As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 400,000 shares for $480,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $250,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $505,000.

Required:
1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

Comfy Carrier Systems, Inc. (CCS) modifies vans that seat 15–20 people by adding additional safety features or wheelchair ramps. Most of its customers are cities and counties, who use the vans to transport school children, the elderly, or the handicapped. The company has specialized in a no-frills approach, emphasizing safety, high quality, and low cost. The company's president was quoted as saying, "Let the other guys make a van pretty. We get people where they need to go—faster, better, and cheaper than anybody else."

The company obtains jobs by being the lowest bidder in a sealed bidding process. Recently, the company was solicited by a top-10 college to submit a bid for a van to be used by its athletic team. Some specialized items were required, such as the school's logo on the outside of the van, and the vinyl seats had to be covered in school colors. The company submitted a bid, and was very surprised to obtain it.

When the job was being prepared, the job manager pointed out that several extra costs could result in this job showing a loss. The boss, an ardent supporter of sports in general and this team in particular, told the manager to just record the standard labor and overhead cost for this job. He says that they could use the preset rate for specialized jobs, and increase the overhead application rate (used in submitting bids) by 5% for future routine jobs. "After all," he says, "nobody else comes close to our price anyway. This could start a whole new line of business for us."

Required:

1.   Who are the stakeholders in the decision to increase overhead for routine jobs?

2.   Is the decision to subsidize special jobs by increasing the overhead rate on routine jobs ethical?  Briefly explain.

In a study on students’ intention to apply for graduate school, a researcher is interested in the difference between Sociology majors and Justice Studies majors at a large state university. The research hypothesizes that the proportion of sociology majors who intend to apply for graduate schools is higher than that of Justice Studies majors. To test this hypothesis, the research interviews 60 juniors and seniors majoring in sociology and 105 in Justice Studies majors. Of the 60 sociology majors, 35 say that they are considering applying; and of the 105 Justice majors, 40 say that are considering applying. Sociology Justice Studies N1 = 60 N2 = 105 f1 = 35 f2 = 40 Please test the hypothesis stated above (i.e. the proportion of sociology majors who are considering applying for graduate school is higher than the proportion of Justice Studies majors.) (10 points). (Note: this is a hypothetical research situation and none of the statistics presented in the above table is “real.”)

Other data:

Accrued but unrecorded and uncollected consulting fees earned at December 31 amount to: $27500.

The company determined that $16500 of previously unearned consulting fees had been earned at December 31.

Office supplies on hand at December 31 total $330

The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.

The company prepaid its nine-month rent agreement on June 1, 2020.

The company prepaid its six-month insurance policy on December 1, 2020

Accrued but unpaid salaries total $13200 at December 31,2020.

On September 1, 2020, the company borrowed $66000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2021.

Account                                                                                 Debit                             Credit

Cash                                                                                       304,150

Accounts Receivable                                                            99,000

Office supplies                                                                            880

Prepaid rent.                                                                           3,960

Unexpired insurance                                                              1,650

Office equipment                                                                  79,200

Accumulated depreciation: office equipment                                                        26,400

Accounts payable                                                                                                           4,400

Notes payable (due 3/1/12)                                                                                       66,000

Interest payable                                                                                                                 660

Income taxes payable                                                                                                    9,900

Dividends payable                                                                                                          3,500

Unearned consulting fees                                                                                           24,200

Capital stock                                                                                                                  220,000

Retained earnings                                                                                                         44,000

Dividends                                                                              3,500

Consulting fees earned                                                                                               550,000

Rent expense                                                                      16,170

Insurance expense                                                               2,420

Office supplies expense                                                      4,950

Depreciation expense: office equipment                      12,100

Salaries expense                                                                363,000

Utilities expense                                                                    5,280

Interest expense                                                                    3,300

Income taxes expense                                                        49,500

Totals                                                                                   949,060                      949,8060

Instructions:

1. Prepare the necessary adjusting journal entries on December 31, 2020. Also prepare an adjusted trial balance dated December 31, 2020 (20 points).
2. From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2020. Also prepare the company’s balance sheet dated December 31, 2020 (20 points).
3. Prepare the necessary year-end closing entries (15 points).
4. Prepare an after-closing trial balance (15 points).
5. Compute the company’s average monthly insurance expense for January through November 2020 (5 points).

