Marty suffers from dementia. He has not been formally declared incompetent by the court, but he goes in and out of lucid moments where he understands what is going on around him. During a non-lucid moment, Marty agrees to buy 20 magazine subscriptions from a telemarketer. The contract between Marty and the magazine subscription company is

a. valid

b. void

c. voidable

d. illegal

David contracts with Sam for Sam to kill David’s wife for the price of $50,000.00. Sam kills David’s wife and makes it look like an accident. David refuses to pay Sam. The contract between David and Sam is

a. valid

b. voidable

c. void

d. executed

A clause in a contract that states that all disputes between the parties will be adjudicated in the courts of Baltimore County, Maryland is known as a  

a. forum selection clause

b. personal jurisdiction clause

c. venue selection clause

d. choice of law clause

Explain when it would be appropriate to exercise calls early. Explain when it would be appropriate to exercise puts early. Given that they are in the money, give an example of when exercising early would be inappropriate. Explain your answer.

Explain the effect of interest rates and volatility on both calls and puts. Calculate T if today is March 10 and the option ends on September 5.

Question 1

An economy produces and consumes four goods namely milo, rice, bread and sobolo. The prices and quantities of these goods over a three-year period are shown in the table below.

Table I: Prices and quantities of milo, rice, bread and sobolo goods over a 3-year period

1. Calculate nominal GDP in 2017, 2018 and 2019.                                                  
2. Using 2017 as your base year, calculate real GDP in 2017, 2018 and 2019.       
3. Calculate the percentage changes in real and nominal GDP:
   1. between 2017 and 2018                                                                                 
   2. between 2018 and 2019                                                                                 
4. Calculate the GDP deflator for 2017, 2018 and 2019.                                           

Question 2

1. Before computing the Consumer Price Index (CPI), the Ghana Statistical Service (GSS) surveys consumers to determine the “basket of goods” bought by a typical consumer. Assume that the GSS chooses 2018 as its base year and, consistent with the data shown in the Table I in Q.1 decides that the basket of goods in this economy should consist of 24 tins of milo, 16 bags of rice, 30 loaves of bread and 15 bottles of sobolo.

1. Calculate the inflation rate between 2018 and 2019.                               
2. Determine the purchasing power of the Ghana cedi in 2019 and interpret your answer.

b) In the mid-1920s, the American author F. Scott Fitzgerald wrote a somewhat comical article for the Saturday Evening Post magazine titled, “How to Live on $36,000 a Year”, in which he explained how he and his wife managed to spend their entire annual income of $36,000 without saving anything.

1. In the mid-1920s, the consumer price index was around 18; in 2010, the CPI was around 225. Using these figures, calculate how much Fitzgerald’s income would be worth in 2010’s dollars.                                                                                                                    

In 2010, Forbes magazine published a list of the highest-paid authors, showing that J. K. Rowling, author of the Harry Potter books, earned $10 million. After adjusting for the effects of inflation, who earned more: Fitzgerald or Rowling?          

1.

On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Stock Investments Cost Fair Value Apple stock $ 6,500 $ 8,600 Chipotle stock 3,300 1,800 Under Armour stock 12,800 14,300 Prepare the December 31 adjusting entry to report these investments at fair value. Record the year-end adjustment to fair value, if any.

2.

Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1,600 shares of Hunt Corp. at $28 per share. Sept. 5 Received a $2 cash dividend for each share of Hunt Corp. Sept. 27 Purchased 3,400 shares of HCA at $20 per share. Oct. 3 Sold 1,600 shares of Hunt at $23 per share. Oct. 30 Purchased 1,200 shares of Black & Decker at $60 per share. Dec. 17 Received a $3 cash dividend for each share of Black & Decker. Dec. 31 Fair value of the short-term stock investments is $144,000.

3.

On February 15, paid $170,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 8% interest (classified as held-to-maturity). On March 22, bought 700 shares of Fran Inc. common stock at $34 cash per share. Cancun's stock investment results in it having an insignificant influence over Fran. On May 15, received a check from GMI in payment of the principal and 90 days' interest on the notes purchased in part a. On July 30, paid $51,000 cash to purchase MP Inc.'s 7% , six-month notes at par, dated July 30 (classified as trading securities). On September 1, received a $0.66 per share cash dividend on the Fran Inc. common stock purchased in part b. On October 8, sold 350 shares of Fran Inc. common stock for $40 cash per share. On October 30, received a check from MP Inc. for three months’ interest on the notes purchased in part d. Prepare journal entries to record the above transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. (Use 360 days in a year. Do not round your intermediate calculations. Round your answers to the nearest whole dollar.)

