Cougar Athletics is soliciting bids on a 3-year contract to produce 5,000 t-shirts per year to be given away at athletic events. You have decided to bid on the contract. It will cost you $4 per shirt in variable costs (buying plain t-shirts and paying an employee to imprint them) and $8,000 per year in fixed costs. A t-shirt printing machine will cost $17,500. The machine will be depreciated to zero over its 3-year life and it will not have any salvage value. There are no net working capital implications for the project. If your tax rate is 21% and your required return on this project is 12%, how much would you bid for the contract? State your answer as the annual sales amount (to 2 decimal places, $XX, XXX. XX), not the per-unit price. Write up your solutions by hand and email them to me after the exam (do NOT send a spreadsheet).

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.