2. Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years.

(a) Using 2000 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as the CPI.

(b) How much did prices rise between 2000 and 2010? Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.

(c) Suppose you are a senator writing a bill to index Social Security and federal pensions. That is, your bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflator or the CPI? Why?

What is the weighted average accumulated expenditure?

What is the avoidable interest?

All interest are paid in cash on December 31^st. Prepare the journal entry to record cash payment of interest, the capitalization of interest and the recognition of interest expense, if any, at December 31, 2010.

A company offers a bond with exactly 100 years to maturity (now 2000 to 2100) and its face value $2,000 that makes coupon payments at the end of each year.

Issue date: 2000; Maturity date: 2100

Coupon rate: 8%

2000 price: $2,000

2005 price: $1500

2010 price: $2,020.5

Q1: What is the interest rate in 2005 in market?

Q2: Sam bought this bond in 2005(yr) right after it made its coupon payment (he did not collect the coupon). Bob bought another bond at the same time with the same coupon rate, issue date and face value but a maturity date of 2015. Bob did not collect the coupon in 2005 either. It is 2010 now, if they were to sell their bonds today who would make more money?

In September 2000, each student in a random sample of 100 chemistry majors at a large university was asked in how many lab classes he or she was enrolled. The results indicated a mean of 1.65 lab classes and a standard deviation of 1.39. To determine whether the distribution changed over the past 10 years, a similar survey was conducted in September 2010 by selecting a random sample of 100 chemistry majors. The results indicated a sample mean of 1.82 and a standard deviation of 1.51. Do the data provide evidence that the mean number of lab classes taken by chemistry majors in September 2000 is different from the mean number of lab classes taken in 2010? Perform an appropriate statistical test using α = 0.02. (10 points)SHOW ALL WORK.

Suppose retailers would like to forecast the percentage of customers who plan to purchase gift cards during the upcoming holiday season. The following data show this percentage from 2002 to 2009. The data is as follows:

Perform the following:

1. Using a 3-period simple moving average, forecast the percentage of holiday shoppers who will purchase a gift card in 2010.

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2. Calculate the MAD for the forecast in part a.

3. Using a 3-period weighted moving average with the weights 5, 3, and 1, forecast the percentage of holiday shoppers who will purchase a gift card in 2010.

4. Calculate the MAD for the forecast in part c.

5. In which forecast do you have the most confidence?

On January 1, 2010, Paprika Company Purchased 90% of the outstanding common stock of sage company by issuing 30,000 shares of its $10 par ($60 market value) common stock $ 150,000 other contributed capital, $1,060,000; and retained earnings, $120,000. Paprika company paid more than the book value of the net assets because of the recorded cost of sage company’s land was signed less than its fair value (which accounts for the entire difference) During 2010 Sage Company Lost 100000 and declared and paid 70000 dividend Company used Partial Equity Method to record its investment in Sage Company A. Prepare the investment related entries on Paprika company’s books for 2011 B. Prepare the CAD C. Prepare the work paper eliminating entries for a workpaper on December

   The pretax financial income (or loss) figures for Jerry Springer Company are as

   follows.

               2009          $210,000

               2010            180,000

               2011            140,000

               2012           (220,000)

               2013           (230,000)

               2014              90,000

               2015            115,000

   Pretax financial income (or loss) and taxable income (or loss) were the same for all

years involved. Assume a 40% tax rate for 2009 and 2010 and a 35% tax rate for the

remaining years.

   Instructions:

      Prepare the journal entries for the years 2011 to 2015 (5 years) to record income tax

      expense and the effects of the net operating loss carry-backs and carry-forwards

      assuming Jerry Springer Company uses the carry-back provision. All income and

      losses relate to normal operations. (In recording the benefits of a loss carry-forward,

      assume that no valuation account is deemed necessary.)

Prepare a research paper of 3-4 pages in length

From the data set and the research question that has been presented, prepare a research paper in the following format.

1. Your introduction

3. Test Methodology Used

4. Analysis (meaning) of the data

5. Outcomes

6. Summary.

Research question:

Why has the number of Covid- 19 (Corona Virus) cases continued to be on the increase in India despite massive sensitization by the government?

Presented below are selected transactions at Blue Spruce Company for 2020.

Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Blue Spruce Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2019.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Carla Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid.

Determine the amounts of the components of pension expense that should be recognized by the company in 2020.

Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2020.

Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Carla Company for the year 2020.
(Should be a Partial Income Statement, Comprehensive Income Statement and a Partial Balance Sheet)