Consider;

At this year's Christmas party your friend Tom tells you he will be taking a new position in the new-year.He's already accepted the position but was wondering if you can help him decide which compensation package makes the most sense.He reminds you that he intends to retire in 12 years from today.He then explains the offers below:

Offer A:

Tom will receive an annual salary of $200,000[1]and receive a one-time $20,000 bonus on the day he starts the job (Assume today).He will also receive a 4% raise each year on his anniversary to cover inflation.With this offer Tom will continue working from the company's "field" office where he and his family currently live.

Offer B:

Tom will receive an additional 15% above the annual salary in Offer A if he relocates his family 500 miles away to the company's headquarters. However, he will not receive the $20,000 bonus. He will still receive a 4% raise each year on his anniversary to cover inflation. Tom will need to sell his current home, which was purchased during a bustling economy in 2004.In 2004, he paid $500,000 for the house, today it's worth $375,000 and he owes $425,000 to the bank for the house.He also estimates that the move will cost him $5,000 in moving expenses.

Answer the following questions to help Tom decide which offer is best:

Identify the opportunity and sunk costs mentioned in each offer.Are there any additional opportunities or sunk costs that you would want to consider if this was your own personal situation?

What will Tom's salary be at the end of 7 years in Offer A and Offer B?

What will Tom's net income be at his anticipated retirement for Offer A and Offer B?

What is the Net Present Value (NPV) of Offer A and Offer B for Tom with a discount rate of 8%?

What offer should Tom accept? Why?

[1]You may assume his salary is paid in a single lump sum at the end of each year.

d. Building Use the adjusted trial balance for Stockton Company to answer the questions that follow. Stockton Company Adjusted Trial Balance December 31 Cash 6,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation 1,100 Accounts Payable 1,900 Notes Payable 4,300 Bob Steely, Capital 12,940 Bob Steely, Withdrawals 790 Fees Earned 9.250 Wages Expense 2,500 Rent Expense 1,960 Utilities Expense 775 Depreciation Expense 250 Miscellaneous Expense Totals 29,490 29,490 19. Determine the owner's equity ending balance. a. $12,150Homework ACCOUNTING instructions | help Question 2 (of 5) > Save & Exit Submit [The following information applies to the questions displayed below.] The following is a list of accounts and amounts for Rollcom, Inc., for the fiscal year ended September 30 2015. The accounts have normal debit or credit balances. Accounts Payable $ 39,800 Accounts Receivable 67,200 Accumulated Depreciation-Equipment 22,200 Cash 81,000 Common Stock 95,500 Equipment 91,400 Income Tax Expense 10,570 Notes Payable (long-term) 1,570 Office Expense 6,370 Rent Expense 164,900 Retained Earnings 99,830 Salaries and Wages Expense 129,400 Sales Revenue 327,840 35,900 Supplies4. All goods in an economy are classified as agriculture (good 1) and manufacturing (good 2). These data are available for a country in the cases of autarky and of free trade. Price at Exports Imports Production Production autarky under free under free under under free trade trade autarky trade good 1 2 100 20 300 320 good 2 10 20 50 150 140 Calculate the gains from free trade, as the change to the welfare from autarky to free trade evaluated at autarky prices. Report the gains from free trade as a percentage of initial GDP (ie. total expenditures at autarky).Question 1 The Unadjusted Trial Balance columns of a work sheet total $84,000. The adjusted trial balance reflects adjusting entries for the following: i. Office supplies used during the period, $1,200. ii Expiration of prepaid rent, $700. Ill. Accrued salaries expense, $500. iv. Depreciation expense, $800. v. Accrued service fees receivable, $400, (T or F) The column total for the adjusted trial balance must be $85,700, True FalseQuestion 77 Which of the following BEST explains this graph? Risk to Exporter B C Risk to Importer A: Cash in advance, B: Open account, C: Documents against payment A: Open account, B: Cash in advance, C: Documents against payment A: Documents against payment, B: Cash in advance, C: Open account A: Cash in advance, B: Documents against payment, C: Open account A: Open account, B: Documents against payment, C: Cash in advance