The following information is provided for X Corporation for the year ending December 31, 2018:

X Corporation has not made an assertion under APB 23 that their non-U.S. undistributed earnings will be invested indefinitely or that the earnings will be solely remitted in a tax-free liquidation. The U.S. statutory rate is 21%. Based on all of the information presented, prepare an effective rate reconciliation showing the dollar amount of each reconciling item (i.e. do not combine potentially immaterial amounts) and the impact of each reconciling item on the effective tax rate.

1) What do you think about the role ad responsibilities of the stakeholders below in driving and accelerating the digital transformation in India?

a) Government and policy makers

b) Technology providers and start-up companies

2) Select two industries from below list and explain which digital technologies will disrupt these industries the most in the upcoming years? Give reasons and examples to support your ideas.

1) Travel & Accomodation

2) Media & Entertainment

3) Agriculture

3) Assume that you are the Digital Transformation Director of a supermarket chain. You are assigned the task to develop a Digital Transformation Roadmap by your CEO . As first step you decided to do an external environment analysis to understand external elements, which can affect the digital transformation strategy. The analysis should entail assessing the external threats or opportunities that might impact your companies' digital transformation. Please explain which subjects you would focus on ?

4)

What do you think about the impact of Digital Transformation on employment? Do you see any threat or opportunities? Do you have any suggestions to limit any negative impact?

You have been accepted as a Junior Project Manager at Super IT Pty. Ltd. Your first task assigned by the Senior Project Manager is to select and prioritise the best mobile application project in response to COVID-19 and the second task assigned is to write the Project Scope of the chosen project.
These candidate projects include:
 Gaming or entertainment application for COVID-19 isolated patients.
 Mobile applications in support of contact tracing for COVID-19.
 Mobile application information to provide the latest update of COVID-19.
 Mobile health application to contact doctors.
 Chatting application or social media platform for COVID-19 patient and family.
You have decided to use Project Selection and Prioritisation Matrix to select the best project, and then you will write the Project Scope of it.
2.1 Explain three criteria used for your Project Selection and Prioritisation Matrix. Provide the reasons why you chose each criterion.
[5 marks]
2.2 Draw the Project Selection and Prioritisation Matrix and explain how you are finally able to select the chosen project.
[10 marks]
2.3 Write the Project Scope statements for your chosen project.
[10 marks]

On August 1, 2016, Pereira Corporation has sold, on account, 1,600 Wiglows to Mendez Company at $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $12 per unit. In 2016, Pereira incurred warranty costs of $9,200. Costs for 2017 were $7,000.

Required:

Prepare the necessary journal entries to record:

PAGE 9

GENERAL JOURNAL

Show how Pereira would report the items on the December 31, 2016, balance sheet. Additional Instructions

Upstream Intercompany Merchandise Transactions

Jimmitz Inc. is a subsidiary of Krocker Gear. Jimmitz sells shoe accessories to Krocker at a 25% markup on cost. Information on these intercompany merchandise transactions is below:

Required

a. Prepare the working paper eliminating entries related to these intercompany transactions at December 31, 2020.

b. Krocker sold shoes containing Jimmitz’s shoe accessories during 2020.

What amount did Krocker and Jimmitz record as cost of goods sold for the shoe accessories in 2020?

$Answer

What amount should appear in consolidated cost of goods sold for these shoe accessories?

$Answer

Show how the eliminating entries in part a adjust Krocker’s cost of goods sold balance to the correct consolidated balance.

According to the 2017 video, an audit found that Chinese theaters were shortchanging Hollywood movie studios. These studios have been releasing major blockbusters with both storylines and characters that are meant to specifically target Chinese audiences. In fact, studios depend on these overseas audiences to save critically slammed blockbusters.

Auditors at PriceWaterhouseCoopers (PwC) found that about 9% of ticket revenues were unreported or skimmed and that this amounted to at least $40 million in revenue for the six major studios.

Issues noted in the audit resulting in missing revenue included: Sales listed as concessions, incorrect audience numbers, and screenings that were completely unreported.

This was part of an investigation on behalf of the Motion Picture of America Association (MPAA). The auditors examined the 29 biggest blockbuster movies released in China in 2016 and looked at 125 screen locations run by 27 different movie chains.

At the time of the video and the report, the U.S. motion picture industry was renegotiating a revenue sharing agreement with China, since the original five-year agreement ended. At question were the push by Hollywood to have more market access, as well as the Chinese to boost product from their growing movie industry.

The investigation was only a sample of screens. In fact, China has the largest number of screens in the world, numbering about 43,000.

Prior to renegotiating the WTO agreement on revenue sharing, U.S. studios officially grossed $1.87 Billion and took home $470 M.

1. What events or agreements in 2017 indicated that audits between studios and the Chinese movie market would become more important?

2. What was the revenue sharing percentage prior to renegotiation of the 2017 WTO agreement?

3. According to the textbook, revenue recognition is more problematic with respect to audit inherent risks in some industries, as compared to others. Would this be the case in the movies industry in China? Why?

