Your company uses the DDB method. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th of the month are treated as though they were acquired the following month. On April 6, 20X1, your firm purchases a machine for $250,000 that management estimates will last 15 years and have a salvage value of $10,000. What is 20X1 depreciation expense? $33,333 $24,000 $25,000 $32,000

The Chartered Financial Analyst (CFA®) designation is fast becoming a requirement for serious investment professionals. It is an attractive alternative to getting an MBA for students wanting a career in investment. A student of finance is curious to know if a CFA designation is a more lucrative option than an MBA. He collects data on 38 recent CFAs with a mean salary of $142,000 and a standard deviation of $45,000. A sample of 55 MBAs results in a mean salary of $126,000 with a standard deviation of $27,000. Use Table 2. μ1 is the population mean for individuals with a CFA designation and μ2 is the population mean of individuals with MBAs. Let CFAs and MBAs represent population 1 and population 2, respectively. a-1. Set up the hypotheses to test if a CFA designation is more lucrative than an MBA at the 10% significance level. Do not assume that the population variances are equal. H0: μ1 − μ2 = 0; HA: μ1 − μ2 ≠ 0 H0: μ1 − μ2 ≥ 0; HA: μ1 − μ2 < 0 H0: μ1 − μ2 ≤ 0; HA: μ1 − μ2 > 0 a-2. Calculate the value of the test statistic. (Round all intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.) Test statistic a-3. Approximate the p-value. 0.025 Picture p-value < 0.050 0.050 Picture p-value < 0.100 0.010 Picture p-value < 0.025 p-value Picture 0.010 p-value Picture 0.100 a-4. Do you reject the null hypothesis at the 10% level? No, since the p-value is more than α. No, since the p-value is less than α. Yes, since the p-value is more than α. Yes, since the p-value is less than α. b. Using the critical value approach, can we conclude that CFA is more lucrative? No, since the value of the test statistic is more than the critical value of 1.297. No, since the value of the test statistic is more than the critical value of 1.673. Yes, since the value of the test statistic is more than the critical value of 1.297. Yes, since the value of the test statistic is more than the critical value of 1.673.

Message Strategies: Responding to Rumors and Public Criticism

Spreading FUD—fear, uncertainty, and doubt—about other companies is one of the less-honorable ways of dealing with competition in the business world. For example, someone can start a “whisper campaign” in the marketplace, raising fears that a particular company is struggling financially. Customers who don’t want to risk future instability in their supply chains might then shift their purchasing away from the company, based on nothing more than the false rumor.

Your task: Find the website of any company that seems interesting. Imagine you are the CEO and the company is the subject of an online rumor about impending bankruptcy. Explore the website to get a basic feel for what the company does. Making up any information you need, write a post for the company’s blog, explaining that the bankruptcy rumors are false and that the company is on solid financial ground and plans to keep serving the industry for many years to come. PLEASE! Do not copy and paste the other answer to this question! It doesn't make much sense and isn't a great answer.

Thank you in advance!

Asia Pacific Ltd started operating on 1 July 2017 with 12 employees. Three years later all of those employees were still with the company. On 1 July 2019 the company hired 15 more people but by 30 June 2020 only 10 of those employed at the beginning of that year were still employed by Asia Pacific Ltd. All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years of employment with Asia Pacific Ltd. At 30 June 2020 Asia Pacific Ltd estimates the following:

 The aggregate annual salaries of all employees hired on 1 July 2017 is now $1,200,000.

 The aggregate annual salaries of all current employees hired on 1 July 2019 is now $800,000.

 The probability that employees hired on 1 July 2017 will continue to be employed for the duration of the conditional period is 40 per cent.

 The probability that employees hired on 1 July 2019 will continue to be employed for the duration of the conditional period is 20 per cent.

 Salaries are expected to increase indefinitely at 1 per cent per annum.

The interest rates on high-quality corporate bonds are as follows:

Corporate bonds maturing in seven years 6% Corporate bonds maturing in eight years 8% Corporate bonds maturing in nine years 8% Corporate bonds maturing in ten years 10% At 30 June 2019 the provision for long-service leave was $12,000.

