Howie long has just learned he has won a $500,000 prize in the lottery. the lottery has given him two options for receiving the payments. (1) if howie takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) alternatively, the lottery offers howie a payout of 20 equal payments of $36,000 with the first payment occurring when howie turns in the winning ticket. howie will be taxed on each of these payments at a rate of 25%

For each example identify the most appropriate ctso

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)