In 2014, Knight Electronics sold 350,000 digital video recorders (DVRs). Based on the company’s analysis of the DVR market, the company believed that $160 was the equilibrium price based on the following supply and demand schedules.

            2014 Price      Amount Supplied    Amount Demanded

$120                       290,000                     390,000

140                         320,000                     370,000

160                         350,000                     350,000

180                         380,000                     330,000

200                         410,000                     310,000

220                         440,000                     290,000

As the price of gasoline rose and the economy hit the skids, consumers began driving less and going out less frequently for entertainment. With more people staying at home, DVR usages increased. In 2015 Knight revised its estimate of the amount of product demanded. At each of the above price points, it estimates that consumers will purchase (demand) 50,000 more DVRs. For instance, at $140, now 420,000 DVRs will be sold. The price–amount supplied relationship remains the same.

1. Describe what has happened to the supply and demand curves for Knight DVRs in 2014.

2. What is the new equilibrium price?

3. How many DVRs will be produced at the new equilibrium price?

4.          Knight revised its estimate of the amount of product demanded for 2015 as described above. In 2016 a new technology became available enabling DVRs to communicate over cell phones and the Internet. Knight’s competitors are selling this new DVR, called SuperDVR, for $150. What will happen to the supply and demand curves for Knight DVRs now?

For the year ended December 31, 2020, Stellar Ltd. reported income before income taxes of $100,000.

In 2020, Stellar Ltd. paid $54,000 for rent; of this amount, $18,000 was expensed in 2020. The remaining $36,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $54,000 was deductible for tax purposes in 2020.

The company paid $70,000 in 2020 for membership in a local golf club (which was not deductible for tax purposes).

In 2020 Stellar Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $38,000, of which $31,000 was actual repairs for 2020 and the remaining $7,000 was estimated repairs to be completed in 2021.

Meal and entertainment expenses totalled $17,000 in 2020, only half of which were deductible for income tax purposes.

Depreciation expense for 2020 was $190,000. Capital Cost Allowance (CCA) claimed for the year was $217,000.

Stellar was subject to a 20% income tax rate for 2020. Stellar follows IFRS. At January 1, 2020, Stellar Ltd. had no balances in deferred tax accounts.

Calculate taxable income and taxes payable for 2020.

Prepare the journal entries to record 2020 income taxes (current and deferred).

Richard and Linda Butler decide that it is time to purchase a​ high-definition (HD) television because the technology has improved and prices have fallen over the past 3 years. From their​ research, they narrow their choices to two​ sets, the Samsung​ 64-inch plasma with 1080p capability and the Sony​ 64-inch plasma with 1080p features. The price of the Samsung is

​$2 comma 3752,375

and the Sony will cost

​$2 comma 6552,655.

They expect to keep the Samsung for 3​ years; if they buy the more expensive Sony​ unit, they will keep the Sony for 4 years. They expect sell the Samsung for

​$390390

by the end of 3​ years; they expect to sell the Sony for

​$335335

at the end of the year 4. Richard and Linda estimate that the​ end-of-year entertainment benefits​ (i.e., not going to movies or events and watching at​ home) from the Samsung to be

​$885885

and for the Sony to be

​$985985.

Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be

9.3 %9.3%.

The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis they wish to do the​ following:

a. Determine the NPV of the Samsung HD plasma TV.

b. Determine the ANPV of the Samsung HD plasma TV.

c. Determine the NPV of the Sony HD plasma TV.

d. Determine the ANPV of the Sony HD plasma TV.

e. Which set should the Butlers purchase and​ why?

NPV and ANPV decisions   Personal Finance Problem Richard and Linda Butler decide that it is time to purchase a​ high-definition (HD) television because the technology has improved and prices have fallen over the past 3 years. From their​ research, they narrow their choices to two​ sets, the Samsung​ 64-inch plasma with 1080p capability and the Sony​ 64-inch plasma with 1080p features. The price of the Samsung is ​$2,320 and the Sony will cost ​$2,735. They expect to keep the Samsung for 3​ years; if they buy the more expensive Sony​ unit, they will keep the Sony for 4 years. They expect sell the Samsung for ​$420 by the end of 3​ years; they expect to sell the Sony for $330 at the end of the year 4. Richard and Linda estimate that the​ end-of-year entertainment benefits​ (i.e., not going to movies or events and watching at​ home) from the Samsung to be ​$945 and for the Sony to be ​$985. Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be 8.8 %. The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis they wish to do the​ following:

a. Determine the NPV of the Samsung HD plasma TV.

b. Determine the ANPV of the Samsung HD plasma TV.

c. Determine the NPV of the Sony HD plasma TV.

d. Determine the ANPV of the Sony HD plasma TV.

e. Which set should the Butlers purchase and​ why?

NPV and ANPV decisions   Personal Finance Problem Richard and Linda Butler decide that it is time to purchase a​ high-definition (HD) television because the technology has improved and prices have fallen over the past 3 years. From their​ research, they narrow their choices to two​ sets, the Samsung​ 64-inch plasma with 1080p capability and the Sony​ 64-inch plasma with 1080p features. The price of the Samsung is ​$2,320 and the Sony will cost ​$2,735. They expect to keep the Samsung for 3​ years; if they buy the more expensive Sony​ unit, they will keep the Sony for 4 years. They expect sell the Samsung for ​$420 by the end of 3​ years; they expect to sell the Sony for $330 at the end of the year 4. Richard and Linda estimate that the​ end-of-year entertainment benefits​ (i.e., not going to movies or events and watching at​ home) from the Samsung to be ​$945 and for the Sony to be ​$985. Both sets can be viewed as quality units and are equally risky purchases. They estimate their opportunity cost to be 8.8 %. The Butlers wish to choose the better alternative from a purely financial perspective. To perform this analysis they wish to do the​ following:

a. Determine the NPV of the Samsung HD plasma TV.

b. Determine the ANPV of the Samsung HD plasma TV.

c. Determine the NPV of the Sony HD plasma TV.

d. Determine the ANPV of the Sony HD plasma TV.

e. Which set should the Butlers purchase and​ why?

