use a minus sign. if there is no amount or an amount is zero, enter "0". a colon (: ) will automatically appear if required. hint: this is a “lease or buy” decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. score: 80/107 differential analysis lease (alternative 1) or buy (alternative 2) equipment december 3 1 lease equipment buy equipment differential effect on income 2 (alternative 1) (alternative 2) (alternative 2) 3 revenues ✔ $0.00 ✔ $0.00 ✔ $0.00 ✔ 4 costs: ✔ 5 purchase price ✔ 0.00 ✔ 3,745.00 3,745.00 6 freight and installation ✔ 0.00 ✔ 474.00 474.00 7 repair and maintenance (4 years) ✔ 0.00 ✔ 1,628.00 1,628.00 8 lease (4 years) ✔ 6,804.00 0.00 ✔ 6,804.00 9 income (loss) ✔ $6,804.00 $5,847.00 $957.00

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?