The median starting salary for new law school graduates is determined bylog(salary) = B0 + B1 LSAT + B2 GPA + B3 log(libvol) + b4 log(cost)+ B5 rank + u, where LSAT is the median LSAT score for the graduating class, GPA is the median collegeGPA for the class, libvol is the number of volumes in the law school library, cost is the an-nual cost of attending law school, and rank is a law school ranking (with rank = 1 beingthe best).(i) Explain why we expect b5 < 0.(ii) What signs do you expect for the other slope parameters? Justify your answers.(iii) Using the data in LAWSCH85.RAW, the estimated equation is^ log(salary ) = 8.34 + .0047 * LSAT + .248 GPA + .095 log(libvol)+ .038 log(cost) - .0033 rankn = 136, R^2 = .842.What is the predicted ceteris paribus difference in salary for schools with a medianGPA different by one point? (Report your answer as a percentage.)(iv) Interpret the coefficient on the variable log(libvol).(v) Would you say it is better to attend a higher ranked law school? How much is adifference in ranking of 20 worth in terms of predicted starting salary?

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.