Rockford Corporation, which began business on August 1, sells on terms of 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used. Aug. 1 Purchased merchandise from Norris, Inc., $4,000, terms 2/10, n/30.5 Paid freight on shipment from Norris, Inc., $220.7 Sold merchandise to Denton Corporation, $5,500 ($4,100 cost).7 Paid $300 freight on August 7 shipment and billed Denton for the charges.9 Returned $800 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return.9 Received $750 of returned merchandise ($500 cost) from Denton Corporation. Rockford approved the return.10 Paid Norris, Inc., the amount due.14 Purchased from Chambers, Inc., goods with a price of $9,000. Terms 1/10, n/30.15 Paid freight on shipment from Chambers, Inc., $320.17 Received the amount due from Denton Corporation.18 Sold merchandise to Weber, Inc., $9,600 ($6,600 cost).20 Paid $350 freight on August 18 shipment and billed Weber for the charges.24 Paid Chambers, Inc., the amount due.28 Received the amount due from Weber, Inc. RequiredPrepare journal entries for these transactions for Rockford Corporation. Round your answers to the nearest dollar.

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.