Answer the questions with an essay of not more than 300 words : 2. Explain the short run and long run effects of the following events on output and price level with the AD-AS diagram: a. tax cuts b. money supply increases c. an increase in the price of key imported inputs d. a natural disaster that destroys a significant portion of production capacity e. a major technological innovation

Monsters, Inc

As you watch the movie, look for elements of strategic management within the storyline.

For Example: Strategic Leadership Organizational Purpose & Principles Stakeholders Competitive Advantage Business Ethics Organizational Culture Organizational Mission Adaptation & Organizational Change Innovation Risk.

In the movie Monsters Inc, what are some examples of strategic management. Above is a list of some you might see

Analyzing and Interpreting Pension Disclosures
Assume E.I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to its retirement plans ($ millions).

The following benefit payments, which reflect future service, as appropriate, are expected to be paid:

HINT: Do not use negative signs with your answers.

(a) How much pension expense (revenue) does DuPont report in its 2010 income statement?

DuPont reports pension Answer

of $Answer

million.

(b) DuPont reports a $1,799 million expected return on pension plan assets as an offset to 2010 pension expense. Estimate what the expected return would have been had DuPont not changed the assumption on the expected return in 2010. (Round your dollar answers to the nearest whole number.)

$Answer

million

What is DuPont's actual gain or loss realized on its 2010 pension plan assets?

Answer

($ million) Answer

(c) What main factors affected DuPont's pension plan assets and pension liability during 2010?

Investment gains and employer contributions increased the plan assets. Service and interest costs increased the pension liability, and actuarial gains and benefit payments reduced the liability. Benefits were paid directly by the company and did not affect plan assets

Investment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service and interest costs increased the pension liability, and actuarial gains and benefit payments reduced the liability.

Investment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service and interest costs decreased the pension liability, and actuarial gains and benefit payments reduced the liability.

Investment gains and employer contributions increased the plan assets, and benefits paid reduced plan assets. Service costs increased the pension liability, and actuarial gains and benefit payments reduced the liability. Interest reflects the amount the company paid to its lenders and did not affect the pension obligation directly.

(d) Which of the following statements best describes what the phrase funded status means? What is the funded status of the 2010 DuPont pension plans?

"Funded status" reveals how much cash the plan has.

"Funded status" refers to the extent to which the plan assets are invested in mutual funds.

"Funded status" reflects the contributions that the company has made to the plan.

"Funded status" is the excess or deficiency of the pension obligation over plan assets.

DuPont's pension plan is Answer

by $Answer

million

(e) DuPont increased its discount rate from 5.43% to 5.56% in 2010. What effect(s) does the increase in the discount rate for determining pension obligations and cost have on the company's balance sheet and its income statement?

An increase in the discount rate reduces the PBO and has no effect on pension cost.

An increase in the discount rate reduces the PBO and increases pension cost.

An increase in the discount rate reduces the PBO and decreases pension cost.

An increase in the discount rate increases the PBO and increases pension cost.

(f) Which of the following statements best describes how DuPont's pension plan affected its 2010 cash flow?

There was no effect on the company's cash flow as all benefit payments are paid from plan assets.

The company's cash flow increased as the increase in pension assets more than offset the increase in the PBO.

The company's cash flow increased by the gains on the plan's investment portfolio and decreased by the benefits paid to plan participants.

The company contributed cash to its pension plan in 2010. This contribution directly affected the company's cash flow.

(g) Explain how the returns on pension assets affect the amount of cash that DuPont must contribute to fund the pension plan.

Asset returns have no effect on DuPont's cash flow because they are recognized in the pension plan and not on the company's financial statements.

Should pension investments decline as a result of a decline in the financial markets, DuPont might be required to increase its cash contribution to the pension plan.

Asset returns have no effect on DuPont's cash flow because increases in the PBO provide whatever financing the plan needs.

Asset returns have no effect on DuPont's cash flow because employee contributions make up any shortfall.

Natural monopoly firms are often regulated so that they can only charge prices set by
the authorities. Under one approach, prices are based on the monopolist’s costs so that for any given quantity of sales, the monopolist can only set prices equal to its average costs.

1. Why might regulators believe that forcing the monopoly to charge a price equal to average cost is a good outcome? Does this price regulation maximise social welfare? What problems do you see with this form of price regulation?

2. Suppose the monopolist can undertake innovation that will lower its average cost. If the monopolist faces average-cost price regulation, does it face strong or weak incentives to innovate? Explain your answer.

3. An alternative to average-cost price regulation is to set a ‘price cap’ for the natural monopoly firm. With a price cap, the regulator does not adjust the regulated price as soon as monopolist’s costs change but keeps the same regulated prices for a number of years. It is argued that price- cap regulation encourages innovation. Do you agree with this and why?

