The ABC Partnership has 3 equal partners with the following capital accounts The ABC Partnership has 3 equal partners with the following capital accounts Question Problem A 1) The ABC Partnership has 3 equal partners with the following capital accounts: a. Partner A capital account $100,000 b. Partner B capital account $100,000 c. Partner C capital account $100,000 They are allowing Partner D to become an equal (1/4) partner for a contribution of $300,000 a) Prepare the journal entry if the partnership uses the bonus method b) Prepare the journal entry if the partnership uses the goodwill method 2) Alpha and Beta are equal partners. At the beginning of the year Alpha has $600,000 in his capital account while Beta has $900,000 in her partnership account. The partnership agreement states that partners get 10% interest on their capital accounts and that Alpha gets a $40,000 salary for work done for the partnership. Any remaining profits or losses are equally divided between the partners. Income before interest and Alpha’s salary was $375,000. Determine the ending capital balance for Alpha and Beta. Problem B 1) On January 1, 2011 The ACME Company made two investments: a. Purchased 2000 of the 2,000,000 shares of HAL for $200,000. b. Purchased 400 of the 1000 shares of GZK for $40,000 at this time the book value of GZK was $100,000. In 2011 HAL paid dividends of $4,000,000, reported income of $12,000,000. On December 31, HAL stock was selling for $104 per share. In 2011 GZK paid dividends of $8000, reported income of $2800. On December 31, GZK stock was selling for $98 per share. On 3/1/12 ACME sold its investment in HAL at $102 per share On 3/14/12 ACME sold its investment in GZK at $101 per share REQUIRED: Prepare the journal entries needed by ACME in 2011 and 2012 if…. They have no influence over HAL and they have significant influence of GZK Note: ACME is a manufacturer so they would use available for sale rather than trading securities. 2) On January 1, 2011 Big Company purchased 80% of Small company for $3,000,000. On January 1, Small had the following balance sheet Assets Cash 500,000 Inventory 500,000 Equipment 2,000,000 a/d equipment 1,000,000 liabilities accounts payable 200,000 equity common stock 1,000,000 retained earnings 800,000 The equipment with a 10 year life (no salvage) has a fair market value of $1,600,000 On January 1, 2011 (just before the purchase) Big had the following balance sheet: Cash $4,000,000 Equipment $5,000,000 a/d equipment $3,000,000 land $3,000,000 a/p 1,000,000 common stock 1,000,000 r/e 7,000,000 REQUIRED: PREPARE THE CONSOLIDATED BALANCE SHEET ON JANUARY 2, 2011 Problem C 1) On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010, Able purchased a piece of equipment for $100,000. This equipment is expected to last 8 years with $4000 salvage. On January 1, 2011 Able sold the equipment to Baker for $80,000. Baker believes the equipment has 7 remaining years and a 3000 salvage. On January 1, 2013 Baker sold the equipment to Cat company for $45,000. REQUIRED: PREPARE THE JOURNAL ENTRIES FOR ABLE, BAKER AND CONSOLIDATED FOR 2011, 2012, AND 2013…LABEL WHOSE BOOKS THE ENTRIES ARE BEING MADE ON 3) On 1/1/2000 Crazy Company purchased all the outstanding stock of Normal Company. On 10/1/2011 Crazy sold inventory to Normal for $60,000. This merchandise had cost Crazy $20,000 to produce. At the end of 2011 Normal had sold ½ of the merchandise from Crazy for $42,000. In 2012 Normal sold the rest of the merchandise from Crazy for $43,000. REQUIRED: PREPARE THE JOURNAL ENTRIES FOR CRAZY, NORMAL AND WORKSHEET FOR 2011, 2012…BOTH CRAZY AND NORMAL USE PERPETUAL INVENTORY.
Incremental Analysis Incremental Analysis Question Describe one of the methods of incremental analysis discussed in the text. What other outside factors should a manager consider when performing the incremental analysis you have chosen?
