Trans Atlantic Metals has two operating divisions. Its forging operation in Finland forges raw metal, cuts it, and then ships it to the United States where the company’s Gear Division uses the metal to produce finished gears. Operating expenses amount to $21.4 million in Finland and $61.4 million in the United States exclusive of the costs of any goods transferred from Finland. Revenues in the United States are $164 million.
If the metal were purchased from one of the company’s U.S. forging divisions, the costs would be $31.4 million. However, if it had been purchased from an independent Finnish supplier, the cost would be $41.4 million. The marginal income tax rate is 70 percent in Finland and 30 percent in the United States.
Required:
What is the company’s total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($31.4 million and $41.4 million)? (Enter your answers in dollars and not in millions of dollars.)
Total Tax Liability for 31.4:
Total Tax liability for 41.4:
In: Accounting
One of the most critical and hotly debated industries in the United States is healthcare. For this paper, you will examine the state of health care in the United States. As a starting point, you should read chapter 24 of the text and then after conducting your own research (3 additional sources minimum) write a 2-3 page paper that examines the following aspects of health care in the United States:
1. How much is spent on health care in the United States annually?
2. What is the basic structure of our system and how does it compare to other industrialized nations in terms of outcomes (be certain to identify what parameters you are using as a metric) and costs?
3. What are some unique challenges that health care presents from a consumer standpoint?
4. What have been some interventions by the government to make healthcare more accessible and affordable to the public and what have been the outcomes?
5. Do you think that the Singapore model could be replicated here? Why or why not?
In: Economics
In 2003, an organization surveyed 1 comma 510 adult Americans and asked about a certain war, "Do you believe the United States made the right or wrong decision to use military force?" Of the 1 comma 510 adult Americans surveyed, 1 comma 086 stated the United States made the right decision. In 2008, the organization asked the same question of 1 comma 510 adult Americans and found that 573 believed the United States made the right decision. Construct and interpret a 90% confidence interval for the difference between the two population proportions, p 2003 minus p 2008. The lower bound of a 90% confidence interval is nothing. (Round to three decimal places as needed.) The upper bound of a 90% confidence interval is nothing. (Round to three decimal places as needed.) Interpret the 90% confidence interval for the difference between the two population proportions, p 2003 minus p 2008. Choose the correct answer below. A. There is 90% confidence that the difference in the proportion of adult Americans from 2003 to 2008 who believe the United States made the right decision to use military force in the country is between the lower and upper bounds of the interval. B. There is 10% confidence that the difference in the proportion of adult Americans from 2003 to 2008 who believe the United States made the right decision to use military force in the country is between the lower and upper bounds of the interval. C. There is 90% confidence that the difference in the proportion of adult Americans from 2003 to 2008 who believe the United States made the right decision to use military force in the country is greater than the lower bound.
In: Statistics and Probability
|
Table 2.1. Output Possibilities of the U.S. and the
U.K.
|
|||||||||||||||
19.
Refer to Table 2.1. If trade opens up between the United
States and the United Kingdom, American firms should specialize in
producing
a. cloth.
b. wine.
c. both cloth and wine.
d. neither cloth nor wine.
20.
Refer to Table 2.1. Mutually advantageous trade will occur
between the United States and the United Kingdom so long as one 20
yards of cloth trades for
a. 5 bottles of wine.
b. 15 bottles of wine.
c. 30 bottles of wine.
d. 60 bottles of wine.
21.
If the
international terms of trade settles at a level that is between
each country's opportunity cost,
a. there is no basis for gainful trade for either country.
b. both countries gain from trade.
c. only one country gains from trade.
d. one country gains and the other country loses from trade.
In: Economics
The COVID-19 pandemic has caused many retailers to shut down their business, layoff their employees, and drain their bank accounts.
While some federal funding will help these businesses stay afloat, many will have to adjust to new ways of operation once the quarantines are lifted.
Several ways can be used to reframe a retailer’s business model. Form reconfiguration; Time reconfiguring; Place reconfiguring; Possession reconfiguring. Using at least three of these methods of reframing, describe how a retailer of your choice will adjust its business model to be successful in reopening.
