Tax credits A U.S.-based MNC has a foreign subsidiary that earns $246,000 before local taxes, with all the after-tax funds to be available to the parent in the form of dividends. The applicable taxes consist of a 32% foreign income tax rate, a foreign dividend withholding tax rate of 9.2 %, and a U.S. tax rate of 28%.

Calculate the net funds available to the parent MNC if:

a. If foreign taxes can be applied as a credit against the MNC's U.S. tax liability, the net funds available to the U.S. company is _______ (Round to the nearest dollar.)

b. If no tax credits are permitted, the net funds available to the U.S. company is $______ (Round to the nearest dollar.)

On January 1, 2020, the Maxell Company purchased P400,00 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. The bonds mature on December 31, 2030. Maxell Company uses the effective interest method of amortization.

Instruction: Determine the following:

1. issue price of the bonds on January 1, 2020
2. total amount of interest revenue for 2020
3. book value of the investment in bonds on December 31, 2020

Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid.

Determine the amounts of the components of pension expense that should be recognized by the company in 2020.

(Should be a a table that shows the components of pension expense)

Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2020.

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Carla Company for the year 2020.
[Need Income Statement (partial), Comprehensive Income Statement, and Balance Sheet (partial)]

The function
D(t) = 43.1224(1.0475)^t. gives the number of master’s degrees, in thousands, conferred on women in the United States t years after 1960. Find the number of master’s degrees earned by women in 1984, in 2002, and in 2010. Then estimate the number of master’s degrees that will be earned by women in 2020.?When will the number of master’s degrees earned by women in the U.S. reach a million?

Consider the following hypothetical natural experiment. The United States imposes a 25% tariff on imported automobiles (cars) in 2020 but does not do so on imported trucks. Canada does not impose such a tariff. In 2020 vehicles (cars+light trucks) in the U. S. (noncommercial) averaged 30 mpg while vehicles in Canada averaged 35 mpg. In 2025 vehicles in the US averaged 35 mpg while vehicles in Canada averaged 45 miles per gallon. Assume (this is a hypothetical natural experiment) that there are no differences between drivers and economic conditions in Canada and the U.S. In an actual analysis of such a situation any observable differences would be addressed using some matching algorithm. a. Using the difference in difference estimator calculate the yearly impact of the tariff on fuel efficiency for all vehicles. b. Assuming that there were 10 million vehicle (car and light truck) sales in the U.S. in 2025 and that each vehicle drives on average 10,000 miles per year, how much more gasoline would be consumed by U. S. drivers in 2025 due to the tariff?

What does it say about the leadership of Mr. Siegel that he called each person individually via videoconference? What are the ripple effects that this story will likely have throughout his company, to ZipRecruiter's customers, and the industry in which it operates?

This is the reading:

The toll the new coronavirus has taken on an economy that was healthy at the start of March came into clear relief when the government said Thursday that 6.6 million Americans had applied for unemployment benefits the week before.

No one weeps for the corporate bosses behind the decisions to lay off many of those people, but these bosses are struggling as they make the toughest calls of their careers. Marriott International Inc.'s CEO told analysts this surpasses the magnitude of 9/11 and the 2008 financial crisis combined. In a letter to employees , General Electric Co.'s CEO said this is an era where the unknowns outweigh the knowns.

Business leaders live by the calendar, attaching forecasts, projects and goals to a specific date or period of time. No one knows when state-issued mandates to stay at home will lift, and that renders a calendar about as useful in 2020 as an eight-track player. It is like stumbling around in the dark.

As quarterly earnings conference calls take place in the coming weeks, expect to hear a lot of "we don't know," "it's hard to say," and "I wish I had a crystal ball." These terms aren't typical for the managing class.

"CEOs are wired to take action," Jerry Colonna , a former venture capitalist who now counsels top executives, told me this week. "It's really hard when they don't really know what action to take. It's like taking a bucket to extinguish a fire and not knowing if the bucket is full of water or confetti."

Bahram Akradi, the Iranian-born founder of the Life Time Inc. health-club chain , is one of those CEOs looking for water in the bucket. I've talked with Mr. Akradi often in recent weeks about how his company is navigating the crisis.