Multiple Accounting MCQs Multiple Accounting MCQs Question 1. Windmill Corporation, a Dutch corporation, is owned by the following unrelated persons: 50 percent by a U.S. corporation, 5 percent by a U.S. individual, and 45 percent by a Swiss corporation. During the year, Windmill earned $2,000,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Windmill?Windmill is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $1,000,000 and $100,000, respectively.Windmill is a CFC and only the U.S. corporation will have a deemed dividend of $1,000,000.Windmill is a CFC and the U.S. corporation, U.S. individual, and Swiss corporation will have a deemed dividend of $1,500,000, $100,000, and $900,000, respectively.Windmill is not a CFC and none of the shareholders will have a deemed dividend under subpart F.2. Before subpart F applies, a foreign corporation must be a CFC for how many consecutive days?1301833653. The amount of the estate tax is directly related to the amount of taxable gifts.TrueFalse4. An exemption equivalent is the amount of annual gifts that is automatically exempt from the gift tax.TrueFalse5. The estate tax is imposed on testamentary transfers.TrueFalse6. The gross estate always includes the value of half of any real property owned by a decedent and another person in joint tenancy with the right of survivorship.TrueFalse 7. A completed gift must be irrevocably relinquished by the donor.TrueFalse8. Both spouses must consent to any gift-splitting election.TrueFalse9. A serial gift strategy consists of arranging a trust to maximize the value of the unified credit.TrueFalse10. A bypass provision in a will requires a decedent to have a taxable estate in order to use a unified credit to reduce total estate taxes on a married couple.TrueFalse11. A gratuitous transfer of property made during the lifetime of the donor is called:an incomplete gift.a testamentary transfer.a taxable gift.an intervivos transfer.All of these.12. Which of the following statements are true for both gratuitous and testamentary transfers?A unified credit of up to $1 million reduces the tax on any transfer.An annual exclusion offsets any transfer up to $13,000.An election can be made to split a transfer between spouses.A charitable and a marital deduction are allowed in computing the taxable transfer.All of these are true.13. At her death Tricia had an adjusted gross estate consisting of $8 million of property. Which of the following is a true statement about Tricia's estate or estate tax?Tricia must have a taxable estate over $8 million.Tricia's taxable estate will not exceed $8 million.Tricia must have a probate estate tax of zero.Tricia must have a gross estate tax of zero.None of these is necessarily true.14. Which of the following is a true statement about the Federal gift tax return (Form 709)?Form 709 is due by the 15th day of the ninth month following the date of the gift.Form 709 must be filed if a taxpayer wishes to elect gift splitting.Form 709 need not be filed unless a taxpayer's taxable gifts exceed the exemption equivalent.Form 709 is due nine months after the death of the decedent.None of these is true.15. As customary, Jayden gave Olivia a ring when she agreed to marry him. The ring is a family heirloom valued at $67,000. What is the amount of the taxable gift?zero - the marital deduction offsets the gift as long as Jayden and Olivia are married by year end.$54,000.$67,000.zero - this transfer is not gratuitous.None of these.16. Alexis transferred $400,000 to a trust with directions to pay income to her husband, William, for his life. After William's death the corpus of the trust will pass to William's son. If the life estate is valued at $72,000, what is the total amount of the taxable gifts?$387,000.$59,000.$328,000.$325,000.None of these.17. Which of the following is a true statement?A serial gift strategy utilizes intervivos gifts to multiple donees over multiple years to maximize the annual exclusion.A serial gift strategy works well even if the gifts don't qualify as present interests.A bypass trust avoids all estate taxes on the estate of the first spouse to die.The income tax savings from holding appreciated property until death is always outweighed by the additional estate tax imposed on the property.None of these is true.
Bus499 week 1 discussions Bus499 week 1 discussions Question Week 1 Discussion 1"Strategic Competitiveness" Please respond to the following: · From the first e-Activity, determine which of the two primary drivers of the competitive landscape is more influential. Explain your rationale. · Explain which model (I / O model or resource-based model) you believe will best help a firm in the industry you researched earn above-average returns.Week 1 Discussion 2 "Management’s Responsibility"Please respond to the following:From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response.Create a list of three best practices that not only would have helped the company you researched from failure, but would also apply to the rest of the industry your company was part of. Explain your rationale for selecting these best practices.
Davenport mgmt610 discussion 4 Davenport mgmt610 discussion 4 Question You have developed a new line of high-end organic balsamic vinegars. Several of your varieties are being used in restaurants in Chicago and have been well accepted by chefs and customers. You have decided to launch the product in both the retail and wholesale markets. Determine your pricing objectives and develop your pricing strategy. Support your decisions. Using the following information, apply your strategy and determine your pricing as well as break even in units. Support your decisions. Bottle, Label and Production (direct material and labor) $9.12 per 12 oz. bottle Advertising & promotion $218,000 Company Overhead $354,000 Bottle, Label and Production (direct material and labor) $9.12 per 12 oz. bottle Advertising & promotion $218,000 Company Overhead $354,000 Q2 Based on your research of distribution and channel strategy, develop a distribution strategy for your Balsamic Vinegar company. Be sure to include: structure or level of distribution and decisions on direct or dual distribution. Include specific distribution channels (actual firms) in your recommendations and support your rationale with at least 3 outside sources.