CASE 11‐5 Early Extinguishment of Debt

Gains or losses from the early extinguishment of debt that is refunded can theoretically be accounted for in three ways:

1. Amortized over the life of old debt
2. Amortized over the life of the new debt issue
3. Recognized in the period of extinguishment

Required:

1. Discuss the supporting arguments for each of the three theoretical methods of accounting for gains and losses from the early extinguishment of debt.
2. Which of the three methods would provide a balance sheet measure that reflects the present value of the future cash flows discounted at the interest rate that is commensurate with the risk associated with the new debt issue? Why?
3. Which of the three methods is generally accepted, and how should the appropriate amount of gain or loss be shown in a company’s financial statements?

Early Sociologists

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Choose one of the following early sociologists. Which of them is most relevant in understanding our current society in the United States and today’s world? Why? Make sure you offer a detailed set of arguments to support your position.

a) Auguste Comte
b) Jane Addams
c) Karl Marx
d) Max Weber
e) W.E.B. DuBois

Match the general circulation component with the correct description.

Group of answer choices

ITCZ

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Trade winds

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Subtropical highs

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Westerlies

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Polar fronts

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Polar easterlies

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

Polar highs

      [ Choose ]            between the ITCZ and about 30 degrees north and south; surface winds that flow towards the equator            zones at about 30 degrees north and south where cool air from altitude descends creating high pressure            where the westerlies and polar easterlies converge; mild rising of air masses produces low pressure            descendiung air over the poles that produces persistent high pressure            surface wind traveling from pole towards equator            Intertropical convergence zone at about 5 degrees north where warm air rises            surface winds traveling poleward from about 30 to 60 degrees      

QUESTION 2

The bank reconciliation statement on 30 September 2018 included the following:
       Outstanding cheques
Cheques not yet presented for payment No. 148 (Dated 10 November 2017) No. 358 (Dated 10 October 2018)
No. 400 (Dated 15 October 2018)
Debits
R 17.00 R 360.00 R 956.50
Credits
R1 255.00
               The bank statement on 31 October 2018 showed a favourable balance of R25 427.50. The general ledger account on the 1 October 2018 showed a debit balance of R25 249.50.
The comparison of the bank statement of October with the bank reconciliation statement of September and the cash journals of October showed the following differences:
1. Entries credited on the bank statement which do not appear in the cash journal for October 2018:
• Deposit R1 255
• Direct deposit R480 by Mr. King.
2. Entries debited on the bank statement which do not appear in the cash journal for October 2018:
• Debit order, R325. It is in favour of Knight Rental for rent.
• Cheque no 358, R360.
• Unpaid cheque, R582.50. This cheque was received from Ms. Queen but the cheque
was returned on 27 October 2018 marked insufficient funds.
• Unpaid cheque, R234.50. This cheque was received from Mr. Jack, deposited on 27
October, and returned on 28 October due to irregular signature.

• Unpaid cheque, R247.50. This cheque was received from Ms. Ace and deposited. It was returned by the bank since it was dated 1 November 2018.
• Cheque no. 223 issued to Mr. Ace for inventory, R1 285, was accidentally entered in the CPJ as R1 375.
• Charges for services fees, R30.50, and cash handling fees, R18.
3. Entries in the cash journal that do not appear on the bank statement:
• Cheque no 229 for R1 150 to Castle Wholesalers dated 15 October 2018.
• Cheque no 243 for R112.50 to Z Zeven dated 1 October 2018.
• Deposited on 1 October 2018, R2 445.
4. Cheque no 48 has not been re-issued to date.
You are required to:
a) Prepare the bank account in the general ledger for the month of October 2018.
b) Prepare the bank reconciliation statement as at 30 October 2018.

Please answer a and b.

whats the American dream, summarize and analyze the critics of the American dream