Your client, a US multinational company, is planning to transfer intangible assets, including trade names and trademarks to a low tax offshore subsidiary. This subsidiary would charge royalties to the US and foreign subsidiaries for the use of the intangibles. The company also plans to ship products manufactured by its international subsidiary to various worldwide customers.

A) Briefly summarize the current transfer pricing implications and tax reporting considerations your client should consider for both transactions.

B) What other information would you request from your client?

Please solve the hypothesis testing problems (#1, and 2) using Minitab as the tool. For each problem, (1) specify the business and statistical hypotheses, (2) specify what the Type I and Type II errors are in this business context, and, the implications of making those errors, (3) include the results from Minitab, (4) draw appropriate conclusions to your statistical hypotheses based on the results, and, finally, (5) present the business conclusions in a short non-statistical summary.

After receiving your bachelor’s degree in personnel management, you were hired by a small but expanding life insurance company. Your first assignment is to develop a more efficient technique for the preliminary screening of applicants for sales positions. Since the firm employs only college graduates, you decide to work with information focusing on their performance during college. A random sample of 25 from the firm’s current sales force is selected and the following information is obtained: Last year’s performance evaluation score College grade point average (GPA) Percent of total college expenses earned by the individual Number of social organizations the individual belonged to

(Source: Unknown – 270RL?)

On the basis of the data obtained, what recommendations can you make regarding the preliminary screening of applicants for sales positions?

Sheridan Company began operations on January 2, 2016. It employs  8 individuals who work 8-hour days and are paid hourly. Each employee earns  10 paid vacation days and  8 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Sheridan Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Windsor Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Windsor Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

List of Accounts

Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.

Smith, a U.S. citizen, has been working as an executive of a telecommunication company in U.S., and her annual salary in 2014 was US$150,000. Her salary was expected to remain unchanged if she continued to work in the company. At the end of the year 2014, however, she was recruited by a media company in Brazil, so she started working in Brazil from January 2015, making an annual salary of US$210,000. Assuming that the amount of her salary equals the amount of her contribution to the production in the company she works for, how much the annual U.S. GDP and GNP in 2015 was changed due to her job relocation? Clearly show the reasoning for your answer.     

Suppose you are a U.S. based company and exports goods from the United Kingdom. In 90 days, you expect to receive payment for a shipment of goods from the UK worth 100,000 British pounds (settlement). The US risk free discrete rate is 2.6% and the UK risk free discrete rate is 4.0%, and the current FX spot rate is $1.23 per pound.

A. You expect the UK pound currency to decrease against the US dollar over next 90 days. Please explain, whether you should buy or short a forward contract on the FX currency to hedge the foreign exchange risk?

B. What is the no-arbitrage profit “Interest Rate Parity” forward price to enter a forward contract expiring in 90 days?

C. After 30 days since the US company entered into a forward contract agreement the FX spot price for USD per pound is now, $1.19 per pound. The US risk free and UK risk free interest rates have stayed the same. What is the value of the US company’s position in the Forward contract at this 30-day mark of the 90-day forward contract?

D. At expiration of the forward contract (at 90 days), assuming forward price agreed was “Interest Rate Parity” price, and the USD per pound currency spot price is $1.23 per pound, what is the value of the US Company’s forward contract position?

An Australian resident company who receives a dividend from a non-resident company will include the overseas tax paid in its franking account

true or false

Turn the following into a structured informative abstract.

Metalinguistic awareness contributes to effective writing at university. Writing is a meaning-making process where linguistic, cognitive, social and creative factors are at play. University students need to master the skills of academic writing not only for getting their degree but also for their future career. It is also significant for lecturers to know who our students are, how they think and how we can best assist them. This study examines first-year undergraduate Australian and international engineering students as writers of academic texts in a multicultural setting at the University of Adelaide. A questionnaire and interviews were used to collect data about students’ level of metalinguistic awareness, their attitudes toward, expectations for, assumptions about and motivation for writing. The preliminary results of the research show that students from different cultures initially have different concepts about the academic genres and handle writing with different learning and writing styles, but those with a more developed metalanguage are more confident and motivated. The conclusion can also be drawn that students’ level of motivation for academic writing positively correlates with their opinion about themselves as writers. Following an in-depth multi-dimensional analysis of preliminary research results, some recommendations for writing instruction will also be presented.

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 10%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $110 to purchase these supplies.

For years, Worley believed that the 10% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $39,000 to buy from manufacturers):

Required:

1. Compute the total activity costs that would be assigned to University and Memorial.

2. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.)

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

The company's chart of accounts follows:

Use the following information:

Two-thirds (or $128) of one month’s insurance coverage has expired.

At the end of the month, $600 of office supplies are still available.

This month’s depreciation on the computer equipment is $300.

Employees earned $500 of unpaid and unrecorded salaries as of month-end.

The company earned $2,300 of commissions that are not yet billed at month-end.

Required:
4. prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30, 2017.
5b. Prepare the statement of retained earnings for the month of April 30, 2017.
5c. Prepare the balance sheet at April 30, 2017.