APU MKTG407 forum 1 APU MKTG407 forum 1 Question Select two of the following questions for your discussion posting. Try to work backward from a company's web page and attempt to infer its internationalization philosophy. Look at the Procter & Gamble () web pages describing the company's international involvement and its international product mix. What orientation do you believe this company has and why? In your own words, discuss what are the drivers in the international business environment that lead a firm to engage in international operations? What are some of the firm-specific drivers leading to internationalization? How can governments and competitors prevent a firm from entering a particular market? Provide a recent example. Your response must be in your own words. Your initial post should be 3 to 4 short paragraphs that reflect research, course content synthesis and reflection. Provide citations for the source of your learning. In order to earn full points, one must respond to the forum question by Day 4 and to at least two other classmates' responses with posts that add value to the discussion and allows for time for interaction. In other words, waiting until 11 pm Sunday night to respond to others does not support the intent of a discussion and will not earn full points. The point to a discussion is to learn from each other, test ideas, share insights and engage in two-way dialog. This discussion forum should be approximately 200 to 250 words and must be submitted by submitted by Day 4 and respond to two students by midnight Day 7. Remember that this course uses APA formatting for all written assignments.
ECO501/ECO511 Assignment 2 ECO501/ECO511 Assignment 2 Question Length:no more than 2500 words(including graphs, tables etc). Font size: 12; Margins: 2.5 cm on all sides Please submit via Reception and Turnitin. [This Assessment item covers in full (or partially) the Learning Objectives 1, 3, 4, 5 and 6]. PART A Activity 1. [30 marks] You are given the following information in relation to the market demand and supply of Ford cars: Ford Cars: Market Demand and Supply Price ($) Quantity demanded/sold Quantity supplied Price elasticity of demand Total Revenue 20,000 40,000 10,000 25,000 35,000 15,000 30,000 30,000 20,000 35,000 25,000 25,000 40,000 20,000 30,000 45,000 15,000 35,000 50,000 10,000 40,000 (i) Draw the market Demand and Supply curves (on the same graph) for Ford. [5 marks] (ii) What is the market equilibrium price and quantity? [5 marks] (iii) Explain what you will observe in the market if the Ford car price is set at a higher than equilibrium price. [5 mark] (iv). Suppose you are managing director of Ford Australia, and you are wondering whether or not to cut the price of Ford cars to increase your total revenue from sales. Explain how your knowledge of elasticity of demand can help you make this decision. Complete the last two columns of the above table and also draw a graph to explain your answer. [8 marks] (v). Suppose car industry is very competitive and Ford has been losing its competitiveness in the car market. Suppose that the government is providing substantial financial support to Ford manufacturers with the view that it will improve Ford’s competitiveness. Evaluate the merits and demerits of this government policy measure. [7 marks] Marking Criteria: To obtain full marks, you need to demonstrate clear understanding of the subject content covered/related to this activity. You need to explain where relevant how the knowledge can be used to make price/revenue decision. You also need to demonstrate your ability to use your content knowledge to make decisions in the real world scenarios. Use of correct, complete and relevant graphs is part of the skills/abilities expected. Practice work for the above activity (1): · Study Guide Topic 2; Self assessment questions 2, 3 and 4. · Textbook: Chapter 3, REVIEW QUIZES on p. 63. · Textbook: Study Plan Problems & Applications No. 11, p. 76 and Additional Problem & Applications 21-27, pp. 77-78; · Textbook: Pages 83-84; REVIEW QUIZES 2-3, p.86; Activity 2: [30 marks] (i). Explain the difference between accounting profit and economic profit. Include discussion of the distinction between explicit and implicit costs and how they relate to economic cost and opportunity cost. [5 marks] (ii). Suppose your aunt is thinking about opening a hardware store. She estimates that it would cost $ 500,000 per year to rent the store and buy the stock. In addition, she would have to quit her $ 510,000 per year job as an accountant. What is your aunt’s opportunity cost of running a hardware store for a year? If your aunt thought she could sell $ 510,000 worth of merchandise in a year, should she open the store? Explain. [5 marks] (iii). Compare and contrast the two market structures: Perfect Competition and Monopoly, in line with main characteristics of them. Comment of the Price and profit maximising output level in the two