A wholly-owned subsidiary of Ward, Inc. has certain expense accounts for the year ended December 31, 2015, stated in FCs as follows: FC .

Depreciation of equipment(related assets were purchased January 1, 2013) $120,000

Bad debts $80,000

Rent $200,000

The exchange rates at various dates are as follows:

Dollar equivalent 1 FC

December 31, 2015 $.40

Average for year ended 12/31/15 $.44

January 1, 2013 $.50

Assume that the FC is the subsidiary’s functional currency and that the charges to the expense accounts occurred approximately evenly during the year. Inflation is not significant. What total dollar amount should be included in Ward’s 2015 consolidated income statement to reflect these expenses?

a. $160,000

b. $168,000

c. $176,000

d. $183,200

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.