Required: a) Calculate the total accumulated long-service leave benefit as at 30 June 2020.

b) What amount should be reported for the long-service leave provision as at 30 June 2020 in accordance with AASB 119?

c) Prepare the journal entry for the provision for long-service leave for 30 June 2020 in accordance with AASB 119.

d) Which employee benefits are required to be discounted in accordance with AASB 119?

ABC Limited is a family owned business that has been in operation for the past ten years. The
company based in Kabwe manufactures one product: desks.
ABC limited Managing Director, Mr. Aubrey Bwalwa Chuungu has been away on a business trip
to China for the past three months. He is worried that the current outbreak of the Corona virus
and the subsequent restrictions imposed on commerce by the Zambian government may have had
adverse financial consequences for the company.
You are the Management Accountant of ABC Limited.
On his return, Mr. Chuungu , who is a non-finance specialist, has requested a financial review of
the company’s financial performance for the last month , May 2020 in order to put his fears to
rest.
You have just received an email from Mr. Chuungu to conduct a financial performance analysis
for the month May, 2020.
You have retrieved the following computer printout from the company’s management accounts
for the month of May, 2020:
Actual Budget
Sales volume 4,900 units 5,000 units
Selling price per unit K11.00 K10.00
Production volume 5,400 units 5,000 units
Direct materials:
Quantity 10,600 kg 10,000 kg
Price per kg K0.60 K0.50
Direct labour:
Hours 2,970 2,500
Rate per hour K3.80 K4.00
3
Fixed overheads:
Production K10, 300 K10, 000
Administration K3,100 K3,000
ABC Limited uses a standard absorption costing system, absorbing overheads into products
using labour hours.
There was no opening or closing work-in-progress for the month of May,2020.
Required:
(a) Prepare a statement that reconciles the budgeted profit with the actual profit for the
month of May, 2020, showing individual variances in as much detail as possible.

Corporate Social Responsibility (CSR)

Mars Dump is a multinational company that is caught by the Emissions Trading Scheme (ETS).

Details of ETS are as follows:

It is a cap and trade scheme in which permits are traded in an active market. Its annual compliance period is from 1 July of the current period to 30 June of the following year.

Each participating company receives an allocation of free permits each year based on their reporting carbon emissions from the previous period. In the case of Mars Dump Ltd, permits to emit 36 000 tonnes of carbon dioxide equivalents have been issued on the first day of the current period (i.e. 1 July 2019) when the market price of a permit was $25 per tonne of carbon dioxide equivalents.

During the 2019/2020 financial year, Mars Dump emitted 37 000 tonnes of carbon dioxide equivalents, which exceeded its permitted emissions of 36 000 tones. This occurred despite the managers of Mars Dump estimating that it had emitted 19 000 tonnes of carbon dioxide equivalents by 31 March 2020 and was therefore on target to emit 36 000 tonnes by 30 June 2020. The market price of a permit is $27 on 31 March 2020. As a result of exceeding allowed emission levels, on 30 June 2020, Mars Dump purchased 1 000 permits at a market price of $33 per tonne. Mars Dump uses the cost model in accordance with AASB 138, and amortises any deferred income arising from the permits using the proportion of actual emissions to estimated total emissions.

Required

1. How can stakeholder theory be used to explain companies voluntarily undertaking corporate social responsibility reporting? Discuss.                                                                           
2. “There is no mandatory reporting of corporate social responsibility in Australia.” What is your understanding of this phrase? Explain.                                                              

Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common.

When the company began on July 1, 2018, Tony and Suzie each purchased 12,500 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during 2020, its third year of operations:

July 2 Issue an additional 110,000 shares of common stock for $9 per share.

September 10 Repurchase 11,000 shares of its own common stock (i.e., treasury stock) for $12 per share.

November 15 Reissue 5,500 shares of treasury stock at $13 per share.

December 1 Declare a cash dividend on its common stock of $129,500 ($1 per share) to all stockholders of record on December 15.

