Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay 1/3 of the sales price of a jet ski when they initially purchase the ski, and then pay another 1/3 each year for the next two years. Because Lake has little information about collectibility of these receivables, they use the installment method for revenue recognition. In 2010 Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2010, $300,000 in 2011, and $300,000 in 2012 associated with those sales. In 2011 Lake sold jet skis with a total price of $1,500,000 that cost Lake $900,000. Lake collected $500,000 in 2011, $400,000 in 2012, and $400,000 in 2013 associated with those sales. In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed. 1. In 2013, Lake would record a loss on repossession of: $45,000. $200,000. $120,000. $80,000. 2. Garland Inc. offers a new employee a lump sum signing bonus at the date of employment, June 1, 2011. Alternatively, the employee can take $39,000 at the date of employment plus $10,000 each June 1 for five years, beginning in 2015. Assuming the employee's time value of money is 9% annually, what lump sum at employment date would make him indifferent between the two options? $44,035. $40,855. $69,035. $65,855. 3. Tammy wants to buy a car that costs $10,000 and wishes to know the amount of the monthly payments, which will be made at the first of the month, with interest of 12% on the unpaid balance. She should use a table for the: Present value of 1. Present value of an ordinary annuity of 1. Present value of an annuity due of 1. Future value of an annuity due of 1