Choose a country (except the U.S.) and discuss the following economic indicators:

1. GDP (real growth rate) and country comparison to the word

2. Main industries

3. Agriculture products

4 Unemployment rate

5 Inflation rate

6 Exports in $ for 2019

7 Export commodities

8. Export partners

9. Import ( in $) for 2019, 2020

10 Import commodities

11. Energy:

     Electricity access:

    Population without electricity:

   Electrification total population

    Crude oil production ( for 2019) and country comparison to the world

12. Population

13 Internet users

14. Life expectancy

In 2013 U.S. government policymakers flirted with the idea of minting a $1 trillion platinum coin and having the Fed purchase it (compare it with the $2 trillion economic stimulus package during the pandemic in 2020). The Fed would basically print up a trillion dollars and hand it to the Treasury (either that or make an electronic transaction). The proceeds would allow the government to avoid its debt ceiling. Why didn’t the Fed propose minting the coin with, say, Mickey Mouse’s face on it, or even minting an official $1 trillion plastic coin? And no matter what material the government would use to mint the coin, is the proposal inflationary?

Questions 2, 3, and 4 ask you to consider the situation described in the article published in Monday, March 2, 2020 issue of The Wall Street Journal and titled “Meat Stockpiles Surge as Coronavirus Epidemic Curbs Exports”. You do not have to read the story to understand the setup of these questions. Here is what you should focus on to complete your analysis.  

• In 2019, U.S. meatpackers had been exporting large amounts of meat (chicken, pork, and beef) to China.
• However, the coronavirus (Covid-19) outbreak in January and February 2020 has significantly reduced demand for U.S. meat exports.
• For this analysis, assume the meatpacking industry is perfectly competitive, demand is downward sloping, supply is upward sloping, and production technology results in traditional U-shaped ATCand AVC curves.
• Finally, for questions 2, 3, and 4, market price is always greater than the minimum of the AVC curve.

Question 2:

Assume that prior to the outbreak of the coronavirus (Covid-19), the meatpacking industry was in Long Run Equilibrium (LRE).

• Using our side-by-side graph methodology, graphically depict the market equilibrium P₀ and Q₀, the optimal output of an individual firm representative of the other firms in the industry at this LRE (labeled as q₀), and the individual firm’s profit if any (shaded and clearly labeled).
• Provide a brief narrative explaining the setting and the profitability of an individual firm in an LRE (including why there is a certain level of profit in this setting).
• Reminder: Be sure to label all relevant points and axes.

The world today is changing and HR will have challenges relating to technology. Discuss your opinion on having all classes online and not face-to-face from a student standpoint. Should COVID-19 shutdown encourage mote eLearning and fully MBA online degrees? How would HR handle these issues with faculty and staff?

PLEASE ANSWER AND MAKE A SOLUTION.

1. The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows:

Preference share capital, 20,000 shares, $20 par = $400,000
Share premium - preference = 160,000
Ordinary share capital, 50,000 shares, $80 par = 4,000,000
Share premium – ordinary = 600,000
Retained earnings = 360,000

During the year ending December 31, 2010, the following summarizes the transactions affecting the shareholders’ equity

April 30 - 1,000 preference shares were retired at $25 per share.

June 15 - 2,000 treasury shares, ordinary, were purchased at $85 per share.

June 30 - A two-for-one ordinary share split was declared.

July 31 - 800 treasury shares were reissued at $50 per share.

Dec. 31 – Profit for 2010 was $300,000.

What was the total share premium on December 31, 2020?

a. $760,000        c. $755,000

b. $766,000        d. $761,000

2. Black Corporation was organized on January 3, 2020. Black was authorized to issue 50,000 ordinary shares with a par value of P$10 per share. On January 4, Black issued 30,000 ordinary shares at $25 per share. On July 15, Black issued an additional 10,000 shares at $20 per share. Black reported income of $33,000 during 2020. In addition, Black declared a dividend of $0.50 per share on December 31, 2020. The amount reported on Black Corporation's December 31, 2020, balance sheet as shareholders' equity was

a. $400,000        c. $550,000

b. $950,000        d. $963,000

3. White Corporation was incorporated on June 1, 2020 with an authorized 200,000, no-par, ordinary shares, stated value $10 and 10,000, 9% par value $30, preference shares. Transactions affecting company’s equity as of July 31, 2020 were as follows:

June 1 - 50,000 ordinary shares were issued at $10.

June 5 - Assets with a total appraised value of $600,000 were acquired in exchange for 50,000 ordinary shares.

June 15 - Subscriptions were received for 100,000 ordinary shares at $15 and for 5,000 preference shares at $35.

June 25 - Payments in full for the ordinary and preference shares subscribed June 15 were received and the corresponding shares were issued.

The total shareholders’ equity as of July 31, 2020 is

a. $2,875,000        c. $2,750,000

b. $2,300,000        d. $2,775,000

On January 5, 2019, PP Company acquired 20% of the outstanding ordinary shares of an investee for P11,200,000. The carrying amount of the acquired net assets was P9,600,000. The excess of cost over carrying amount was attributed to patent (an intangible asset) which was undervalued on investee’s statement of financial position and which had a remaining useful life of ten years. For the year ended December 31, 2019, the investee reported net income of P2,880,000 and paid cash dividend of P960,000 on its ordinary shares.

a) How much was the investee’s total net assets? __________________________

b) Determine the investment income for 2019. __________________________

c) Determine the carrying amount of the investment in associate as of December 31, 2019. __________________________

d) Assuming that the company did not have significant influence over the investee, how much will be the carrying amount of the investment on December 31, 2019?

On January 2, 2017, SPU Corporation acquired 30% of the outstanding voting common stock of Brough Company for $335,000. This investment enabled SPU to exercise significant influence over Brough.

    The book value of the acquired shares was $315,000 (the book value of Brough Co was $1,050,000). The excess of cost over book value was attributed to a building that was undervalued on Brough’s balance sheet and that had a remaining useful life of 10 years.  

    For the year ended December 31, 2017, Brough reported income of $70,000 and paid cash dividends of $15,000 on its common stock.

A) Make all journal entries necessary on SPU’s books to record its investment in Brough Company for the first year.

B) What is the ending balance of SPU’s investment in Brough at December 31, 2017?

Monty Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.

(a) Compute the actual return on the plan assets in 2020.

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).

(d) Compute pension expense for 2020.

1.    One of the most remarkable associations in macroeconomics relates GDP growth to unemployment or the so-called Okun’s Law (see p.293-294 in Burda&Wyplosz textbook). This empirical regularity describes inverse relationship between the change in unemployment and the change in GDP growth. Resulting negative coefficient has been repeatedly confirmed for different countries and different periods. Your task is to:

a)    Propose a modified version about how the GDP is related to the labour market. Specifically, make a formal/theoretical statement (similar to the textbook, so read the corresponding section) on how the employment rate is related to the output growth, write it down and then check the relationship with data (Finland).

b)    Find the employment rate time-series (for people aged 15-74) and the real GDP growth (all for Finland only) and retrieve a set of 40 most recent quarterly observations of both variables. Arrange the data and plot the relationship on a graph. What is the coefficient between the variables, so you need to add the trend-line relationship between the variables?

c)    Make a conclusion about how the model (Okun’s relationship) fits the Finnish data.