structures. [5 marks] (iv). Which market structure is considered to be more efficient? Justify your answer [3 marks] (v). List down two closest real world examples for each of these market structures. [2 marks] (vi). Do you believe that the government should intervene to control the monopoly power in the market. You need to argue for/justify your answer. [5 marks] (vii). In a free market system, why does the government have to provide certain goods and services using tax payers money? Is there any justification? Explain providing examples. [5 marks] Marking Criteria: To obtain full marks, you need to demonstrate clear understanding of the subject content covered/related to this activity. You also need to explain where relevant how the knowledge can be used to make decisions in the real world. Make sure that you use correct, complete and relevant graphs to explain your answers. Any justifications need to be made based on the subject content (theory/concepts) related to this subject. Use of correct, complete and relevant graphs is part of the skills/abilities expected. Practice work for the above activity (2): · Study Guide Topic 1: Self assessment questions 1 and 2; Study Guide Topic 4.1, Self assessment questions 1; · Textbook: REVIEW QUIZEs 1-5, p.284; REVIEW QUIZES 1-3 p.307 and REVIEW QUIZES 1-3 p.311; Study Plan Problems & Applications 7-8, p. 327; · Textbook: REVIEW QUIZEZs 1, 3, and 4, p.219; REVIEW QUIZEZs 1-4. P.224; Study Plan Problems & Applications 6-10, p.235. · Textbook: REVIEW QUIZEZs 1, 3, and 4, p.176; and REVIEW QUIZEZs 1 and 4. P.180; Additional Problems & Applications 17,p.191. PART B [40 marks] Activity 3: Section I: [20 marks] (i). (a). What is gross domestic product (GDP) and what is the use of it? [5 marks] (b). Comment on how well this measure serves its intended purposes. [4 marks] Practice work for the above activity: * Textbook: REVIEW QUIZEs 1 and 2, p.400; REVIEW QUIZE 1, p.409; read pages. 407-408. 27-28, p.419; (ii). (a). What is unemployment [2 marks] (b). Can a country achieve a 0% unemployment rate, Explain [5 marks] Practice work for the above activity: * Textbook: REVIEW QUIZEs 1 – 4, p.429; Study Plan Problems & Applications 1 – 4. (iii). (a). What is inflation, and how it is calculated [4 marks] Practice work for the above activity: * Textbook: REVIEW QUIZEs 3; Study Plan and Applications 12-16, p.440;Additional Problems and Applications 33 and 34, p. 442. Section II: Essay Question: [20 marks] Explain why inflation is a main concern for an economy, and examine how well inflation in Australia has been managed by the monetary authority over the last 10-15 years. To do the above activity, you need to read relevant chapters in your text book to get theoretical/conceptual understanding of the subject matter and read outside the textbook/Study Guide to examine the Australian case. These readings may include published research papers/articles, reports, reviews in the media and any other materials published with authority. In borrowing/extracting the ideas from other sources, you must properly acknowledge it. This means that you need to prepare a list of references at the end of Essay question. Marking Criteria: To obtain full marks, you need to demonstrate clear understanding of the subject content covered/related to this activity. You also need to explain where relevant how you can use content knowledge to make decisions in the real world. Any justifications need to be made based on the subject content (theory/concepts) related to this subject. Use of correct, complete and relevant graphs is part of the skills/abilities expected. To obtain full marks in the assignment, you also need to adhere to the following: * use correct terminology * stick to the word limit * Follow the Presentation guidelines as referred to in the Subject Outline
Why did some Americans lose faith in the banking system before the Federal Reserve System was in place Why did some Americans lose faith in the banking system before the Federal Reserve System was in place Question The Fed Today video, located at http://www.philadelphiafed.org/education/federal-reserve-and-you/index.cfm.Answer the following question in a report of 750 words. Why did some Americans lose faith in the banking system before the Federal Reserve System was in place? Include the following in your response:Explain the three primary roles of the 12 Federal Reserve Banks.Why is the Federal Reserve referred to as the banker's bank?Describe the role of the Federal Open Market Committee in conducting monetary policy.Based on this video, why might the Federal Reserve want to decrease the money supply?Prepare this assignment according to the APA guidelines found in the APA Style
