The accounting profit before tax of Subang Ltd for the year ended 30 June 2020 was $320,000.

It included the following revenue and expense items:

Legal expenses 62 500

Interest expense 10 000

Bad debt expense 15 000

Depreciation expense – Plant & equipment 26 250

Entertainment Expense 2 500 Audit fee 40 000 Interest revenue 15 000 Rent revenue 10 000 Exempt income 37 500 Additional information: 1. Interest receivable at 30 June 2020 is $12,500 (2019: $15,000). Interest payable at 30 June 2020 is $500 (2019: $3,000). Interest is assessable on receipt and deductible when paid. 2. The company raised an accrual liability of $17 500 for audit work performed and not paid by 30 June 2020 (2019: $15,000). Fees for audit work are not deductible unless the audit work has been performed and paid. 3. Rent revenue relates to a contract where the annual rent is received in advance. The unearned revenue liability at 30 June 2020 is $10,000 (2019: $7,500). Rent is assessable when received. 4. Legal expenses include $25,000 related to capital transactions that are not deductible. 5. The bad debts expense relates to an account that has been written off. 6. Plant and equipment is as follows: 30 June 2020 30 June 2019 Plant & Equipment $175 000 $75 000 Accumulated depreciation 48 750 22 500 126 250 52 500 Question 1 is continued on the next page ACCY200 (MT) / Page 4 of 6 Question 1 continued 7. Tax depreciation for 30 June 2020 is $35,000. The tax written down value of plant and equipment at 30 June 2020 is $110,000 (2019: $45,000). 8. The deferred tax balances at 30 June 2019 are; deferred tax liability $6,750 and deferred tax asset $12,300. 9. The company tax rate is 30%. Required: a) Prepare the current tax worksheet and the journal entry to recognise the current tax as at 30 June 2020. b) Prepare the deferred tax worksheet and any necessary journal entries to adjust deferred tax accounts for 30 June 2020.

Consider a closed economy in which the depreciation rate is 10% per year, the rate of population increase is 2% per year, the rate of technological progress is 1% per year Andy the households save 30% of their income. Suppose the aggregate production function is; Y=f(K, AL)= 9K^4/5 (AL)^1/5 Where Y is output, K is capital, A is the level of technology and L is labor input.

a) Derive the production function in per effective worker terms.

b) Solve for the steady-state values of capital per effective worker (k*), output per effective worker (y*), consumption per effective worker (c*), and savings per effective worker (s*).

c) Derive the equation for the growth rate of output per worker, the growth rate of capital per worker, the growth rate of output and growth rate of capital. What are the values of the growth rates derived?

Show work in Red and Explain answers.

Suppose CPI is as follows in each year:

Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years.

Suppose in the year 2007 you are considering a job offer that pays $50,000 in 2007, plus a 10% (compounding) raise in each of the next three years.

1. What nominalsalary will you make in each year?

2. What will your real salary be in each year, using a 2007 base year?

3. What will your real salary be in each year, using a 2009 base year?

4. In what year was your real salary highest?                                 _________
5. Does your answer to 4 depend on the base year selected?        _________
6. Suppose instead your contract gave you $50,000 in 2007, plus a cost of living adjustment equal to the percentage change in CPI. Compute the nominal wage in each year.

7. In what years is this contract better than the original one?       _________

a)   Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Seller B informs A that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. Seller C will sell Buyer A the goods for $4,000 plus a transportation cost of $200. What remedies are available to A in this case?

b)   Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Buyer A informs B that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. Buyer C will buy the goods for $2,000. Additionally, during the time between the breach and Buyer’s C offer, it cost Seller B $500 to care for the goods. What remedies are available to B in this case?

c)   Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Buyer A informs B that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. The market price for the goods at the time of tender was $1,500. What remedies are available to B in this case?

