Company ej plans to build a new plant to manufacture bicycles. ej sells its bicycles in the world market for $410 per bike. it could locate the plant in province p, which levies a 25 percent tax on business income. on the basis of the cost of materials and labor in province p, ej estimates that its manufacturing cost per bike would be $220. alternatively, ej could locate the plant in province w, which levies a 20 percent tax on business income. on the basis of the cost of materials and labor in province w, ej estimates that its manufacturing cost per bike would be $238. calculate the after-tax profit per bike for each province. in which province should company ej build its new plant

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of