December 31 Pay the cash dividend declared on December 1.

Required:

1. Record each of these transactions.

2. Great Adventures has net income of $147,000 in 2020. Retained earnings at the beginning of 2020 was $137,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2020.?

. Managing Employee Benefits: Cutting Benefits at Generals Construction As Generals Construction moves into its tenth year, the company’s future is promising. The company has continued to grow and profit, but the CEO has asked company leaders to examine expenses to ensure that the company is financially stable going forward. As the Director of Human Resources, Jane Smith is examining opportunities to cut employeerelated expenses while maintaining employee satisfaction and morale. However, Director of Finance Ann Lane is pushing some cost-cutting measures that Jane thinks may have a negative effect.

Generals Construction employs over 100 full-time construction workers and about 40 other workers that include construction supervisors, office staff, and management. Right now, all employees receive the same basic employee-benefits package, which includes a health insurance plan fully paid by the company and a generous vacation allowance. After 30 days of employment, all employees can enroll in the health plan and receive coverage for themselves and their families, and the company pays the full premium. New hires receive 5 vacation days, employees with one year of service receive 10 vacation days, and employees with three years of service receive 15 days. Finally, the company also provides a modest retirement plan benefit. The benefit offerings were determined when the company was started, before Jane joined the company. At the time, the CEO needed to hire nearly 50 workers in a short period of time to fulfill a new contract, and the attractiveness of the health insurance and vacation benefits in particular were instrumental in meeting the company’s recruitment goals. Ann suggests that the company make some significant changes to the benefits offerings in order to stabilize company finances for the future. While Jane agrees that the benefits that the company offers are fairly generous compared to those of competitors, she does not think the cuts Ann is suggesting are a good idea for the company. First, Ann wants some dramatic changes to the health insurance plan. Ann thinks the employees should bear more of the cost of the health insurance plan, including asking the employees to pay at least half of the cost of the premiums for individual coverage and the full premiums for family coverage. This shift would result in an increase of several hundred dollars in deductions from the biweekly pay of many employees. Ann also suggests a cut in the number of vacation days, but only for the construction workers. She thinks construction workers should receive 5 vacation days after one year and 10 vacation days after three years of service. However, she states that these cuts are not necessary for other workers, including the supervisors, office workers, and management. She argues that the vacation time for the construction workers is costing the company too much money because they must pay overtime and hire temporary workers to cover the absences. She notes that when others are absent, the same coverage is not required, and thus, it won’t cost the company anything to keep the same vacation allowance. While Jane understands that some reduction in employee benefits expenses is needed, she is concerned that the cuts Ann is recommending are too drastic and may be perceived as unfair. While she knows the employees will understand that they may have to contribute to their health insurance premium eventually, she thinks that the changes Ann is proposing are too much of a change at one time. Further, Jane has serious concerns with offering different vacation allowances for the front-line construction workers and the other employees. As she prepares to meet with the CEO to discuss reducing expenses, she needs to consider her response to Ann’s recommendations.

1. Does Jane have a valid concern?

2. What kind of changes could the company make to benefits to address Jane’s concerns?

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020:

Sheffield also had the following account balances as at January 1, 2020:

As at January 1, 2020, Sheffield had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $246,240. In January 2020, the piece of land was sold for proceeds of $246,240. In applying the revaluation model, Sheffield maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of.

In 2015, Sheffield purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Sheffield records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio’s carrying amount on December 31, 2019, was $125,400. The entire portfolio was sold in November 2020 for proceeds of $143,640.

Sheffield’s income tax expense for 2020 was $112,860. Sheffield prepares financial statements in accordance with IFRS.

Calculate net income for the year ended December 31, 2020.

Calculate retained earnings as at December 31, 2020.

Calculate net income for the year ended December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Sheffield’s income tax expense would not change.

Calculate retained earnings as at December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Assume that under ASPE, Sheffield’s retained earnings at January 1, 2020, would be $530,100.

Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer.

The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows: