3. (20 points) you can buy or sell a 3.000% coupon $1,000 par u. s. treasury note that matures in 5 years. the first coupon payment pays 6 months from now, and the note pays coupons semi-annually until maturity. it also pays par on maturity. the yield to maturity of the note right now (treat this as your discount rate) is 4.000%. (a) what are the cash flows associated with this note? (b) which of these cash flows are annuity dues, ordinary annuities, or single cash flows? (c) what is the present value of all payments associated with this note? (d) if interest rates move down, what would happen to the value of this note? (e) if a stranger was willing to buy or sell you the bond for $1000, would you buy or sell it - and why? (hint: assume no altruism here.)

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."