1.

14..ANN

First, we will find the monthly annuity being paid on Mortgage B

Monthly Pmt.=PV of Mortgage/Annuity factor (for 360 mnths. & Mthly r=6%/12=0.5% or 0.005

ie.4500000/((1-(1+0.005)^-360)/0.005)=

26979.77

Now,

the Remaining principal balance at the end of 2 yrs. =FV of the single sum of Original loan -FV of its monthly annuities

ie.Remaining Loan Balance=(PV*(1+r)^n)-(Pmt.*(1+r)^n-1)/r)

where

PV=Original loan amt. -- $ 4500000

r= the monthly rate of interest, ie. 6%/12=0.5% or 0.005 p.m.

n= no.of monthly pmts, ie. 2 yrs.*12 mths.= 24

Pmt.=The monthly annuity being paid on the loan---ie.

so, plugging in the values

Remaining Loan Balance=(4500000*(1+0.005)^24)-(26979.77*(1+0.005)^24-1)/0.005)

4386070.69

which is paid back at end of 24 months

So,

The monthly IRR will be

the rate that equates the relevant cash flows, ie.

4500000=(26979.77*(1-(1+r)^-24)/r)+(4386070.69/(1+r)^24)

Solving for r, we get the monthly IRR as,

0.50%

The annualised IRR for Mortgage B =

(1+0.5%)^12-1=

6.17%

(Answer)

2.

since their taxable income is more than 315000 it will be subject to w-2 wages/capital investment limit will be applied

step 1=phased out percentage =(100%)-(386600-315000)/415000-315000

=28.4%

Step 2= TentableQBI based on W-2 wages/capital investment limit:

Greater of below

1)50% of W-2 wages = (50% of $40000) *28.4% =5680

or

2)25% of w-2 wages +2.5% of unadjusted basis of qualified property

=40000*28.4% * 25% = 2840

so greater is 5680

Allowable QBI deduction

   General QBI deduction (3,00,000*20%)28.4% = 17040

Less:reduction of w-2wagelitmit/capital limit (17040-5680)*71.6% ). Allowable QBI deduction =17040-8133.76 =8906.24

3.

1)  --The purpose of environmental sustainability cost accounting----Environmental management accounting serves as a mechanism for identifying and measuring the full spectrum of environmental costs of current production processes and the economic benefits of pollution prevention or cleaner processes, and to integrate these costs and benefits into day-to-day business decisionmaking.

Importance of environmental sustainability cost acconting--

For the last decade, corporate environmental accounting has gained increased importance in practice, of which cost accounting receives most attention. Limits of traditional financial and cost accounting methods to reflect efforts of organizations towards sustainability and to provide management with information needed to make sustainable business decisions have been broadly recognized. Information on environmental performance of organizations might be available to some extent, but, decision-makers of internal company, as well as those in public authorities, are seldom able to link environmental information to economic variables and are crucially lacking environmental cost information. As a consequence, decision makers fail to recognize the economic value of natural resources as assets, and the business and financial value of good environmental performance. Beyond “goodwill” initiatives, a few market-based incentives exist to integrate environmental concerns in decisionmaking. This paper gives an overview of the approaches of environmental management accounting and we analyze environmental cost in condition by current economic context.

2)ABC/M CAN SUPPORT THE ANALYSIS OF AN ORGANIZATION'S GREENHOUSE GASES(GHGs)--

An environmentally sustainable organization balances its current strategic and financial objectives
with long-term natural resource preservation and usage to meet the needs of the present without
compromising those of future generations. There is an opportunity to leverage accounting tools to
effectively manage environmental sustainability initiatives within organizations.
Every organization’s operations have an environmental impact. There are pressures – strategic,
regulatory, and otherwise – to reduce the impact through responsible environmental stewardship.
These pressures require organizations to change the way they do business, and assign additional
costs to address the environmental impact. These costs have a significant effect on the way an
organization does business. Building a clear understanding of the environmental impact and the
actual costs associated with reducing the impact can provide an organization with a competitive
advantage over those organizations that cannot quantify or evaluate their own environmental
impact.
Accurately quantifying the environmental impact and the costs of remediation efforts is challenging
because they do not show up as part of traditional cost accounting models. Under traditional
applications of activity-based costing/management (ABC/M), costs associated with environmental
stewardship are not explicitly identified. Understanding these costs and layering them into an
organization’s decision-making processes will allow the organization to effectively and efficiently
utilize its resources. ABC/M is a tool organizations can utilize to more accurately account for their
environmental impact. It is based on the principle that it is not the products or services that an
organization produces that generate costs, but rather the activities that are performed in producing
the products and services. ABC/M provides information on the rate at which activities consume
resources as well as why the resources are being used, and provides a link between resources
consumed and the organization’s outputs.
Traditionally, ABC/M has been used by accountants. Over time, the use of ABC/M has moved
beyond pure cost analysis. ABC/M has been used to track non-cost value items like full-time
equivalents (head count) and effort (in the form of hours).
The purpose of this article is to describe how a well-developed ABC/M model can provide not only
a management view of cost data but also a management view of greenhouse gas (GHG) emissiondata. Further, combining cost and GHG emissions data to arrive at product/service and activity
level information for each measure type provides a significant opportunity for organizations to
maximize the management of their environmental impact. A model that includes cost, revenue, and
GHG emissions would provide GHG/cost/revenue metrics that would allow organizations to
measure profit and GHG emission impacts for product lines or services. This model provides a
clear perspective on how the GHG footprint of r products, services, and activities relates to profit.
This information will provide managers with powerful information on how to reduce an
organization’s costs and GHG footprint.
This article is part of a series authored by the Consortium for Advanced Management –
International (CAM-I) which explores how the Consortium’s proven cost, performance and process
management tools can be applied to environmental sustainability. This article focuses on GHG
emissions as an example of an environmental sustainability issue; however, the principles can be
easily extended to other environmental concerns, such as water usage, waste, pollutants, or any other
environmental measure.

