Exam: United States Dollar and Forward Contract

2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years?

Use the lecture folder to help you complete this guide. The more detail you can provide the better prepared for the test you will be.

If submitting your assignment in hard copy you should complete and attached this Assignment Cover Sheet. Please check your Course Outline or contact your School Office for assignment submission locations.

Every piece of written work you submit for assessment must have this cover sheet attached. Please type in your details then copy and paste to the front of your assignment and save the file ready to upload.

Refer as needed to material in Chapters 12 and 13. Read the instructions carefully and answer all questions clearly and concisely. Include examples to highlight your comments.

Remember that your exam must be typed in a Word document. Do not save your work as Word 2007. The exam can either be submitted as an attachment through WebCT or a hardcopy can be submitted to me in my office before 5:00 pm on November 20. Completed exams will be accepted at

Answer the questions. When you are finished, submit this test to your teacher by the due date for full credit.

If necessary, use the back of the exam pages for the rest of your answers. Do not use other sheets of paper. Please write legibly; if I cannot read your answer, I will count it wrong.

INSTRUCTIONS 1) Write your name, student ID number and signature in the assigned space on the front page. 2) To make sure that we can identify your exam if your student

General Instructions: • Write your name and student ID clearly above. • You have 1 hour and 15 minutes to write the exam. No extra time will be given. • There are 4 questions in the exam, all with subparts. The questions combine for a maximum of 100 points. • You must write your answers clearly in the space provided for each question. You might use the backside of each page, as well as any additional sheets as required. If you are using additional space, you must clearly label the question no. that you are answering. Any loose sheets must have your name and student ID written clearly. • The exam is open book/open notes, however,

For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.

6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term, and the fundamental manner in which each factor influences managerial decisions.

. (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses? (Points : 2)

You will type your paper on the blank pages after the Rubric in this document.

5) Show all work, as partial credit will be given for each question’s answer. Organize your work so it is easy to follow. You can use word, power point, excel or combinations of the above.