Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected and describe the effect of equilibrium real GDP and the price level.

a) The end of the Cold War in 1990 led to large declines in Defense spending in many countries (including Canada)

b) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2011.

c) The federal government increased its level of government purchases (G) in 2009 and 2010, amidst a global recession.

d) World commodity prices increased sharply from 2002 and 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms.

e) The beginning of a strong recovery in the United States in 2014 led to a large increase in the demand for many Canadian exports.

Year   Corporate Tax Rate   Interest Income   Average Rate on Equity Income   Dividends   Capital
Gains
1971-1978   48%   70%   53%   70%   35%
1979-1981   46%   70%   49%   70%   28%
1982-1986   46%   50%   35%   50%   20%
1987   40%   39%   33%   39%   28%
1988-1990   34%   28%   28%   28%   28%
1991-1992   34%   31%   30%   31%   28%
1993-1996   35%   40%   34%   40%   28%
1997-2000   35%   40%   30%   40%   20%
2001-2002   35%   39%   30%   39%   20%
2003-2012   35%   35%   15%   15%   15%

Use the data in the​ table, to calculate the tax disadvantage of retained cash​ in:

a.1978

b. 1998

c. 1976

1. Using the following lines of data, create a temporary SAS data set called ThreeDates. Each line of data contains three dates, the first two in the form mm/dd/yyyy descenders and the last in the form ddmmmyyyy. Name the three date variables Date1, Date2, and Date3. Format all three using the MMDDYY10. format. Include in your data set the number of years from Date1 to Date2 (Year12) and the number of years from Date2 to Date3 (Year23). Round these values to the nearest year. Here are the lines of data (note that the columns do not line up):

01/03/1950 01/03/1960 03Jan1970

05/15/2000   05/15/2002   15May2003

10/10/1998 11/12/2000    25Dec2005

Sarbanes–Oxley Act Compliance
As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA) you have been asked to perform an audit of company records in support of the Attest function to verify the annual statements. The inventory balances from the computerized system are reported to be $121 million, but reports from field auditors show that balances are severely overstated. In discussions with employees and managers, you find some overlap in functions with certain personnel authorized to perform functions in other departments.
Also, several personnel have not taken vacations in over three years. In compliance with the Sarbanes–Oxley Act of 2002, what would be your approach for the audit assignments:

1. In no more than 750 words discuss what application tests might you perform? Why?

1.When it comes to mergers valuation is the only method used by organizations to assess the proper fit between two organizations.

2. The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board, whose purpose is to set auditing, quality control, and ethical standard; as well as, inspect accounting firms’ audit operations & investigate an impose sanctions for violations.

3. According to the Sarbanes-Oxley Act, public companies need to adopt a corporate code of ethics for middle managers.

4. Agency theory provides a simplified view of the corporation, and as a result, this view is problematic; and, a robust view of the corporation, which is more inclusive of all stakeholders.

5. Accountants focus only on internal stakeholders.

Internal Controls are extremely important with any accounting system, especially a computerized system. It is a huge part of creating and maintaining an accurate set of accounting records. I’m sure you all have heard of The Enron, WorldCom, Global Crossings, Tyco or Arthur Anderson scandals. These scandals cost their stockholders billions of dollars. Any company that trades stock publicly is required to file their financial statements and other important financial information with the SEC (The Securities Exchange Commission). Obviously, false information was filed from these companies and as a result, The Sarbanes Oxley Act of 2002 was passed into law.

Describe this act?

Discuss what it means for stockholders?

Explain the ramifications for accountants?

Provide some ethical solutions that would prevent employees from putting companies in this type of situation.

What is the best answer for those questions?

1. What is the objective of financial statement analysis?

2. Explain why and how financial statements are useful for decision-making.

3. What are some of the way management can impact the quality of financial reporting?

4. Describe the decision making process of the accounting rules.

5.   Find the resources of financial information of the Microsoft in different ways.

6.   Describe the components of a Form 10-K.

7.   What are the four major financial statements?

8.   What types of information can be found in the notes to financial statements?

9.   What is the purpose of the audit report? Explain the difference between an unqualified and a qualified opinion.

10. What is the Sarbanes-Oxley Act of 2002?

11. What information can be found in the Management Discussion and Analysis?

Estate Finance Family Tax Plan Question

Assume for the purposes of this question that the UPAIA dictates the calculation of fiduciary accounting income.

1. In 2001, Larry creates a trust with Tenleytown Trust Company as trustee. The trustee must distribute income to Susie, Jeff and Leon (the trust does not provide for distributions of principal). In 2002, the trust has $50,000 of interest from corporate bonds, $50,000 of interest from tax-exempt municipal bonds and $50,000 of dividends. The trust also sells Asset A that has a basis of $100,000 for $500,000. In 2012, trust pays trustee fees to Tenleytown Trust Company of $50,000 and attorney's fees of $50,000 to the law offices of Hiram Katz. What is the trust's fiduciary accounting income? Analyze how much of each receipt and disbursement should be allocated to income or principal.

The statement that stock prices do NOT follow a random walk implies that (I) successive price changes are independent of each other; (II) successive price changes are positively related; (III) successive price changes are negatively related; (IV) the autocorrelation coefficient is zero

(I) and (IV) only

(II) or (III)

(III) only

(II) only

(I) only