BOR CPAs, Inc. is a closely held corporation owned by three stockholders who used the initials of their last names to form the corporation’s name: Cyrus Bailey, John Ogden, and Samuel Rogers. The firm’s Certified Public Accountants (CPAs) perform audits of both public companies and privately owned companies. BOR’s CPAs also provide tax services to both individuals and businesses.

The corporation is divided into two profit centers: the Audit Division and the Tax Division. Each division is composed of two cost centers. The Audit Division is composed of two cost-center departments: Public Company Audits and Private Company Audits. The Tax Division is composed of two cost-center departments also: Individual Tax and Business Tax.

BOR, a decentralized organization, is interested in evaluating the performance of the two divisions. The stockholders are responsible for deciding on investment in the two divisions. Cyrus Bailey is in charge of the performance evaluation, and turns to you for assistance. Mr. Bailey is only interested in evaluating operations at the profit center (division) level, and not at the cost center (department) level.

Mr. Bailey is considering temporarily using some of the staff from the Tax Division to assist the Audit Division during the upcoming busy audit season, and would like to evaluate the effect of this on net income. The Tax Division is estimated to have 800 hours of excess capacity.

The unit for determining sales revenue in both divisions is the "engagement", which means the total agreed-upon work for a given client in either audit or tax for a given year. The company charges on average a fee of $75,000 per audit engagement, and $15,750 per tax engagement.

The company has its own Payroll Office, which provides payroll services to both divisions and will allocate its total expenses to the two divisions as service department charges.

The following chart shows some basic data for the company:

Mr. Bailey asks that you prepare Divisional Income Statements showing what 20Y1 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a cost transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Audit Division would pay the Tax Division's internal hourly rate of $50.00 per hour for the additional hours required, with the Tax Division selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees.

Complete the following Income Statements. Enter all amounts as positive numbers. If there is no amount or an amount is zero, enter “0”.

Shaded cells have feedback.

Mr. Bailey asks that you prepare Divisional Income Statements showing what 20Y1 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a cost transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Audit Division would pay the Tax Division's internal hourly rate of $50.00 per hour for the additional hours required, with the Tax Division selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees.

Complete the following Income Statements. Enter all amounts as positive numbers. If there is no amount or an amount is zero, enter “0”.

