Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013. Accounts Payable$880 Accounts Receivable 930 Accumulated Amortization 610 Accumulated Depreciation 950 Allowance for Doubtful Accounts 10 Cash and Cash Equivalents 990 Equipment 6,555 Income Taxes Payable 10 Notes Payable (long-term) 3,100 Notes Payable (short-term) 95 Notes Receivable (long-term) 370 Prepaid Rent 430 Retained Earnings 8,530 Service Revenue 610 Short-term Investments 3,940 Software 765 Unearned Revenue 940 Prepare the current assets section of its balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (Enter your answers in millions (i. e., 10,000,000 should be entered as 10).)

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.