Suppose you won a $75,000 after-tax cash prize in the lottery. you want to start a new business that you think will lose money for a while, after which it will be up and running and bringing in big bucks. you plan to invest the funds immediately in securities that are expected to earn 10% per year. suppose you would need only $20,000 per year during the start-up period. how long could you operate before you would require cash from the new business, i. e., how long could you receive payments of $20,000 per year? the first withdrawal will be made a year from today, and your answer will contain a fraction of a year.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?