1. The Howell’s decided to build a resort hotel on land owned by Chief Ugundi. For each of the following items, indicate whether the cost should be recorded as Land (L), Land Improvements (LI), Resort Hotel (RH), or Equipment (E) by placing the correct answer in the space provided.

2. Prepare below the journal entry to record the above transactions assuming all costs were paid with Cash the Howell’s brought with them to the island. Please note that all costs listed above should be included in one of the accounts listed below. Just fill in the debit amounts appropriately and check to make sure all debits together equal the amount for Cash.

3. The Skipper and Gilligan spent $200,000 to build a marina in the cove. The marina is expected to have a useful life of 20 years at the end of which it is expected to have a salvage value of $30,000. Show your calculation of depreciation expense per year below.

Prepare below the journal entry to record depreciation expense for Year One using the straight-line method.

Prepare below the journal entry to record depreciation expense for Year Two.

      C. What is the book value of the marina after Year Two? Show your work below.

Quantitative Methods in BUSN

Solve this problem using Excel Solver

1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:

1. We want to figure out how many rooms of each type to build based on maximizing revenue if we fill up the hotel. We expect to charge $190 for a suite that is non-smoking and $140 for a budget room that is non-smoking. Smoking room customers for both suites and budget rooms will have to pay an additional $20 per night.
2. We can spend up to $7,500,000 on construction of our hotel. The cost to build a non-smoking budget room is $12,000. The cost to build a non-smoking suite is $15,000. It is $3,000 additional for a smoking room of either type for smoke detectors and sprinklers.
3. We require that the number of budget rooms be at least 1.5 times the number of suites, but no more than 3 the number of suites.
4. There needs to be at least 80 suites, but no more than 200.
5. Industry trends recommend that smoking rooms should be less than 50% of the non-smoking room and in addition, we require our builder gives us at least 4 smoking rooms.

Answer the following using your Solver answers:

1. How many of each room type should be built, and what would the revenue be for a night when our hotel was fully booked?
2. Without re-running Solver, what happens to our revenue if we get an additional $1,500,000 for building? Explain in words how you got this answer without re-running solver. Over what amount of construction costs can you use this procedure?
3. Over what range of room price can our budget non-smoking rooms vary over for us to get the same answer for the quantity of each type of room?

Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia.

Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canadian and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600,000 on its branch profits in Canada and U.K. income taxes of $700,000 on its branch profits in the United Kingdom. Spartan financed its Canadian operations through a $10 million capital contribution, which Spartan financed through a loan from Bank of America. During the current year, Spartan paid $600,000 in interest on the loan.

Spartan sells its quidgets to Australian customers through its wholly-owned Australian subsidiary. Title passes in the United States (FOB: shipping point) on all sales to the subsidiary. Spartan reported gross income of $3,000,000 on sales to its subsidiary during the year. The subsidiary paid Spartan a dividend of $670,000 on December 31 (the withholding tax is 0 percent under the U.S.- Australia treaty). Spartan paid Australian income taxes of $330,000 on the income repatriated as a dividend.

Requirement:

1. Compute Spartan’s foreign source gross income and foreign tax (direct and withholding) for the current year.
2. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan’s FTC limitation calculation. Compute Spartan Corporation’s FTC limitation using your calculation from part (a) and any excess FTC or excess FTC limitation (all of the foreign source income is put in the foreign branch FTC basket).

(Enter your answers in dollars not in millions of dollars.)

AVOIDING PAYING TAXES—CHEATING THE GOVERNMENT

Very few people talk about wanting to pay taxes—for most citizens in most countries it is a natural inclination to avoid paying taxes, particularly when people object to the way the government spends the tax dollars on activities and programs which are contrary to the personal beliefs of individual citizens. Yet most students reading this textbook, and in a college or university course in Canada where this course is being taught, are the beneficiary of tax dollars in the context of how the government collects personal income tax and corporate tax and uses that money to subsidize educational costs—costs such as the building, the salary of the professor, the transportation system that gets you to class etc.

