1. San Jacinto Ine. signed a $75,000 conung contract with El Paso Holdings. The contract requires services whenever requested over the period San Jacinto to provide computer technology support from July I, 2018 to June 30, 2019, with El Paso Holdings paying the entire $75,000 on July, 2018. How much revenue should San Jacinto recognize for 2018 as of December 31, 2018? A. $O B. $5,250 C. $37,500 D. $43,750 E $75,000 Lhakhang Inc. wants to buy new equipment in five years from now for $250,000. Lhakhang can How much money would Lhakhang have to invest today equipment in five years? Time value of money tables can be money at a 9% interest rate per year. invest in order to have enough to purchase the found at the back of the exam. (Allow for rounding errors when using the tables) A. $129,986 B. $161,152 C. $162,483 D. $177,106 E. $250,000 3. On September 30, 2018, Chamizal Corp. leased a warehouse. Terms of the lease require Chamizal to make 15 annual lease payments of $75,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when recording this type of lease. Assu an 8% interest rate. What amount should Chamizal record the lease liability for on September 30. 2018, before the first payment is made? Time value of money tables can be found at the back of the exam. (Allow for rounding errors when using the tables.) A. $693,318 B. $641,961 C. $716,961 D. $795,270 E. $817,398 During 2018, its first year of operations, Hueco Tank Industries recorded sales of $13,450,000 and experienced returns of $700,000. Cost of goods sold totaled $6,760,000. The company estimates that 825% ofall sales will be returned. How much will Hueco Tanks report as net sales on its 2018 4. income statement? A. $14,559,625 B. $13,450,000 C. $12,750,000 D. $12,340,375 E. $6,690,000 2