Imagine the year is 2018, long before COVID-19 . Your family has started a new venture: operating a car wash near a popular lakeside resort, just outside of Prince George. There are many other car wash ventures nearby, and there seem to be new ventures opening and closing all the time. You can see that the customers care only about finding the cheapest price for car washes; they do not care which car wash they use. Your family purchased the equipment and the building for the car wash. You were able to spend $1,000 of your savings to go towards this purchase. To cover the rest of this expense, you took out a small business loan. The cost of the loan comes to $15 per day for the next 3 years. Your venture must hire labor and purchase cleaning solutions, car wax, etc. to operate the car wash. After some research you have figured out that the cost for labor and supplies is as follows: Number of car washes sold per day Total cost for labour and supplies 1 $10.67 2 $12.67 3 $16.00 4 $20.67 5 $26.67 6 $34.00 7 $42.67 8 $52.67 9 $64.00 10 $76.67 11 $90.67 12 $106.00 13 $122.67 14 $140.67 15 $160.00 16 $180.67 17 $202.67 18 $226.00 19 $250.67 20 $276.67 ECON 201 Introduction to Microeconomics 2 • When the lakeside resort is open, you observe that you can charge a price of $15.00 per car wash. • When the resort is closed, the demand for car washes is much lower. You are only able to charge a price $6 per car wash. Right now the resort is open. Currently you are selling 17 car washes per day. Your family wants your advice. Prepare a 1-2 page report to advise your family what to do now AND what to do when the resort is closed. Use the report to help them understand why they should follow your advice. Remember that this report should be written as if it is advice to your family, and it must show your family how you came up with the advice. What do you suggest, and why do you make the suggestions you do?

