Pursuing an MBA is a major personal investment. Tuition and expenses associated with business school programs are​ costly, but the high costs come with hopes of career advancement and high salaries. A prospective MBA student would like to examine the factors that impact starting salary upon graduation and decides to develop a model that uses program​ per-year tuition as a predictor of starting salary. Data were collected for 37 ​full-time MBA programs offered at private universities. The data are stored in the accompanying table. Complete parts​ (a) through​ (e) below.

a. Construct a scatter plot.

b. Assuming a linear​ relationship, use the​ least-squares method to determine the regression coefficients b₀ and b₁.

c. Interpret the meaning of the​ slope, b₁​, in this problem.

d. Predict the mean starting salary upon graduation for a program that has a​ per-year tuition cost of $47,424.

e. What insights can be obtained about the relationship between program​ per-year tuition and starting salary upon​ graduation?

PART 1 :-Main idea: Research and explain the response from the World Trade Organization (WTO) to disputes involving tariffs.

Requirements:

a) Provide a summary of a tariff situation that has been brought before the WTO for evaluation. What has been the response of the WTO? Has the case/situation has been resolved? If so, how? What are the controversies that are present?

b) Use the WTO.org webpage and at least one Wall Street Journal article to support your discussion.

classmate posting :-

During the COVID 19 crisis, the WTO is no different than other entities being affected by the pandemic. When disputes such as tariffs arise, The WTO underscores the rule of law, and it makes the trading system more secure and predictable. There are also appeals possible based on points of law. If disputes arise from one country adopts trade policies or other measures, other countries may question this as breaking the WTO agreement or “failure to live up to their obligations.” There also is a possibility that another third-party group of countries can also declare that the country under dispute has formed interest and have privileged rights over others.

In 2020, there were tariffed items such as medical supplies, medical equipment, medicine, and personal protective products, as well as selected COVID 19 related products and all other medicinal products including selected medical products and supplies there was also an HS classification reference for COVD -19 medical supplies set by the World Customs Organization. The list of classifications is “ mainly intended to facilitate product classification for customs purposes” (World Trade Organization, 2020).

These special tariffs are focused explicitly on medical goods in tackling COVID-19. In Summary, Germany, the US, and Switzerland supplied 35% of medical products with China, German, and Germany, exporting 40% of the personal protective equipment. Estimates of imports and exports total about 2 trillion, including the trade that is worth close to “5% of total world merchandise trade in 2019” (World Trade Organization, 2020). If appeals are requested after dispute settlements arise is an average of one year without an appeal and one year and three months with an appeal. Much time that is dedicated on appeals are after a dispute settlement that has already taken place anywhere from 60-105 days in which a [anal has reviewed the case in mediation to find if there are any ways of rectifying the claim that can be made from the original dispute. If a country is found deficient in the complaint or ruling, they must follow whatever recommendations that have been given to them from the WTO.   

References

(2020). Trade in medical goods in the context of tackling Covid-19. Retrieved from https://data.wto.org/

World Trade Organization. (2020, July 17). Retrieved July 17, 2020, from World Trade Organization/Data: https://data.wto.org/

part 2 :- REPLY:- to the classmate posting

Requirements:

a) Respond to one of the issues discussed by a classmate. Does the position taken by the WTO on the tariff issues highlighted in their post have the potential to impact all countries equally or does there seem to be favoritism towards a certain ‘type’ of nation. Explain how you arrive at that conclusion with logical analysis.

b) minimum of 130-150 words. put ideas into your own words to demonstrate understanding. Outside sources not required. Cite any sources used in APA.

The following information is available for Vandal Corporation for 2019. There is no Beginning deferred taxes.                                                                                               

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $3,540,000. This difference will reverse in equal amounts of $708,000 over the years 2020-2024.

2. Vandal accrues a loss and a related liability of $4,130,000 due to a pending litigation in 2019.         

3. Life insurance proceeds from a key executive is $20,650,000.                                            

4. Rent collected in advance on January 1, 2019, totaled $6,490,000 for a 4-year period. Of this amount, $1,622,500 was reported as earned at December 31, 2019 for book purposes.

5. The tax rates are 30% for 2019 and 20% for 2020 and subsequent years.   

6. Pretax Financial income for 2019 is $149,122,500. .                                              

7. The company was fined $7,375,000 for pollution.                    

8. No deferred taxes existed at the beginning of 2019.                                                                                 

Instructions:                                                                                    

(a) Compute taxable income for 2019 (8 points).                                                                                           

(b) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2019 and 2020. Assume taxable income is $103,250,000 in 2020 (12 points).

(c) Prepare the income tax expense section of the income statement for 2019, beginning with "Income before income taxes." (6 points)                                                                          

You are a senior manager of a firm in Florida that manufactures a range of toys locally only. Your revenues come from two products- plastic toys with no moving parts, requiring simple assembly, and electric toys with moving parts, requiring precision & skilled assembly. Your CEO has made a recent trip to Asia and has discovered the wonderful world of low labor cost South East Asian countries. She concludes that the company should shift production of part of their products at least to some of these countries, reckoning that the company could cut production costs substantially. After further research, she discovered that labor costs in Pakistan are Rs.100 per hour compared to $9 in Florida. When she learnt that the current exchange rate is Rs.20/$, she was convinced that she should move all production to Pakistan.

You, however, have had the benefit of attending the international business course at Nova, and so investigate further before carrying out the CEO's bidding. You determine that your CEO was right about the labor cost differences being the single most important determinant of your costs. Since you are buying components and only assembling them, the raw material costs did not vary depending on where you manufactured. Therefore, she seemed to be on the right track in arguing that Pakistan would be the cheaper location. Nevertheless, you dig deeper and find the following data (assume no quality differences, zero transportation costs, etc.):

Toys produced /unit of labor

Plastic - Pakistan 3 , USA 6

Electric - Pakistan 2, USA 6

a) What are the opportunity costs of producing each of these goods in each country? (1 point)

b) Based ONLY on the data in the table (i.e. ignoring wage rates), would you move ALL production to Pakistan? If so, why? If not, would you move one product to Pakistan? If so, which one, and why? (1 point)

c) Now include the wage rates in your analysis. What would you recommend to the CEO? If you recommended moving any production to Pakistan, justify your decision. If you recommend not moving any production to Pakistan, justify your decision to the CEO by determining (3 points)

i. The wage level at which it would be optimal to move some production to Pakistan

ii. The wage level at which it would be optimal to move all production to

d) What are the limits to the exchange rate at which it makes sense to produce at least something in both countries? (3 points)

In February 2015, Arctic Cat Inc., acquired the assets and liabilities of MotorFist, LLC, a privately owned company based in Idaho Falls, Idaho, in exchance for $9.118 million in cash and contingent consideration. Referring to Arctic Cats's 2015 annual 10-K report, answer the following questions regarding the MotorFist acquisition. 1. Why did Arctic Cat acquire MotorFist? 2. How was the cosideration transferred allocated between cash paid and the contingent consideration? 3. Provide a schedule showing Arctic Cat's allocations of the consideration transferred to the identifiable assets acquired and liabilities assumed with the remainder going to goodwill.

6 Rembrandt Artist Supplies Company had 10 easels in inventory on January 1, 2019 that cost $10 per easel. On February 1, 2019 it acquired 20 additional easels valued at $12 per easel and acquired an additional 30 easels at $14 an easel on March 1, 2019. On June 1, 2019 Rembrandt made its only sale of easels for the year amounting to 40 easels.

What was the value of Rembrandt's ending inventory and cost of goods sold for the easels at the end of 2019 using the
a. average cost, b. FIFO and c. LIFO methods?

Part (a) Consider a firm called Health-R-Us that is a monopoly. How does Health-R- Us decide the price to charge and quantity to sell of the good it has a monopoly on? Illustrate your answer using a fully labelled and explained market diagram. Assume Health-R-Us is making monopoly profits and illustrate these on the same diagram. In addition, indicate the area on your diagram that illustrates the efficiency cost (the dead weight loss) of the monopoly, and explain why this dead weight loss arises. Part (b) Assume Health-R-Us is a legal monopoly: it is a monopoly due to legal protection from the government in the form of a patent issued to the company. Imagine that the government withdraws the legal protection for Health-R-Us such that the market becomes competitive. Will a typical individual firm in this competitive market make economic profit in the long run? Why or why not? Use an appropriate firm-level diagram to illustrate and explain your answer. Part (c) Your answers to parts 2a and 2b illustrated different levels of profit made by an individual firm in both a monopoly market structure and a competitive market structure respectively. In part 2a you also indicated the dead weight loss of a monopoly. Assume now that Health-R-Us has discovered a vaccine for coronavirus. Why might the government be willing to grant (and allow to remain in place) a patent to Health- R-Us, despite the dead weight loss and the ensuring monopoly profits caused by such a patent? Explain your answer. For simplicity assume the vaccine is only relevant for the domestic market (i.e., there is no global market for vaccines). [5+5+5 = 15 marks]