Score: 1/64

Question-----Which carmakers are most likely to benefit from the elimination of the North American Free Trade Agreement? Which will be most negatively impacted? Please help me answer question-+- Read article "It’s Not Just Ford: Trump’s Trade Barbs Threaten VW, Toyota Too" Ford Motor Co. was a favorite target of Donald Trump, who lambasted the company for producing cars south of the border throughout his campaign. Toyota Motor Corp., Volkswagen AG and other U.S. carmakers are just as exposed. Toyota and Nissan Motor Co., Japan’s largest automakers, were spared from Trump’s critique by name on the campaign trail. Yet, along with General Motors Co. and VW, they all rely on Mexican plants for millions of vehicles and a high volume of parts. That puts them at risk if the president-elect makes good on his threat to levy hefty taxes on cars assembled across the Rio Grande. “Trump could, or will, try to set up trade barriers,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen in Germany. “Automakers with U.S. factories will therefore be on the winning side. Mexico, the new El Dorado of the auto industry, could suffer.” Since 2010, nine global automakers, including GM, Ford and Fiat Chrysler Automobiles NV, have announced more than $24 billion in Mexican investments. VW’s Audi, BMW AG and Daimler AG each build or plan to assemble luxury vehicles, engines or heavy trucks in the low-cost country, which Trump says has benefited at the expense of the American voters who propelled him to victory. Output in Mexico may more than double this decade, from 2 million to 5 million vehicles, according to the Center for Automotive Research in Ann Arbor, Michigan. The Republican candidate and real-estate developer grabbed headlines during his campaign by threatening to slap a 35 percent tariff on any cars Ford builds in Mexico and ships back to the U.S. He called Ford’s plans for a new plant in Mexico “an absolute disgrace.” A levy would lead to higher prices and hurt demand, said Joe Spak, an analyst at RBC Capital Markets. Trump would “start a worldwide trade war” if he decides to end trade pacts and uses anti-dumping provisions to impose widespread tariffs on other countries, said Donald Grimes, an economist at the Institute for Research on Labor, Employment and the Economy at the University of Michigan. The North American Free Trade Agreement, for example, requires only six months’ notice of termination to Canada and Mexico and doesn’t specify that the president would need congressional approval, he said. Read more: Gadfly looks at which carmakers build the most vehicles in Mexico “These other countries would retaliate. Prices consumers would pay would increase sharply. The Federal Reserve would then increase interest rates. It would be ugly,” Grimes said. Despite that threat, U.S. automakers and the United Auto Workers union extended an olive branch to the president-elect. “We agree with Mr. Trump that it is really important to unite the country -- and we look forward to working together to support economic growth and jobs,” Ford said in a statement. The company’s plan to shift small-car production from a factory in Michigan to Mexico was attacked by Trump during his first answer of the initial debate with Democratic candidate Hillary Clinton in September. GM and Fiat Chrysler said in separate statements they would work with Trump and the new Congress on policies that support U.S. manufacturing. UAW President Dennis Williams, whose union endorsed Clinton, told reporters at a roundtable Thursday that “I’m prepared to sit down and talk to him on trade. NAFTA is a huge problem to the American people.” German executives attending an industry conference in Munich on Wednesday also expressed concerns about Trump’s views. BMW is building a new car plant in Mexico’s San Luis Potosi that’s due to start production in 2019, while Audi started assembling autos in San Jose Chiapa in September. “We need open trade,” said BMW CEO Harald Krueger. The luxury automaker ships many of the SUVs assembled at its South Carolina factory to markets around the world and in turn exports sedans and Mini cars to the U.S. from Europe. “We live off exports and imports. The U.S. market is fundamental for us.” NAFTA has created a “highly integrated” auto market in North America that is critical to the fortunes of all global carmakers operating in it, said Sean McAlinden, an automotive economist based in Ann Arbor. “To interrupt the flow of trade across either border, Canadian or Mexican, would really throw more than a monkey wrench into the machine,” McAlinden said. “It would create a very, very noncompetitive North American auto industry.” Conciliation Hopes Daimler CEO Dieter Zetsche and James Verrier, who heads supplier BorgWarner Inc., are among executives who held out hope that much of Trump’s trade talk was campaign rhetoric and would soften with the practicalities needed to govern. “Many things get said during the heat of an election campaign,” Zetsche said. “I hope and believe this is also the case here.” For Bob Lutz, the retired vice chairman of GM, Trump’s victory could ultimately help the auto industry if his advisers and Congress keep him from pushing his protectionist agenda too far. “He’s not a dictator,” Lutz said in an interview. “No one can go in and abrogate trade deals. There are some aspects of NAFTA that will probably be re-negotiated, but he will probably be talked out of his crazier ideas.” Rather than threaten Japan auto imports with tariffs, Trump has pointed to wealth generated from the cars being sold in the U.S. to bolster his argument for America to pay a smaller share of the costs related to stationing troops in its biggest Asian ally’s territory. “Japan is ripping us off with the cars,” Trump said at an Oct. 12 campaign event in Florida. In remarks to Ohio volunteers in July, he spoke of “massive ships” delivering vehicles to the U.S. from Japan, which he told Americans was “rich because of us.” Representatives for Toyota, Nissan and Honda Motor Co. declined to comment. Japan’s automakers have combined capacity to build about 1.36 million vehicles annually in Mexico and have announced plans for new plants capable of assembling another 430,000 vehicles a year. Models built or planned for Mexican production and sale in the U.S. include the Toyota Corolla, the Nissan Versa and Sentra, and the Honda Fit and HR-V. “If NAFTA is going to be up for discussion somewhere down the line, that would affect Japanese companies very much, especially auto-related investments in Mexico,” said Bob Takai, president and CEO of Sumitomo Global Research Co. “If the trading and investing is going to be very difficult because of the new presidency, we may go somewhere else.”

1) a proportion of shoreline student who love pineapple on pizza who are from Asia p hat=17/47=0.362

2) a proportion of shoreline student who love pineapple on pizza who are from Congo p hat=11/32

For each of the steps below, explain your work in words, symbols, and pictures.

1. Write the null and alternative hypotheses in words and symbols.

2. Check the conditions necessary to use the Central Limit Theorem.

3. Select an alpha level and use it to find the critical values.

4. Find your test statistic and compare it to the critical values.

5. Compute the p-value of your test statistic and compare it to alpha.

6. Describe what the p-value measures in this hypothesis test.

7. Make a decision about the null hypothesis.

8. Interpret that decision.

Who does the International Monetary Fund account to, and who benefits from the International Monetary Fund?

Please be thorough with your answer and include as many details as possible in your explanation.

Contrast the characteristics of people who live in individualistic cultures from those who live in collectivistic cultures.