Assume that your firm was auditing General Electric in 2000 and was recommending an adjustment to its financial statements that reduced net income. Based on the fees paid to your firm in 2000, what incentive(s) might your firm consider in insisting upon this adjustment? How would your firm's incentive(s) differ after 2004?

Question 2

Consider the demand schedule for the product produced by a monopolist in Table 2.

Table 2:

a) Complete the table.

                                                                                                                              [14 marks]

b) What do the data in the table indicate about the relationship between total revenue and

    marginal revenue?                                      

                                                                                                                                [3 marks]

c) What do the data in the table indicate about the elasticity of demand?

                                                                                                                                [3 marks]

                                                                                                                  [Total marks: 40]

In an economy, the supply of labour is given by S = 10 + 200Wn, where S is the quantity supplied of labour (hours of work), and Wn is the after-tax wage rate (net wage). Assume that the before-tax wage rate is fixed at $10.

a) Find the quantity supplied of labour and the total tax revenue at the following tax rates: 15%, 30%, 50%, 70%, and 80%.

b) Calculate the net wage elasticity of labour supply at each of the tax rates. Is the tax revenue positively or negatively related to the net wage elasticity? (1.5 marks)

c) What does the relationship between the tax rate and the tax revenue resemble? What is the tax rate that generates the highest level of tax revenue? (1.5 marks).

1. In an economy, the supply of labour is given by S = 10 + 200Wn, where S is the quantity supplied of labour (hours of work), and Wn is the after-tax wage rate (net wage). Assume that the before-tax wage rate is fixed at $10.

   1. a) Find the quantity supplied of labour and the total tax revenue at the following tax rates: 15%, 30%, 50%, 70%, and 80%.

   2. b) Calculate the net wage elasticity of labour supply at each of the tax rates. Is the tax revenue positively or negatively related to the net wage elasticity? (1.5 marks)

   3. c) What does the relationship between the tax rate and the tax revenue resemble? What is the tax rate that generates the highest level of tax revenue? (1.5 marks).

Royal Gift Shop sells cards, supplies, and various holiday greeting cards.Sales to retail customers are subjected to an 8 percent sales tax. The firm sells its merchandise for cash; to customers using bank credit cards, such as Master Card and Visa; and to customers using American Express.The bank credit cards charge a 1 percent fee. American Express charged a 2 percent fee. Royal Gift Shop also grants trades discounts to certain wholesale customers who place large orders.These orders are not subjected to sale tax. During February 2019, Royal Gift engaged in the following transactions.

Date Transactions

Feb 1 Sold crystal good to Lovely Kitchen, whole sale customers. The list price is $ 4,300 with a 25 percent trade discount. This sale is not subjected to a sales tax. Issued invoice 5950 with terms of n/15

15 Recorded cash sales for the period from February 1 to February 15 of $8,000 plus sales tax of $ 704

15 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $ 12,300 plus sales tax of $ 984. (Record the 1 percent credit card expenses at this time.)

16 Receive a check from Lovely Kitchen in payment of Invoice 5950 dated February 1

16 Sold merchandise to customers using American Express for $8,300 plus sales tax of $ 664

17 Sold a set of Roman statues to Beautiful Bedroom, a wholesale customers. The list price is $ 8,300, with a 30 percent traded discount. The sales is not subjected to sale tax. Issued Invoice 5951 with terms of n/15

20 Received payment from American Express for the amount billed on February 16 less a 2 percent credit card expense

27 Received a check for Beautiful Rooms in payment of Invoice 5951 dated February 17

28 Recorded cash sales for the period from February 16 to February 28 of $ 7,400 plus sales tax of $ 592

28 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $ 10,000 plus sales tax of $ 800 (Record the 1 percent credit card expenses at this time)

28 Sold merchandise to customers using American Express for $ 9,500 plus sales tax of $ 760

Required

Record the transactions in a General Journal

Post the entries from the General Journal to the appropriate accounts in the general ledgers.

General Ledger Accounts

101 Cash $ 22, 530 Dr

121 Accounts Receivable

222 Sale Tax Payable

401 Sale

521 Credit Card Expense

Analize

What was the total credit card expenses incurred in February?

IFRS - Accounting Questions

Write journal entries for the following series of foreign currency transactions:

a. On September 18, 2003, when the yen was valued at 225 to the dollar, a U.S. firm purchased transistors from a Japanese firm, and agreed to pay 6,750,000 yen on November 15, 2003.

b. On October 26, 2003, the same firm purchased leather goods from a Mexican company, agreeing to pay 4 million pesos on December 15, 2003. On October 26, 2003, one peso was worth $.004.

c. On November 24, 2003, the U.S. firm sold ?375,000 worth of cotton to a British firm when the pound was worth $1.45. Payment was to be received on January 15, 2004.

d. The following exchange rates prevailed on the dates below: __________________________________________________________________

November 15, 2003……………………………………………….$1.00 = 200 yen

December 15, 2003……………………………………………… $1.00 = 275 pesos

December 31, 2003……………………………………….………..$1.48 = 1 pound

January 15, 2004………………………………………..........……$1.42 = 1 pound

1. On Feb 1 2019, ABC Co. traded in an old piece of equipment that originally cost $64,000 with a salvage value of $4000 and a useful life of 5 years for a new upgraded model that had a cash price of $80,000. The company uses straight-line depreciation and the original equipment was purchased on Feb 1, 2015.
A) Prepare the journal entry to record the exchange under the assumption that a $10,000 trade-in allowance was received and the balance was paid in cash. (B) Prepare the journal entry to record the exchange under the assumption that instead of a $10,000 trade-in allowance, a $15,000 trade-in allowance was received and the balance was paid in cash.

2. XYZ Co. Purchased a delivery van on January 1, 2000 for $80,000. At the time of purchased it was estimated that the van would be used for 8 years with a $20,000 trade-in value. On January 1, 2004 the company decided to revise the useful life to 10 years and revise the residual value to $15,000. Using straight-line depreciation, determine the book value on January 1, 2004 and the revised depreciation for 2004.

3. A, B, and C formed abc Consulting this year by making capital contributions of $250,000, $400,000, and $150,000, respectively. They anticipate annual loss of $200,000 and are considering the following alternative plans of sharing profits and losses:  
I. In the ratio of their initial investments; or
II. Salary allowances of $100,000 to A, $90,000 to B, and $50,000 to C and interest allowances of 15% on initial investments, with any remaining balance shared in the ratio of 3:2:1.  
Required:
1. Use the schedule to show how a loss of $200,000 would be distributed under each of the alternative plans being considered. (Round to the nearest dollar if needed.)

In 1993, Novak Company completed the construction of a building at a cost of $2,500,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $76,000 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $625,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $25,000.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

(a)

Correct answer iconYour answer is correct.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

(b)

• Your Answer
• Correct Answer

Compute the annual depreciation that would have been charged from 2004 through 2022.

(c)

Correct answer iconYour answer is correct.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

(d)

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

?

Assume there is a variable, nobel _peace _prizes,
that is contains a dictionary that maps year's to winners of the Nobel Peace Prize 'f'or that year and assume it is up to date through the year 2005.Write a statement that adds an entry that maps the key 2006 to "Muhammad Yunus and Grameen Bank".

In Python programming language