. Further, combining cost and GHG emissions data to arrive at product/service and activity
level information for each measure type provides a significant opportunity for organizations to
maximize the management of their environmental impact. A model that includes cost, revenue, and
GHG emissions would provide GHG/cost/revenue metrics that would allow organizations to
measure profit and GHG emission impacts for product lines or services. This model provides a
clear perspective on how the GHG footprint of r products, services, and activities relates to profit.
This information will provide managers with powerful information on how to reduce an
organization’s costs and GHG footprint.
This article is part of a series authored by the Consortium for Advanced Management –
International (CAM-I) which explores how the Consortium’s proven cost, performance and process
management tools can be applied to environmental sustainability. This article focuses on GHG
emissions as an example of an environmental sustainability issue; however, the principles can be
easily extended to other environmental concerns, such as water usage, waste, pollutants, or any other
environmental measure.

3) . charactristics that help determine for well prepared organisation is to begin to use ABC/M to monitor and evaluate GHG emissions---

Objectives of the guidance
This guidance aims to support UK organisations in reducing their contribution to climate change.
It explains how to measure greenhouse gas (GHG) emissions and set targets to reduce them. It is
intended for all sizes of business and for public and voluntary sector organisations.
There are direct benefits to organisations from measuring and reporting as they will benefit from
lower energy and resource costs, a better understanding of their exposure to the risks of climate
change and a demonstration of leadership which will help strengthen their green credentials in an
increasingly environmentally conscious marketplace. A number of organisations are seeking
information from their suppliers on greenhouse gas emissions and so many small businesses will
increasingly be expected to measure and report on their emissions.
Organisations which use this guidance to measure and report are not required to submit
reports nor otherwise make the data available to government. This data will not be used to
calculate the UK national inventory. This guidance is to help organisations to take action
themselves to manage and reduce emissions. As the main purpose is for organisations to
understand the emissions that they are responsible for, organisations should not be concerned
about the double-counting of their own emissions with those emissions being reported by others.
Quoted companies (as defined in the Companies Act 2006) already report information on
environmental matters in their business review (to the extent it is necessary for an understanding
of the development, performance or position of the company’s business).1 If a quoted company
reports on its greenhouse gas emissions as part of its business review, this guidance may help.
It is recommended that all organisations publicly report their GHG emissions in the format set out
below. This guidance explains how to do this.
Challenge of Climate Change
Climate change is a global problem and the United Nations Framework Convention on Climate
Change (UNFCCC) sets an overall framework for intergovernmental efforts to tackle the challenges
posed by climate change. The Kyoto Protocol is an international agreement2 linked to the UNFCCC
which sets binding targets for industrialised countries to reduce their greenhouse gas (GHG) emissions.
1 Section 417 (5) & (6) of the Companies Act 2006
2 The Kyoto agreement came into force in 2005 and committed signatories to a reduction in greenhouse gas (GHG) emissions to between 20-24
billion tonnes by 2050 (about 50-60% below 1990 global levels)
3 Stern
4 Part
5 Part
Example Corporate Carbon Footprint
GHG emissions data for period 1 January 2010 to 31 December 2010
Tonnes of CO2e Base year
2006 2010 2009
Scope 1 17,100 17,500 13,120
Scope 2 14,500 15,100 10,000
Scope 3 9,410 10,415 12,990
Total gross emissions 41,010 43,015 36,110
Carbon offsets (5,000)
Green tariff (7,250) (9,800)
Total annual net emissions 28,760 33,215 36,110