Choose a specific retailer from one of these categories:
Theme Park; Salon; Hotel; Beauty Supply Store; Sports Bar
In: Operations Management
8. Purchasing-power parity
Using data from The Economist's Big Mac Index for 2016, the following table shows the local currency price of a Big Mac in several countries as well as the actual exchange rate between each country and the United States. At the time of the data collection, a Big Mac would have cost you $4.93 in the United States and GBP 2.89 in the United Kingdom. The actual exchange rate between the British pound and the U.S. dollar was $1.63 per pound. The dollar price of a Big Mac purchased in the United Kingdom was, therefore, computed as follows:
| Dollar price of a Big Mac in the United KingdomDollar price of a Big Mac in the United Kingdom | = = | GBP 2.89×$1.63GBP 1.00GBP 2.89×$1.63GBP 1.00 |
| = = | $4.71$4.71 |
For the price you paid for a Big Mac in the United States, you could have purchased a Big Mac in the United Kingdom and had some change left over for fries!
Complete the final column of the table by computing the dollar price of a Big Mac for the countries where this amount is not given.
Note: Round your answers to the nearest cent.
|
Big Mac Index: January 2016 |
|||
|---|---|---|---|
| Local Price | Actual Exchange Rate | Dollar Price | |
| (Foreign currency) | (Dollars per unit of foreign currency) | (Dollars) | |
| The Eurozone | 3.72 | 1.10 | |
| Norway | 46.80 | 0.12 | |
| United Kingdom | 2.89 | 1.63 | 4.71 |
| Poland | 9.60 | 0.36 | 3.46 |
| China | 17.60 | 0.16 | 2.82 |
Source: “Currency Comparison, To Go,” The Economist, last modified January 7, 2016, accessed July 8, 2016, http://www.economist.com/blogs/graphicdetail/2016/01/daily-chart-7.
Purchasing-power parity (PPP) theory states that exchange rates would need to equalize the prices of goods in any two countries. For the dollar price of a Big Mac to be the same in both countries, a U.S. citizen would need to be able to convert $4.93 into exactly GBP 2.89. To find the exchange rate at which hamburger purchasing power is the same in both countries, divide the price in the United States by the price in the United Kingdom:
| PPP Exchange Rate (U.S. Dollars per British pound)PPP Exchange Rate (U.S. Dollars per British pound) | = = | $4.93GBP 2.89$4.93GBP 2.89 |
| = = | $1.71 per pound$1.71 per pound |
The exchange rate that would have equalized the dollar price of a Big Mac in the United States and the Eurozone (that is, the PPP exchange rate for Big Macs) is . This change would mean that the euro had against the dollar.
If Big Macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? Check all that apply.
Exporting Big Macs from Poland to China
Exporting Big Macs from Norway to China
Exporting Big Macs from the Eurozone to the United States
In: Economics
Address the most important issue or problem in the world and recommend ways to fix it, either through actions of a country (such as the United States) or through an IGO (such as the United Nations).
In: Psychology
International Financial Reporting Standards (IFRS) are being used in over 100 countries worldwide. A news article states that generally accepted accounting principles in the United States have worked well for more than 100 years. The article says that when something is not broken, do not fix it. Is U.S. GAAP broken? How would U.S. companies benefit if the United States adopts International Financial Reporting Standards? Search the Internet for news articles to support your answer.
In: Accounting
(1) Please find the percentages for C, I, G, and Xn for the United states for 2019 In 2019, U.S. GDP was 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports.
(2) Please draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is in both short run and long run equilibrium.
(3) Suppose the United States government decides to add solar panels to federal government buildings. Show how this will affect the model starting from (2) above (assuming the model represents the United States). What happens to GDP, The Price Level, and Potential Output? Is the economy in a recessionary gap or an inflationary gap?
(4) Explain in detail and show graphically how the economy will naturally return to long run equilibrium after the event from (3) above.
(5) Suppose Canada stopped purchasing beer from the United States. Show how this will affect the model starting from (2) above (assuming the model represents the United States). What happens to GDP, The Price Level, and Potential Output? Is the economy in a recessionary gap or an inflationary gap? (6) Can you explain in detail and show graphically how the economy will naturally return to long run equilibrium after the event from (5) above.
In: Economics
Is the long term survival of the United States economy at risk because of the United States government’s level of debt and the amount of the debt held by foreign entities such as China? Why or why not?
no less than 250 words in length, make at least one reference to your text or other course materials and provide in-text citations. As you reference information from a source, be sure to provide APA citations in text and at the end of your post.
In: Economics