I want to record $500 depreciation in journal. How should i use following accounts to record？

416 - Depreciation 418 - Bad and Doubtful Debts 420 - Entertainment 425 - Freight & Courier 429 - Equipment Hire 433 - Insurance 437 - Interest Expense 441 - Legal expenses 445 - Light, Power, Heating 449 - Motor Vehicle Expenses 453 - Office Expenses 461 - Printing & Stationery 469 - Rent 473 - Repairs and Maintenance 477 - Wages and Salaries 478 - Superannuation 485 - Subscriptions 489 - Telephone & Internet 493 - Travel - National 494 - Travel - International 496 - Low Value Tools & Equipment 499 - Realised Currency Gains 500 - Distributions to Partners 505 - Income Tax Expense 510 - Loss on Disposal of Assets Assets 620 - Prepayments 635 - Allowance for Doubtful Debts 640 - Stock on Hand 710 - Plumbing Equipment 711 - Less Accumulated Depreciation on Plumbing Equipment 720 - Computer Equipment 721 - Less Accumulated Depreciation on Computer Equipment 730 - Motor Vehicles 731 - Less Accumulated Depreciation on Motor Vehicles 740 - Capital Gain on Disposal of Assets Liabilities 805 - Accrued Expenses 810 - Contra Clearing Account 820 - GST 830 - Income Tax Payable 840 - Historical Adjustment 850 - Suspense 860 - Rounding

[The following information applies to the questions displayed below.]

Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.

4. An unfavorable change in business is remotely possible; in this case, production and sales volume for 2017 could fall to 12,000 units. How much income (or loss) from operations would occur if sales volume falls to this level? (Enter any loss with minus sign.)

Chloe’s job pays $1,000 per week. Chloe can freely choose how many weeks she spends on working each year. Assume there are 52 weeks in a year.

Let ? denote the number of weeks spent on leisure in a year and let ? denote her annual wage income in dollars.

1. a. Write an equation relating ? and ?. [6 points]

1. b. Graph the relationship between ? and ? with ? on the horizontal axis and ? on the vertical axis. Label the axes, intercept values, and slope of the line. [4 points]

1. c. What is Chloe’s opportunity cost of leisure measured in dollars per week?

1. d. Chloe is considering a two-week long vacation trip. The table below summarizes the expenses. Calculate the accounting and economic costs of her vacation.

Suppose now that Chloe needs to pay tax on her wage income. The tax rate is initially 0%. The tax rate increases to 10% after earning $32,000. In other words, she pays no tax for the first $32,000 she earns and pays 10 cents for every dollar she earns above $32,000.

1. e. Graph the new relationship between ? and ? with ? on the horizontal axis and ? on the vertical axis, where ? is now the disposable (after-tax) income. Label the axes, intercept values, kink points, and slopes of the line segments.

Facts: Frank J. Wilson is a part-time CPA earning wages of $80,000 annually. Mr. Wilson is also a professional blackjack player whose gambling activities rise to the level of a trade or business. In some years he’s won a lot of money (over $1 million in winnings once), and in others he’s lost a lot of money. This year, Mr. Wilson generated $25,000 in winnings and $216,000 playing blackjack.

Mr. Wilson keeps meticulous records of his gains, losses and expenses. Besides gambling winnings and losses described above, this year Mr. Wilson also incurred $15,000 in ordinary business expenses in conducting his gambling business (mainly, compensation for a part-time secretary). The casinos picked up his meals, entertainment, and room costs of $150,000, that is, he was “comped” for these costs.

Issue 1: In 2020, to what extent are the losses and expenses related to Mr. Williams’ gambling deductible?

Issue 2: If the year were 2015, would your answer to Issue 1 change?

Please answer the following questions based on the facts and issues:

1) Give a simple, nontechnical 1 sentence answer to the question posed.

2) What is (are) the Code section(s) at issue?  

3) Are any Treasury Regulations relevant?

4) List the case/ruling authority on which you relied to arrive at your answer (please provide the name of any case, not just a citation).

I'm not sure if this is a good issue statement for short case study. Thanks for the help!

An American multinational widely diversified media and entertainment organization, Disney Company which started their journey from 1923 are now recognized as one of the most successful enterprise in the century. Bob Iger who has lead the company with his magical, yet fundamental and strong business strategy to overcome the barriers that Disney faced in the last ten years in his career as a newly appointed CEO from 2005. One of the main issues that Disney faced entered from the mass diversification and acquisition while expanding their business firms into three main divisions, Walt Disney Parks and Resorts, Disney Media Networks, and Disney Consumer Products and Interactive Media. The main issue in this process was the inability to maintain a neutral and open behavior and lack of communication in team based works. Two external environmental factors involved in diversification process are analyzed in the report; political as in dealing with local government where Disney expands their theme park in other countries and technological factors that is required to produce content that satisfies customer demand as well as producing high quality content. Understanding these issues and implementing preventative tools will seize the misleading of the company for the next ten years. Other possible issues and external environment factors are considered as out of scope in this report.