Sometimes national and regional governments operate in areas where there are not enough medium and large-sized companies paying corporate tax—therefore the government has a difficult time obtaining tax revenue to provide educational and health care services to the citizens. When the government does not have the means to collect enough taxes it has to make choices and often one of the primary ways governments cut costs is to cut education funding—meaning cuts to the number of teachers and cuts to facilities, technology, and other things necessary for students to obtain an education.

Recently (in 2012 and 2013), a number of leading American IT companies, such as Apple and Google, have been harshly criticized for using various strategies to avoid paying taxes in the United States, for example by outsourcing, offshoring, and listing income under foreign subsidiaries. The irony of the situation is bitter since both Apple and Google produce products and services that make it easier for students to carry out their studies, yet by avoiding paying millions in tax, these actions deprive the government of tax dollars that could be used to fund education.

Tax avoidance is not limited to the United States. In May 2013, The Economist magazine²¹ reported that “Google came under fire from British politicians, one of whom publicly accused the Internet giant of using unethical methods to avoid paying its fair share of tax.” In the United States, the Senate's Permanent Subcommittee on Investigations reported that “between 2009 and 2012 Apple avoided paying tax in America on at least $74 billion of profits by setting up subsidiaries in Ireland that had no purpose other than to ensure these profits were shielded from tax.”

Questions

1. Tax avoidance has been a hot topic in the United States, has it become a topic in Canada as well? Research some news stories to see if you can find some Canadian companies criticized for avoiding Canadian taxes.

2. The national government in Canada is now making more stringent efforts to collect tax from companies paying late, or not paying the full amount. Searching online, can you find out what the government is doing to recover money owed?

Also, many studies of unethical behaviour in a business setting have concluded that business people sometimes do not realize they are behaving unethically, primarily because they simply fail to ask, “Is this decision or action ethical?”²⁰ Instead, they apply a straightforward business evaluation to what they perceive to be a business decision, forgetting that the decision may also have an important ethical dimension.

Considering the calculations you have done so far, you need to attend to a number of import transactions for goods that companies in the United States expressed interest in.

The first transaction is for the import of good quality wines from France, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in France informed you that the current cost of the wine that you want to import is and €2,500,000. The producer in France will only ship goods in three months’ time due to seasonal differences but payment will have to be conducted six months from now.

The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Canada. The payment of CAD 2,500,000 for the export to Canada will be received twelve months from now.

You consider different transaction hedges, namely forwards, options and money market hedges.

You are provided with the following quotes from your bank, which is an international bank with branches in all the countries:

Forward rates:

Bank applies 360 day-count convention to all currencies (for this assignment apply 360 days in all calculations).

Annual borrowing and investment rates for your company:

Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 5 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective.

Determine the option types that you will consider based on the exchange rate quotes provided by your bank. Remember we will long or short the base currencies (in this case study the currencies that are not $) and the FV of premium cost is based on the borrowing cost of $ for the time period of the option. For example if it is a 3 month option, then the interest rate that should be applied is United States 3 month borrowing rate of 2.687%/4 = 0.67175%). Calculate the total cost of using options as hedging instrument for the import from France.

France import cost with option hedge:

Swedish Takeout

In this mini-case, IKEA is expanding internationally via franchising and other means. This case focuses on efforts in the United States, Europe, and Russia.

Expanding markets around the world have increased competition for all levels of international marketing. Cost containment, customer satisfaction, and a greater number of players mean that every opportunity to refine international business practices must be examined in light of company goals. Collaborative relationships, strategic international alliances, strategic planning, and alternative market-entry strategies are important avenues to global marketing that must be implemented in the planning and organization of global management.

Here we focus on a variety of alternative market-entry strategies, including exporting, licensing, franchising, strategic alliances, and direct foreign investments.

Read the case below and answer the questions that follow.