The answer: It isn't pretty. Revenue has all but dried up, nearly $1 billion in new developments are on ice. "These are the facts," he told me during a Wednesday FaceTime session from his Chanhassen, Minn., office. "Empty parking lots are a fact."

Like many honchos I talk to, Mr. Akradi would like political leaders to set a firm date to reopen businesses and end rigid sheltering rules—even if that date is several weeks in the future. He also wants everyone's bills across the country to be postponed in April. For instance, mortgages or car payments due this month should be deferred to May.

Topping the list of concerns Mr. Akradi can control: the 38,000 people on his payroll. He likens Life Time to a boat in troubled waters. "We are in a big, massive storm," he told employees March 25. "We have no idea how long the storm is, or how bad it's going to get. What I'm trying to do is make sure I keep everybody on this ship staying intact and alive. That's all."

Eight days before, when he closed more than 150 clubs in 30 states, he recorded a video message telling employees Life Time could weather a two-week shutdown without breaking much of a sweat. After that, he'd have to get creative.

Last week came another video in which he had to explain why roughly 36,000, or about 90%, of employees were going on furlough as of Wednesday. The move included a commitment to pay 100% of affected workers' insurance premiums and an extra $10 million for a fund to help employees with essentials that unemployment checks won't cover.

This isn't how he wants it. "They've been with me 28 years, busting their rear ends." Now he's encouraging them to buy only the basics and try, if necessary, to negotiate favorable terms with potential creditors.

Mr. Akradi, 58, cut jobs before , during the financial crisis when a slowdown in discretionary income slammed several industries, including fitness. Even cutting under 200 jobs "felt like death, the ugliest thing I've had to do in my life." How much worse is it this time? "It is not even in the same orbit."

The day after my last chat with Mr. Akradi, I talked by phone with ZipRecruiter Inc. founder and CEO Ian Siegel as he kept an eye on two children at his home in Southern California. Mr. Siegel's had just finished a roller-coaster of a month that included laying off or indefinitely furloughing 500 people, roughly a third of the staff.

"All the way up to March 9 we were in a boom economy, and then literally overnight we were in a recession economy." Job seekers use ZipRecruiter to search and apply for jobs posted by companies on its website. Not all hiring has stopped, but listings rapidly declined starting March 10.

He had to decide whether the abrupt decline was a "shock to the system or the new normal." Without an accurate compass, he decided to plan for the worst-case scenario. "We knew we were going to have to make hard choices fast or harder choices later." He intentionally cut to the bone.

Mr. Siegel, 46, and his management team took about a week to figure out what to do. Keeping 700 employees would be manageable considering the company's liquidity and revenue levels. It likely gives ZipRecruiter enough head count to pivot back to growth if there is a sharp boost in hiring at the end of this crisis.

The process was gut wrenching; "definitely the hardest decision I've had to make." Mr. Siegel informed each displaced employee individually via videoconference, making it clear that each one was considered valuable. He hopes to rehire many of them.

Here's an important thing Mr. Siegel takes away from this process: A red hot startup like the decade-old ZipRecruiter can be sobered at a moment's notice.

"I really thought we were hardened, that we were operationally invulnerable," he said. The steps he took last month were "humbling."

These CEOs believe they will emerge and their businesses will eventually resemble what they looked like a month ago. Mr. Siegel said making necessary cuts now means the enterprise can continue to live another day and Mr. Akradi says CEOs like him are as crafty as they are tenacious.

"I'm never going to be faster than the bear," Mr. Akradi told me. "I just have to be faster than a lot of other folks."

Good advice, but outrunning the other guy just got a lot harder to do.

The case:

Hai Vu is the new president of Pacific Coast Optics (PCO) a small manufacturing firm in Sacramento, CA which produces fiber lenses for Street Mapping System, Infrared Lens for Anti-Terrorism Detection, and Camera Lenses for the Mars Rove. Hai Vu recently bought this company from his former employer. PCO used brokers to sell to wholesalers who marketed to retailers. Hai Vu occasionally thought about eventually developing his own sales force, but that was still some time away. Hai Vu is currently taking a second look at his plan to improve his firm’s profit performance. In 2019 PCO had a modest profit of $160,000; his 2020 goal is to increase this by 25%.

