Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $10,000; usable for eight seasons; 14 hunting trips per season$ 89Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires—$0.22 per mile; depreciation and insurance—$0.16 per mile)38Shotgun shells (two boxes per hunting trip)35Boat: Cost, $2,320, usable for eight seasons; 14 hunting trips per season21Hunting license: Cost, $50 for the season; 14 hunting trips per season4Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home)38Bottle of whiskey: Cost, $20 per hunting trip (used to ward off the cold)20Total cost$ 245Cost per duck ($245 ÷ 8 ducks)$ 31 Required:1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks?

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $10,000; usable for eight seasons; 14 hunting trips per season $ 89 Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires—$0.22 per mile;

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $10,000; usable for eight seasons; 14 hunting trips per season $ 89 Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires—$0.22 per mile;

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 71P

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Camper and equipment:
Cost, $10,000; usable for eight seasons; 14 hunting trips per season	$ 89
Travel expense (pickup truck):
100 miles at $0.38 per mile (gas, oil, and tires—$0.22 per mile; depreciation and insurance—$0.16 per mile)	38
Shotgun shells (two boxes per hunting trip)	35
Boat:
Cost, $2,320, usable for eight seasons; 14 hunting trips per season	21
Hunting license:
Cost, $50 for the season; 14 hunting trips per season	4
Money lost playing poker:
Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home)	38
Bottle of whiskey:
Cost, $20 per hunting trip (used to ward off the cold)	20
Total cost	$ 245
Cost per duck ($245 ÷ 8 ducks)	$ 31

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Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $11,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.38 per mile (gas, oil, and tires-$8.26 per mile; depreciation and insurance-50.12 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,080, usable for eight seasons; 14 hunting trips per season Hunting License: Cost, $40 for the season; 14 hunting trips per season Money lost playing poker: Loss, $36 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($244 + 8 ducks) Complete this question by entering your answers in the tabs below. Camper and equipment Travel expense Shotgun shells…
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $11,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.40 per mile (gas, oil, and tires-$0.28 per mile; depreciation and insurance-$0.12 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,400, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $70 for the season; 14 hunting trips per season Money lost playing poker: Loss, $30 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold) Total cost Cost per duck ($244+ 8 ducks) $ 98 Complete this question by entering your answers in the tabs below. 40 40 21 5 30 10 $ 244 $ 30 Required: 1. Assuming…
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $16,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.32 per mile (gas, oil, and tires-$0.22 per mile; depreciation and insurance -$0.10 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,160, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $80 for the season; 14 hunting trips per season Money lost playing poker: Loss, $36 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $25 per hunting trip (used to ward off the cold) Total cost Cost per duck ($286 + 8 ducks) $ 143 32 25 19 6 36 25 $286 $36 Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what…
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $14,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.49 per mile (gas, oil, and tires-$0.30 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,560, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $30 for the season; 14 hunting trips per season Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $15 per hunting trip (used to ward off the cold) Total cost Cost per duck ($272 + 8 ducks) Complete this question by entering your answers in the tabs below. Required 1 Required 2 49 20 23 2 38 15 $ 272 $34
Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? Total
Bill just returned from a duck hunting trip with eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $17,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.45 per mile (gas, oil, and tires-$0.26 per mile; depreciation and insurance $0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,720, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $30 for the season; 14 hunting trips per season Money lost playing poker: Loss, $38 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold) Total cost Cost per duck ($291 ÷ 8 ducks) Complete this question by entering your answers in the tabs below. $ 152 Required 1 Required 2 45 20 24 2 38 Required: 1. Assuming the…
Bill just returned from a duck hunting trip with eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $20,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.45 per mile (gas, oil, and tires-$0.28 per mile; depreciation and insurance -$0.17 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,320, usable for eight seasons; 14 hunting trips per season Hunting license: Cost, $70 for the season; 14 hunting trips per season Money lost playing poker: Loss, $34 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold) Total cost Cost per duck ($329 ÷ 8 ducks) Required: $ 179 55 45 35 21: in 34 10 $ 329 $ 41 1. Assuming the duck hunting trip Bill just completed is typical, what costs are…
Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill's friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck Camper and equipment: Cost, $17,000; usable for eight seasons; 14 hunting trips per season Travel expense (pickup truck): 100 miles at $0.49 per mile (gas, oil, and tires-50.30 per mile; depreciation and insurance-$0.19 per mile) Shotgun shells (two boxes per hunting trip) Boat: Cost, $2,400, usable for eight seasons; 14 hunting trips per season. Hunting license: Cost, $60 for the season; 14 hunting trips per season Money lost playing poker: Loss, $30 (Bill plays poker every weekend whether he goes hunting or stays at home) Bottle of whiskey: Cost, $10 per hunting trip (used to ward off the cold). Total cost Cost per duck ($291 +8 ducks) $ 152 49 25 21 4 30 18 $291 $.36 k Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what…
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Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him with the following cost estimate per duck: 1. Assuming that the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?2. Suppose that Bill gets lucky on his next hunting trip and shoots 10 ducks in the amount of time it took him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last two ducks if costs are estimated per duck? Explain.3. Which costs are relevant in a decision of whether Bill should give up hunting? Explain.
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