On january 1, 2018, national insulation corporation (nic) leased equipment from united leasing under a finance lease. lease payments are made annually. title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by nic. portions of the united leasing's lease amortization schedule appear below: jan. 1 payments effective interest decrease in balance outstanding balance 2018 192,501 2018 20,000 20,000 172,501 2019 20,000 17,250 2,750 169,751 2020 20,000 16,975 3,025 166,726 2021 20,000 16,673 3,327 163,399 2022 20,000 16,340 3,660 159,739 2023 20,000 15,974 4,026 155,713 — — — — — — — — — — — — — — — 2035 20,000 7,364 12,636 61,006 2036 20,000 6,101 13,899 47,107 2037 20,000 4,711 15,289

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.

The following are budgeted data: january february march sales in units 16,200 22,400 19,200 production in units 19,200 20,200 18,700 one pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.