4. Revenue recognition in Chinese movie theaters is also problematic with respect to audit control risks. Why?

MICROECONOMICS--PRODUCTION AND COSTS WORKSHEET

John and Kelly McClain own THE MOVIE CONNECTION, a local video store that sells and rents videos, video games and miscellaneous items such as candy, popcorn, soda, etc. They opened their business last year after John decided to leave a lucrative legal career because of health problems. Kelly also decided to quit her job as a physical therapist and help John out with their new business.
John was earning, on average, $75,000 per year as a criminal defense attorney and Kelly had been earning $32,000 per year working part-time in the physical therapy unit at the local hospital. Together, they invested $50,000 they had saved in CDs earning 7.5 % interest yearly. They borrowed $450,000 to start their new venture and rented a building in a prime location downtown.

At the end of the first year, they had earned the following revenues and expenses:

   Video sales revenue           $   52,500
   Wages                       7, 500
   Utilities (water & electric)           12,000
   Video rental revenue               646,000
   Late fee revenue               32,000
   Garbage collection service           1,200
   Rent                       48,000
   New business loan payment           32,400
   Game rental revenue               104,000
   Full coverage insurance           6,000
   VCR rental revenue               1,300
   Video and game purchases           480,000
   Misc. revenue (candy, soda, etc.)       42,500
   Security monitoring fees           300
   Misc. purchases (supplies, etc.)       37,500
   VCR and video repair fees           600

Calculate the totals below using the figures from above.

Total Revenue:                      
   Explicit Costs:
   Accounting Profit:                  
   Implicit Costs:               
   Economic Profit:                  

Which of the expenses listed above would be considered FIXED costs?

How much are TOTAL FIXED COSTS?               __________________
How much are TOTAL VARIABLE COSTS?           __________________

Are the McClains earning a normal economic profit? If so, what does this mean?

Should the McClains continue running their own business? Why?    

Projected number of motorcycles sold per year: 150

Projected number of snowmobiles sold per year: 125

Projected number of ATVs sold per year: 100

Projected average retail price of each motorcycle: $8,000

Projected average retail price of each snowmobile: $6,000

Projected average retail price of each ATV: $5,000

Projected total annual repair service revenue: $70,000

Variable Costs

Projected average cost of each motorcycle: $4,000

Projected average cost of each snowmobile: $4,500

Projected average cost of each ATV: $3,500

Sales commissions: 20% of retail product sales

Payroll taxes: Supplies: 12% of sales commissions paid

Supplies: 10% of repair service revenue

Fixed Costs

Advertising: $24,000
Alarm services fee: $1000
Bank fees: $2,400
Cleaning service: $3,200

Depreciation: $ 6,000
Dues and subscriptions: $ 1,000

Store manager salary: $40,000

Sales personnel base salaries: $24,000

Mechanic's annual salary: $40,000

Payroll taxes: 12% of payroll

Insurance: $4,000
Miscellaneous: $1,000
Legal and professional fees: $4,000

Office supplies and postage: $2,000

Payroll service fees: $2,000
Rent: $16,000
Telephone: $1,000
Training and education: $2,000

Utilities: $6,000

a. Prepare a contribution margin income statement that summarizes the dealership’s projected operating income.

b. Calculate the dealership’s projected break-even point in terms of total revenue (total revenue will equal the sum of product sales revenue and repair services revenue). Calculate the dealership’s margin of safety.

c. Assume that the dealership operates under the projections that were initially outlined with the exception of a change in compensation structure for sales personnel. Brad and Lewis intend to eliminate the base salaries for the dealership’s sales personnel and increase their commission to 30% of sales. Prepare a contribution margin statement based upon the modified compensation structure and calculate the company’s new break-even point in terms of total revenue.

Wahlund Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. They prepared the following budget for October, when they planned on selling 6,500 units.

Actual results for October were:

Prepare a Flexible Budget Performance Report (complete Flexible Budget Analysis), including the total Activity Variance, total Revenue and Spending Variance, and individual Revenue and Spending Variances. All variances must be labeled as unfavorable (U) or favorable (F). Match each of the following items to the appropriate answer. Prepare the Flexible Budget Performance Report BEFORE you attempt to answer the questions.

1. What is the total Activity Variance?

2. What is the total Revenue and Spending Variance?

3. What is the individual Revenue Variance?

4. What is the individual Spending Variance for Variable Manufacturing Cost?

5. What is the individual Spending Variance for Fixed Manufacturing Cost?

6. What is the individual Spending Variance for Variable Selling and Administrative Expenses?

7. What is the individual Spending Variance for Fixed Selling and Administrative Expenses?

8. What is the flexible budget amount for Revenue?

9. What is the flexible budget amount for Variable Manufacturing Costs?

10. What is the flexible budget amount for Fixed Manufacturing Costs?

11. What is the flexible budget amount for Variable Selling and Administrative Expenses?

12. What is the flexible budget amount for the Fixed Selling and Administrative Expenses?

13. What is the flexible budget amount for Budgeted Operating Income?