What is the argument conservative “supply siders” use to justify tax cuts that increase income inequality in the United States?

What does the evidence suggest about the validity of supply side theory. Connect your answer to the concept of growth in Potential RGDP.

Europe’s response to the economic turmoil brought about by the global coronavirus shutdown is rekindling debate about the European Union’s financial unity. The euro has dropped 3.5% this year to $1.08, near its lowest level against the U.S. dollar since May 2017. The currency could lose another 5% by year-end, according to forecasts from Bank of America. That marks a sharp turnaround for a currency that posted its calmest year on record in 2019, when it slid 1.8%. The eurozone is headed for the deepest recession in its history, with the economy expected to contract 7.7% this year, the European Commission forecast on Wednesday. Any recovery is expected to be slow, halting and uneven, and is likely to lag that of the U.S. economy. Capital Economics, for instance, has forecast that the eurozone might not get back to pre-crisis levels until after 2022. Wall Street journal – May 14, 2020).

What are some of the major reasons for Euro to fall against dollar? Who appears be the winner of currency war United States or Europe?

Gathering and graphing data

Go to the Federal Reserve Bank of St. Louis FRED database and obtain annual data from

1970 to 2016 on “Constant GDP per Capita” for each of the G7 countries (Canada,

France, Germany, Italy, Japan, the United Kingdom, and the United States).

a. Move each country’s data on the same Excel spreadsheet and plot the series.

Which country had the highest GDP per capita in 1970? Which country had

the highest GDP per capita in 2016?

According to the British United Provident Association, a major health care provider in the U.K., snoring can be an indication of sleep apnea which can cause chronic illness if left untreated. In the United States, the National Sleep foundation reports that 36.8% of the 995 adults they surveyed snored. Of the respondents, 81.5% were over the age of 30, and 32% were both over the age of 30 and snorers.

A. What is the probability of snoring?

B. What percent of the respondent were 30 or younger and did not snore?

In some countries, like the United Arab Emirates, religion plays a strong role in laws governing how people live their daily lives. For example, during the celebration of Ramadan, it is illegal to eat, drink or smoke in public during daylight hours (even in your car!). In the United States, the Establishment Clause of the Constitution is supposed to prevent religion from playing this sort of political role (although it doesn’t always). What reasons might there be for favoring the Establishment Clause? What reasons might there be for opposing it?

Select from among the following statements that are true.

A. The Uniform Probate Code (UPC) is a uniform act prepared by the National Conference of Commissioners on Uniform State Laws. The UPC governs inheritance and decedents' estates in the United States and is designed to streamline the probate process. B. Like the Uniform Commercial Code, the UPC has been adopted in all 50 states. C. State law governs the creation and implementation of wills. Federal law governs the creation and implementation of trusts. D. State law governs the creation and implementation of wills and trusts. E.Both the federal government and many states levy estate taxes. F. The U.S. Constitution prohibits states from levying estate taxes.

memo format( word doc )

The MBA Decision

Raj Danielson graduated from university six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Assiniboine University or the University of Passy. Both schools encourage internships, but to get class credit for the internship, no salary can be accepted. Other than internships, neither school allows its students to work while enrolled in its MBA program.
Raj currently works at the money management firm of Prash and Sid. His annual salary at the firm is $63,000 and his salary is expected to increase at 5 percent per year until retirement. He is currently 28 years old and expects to work for 38 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 24 percent. Raj has a savings account with enough money to cover the entire cost of his MBA program.

The Sentinel School of Business at Assiniboine University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $4,500 per year. Raj expects that after graduation from Assiniboine, he will receive a job offer for about $88,000 per year, with a $14,000 signing bonus. The salary at this job will increase at 5.5 percent per year. Because of the higher salary, his average income tax rate will increase to 31 percent.
The Pond School of Business at the University of Passy began its MBA program 16 years ago. The Pond School is smaller and less well known than the Sentinel School. It offers an accelerated one-year program, with a tuition cost of $90,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $3,000. Raj thinks that he will receive an offer of $85,000 per year upon graduation, with a
$9,000 signing bonus. The salary at this job will increase at 3.7 percent per year. His average tax rate at this level of income will be 31 percent.
Both schools offer a health insurance plan that will cost $2,500 per year, payable at the beginning of the year. Raj also estimates that room and board expenses will cost
$20,000 per year at both schools. The appropriate discount rate is 6.5 percent.
You are required to:

1.   (1%) How does Raj’s age affect his decision to get an MBA?
2.   (1%) What other, perhaps non-quantifiable, factors affect Raj’s decision to get an MBA?
3.   (4%) Assuming all salaries are paid at the end of each year, what is the best option for Raj from a strictly financial standpoint? Show your assumptions, calculations and explain why one of the option is better than the other alternatives.
There are three options to compare: remain at his current job, pursue a Wilton MBA, or pursue a Mt. Perry MBA. Compare the options using after-tax cash flows. Hint: room and board costs are irrelevant since presumably they will be the same whether he attends college or keeps his current job. Take in account the opportunity costs: lost salary during the MBA.
4.   (2%) What initial salary would Raj need to receive to make him indifferent between attending Assiniboine University and staying in his current position?
Since the first salary payment will not be received for three years, you need to compound this value two years into the future to arrive at the salary amount after graduation.
5.   (1%) Suppose, instead of being able to pay cash for his MBA, Raj must borrow the money. Explain how would this affect his decision?

1. On March 1, 2020, the XYZ Company acquired 40% of the voting stock of KLM Company for 6 million. The net worth of KLM book value is 10 million. The fair market value of the KLM assets and liabilities are equal except for a building with book value of 3 million has a fair value of 5 million.

KLM reported net income of 2 million and made dividend distributions of 1 million during the year ending 12/31/2020

Assuming XYZ is using the EQUITY METHOD for this investment

1. Was there any good will in this transaction? How much?
2. Make the journal entries to reflect the above transactions by XYZ company during 2020
3. Assume XYZ uses straight line depreciation and 10 years economic life. Show the general ledger of “Investment” account and ending balance by XYZ company on 12/31/2020

Case One:

On December 31, 2020, book value of patent is 6 millions. Undiscounted sum of future cash flows of patent is 10 millions, fair value of patent is 3 millions.

Determine the amount of any impairment loss to be recorded, if any.

(Please explain in detailes why book value is compared with the Undiscounted sum of future cash flows.)

Case Two:

Apple company acquired Banana Corporation for 60 millions on January 1st, 2020. In addition, he fair value of Goodwill is 10 millions.

An indicator is present signaling possible impairment in the end of 2020.

On December 31, 2020,

Fair value of Banana Corporation: 45million

Fair value of Banana Corporation (excluding goodwill): 39 million

Book value of Banana Corporation (including goodwill): 47 million

Determine the amount of any impairment loss to be recorded, if any.