The 2019 retail selling prices of the three products PCO sold were $100,000 (Camera Lenses for the Mars Rove, $70,000 (Street Mapping Systems), and $25,000 (Infrared Lens for Anti-Terrorism Detection) per product, accounting for 25%, 40%, and 35%, respectively, of retail sales.  In 2019, PCO paid its brokers a 6% commission on all products sold to wholesalers. Wholesalers margin was 28% on retailer purchase price while retailers’ markup was 39% on wholesaler selling price. PCO’s 2019 material and labor costs per product ran about $20,000, while packaging and crating costs were $500 per product.

Hai Vu estimates machinery maintenance expenditures to be about $90,000 per year. PCO uses both “push” and “pull” promotional approaches to marketing through their channels of distribution. PCO products aside a $5 product information brochure for every product . In 2019, PCO attended two national trade shows at $9,000 each and 4 regional trade shows at about $4,000 each. PCO spent nearly $240,000 advertising in national consumer magazines and an additional $30,000 in trade publications to wholesalers and retailers. All of these will repeat for 2020.

Broker commission for 2020 will increase to 12% while packaging crating costs will go up to $505 per product. Hai Vu also plans to increase 2020 manufacturer selling price by about $2000 per product.

Assuming no changes in costs and prices other than those mentioned earlier, how will Hai Vu’srequired level of sales (RLS) to reach the 2020 profit goal, in units and dollars, differ from those for the 2019 profit goal, in units and dollars? That is, will they go up, down or stay the same?

•

Q07.​What is the proposed PCO manufacturer selling price per product and $ profit goal for 2020?

Starware Software was founded last year to develop software for gaming applications. The founder initially invested

$ 800 comma 000$800,000

and received

88

million shares of stock. Starware now needs to raise a second round of​ capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest

$ 1.60$1.60

million and wants to own

31 %31%

of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with

31 %31%

of the​ company? What is the implied price per share of this funding​ round?

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)?

2. Aspen Skiing Company operates ski resorts across the U.S. It does its business in U.S. dollars. It has nothing to do with foreign currencies. Should it worry about the value of U.S. dollar? Why?

On January 1, 20X8, Transport Corporation acquired 75 percent interest in Steamship Company for $300,000. Steamship is a Norwegian company. The local currency is the Norwegian kroner (NKr). The acquisition resulted in an excess of cost-over-book value of $25,000 due solely to a patent having a remaining life of 5 years. Transport uses the fully adjusted equity method to account for its investment. Steamship's December 31, 20X8, trial balance has been translated into U.S. dollars, requiring a translation adjustment debit of $8,000. Steamship's net income translated into U.S. dollars is $35,000. It declared and paid an NKr 20,000 dividend on June 1, 20X8. Relevant exchange rates are as follows:

Assume the kroner is the functional currency.

1. Based on the preceding information, in the journal entry to record the receipt of dividend from Steamship,

A. Investment in Steamship Company will be credited for $3,450.
B. Cash will be debited for $3,300.
C. Investment in Steamship Company will be credited for $4,000.
D. Cash will be debited for $3,600.

2. Based on the preceding information, in the journal entry to record parent's share of subsidiary's translation adjustment:

A. Other Comprehensive Income — Translation Adjustment will be debited for $8,000.
B. Other Comprehensive Income — Translation Adjustment will be credited for $6,000.
C. Investment in Steamship Company will be credited for $6,000.
D. Investment in Steamship Company will be debited for $8,000.

3. Based on the preceding information, what amount of translation adjustment is required for increase in differential?

A. $3,000
B. $5,500
C. $4,500
D. $5,000

4. Based on the preceding information, in the journal entry to record the amortization of the patent for 20X8 on the parent's books, Investment in Steamship Company will be debited for:

A. $5,000
B. $5,500
C. $4,500
D. $3,000

Please provide calculations! Thank you!