Jill had made a capital loss of $1,000 in the 2017-2018 income year and had no capital transactions until now. Jill sells her holiday house on 1 January this year for $500,000. She bought the property on 1 January 2010. During her ownership period: she used the property as a holiday house for the first 2 years; then made it available for renting for the next 8 years. During these 8 years, the property was vacant for a total of 2 years. he has provided you with the following information: Description Date Amount Purchase of property 1 January 2010 $250,000 Deposit on signing of contract 1 January 2010 $50,000 Balance on settlement 11 March 2010 $450,000 Stamp duty on acquisition 11 March 2010 $5,000 Legal Fees on acquisition 11 March 2010 $1,000 Council rates p.a. 1 January each year $500 per year Real estate agent's commission on 1 January this year $2,000 sale Costs of advertising the sale 1 January this year $1,000 Calculate Jill's capital gain or capital loss for the year ended 30 June this year, using the CGT discount option. In your answer you must clearly identify the classification of the various amounts that form part of that calculation. Cite the relevant statutory provisions support vour calculation.

Tables 1 and 2 show the quantities of the goods that Suzie bought and the prices she paid during two consecutive weeks. Suzie’s CPI market basket contains the goods she bought in Week 1. Calculate the cost of Suzie’s CPI market basket in Week 1 and in Week 2. What percentage of the CPI market basket is gasoline? Calculate the value of Suzie’s CPI in Week 2 and her inflation rate in Week 2.

Table 1 Data for Week 1

Item

Quantity

Price (per unit)

Coffee

11 cups

$3.25

DVDs

1

$25.00

Gasoline

15 gallons

$2.50

Table 2 Data for Week 2

Item

Quantity

Price (per unit)

Coffee

11 cups

$3.25

DVDs

3

$12.50

Gasoline

5 gallons

$3.00

Concert

1 ticket

$95.00

Use the following information to work Problems 4 and 5.

The GDP price index in the United States in 2000 was about 90, and real GDP in 2000 was $11 trillion (2005 dollars). The GDP price index in 2010 was about 111, and real GDP in 2010 was $13.1 trillion (2005 dollars).

Calculate nominal GDP in 2000 and in 2010 and the percentage increase in nominal GDP between 2000 and 2010.What was the percentage increase in production between 2000 and 2010, and by what percentage did the cost of living rise between 2000 and 2010?

In 2010 the Maricopa Community College District's enrollment data showed the following breakdown of students by ethnicity: 54.9% White; 21.1% Hispanic; 7.9% Black; 4.5% Asian/Pacific Islander; 2.9% Native American; 8.8% Other. Information was collected from a random sample of 300 students in 2017 to determine whether or not the data has changed significantly. The sample data is given in the table below. At the alph=0.05 level of significance, test the claim that the ethnic breakdown of students at MCCCD has not changed significantly since 2010.

Which would be the correct hypothesis for this test?

H0: u1 = u2; H1: u1 ≠ u2

H0: p1 = p2; H1: p1 ≠ p2

H0: The breakdown of students by ethnicity has not changed significantly since 2010 (i.e. the given distribution still fits); H1: The breakdown of students by ethnicity has changed significantly since 2010 (i.e. the given distribution no longer fits)

H0: The breakdown of students by ethnicity has changed significantly since 2010 (i.e. the given distribution no longer fits); H1: The breakdown of students by ethnicity has not changed significantly since 2010 (i.e. the given distribution still fits)

Ethnicity of students in sample:

White - 160

Hispanic - 89

Black - 25

Asian/Pacific Islander - 11

Native American - 15

Other - 0

Test Statistic:

______________

Give the P-value

_____________

The goal is to show that a nonempty subset C⊆R is closed iff there is a continuous function g:R→R such that C=g−1(0).
1) Show the IF part. (Hint: explain why the inverse image of a closed set is closed.)
2) Show the ONLY IF part. (Hint: you may cite parts of Exercise 4.3.12 if needed.)

Do you believe the long term potential damage to the US economy in terms of innovation and expertise is offset by the apparent gains in productivity due to offshoring?