Global gas international offers to subcontract the halidurton heavy construction corporation to build an oil pipeline from canada to new orleans for $500 million. the probability that the oil pipeline will leak causing environmental damage is θ. if so, the legal liabilities will be $600 million.

a. if halidurton is risk neutral and liable for the damages from a leak, what is the θ such that it is indifferent between accepting or rejecting the contract?

b. if halidurton is risk averse and fair insurance is offered, how much insurance would it buy?

c. if global gas international will partially indemnify halidurton so that the largest damages that halidurton would have to pay is $200 million, what is the θ that leaves it indifferent about accepting the contract?

d. if partially indemnified, how much fair insurance will halidurton buy?

The sec has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the sec staff believes this situation causes cpa firms to

Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy. year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.