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Instruction: To obtain full mark you must show your work. I may randomly choose some of students' solution and ask them to explain it to me. I will be happy to help you, if you have any question. 1. The following shows the long-term assets of a restaurant in two consecutive years. The amount of Dep-exp for equipment was $5,000 in 2021 . a. What is the cost of the equipment which was sold in 2021 ? b. What is the Book Value of the equipment which was sold in 2021 ? c. If the business sold that equipment for $15,000, how much Gain/Loss should they claim in their income statement for 2021 ? d. How much was the cost of the land which was sold in 2021 ? e. What is the Book Value of the land which was sold in 2021? f. If the business sold that land for $245,000, how much Gain/Loss should they claim in their income statement for 2021 ? 2. The following is the balance sheet for a corporation as of Dec 31, 2021. In 2021, the corporation made a net income of $720,000. Assume that in 2022 corporation issues 200,000 more shares for a market price of $5 per share. 50% of the proceeds will be used to pay down the long-term debt, 10% to buy inventory, 10% to buy marketable securities, $30,000 to pay down unpaid wages, and the rest will be deposited in the corporation bank account. Assume that corporation generated 5860,000 incorne in 2022 , which was 90% in cash and the rest on receivables. They paid $20,000 dividends in 2022. a. Recompile the balance sheet for 2022 to apply the sale of new shares and distributing its proceeds as well as the net income and paying the dividends. b. Calculate the earnings per share in 2021 c. Calculate the earnings per share in 2022. Note: Earnings per Share = (net income) / (number of shares)

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