Polycorp is considering an investment in new plant of $3 million. The project will be financed Polycorp is considering an investment in new plant of $3 million. The project will be financed Question Project 1 (half a mark for each part: You must show your working to receive full marks)Polycorp is considering an investment in new plant of $3 million. The project will be financed with a loan of $2,000,000 which will be repaid over the next five years in equal annual end of year instalments at a rate if 9.5 percent pa. Assume straight-line depreciation over a five-year life, and no taxes. The projects cash flows before loan repayments and interest have been deducted are shown in the table below. Cost of capital is 14.5% pa (the required rate of return on the project). A salvage value of $200,000 is expected at the end of year five and is not included in the cash flows for year five below. Ignore taxes and inflation.Year Year One Year Two Year Three Year Four Year FiveCash Inflow 800,000 950,000 855,000 900,000 950,000You are required to calculate:(1) The annual loan repayment(2) Loan repayment schedule showing principle and interest components(3) NPV of the project(4) the IRR of the project (your answer should include at least one manual trial to demonstrate that you understand the concept)(5) AE, the annual equivalent for the project(AE or EAV)(6) PB, the payback and discounted payback in years (to one decimal place)(7) ARR, the accounting rate of return (net and gross)(8) PI (present value index or profitability index)(9) Is the project acceptable? Provide the decision rule for each of the methods above.(10) Why or why not (provide a full explanation)?Project 2Polycorp Limited Steel Division is considering a proposal to purchase a new machine to manufacture a new product for a potential three year contract. The new machine will cost $1.15 million. The machine has an estimated life of three years for accounting and taxation purposes. Polycorp has elected to use the diminishing value method of depreciation. The contract will not continue beyond three years and the equipment estimated salvage value at the end of three years is $105,000. The tax rate is 29 percent and is payable in the year in which profit is earned. An investment allowance of twenty percent on the outlay is available. The cost of capital is 13.25%pa after tax.Addition net working capital of $70,000 is required immediately for current assets to support the project. Assume that this amount is recovered at the end of the three year life of the project.The new product will be charged $53,500 of allocated head office administration costs each year even though head office will not actually incur any extra costs (cash flows) to manage the project. This is in accordance with the firm’s policy of allocating all corporate overhead costs to divisions.Extra marketing and administration cash outflows of $43,000 per year will be incurred by the Steel Division. These are tax deductible in the year that they are incurred.An amount of $39,000 has been spent on a pilot study and market research for the new product. The projections provided here are based on this work.Projected sales for the new product are 30,000 units at $125 per unit per year. Cash operating expenses are estimated to be 81 percent of sales (excludes marketing and administration, and head office items).Except for initial outlays, assume cash flows occur at the end of each year (unless otherwise stated). Assume diminishing value depreciation for tax purposes.Please use diminishing balance/reducing balance depreciation for tax purposesRequired(a) Construct a table showing your calculations of net cash flow after tax. (Similar to that demonstrated in the notes and in class) {3 marks}(b) Calculate the NPV. Is the project acceptable? Why or why not? {1 marks}(c) Explain your calculation of relevant net cash flows after tax, justifying your selection of cash flows. Be sure to state clearly any assumptions made. {1 marks}
Davenport FIN510 Week 1 forum Davenport FIN510 Week 1 forum Question Forum Topic Responses:One comprehensive forum topic response is assigned weekly. Students are required to select and research one of the forum topics listed below using a minimum of 3 reference sourcesin additionto the textbook and then write a 1,000-word or more response to the forum topic. Post the topic response in this forum no later than Day 2 of this week. APA format is required. Also submit your forum topic response to Turnitin through the Weekly Materials/Week 1/Assignment Submission folder for grading.Comprehensive forum topic response contributions will be critically graded on the thought quality of the response, work effort, research, APA format, and analysis. Refer to the rubric for this assignment in the Syllabus section of Blackboard.Select one of the following forum topics to research and write about.Week 1 Forum Topics - Chapter 1: An Overview of Financial Management and the Financial Environment-Types of Company Ownership-The Primary Objective of the Corporation-The Process of Securitization and its Results-Financial Institutions-Financial Markets-The Global Economic Crisis-Derivatives (Web Extension 1A)