[Jonathan]

I got somthing like that… 12.4 i think not too sure… but i wasnt sure how to treat the gain recorded in their individual books so i just removed it from investment income… not sure :/

[Jonathan]

For the depreciation you had to calculate 25%(tax) on the annual depn of 400 for the tax savings.

[Jonathan]

The answer was D – reduced government spending and increased money supply

[Jonathan]

I’m thinking for the NPV since the cash flows before applying the DF would remIn constant after year 4 and the life was 10 years you could have callculayed the NPV using annuities from year 5-10 and add that to the NPV. Make sense?

[Jonathan]

Yeah. I did that and the gain of 3750 is added to the asset in the sofp

[Jonathan]

I got this too!

[Jonathan]

For the contract asset you had to recognize revenue and cost of sale based on the amount of cost incurred to date over the total experience expected cost. The difference being the profit would then be added to the 5000 for contract asset in the sofp

[Jonathan]

86%

[Jonathan]

80%

[Author]

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