Part (a) Consider a firm called Health-R-Us that is a monopoly. How does Health-R- Us decide the price to charge and quantity to sell of the good it has a monopoly on? Illustrate your answer using a fully labelled and explained market diagram. Assume Health-R-Us is making monopoly profits and illustrate these on the same diagram. In addition, indicate the area on your diagram that illustrates the efficiency cost (the dead weight loss) of the monopoly, and explain why this dead weight loss arises. Part (b) Assume Health-R-Us is a legal monopoly: it is a monopoly due to legal protection from the government in the form of a patent issued to the company. Imagine that the government withdraws the legal protection for Health-R-Us such that the market becomes competitive. Will a typical individual firm in this competitive market make economic profit in the long run? Why or why not? Use an appropriate firm-level diagram to illustrate and explain your answer. Part (c) Your answers to parts 2a and 2b illustrated different levels of profit made by an individual firm in both a monopoly market structure and a competitive market structure respectively. In part 2a you also indicated the dead weight loss of a monopoly. Assume now that Health-R-Us has discovered a vaccine for coronavirus. Why might the government be willing to grant (and allow to remain in place) a patent to Health- R-Us, despite the dead weight loss and the ensuring monopoly profits caused by such a patent? Explain your answer. For simplicity assume the vaccine is only relevant for the domestic market (i.e., there is no global market for vaccines). [5+5+5 = 15 marks]

1. Profit Center Responsibility Reporting for a Service Company

   Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

   Revenues—N Region	$1,095,000
   Revenues—S Region	1,306,900
   Revenues—W Region	2,356,700
   Operating Expenses—N Region	693,900
   Operating Expenses—S Region	777,800
   Operating Expenses—W Region	1,425,200
   Corporate Expenses—Dispatching	561,600
   Corporate Expenses—Equipment Management	254,200
   Corporate Expenses—Treasurer’s	166,500
   General Corporate Officers’ Salaries	367,800

   The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

   	North		South		West
   Number of scheduled trains	5,900		7,000		10,500
   Number of railroad cars in inventory	1,000		1,600		1,500

   Required:

   1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

   Thomas Railroad Company
   Divisional Income Statements
   For the Quarter Ended December 31
   	North	South	West
   Revenues	$	$	$
   Operating expenses
   Income from operations before service department charges	$	$	$
   Service department charges:
   Dispatching	$	$	$
   Equipment Management
   Total service department charges	$	$	$
   Income from operations	$	$	$

   Feedback

   2. What is the A component of the rate of return on investment, computed as the ratio of income from operations to sales.profit margin of each division? Round to one decimal place.

   Region	Profit Margin
   North Region	%
   South Region	%
   West Region	%

   Identify the most successful region according to the profit margin.
   

   • North
   • South
   • West

   3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

   1. The method used to evaluate the performance of the divisions should be reevaluated.
   2. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
   3. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
   4. None of these choices would be included.
   5. All of these choices (a, b & c) would be included.
   • a
   • b
   • c
   • d
   • e

Accounts receivable transactions are provided below for J Crane Co.

Dec. 31, 2020

The company estimated that 3% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $684,000 and $3,000 (debit), respectively.

Mar. 5, 2021

The company determined that R. Mirza’s $3,100 account and D. Wight’s $6,900 account were uncollectible. The company’s accounts receivable were $719,000 before the accounts were written off.

June 6, 2021

Wight paid the amount that had been written off on March 5. The company’s accounts receivable were $674,000prior to recording the cash receipt for Wight.

(a)

Correct answer iconYour answer is correct.

Prepare the journal entries on December 31, 2020, March 5, 2021, and June 6, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

[Dec. 31, 2020 \/]

[Bad Debts Expense \/]

[          ]

[          ]

[Bad Debts Expense \/]

[          ]

[          ]

(To record estimate of uncollectible accounts.)

[Dec. 31, 2020 \/]

[Bad Debts Expense \/]

[          ]

[          ]

[Allowance for Doubtful Accounts \/]

[          ]

[          ]

(To record write off of accounts receivable.)

[Dec. 31, 2020 \/]

[Cash \/]

[          ]

[          ]

[No Entry \/]

[          ]

[          ]

(To record write off of accounts receivable.)

[Dec. 31, 2020 \/]

[Allowance for Doubtful Accounts \/]

[          ]

[          ]

[No Entry \/]

[          ]

[          ]

(To reverse write off.)

[Dec. 31, 2020 \/]

[Accounts Receivable - Mirza \/]

[          ]

[          ]

[Accounts Receivable - Wight \/]

[          ]

[          ]

(Collection of account that was previously written off.)

eTextbook and Media

List of Accounts

Attempts: 3 of 5 used

(b)

Your Answer

Correct Answer

Correct answer iconYour answer is correct.

Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry.

Allowance for Doubtful Accounts

Date

Explanation

Ref.

Debit

Credit

Balance

Dec. 31, 2020

Balance unadjusted Debit

[          ]

Dec. 31, 2020

AJE

[          ]

[          ]

[          ]

Mar. 5, 2021

Write off Mirza

[          ]

[          ]

[          ]

Mar. 5, 2021

Write off Wight

[          ]

[          ]

[          ]

June 6, 2021

Reverse write off

[          ]

[          ]

[          ]

eTextbook and Media

List of Accounts

Attempts: 5 of 5 used

(c)

Incorrect answer iconYour answer is incorrect.

Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2021.

Carrying amount before recovery

$ [          ]

Carrying amount after recovery

$ [          ]