Select an area of the world upon which to focus your attention. For each major country of your selected area (like Canada, Mexico, Brazil, Argentina, Japan, China, India, Australia, Singapore, Hong Kong, South Korea, Russia, Germany, France, Italy, United Kingdom, Ireland, Spain, France, Switzerland, Sweden, Denmark, Finland, Saudi Arabia, Israel—I know I missed some), identify the currency in use in the country, show what the foreign currency is now selling for versus the U.S. dollar, and explain whether it has weakened or strengthened against the U.S. dollar for the current period and from 5 years ago. Finally, discuss why the currency has strengthened or weakened versus the U.S. dollar during these time periods.

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.

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.
(Should be a Partial Income Statement, Comprehensive Income Statement and a Partial Balance Sheet)

Net income figures for Flounder Ltd. are as follows: 2016 - $77,800 2017 - $56,500 2018 - $86,400 2019 - $90,600 2020 - $71,600 Future income is expected to continue at the average amount of the past five years. The company’s identifiable net assets are appraised at $468,200 on December 31, 2020. The business is to be acquired by Novak Corp. in early 2021. The normal rate of return on net assets for the industry is 9%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. What amount should Novak Corp. pay for goodwill, and for Flounder Ltd. as a whole, if goodwill is equal to average excess earnings capitalized at 25%? Novak Corp. pay for goodwill $ Novak Corp. pay for Company $ What amount should Novak Corp. pay for goodwill, and for Flounder Ltd. as a whole, if a perpetual 18% return is expected on any amount paid for goodwill? (Round answers to 0 decimal places, e.g. 5,275.) Novak Corp. pay for goodwill $ Novak Corp. pay for Company $ What amount should Novak Corp. pay for goodwill, and for Flounder Ltd. as a whole, if goodwill is equal to five years of excess earnings? (Round answers to 0 decimal places, e.g. 5,275.) Novak Corp. pay for goodwill $ Novak Corp. pay for Company $ What amount should Novak Corp. pay for goodwill, and for Flounder Ltd. as a whole, if goodwill is equal to the present value of five years of excess earnings capitalized at 20%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Novak Corp. pay for goodwill $ Novak Corp. pay for Company $

Hedged Sale Commitment and Exposed Asset Position

On June 25, 2020, GlobalAgra Inc., a U.S. company, received a purchase order from a Swiss customer for delivery of merchandise on July 10, 2020, at a price of CHF10,000,000, payable in Swiss francs (CHF) on September 10, 2020. To hedge its exposure to exchange rate changes, on June 25, 2020, GlobalAgra entered a forward contract for delivery of CHF10,000,000 to the broker on September 10, 2020. The merchandise was delivered as scheduled. On September 10, 2020, GlobalAgra received payment from the customer, and delivered the Swiss francs to the broker to close the forward contract. GlobalAgra’s accounting year ends December 31. Exchange rates ($/ CHF) are as follows:

Required

Prepare the journal entries GlobalAgra made on July 10, 2020, and September 10, 2020, to record the above transactions.

Sandhill Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Sandhill Growth sells these seeds on account for $1,950,000 (cost $600,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS.

Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

eTextbook and Media

List of Accounts

Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $130,000 of seeds from Sandhill Growth. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

eTextbook and Media

List of Accounts

Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience. Sandhill follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

eTextbook and Media

List of Accounts

Assume that one customer returns the seeds on July 1, 2020.

Prepare the journal entry to record this transaction, assuming this customer purchased $130,000 of seeds from Sandhill Growth. Sandhill follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

p) Product Differentiation Strategy

Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020. The following additional data are available for 2019 and 2020:

Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Co’s change in income from 2019 to 2020 is due to a product differentiation strategy?

Facts:

On April 1, 2020, Bert's Baseball Company purchased equipment for $66,000. The company expected the equipment to last four years or 6,000 hours, with an estimated salvage value of $6,000 at the end of the useful life. The equipment was used 1,000 hours during 2020.

1. What amount of depreciation expense will Bert's Baseball Company record in 2020 using the straight-line method of depreciation?

2. What amount of depreciation expense will Bert's Baseball Company record in 2020 using the units-of-activity method of depreciation?

3. In your opinion, is it ethical for a company to change depreciation methods for the sole purpose of maximizing profitability (increasing net income)? Why or why not? Explain.

University of Missouri, St. Louis

Economics 1002-003: Principles of Macroeconomics.

Discussion Topic 11: Great Recession and Lost Decade

1. How has the US money supply growth since 2008 resulted in an effective ceiling on real interest

rates while allowing the US inflation rate to remain low?

2. What role might the Fed policy have had in creating an effective ceiling on real interest rates, in

terms of paying interest on excess reserves (starting in 2008 for the first time)?

3. Illustrate how an effective ceiling on real interest rates in the capital market causes less private

investment and savings in equilibrium.

4. Describe how the capital market could be “deregulated” such that the ceiling on real interest

rates is eliminated and real rates resume their unregulated equilibrium.

5. What can be the effect of a ceiling on real interest rates internationally, if other countries want

their currency to remain of the same value relative to the US (so they avoid currency

appreciation and a decrease in exports).

Suppose the company E-bikes R US is the sole supplier of e-bikes and faces the following inverse demand function: p = 100 - 2Q, and total cost is given by TC = 16q + 2. The deadweight loss from E-bikes R US equals

A) $21.

B) $441.

C) $882.

D) $1,764.

Suppose the company E-bikes R US is the sole supplier of e-bikes. As other e-bike firms enter the market, the market power of E-bikes R US

A) is unaffected.

B) declines.

C) increases.

D) increases according to the Lerner Index but decreases according to the price/marginal cost ratio.

Suppose the company E-bikes R US is the sole supplier of e-bikes. The more elastic the demand curve faced by E-bikes R US, the monopolist

A) will have a larger Lerner Index.

B) will face a lower marginal cost.

C) will earn more profit.

D) will lose more sales as it raises its price.

37. Suppose there is a competitive market for e-bikes that is in the long-run. If firms in the e-bike market are not identical, then an increase in cost will

A) shift marginal cost to the right.

B) push the most inefficient firms out of the market.

C) push the most efficient firms out of the market.

D) There is not enough information to answer.

2. Terry owns land that she acquired three years ago as an investment for $250,000. Because the land has not appreciated in value as she had anticipated, she sells it to her brother, Chris, for its fair market value of $180,000. Chris sells the land two years later for $240,000. What are the tax consequences for Terry and Chris?

3. Sam and Fran are married with 3 dependent children. They file a joint return in 2020. Their salaries totaled $175,000. They earned taxable interest income of $3,600. Fran received a cash gift from her parents of $10,000. Sam inherited stock from his uncle. At the time of his uncle's death the stock was valued at $20,000. The uncle's original cost basis was $12,000. Sam sold the stock for $23,000 on December 30th and received the proceeds on Jan. 2nd. What is Sam and Fran's tax liability?