On October 21, 2004, Abitibi-Consolidated Inc., a large Canadian-based newsprint and groundwood producer, reported net income for its third quarter, 2004, of $182 million. This compares with a net loss for the same quarter of 2003 of $70 million. Sales for the quarter were up, to $1528 million, and earnings excluding low persistence items, was a loss of $27 million. the low - persistence items included a gain of $239 million before tax from foreign exchange conversion. Much of the company's long term debt is denominated in US dollars. The foreign exchange gain arose because of the rising value of the Canadian dollar, relative to the US dollar, during the quarter. Comparable figures for the third quarter of 2003 were as follows: sales of $ 1,340 mil-lion, a loss before low- persistence items of $ 32 million, and foreign exchange conversion gain of $ 13 million. There is no mention of R& D costs in the company’s third quarter report. Its 2003 annual report mentions R& D only in passing, with reference to forest conservation. Presumably, R& D expenditures are relatively low. Abitibi- Consolidated’s share price rose $ 0.59 to $ 7.29 on the Toronto Stock Exchange on October 21, 2004. The S& P/ TSX Composite index gained 59 points to close at 8,847 on the same day. According to media reports, the increases were driven by a "red- hot" materials and energy sect

Which of the following is not a consideration when determining your asset allocation

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less