Below is an extract from the initial trial balance of Zamzam provided to the auditors for the financial
year ended 31 December 2020 (‘FY2020’), before any of the errors and omissions identified and
noted below, were corrected and taken into consideration:
General ledger account Balance
Dr/ (Cr)
4000/000: Current tax expense (p/l) R420 651
4200/000: Deferred tax expense (p/l) R65 187
9100/000: SARS payable (SoFP) R420 651
9200/000: Deferred tax (SoFP) – 31 December 2020 R54 160
5400/000: Revaluation surplus: Owner-occupied land (SoCE) – 1 January 2020 (R117 500)
5500/000: Revaluation surplus: Owner-occupied land (OCI) (Before tax) R150 000
The only errors and omissions identified by the auditors (not yet correctly accounted for in the above
balances) are listed below:
Error 1: Incorrect depreciation expense on the office building
The depreciation expense on the office building was incorrectly calculated as R67 000 instead of
R77 000. Zamzam used R67 000 in the current tax calculation for the current financial year. The
South African Revenue Service (SARS) does not allow any capital allowances on the office building.
It is the intention of Zamzam to use the office building until the end of its useful life.
Omission 1: Exclusion of current tax effect on exchange of assets
Zamzam exchanged its old air conditioners for more technologically advanced air conditioners on
30 June 2020. The effect of both the old and new air conditioners were omitted from the current tax
calculation for the current financial year. Details of the old and new air conditioners include the
following:
Old air conditioners
Cost on 1 January 2019 (ready for and taken into use on this date; paid immediately
in cash)
R170 000
Fair value on 30 June 2020 R150 000
Useful life as of 1 January 2019 10 years
New air conditioners
Fair value on 30 June 2020 (ready for and taken into use on this date) R160 000
Useful life as of 30 June 2020 10 years.
The residual values of both the old and new air conditioners were considered to be immaterial. The
useful life and residual value estimates remained unchanged. The exchange transaction had
commercial substance as defined in terms of IAS 16 Property, Plant and Equipment. The SARS
allows a section 11(e) wear and- tear allowance over 15 years on both the old and new air
conditioners; apportioned for periods shorter than a year. Zamzam has never had any intention to
sell any of its air conditioners. The SARS deems the exchange transaction as if the old air
conditioners were sold and the new air conditioners were obtained for the same consideration as
would be recognised for accounting purposes in terms of IAS 16.
Omission 2: Deposits received in the current financial year
Zamzam receives deposits for large orders placed from new customers. The deposit is refundable
on cancellation of the order, which results in control only passing when the order will be delivered.
At the end of the current financial year, Zamzam received deposits to the value of R90 000 which
were correctly classified as revenue received in advance. The effect of these deposits were however
not taken into account in the current tax calculation for the current financial year. No such deposits
were received at the end of the prior financial year.
Omission 3: Exclusion of allowance for credit losses in the current financial year
The SARS allows a section 11(j) deduction of 25% of the accounting allowance for credit losses
each year. Zamzam did not recognise the doubtful debt as part of IFRS 9 Financial Instruments for
the purposes of SARS. The effect of the allowance was correctly accounted for in the current financial
year’s deferred tax calculation. However, the FY2020 current tax calculation does not include the
effect of the allowance for credit losses. The allowance for credit losses of Zamzam amounted to the
following at the respective dates:
Description Amount
Dr / (Cr)
Balance on 31 December 2019 (R145 000)
Balance on 31 December 2020 (R170 000)
Other relevant information:
1. The correctly calculated accounting profit before tax, after correctly taking into account the
above errors and omissions amounted to R1 950 000. This profit includes a net non-deductible
permanent difference of R2 000. The latter consists of dividends received form a local listed
company to the value of R10 000 and the remaining balance consists of other non-deductible
expenses incurred during the current financial year. The latter items were correctly accounted
for in the current year tax calculation.
2. The assessed loss for the financial year ended 31 December 2019 amounted to R360 000.
3. Zamzam’s board has always been of the opinion that the company will make taxable profits in
the foreseeable future to utilise any unused tax losses.
4. Zamzam always utilises any tax deductions received from SARS in the year of assessment
they are entitled to do so.
5. Assume that none of the identified errors and omissions affect any of the prior year balances.
6. Assume that all other information provided are correct and accurately accounted for to the
extent that it is not affected by the errors and omissions noted.
ZigZag provided an extract of the asset register as at the end of the current and prior financial year:
ASSETS CARRYING AMOUNTS
31 December 2020
R
31 December 2019
R
Land (1) 3 800 000 3 000 000
Office buildings (2) 1 900 000 1 370 000
Industrial buildings (3) 3 333 333 3 666 667
Machinery (4) 1 800 000 2 700 000
Additional information:
1. Land is vacant land and it is classified as investment property. The land was acquired on
1 April 2019 at R2 800 000. The fair value adjustments have been accounted for at the end of
the respective financial years.
2. The office building was acquired on 1 July 2019 for R1 400 000 and was revalued for the first
time on 31 December 2020 to its fair value of R1 900 000. The office buildings are depreciated
on the straight line basis over 20 years to its residual value of R200 000. During 2019,
management expected to use the asset up to the end of its economic life.
On 1 January 2020, management estimated the remaining useful life of the building to have
changed to 10 years and the residual value to be R500 000.
In December 2020 the management changed the intention and decided they were going to sell
the office building.
Office buildings have no capital allowances available.
3. Industrial buildings are depreciated over 12 years on the straight line basis. In terms of the
Income tax act, a section 13 allowance of 5% applies to the industrial buildings. The buildings
were bought on 1 January 2019, with the intention to keep the building, for an amount of
R4 000 000 paid in cash immediately with its residual value regarded as being insignificant.
4. Machinery is depreciated on a straight line basis at 20% per year to Rnil residual value. The
SARS allows a section 12C allowance of 40%/20%/20%/20% on machinery. The machinery had
a tax base of R1 800 000 on 31 December 2019 and R900 000 on 31 December 2020. No
additional machinery was acquired during FY2020.
5. ZigZag always pays their insurance in advance. At the end of FY2020 the balance for insurance
paid in advance amounted to R35 000 (2019: R25 000).
6. On 1 December 2020, Zamdela, a loyal customer, ordered transportation equipment from
ZigZag which will be delivered to him during December 2021. ZigZag received R500 000 from
Zamdela in cash when the order was placed.
7. The accounting profit before tax, which included dividends received of R40 000, amounted to
R3 200 000 for the year ended 31 December 2020. All above mentioned movements were taken
into account in arriving at this accounting profit.
8. The deferred tax asset balance as at 31 December 2019 was R390 150 due to an assessed
loss of R2 200 000 that existed at that time. ZigZag expected to make sufficient taxable profits
during 2020 and onwards to fully utilize assessed losses and other deductible temporary
differences.
Accounting policies and other information for both companies:
 Owner-occupied land is accounted for on the revaluation model and is revalued at the end of
each financial year in terms of IAS 16.
 Office buildings are carried on the revaluation model using the net replacement method in
terms of IAS 16.
 Machinery is measured on the cost model in terms of IAS 16.
 Industrial buildings are measured on the cost model in terms of IAS 16.
 In terms of IAS 8 Change in accounting policies, estimates and errors, changes in estimates
are accounted for using the re-allocation method.
 All other items of property, plant and equipment are accounted for on the cost model in terms
of IAS 16.
 Investment property is accounted for on the fair value model in terms of IAS 40 Investment
Properties.
 Depreciation and amortisation are accounted for on the straight-line method.
 Assume a normal tax rate of 28% for FY2020 (2019: 27%) and that 80% of capital gains are
taxable.
 There are no temporary differences other than those that are apparent from the given
information.

Required:
calculate deferred tax for the year ended 31 December 2020

in 20.0 mL of 1:1 buffer + 5.0 mL HCl

Major species before reaction begins. Include spectator ions.

Major species after reaction occurs. Include spectator ions

how has digital media transformed how organizations advertise and market their products and services. include a historical (before and after digital media) and global perspective ( include us and two additional countries

Branson paid $546,200 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $420,000 (common stock of $200,000 and retained earnings of $220,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $108,000 fair value. Any remaining excess fair value was considered goodwill.

In negotiating the acquisition price, Branson also promised to pay Wolfpack’s former owners an additional $64,000 if Wolfpack’s income exceeded $140,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $44,800. On December 31, 2020, based on Wolfpack’s earnings to date, Branson increased the value of the contingency to $51,200.

During the subsequent two years, Wolfpack reported the following amounts for income and dividends:

In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $64,000 performance fee to Wolfpack’s previous owners.

Prepare each of the following:

1. Branson’s entry to record the acquisition of the shares of its Wolfpack subsidiary.

2. Branson’s entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment.

3. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method.

4. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method.