Assume that in 2018 the nominal GDP was $8,000 billion and in 2019 the nominal GDP was $8,500 billion. Based on this information can we make any meaningful comparison of the economy’s performance?
Would the value of automobile production in 2019 in the U.S. by a Korean auto company be counted in the U.S.’s GDP for the Year 2019? Briefly explain.
If you purchased $10,000 of Google stock in 2019, would that purchase be included in GDP statistics for 2019?
As a result of covid-19 pandemic the U.S. economy declined by a historical amount in the 2nd quarter of this year. The revised second quarter GDP data was announced on 2nd October 2020. What was the annual rate of decline for the 2nd quarter U.S. GDP growth?
In: Economics
Ben Bernanke, former chairman of the Federal Reserve Board, cited a study that examined the effect of international trade on income in the U.S since World War II: removing all remaining barriers to trade would raise incomes anywhere from $4,000 to $12,000 per household. Discuss why our household incomes rise with free trade.
In: Economics
In writing the background for this weekend’s homework assignment, I realized that I didn’t need to spend much time with the introduction of the company. Everyone knows Amazon, as a matter of fact, most of us shop on Amazon for many things that we use in our daily life. The company is one of the largest in the world and has over 500,000 employees. The CEO and founder of Amazon, Jeff Bezos, was interviewed at an awards ceremony in 2016 and this ten minute interview was recorded and posted on Youtube. The link appears below:
https://www.youtube.com/watch?v=F7JMMy-yHSU
As you listen to the ten or so guiding principles that Mr. Bezos describes as being at the core of Amazon’s success, please:
#1)Identify the top two with which you most identify. Explain the reasons for your selections.
#2) Refer to the descriptions of the four types of organizational cultures, which appear at the end of Chapter 3 in your textbook. Based on this interview, would you evaluate the Amazon culture as one that focuses on adaptability, achievement, involvement, or consistency? Explain the reasons for your selection.
In: Operations Management
Question 5 Accounting for Consolidation
The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:
Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:
Share capital $320,000
Reserve $160,000
Retained earnings $280,000
The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.
Required: (Narrations are required in this question)
In: Accounting
The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:
Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:
Share capital $320,000
Reserve $160,000
Retained earnings $280,000
The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.
Required: (Narrations are required in this question)
In: Accounting
Bessrawl Corporation is a U.S.-based company that prepares its consolidated financial statements in accordance with U.S. GAAP. The company reported income in 2014 of $1,000,000 and stockholders’ equity at December 31, 2014, of $8,000,000. The CFO of Bessrawl has learned that the U.S. Securities and Exchange Commission is considering requiring U.S. companies to use IFRS in preparing consolidated financial statements. The company wishes to determine the impact that a switch to IFRS would have on its financial statements and has engaged you to prepare a reconciliation of income and stockholders’ equity from U.S. GAAP to IFRS. You have identified the following four areas in which Bessrawl’s accounting principles based on U.S. GAAP differ from IFRS.
1)Inventory
2)Property, plant, and equipment
3)Intangible assets
4)Research and development costs.
Bessrawl provides the following information with respect to each of these accounting differences.
Inventory
At year-end 2014, inventory had a historical cost of $250,000, a replacement cost of $180,000, a net realizable value of $190,000, and a normal profit margin of 20 percent.
Property, Plant, and Equipment
The company acquired a building at the beginning of 2013 at a cost of $2,750,000. The building has an estimated useful life of 25 years, an estimated residual value of $250,000, and is being depreciated on a straight-line basis. At the beginning of 2014, the building was appraised and determined to have a fair value of $3,250,000. There is no change in estimated useful life or residual value. In a switch to IFRS, the company would use the revaluation model in IAS 16 to determine the carrying value of property, plant, and equipment subsequent to acquisition.
Intangible Assets
As part of a business combination in 2011, the company acquired a brand with a fair value of $40,000. The brand is classified as an intangible asset with an in- definite life. At year-end 2014, the brand is determined to have a selling price of $35,000 with zero cost to sell. Expected future cash flows from continued use of the brand are $42,000, and the present value of the expected future cash flows is $34,000.
Research and Development Costs
The company incurred research and development costs of $200,000 in 2014. Of this amount, 40 percent related to development activities subsequent to the point at which criteria had been met indicating that an intangible asset existed. As of the end of the 2014, development of the new product had not been completed.
Required
Prepare a reconciliation schedule to convert 2014 income and December 31, 2014, stockholders’ equity from a U.S. GAAP basis to IFRS. Ignore income taxes.
Prepare a note to explain each adjustment made in the reconciliation schedule.
In: Accounting
In July 2020, Delta Air Lines reported earnings for the second quarter of 2020. Delta’s CEO Ed Bastian stated “[d]emand has stalled as the virus has grown...coupled with the quarantine measures”. Delta’s posted a $5.7 billion net loss in the second quarter. Which of the following is correct?
In: Economics
Traynor Corporation reports its 40 percent investment in Victor Company on its December 31, 2020 balance sheet at $14,608,000. Traynor acquired its interest in Victor on January 2, 2018 and uses the equity method to account for the investment. Victor’s assets and liabilities were fairly stated on January 2, 2018 except for unreported technology (5-year life) of $4 million. Victor reported net income of $1.2 million, $1.5 million, and $1.4 million, and paid dividends of $200,000, $250,000, and $230,000 in 2018, 2019, and 2020, respectively. There was no impairment of Traynor’s investment. Required How much did Traynor Corporation pay for its investment in Victor Company on January 2, 2018?
In: Finance
To improve turnover (employees leaving your organization), you implemented a new training program company-wide about a year ago. However, you're not sure that the training is equally effective in reducing turnover between your service department, sales departments, and warehouse. To test this, you retrieved a list of all current and former employees that have received the training and created a dataset also recording their department. Conduct a test of independence to investigate this.
Turnover: Department:
former warehouse
current service
current sales
former warehouse
current sales
former sales
current sales
current service
former warehouse
current sales
current service
current warehouse
current service
current warehouse
current service
former sales
former sales
former service
The p-value for this chi-square was _____________and the chi-square value was _______________. This test _____________ achieve statistical significance. The expected value for Former Employee/Service was_________________, while the observed value was _______________________
options to fill in the blanks:
0.03, did, 2.33, did not, 0.33, 2.23, 1, 1.98.
In: Math
The following information about Sunny Company on January 1, 2020 was available:
|
Book value |
Fair value |
|
|
Cash |
193,000 |
193,000 |
|
Inventory |
40,000 |
39,400 |
|
Building |
180,000 |
200,000 |
|
Total |
413,000 |
432,400 |
|
Accounts Payable |
3,000 |
3,000 |
|
Common Stock |
200,000 |
|
|
Add. Paid-in Capital |
110,000 |
|
|
Retained Earnings |
100,000 |
|
|
Total |
413,000 |
Pantop uses the complete equity method to account for its investment in Sunny. During 2020, Sunny had a net income of $80,000. The remaining useful life of the building was five years with no salvage value. Sunny uses straight line depreciation. Sunny’s cost of goods sold (FIFO) was $70,000 in 2020. On December 23, 2020, Sunny declared and paid $48,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31, 2020.
(i) Prepare journal entries for Pantop to record under the complete equity method of accounting the operating results of Sunny in 2020.
(ii) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pantop Corporation and subsidiary for the year ended December 31, 2020.
In: Accounting