Fifty years ago in the woods of southern Sweden, a minor revolution took place that has since changed the concept of retailing and created a mass market in a category where none previously existed. The catalyst of the change was and is IKEA, the Swedish furniture retailer and distributor that virtually invented the idea of self-service, takeout furniture. IKEA sells reasonably priced and innovatively designed furniture and home furnishings for a global marketplace.

The name was registered in Agunnaryd, Sweden, in 1943 by Ingvar Kamprad—the IK in the company’s name. He entered the furniture market in 1950, and the first catalog was published in 1951. The first store didn’t open until 1958 in Almhult. It became so incredibly popular that a year later the store had to add a restaurant for people who were traveling long distances to get there.

IKEA entered the United States in 1985. Although IKEA is global, most of the action takes place in Europe, more than 70 percent of the firm’s $36 billion in sales. Nearly one-fourth of that comes from stores in Germany. This level compares with only about $5 billion in NAFTA countries. The firm has stores in more than 40 countries around the world.

One reason for the relatively slow growth in the United States is that its stores are franchised by Netherlands-based Inter IKEA Systems, which carefully scrutinizes potential franchisees—individuals or companies—for strong financial backing and a proven record in retailing. The IKEA Group, based in Denmark, is a group of private companies owned by a charitable foundation in the Netherlands; it operates more than 350 stores. The Group also develops, purchases, distributes, and sells IKEA products, which are available only in company stores.

1. The fact that IKEA has stores in more than 40 countries around the world and sells to many markets likely means that the company experiences benefits of global marketing? List four benefits and explain.

2. The fact that Ikea strives to lower costs, minimizes materials and packing, and has catalogs that are completely recyclable shows what type of company commitment?

CASE Outsourcing specialized operational tasks has become a common practice. When outsourcing involves the transfer of personal information, issues of security and privacy are raised. Customers may consent to the collection of personal data without realizing that their information could be shared with another company located halfway around the world and subject to different disclosure and protection rules. In recognition of international privacy concerns, the Organization for Economic Co-operation and Development (OECD) created guidelines to enhance privacy protection during transborder data exchanges. Guideline 10 suggests that personal data should not be used or disclosed without the consent of the owner or authority of law. Canadian outsourcing to the United States has become even more controversial since the enactment of the USA PATRIOT Act.15 This legislation allows US lawenforcement officials to obtain personal records or information from any source in the country without the data owner knowing. As a result, there have been several Canadian challenges of personal data outsourcing to the United States. In B.C.G.E.U. v. British Columbia (Minister of Health), union members argued that the Ministry of Health was violating patients’ rights to privacy under section 7 of the Charter by outsourcing physician billing data that contained personal patient information to a private U.S. company.16 The BC Supreme Court disagreed, holding that as long as the contractual arrangement authorized under the Canada Health Act ensured that a reasonable expectation of privacy was protected, the practice was acceptable. Since then BC., Nova Scotia, and Alberta passed legislation that restricts public (not private) sector trans-border outsourcing.17 The Privacy Commissioner rejected a similar complaint against the Canadian Imperial Bank of Commerce. The bank outsourced the processing of credit card transactions to an American company. The specific confidentiality and security contained in the outsourcing agreement were approved by the Office of the Superintendent of Financial Institutions, and this satisfied the Commissioner. Both decisions turned on the specific terms of the outsourcing agreement and prior regulatory approval of the terms. When considering sending sensitive information across the border and outsourcing to American firms, businesses should: • Undertake a security analysis of the American company prior to contracting; • Inform the affected customer data owner; • Include specific confidentiality, security, and reporting provisions in the outsourcing agreement; • Seek regulatory approval of the agreement, if available; and • Regularly audit the privacy practices of the outsourcing company. Increased privacy concerns can be anticipated as the transnational public cloud computing industry replaces user owned software, desks, and laptops as the primary custodians of personal information. “By 2017, enterprise spending on cloud computing will amount to a projected $235.1 billion, triple the $78.2 billion spent in 2011. ….(in 2014) global business spending for infrastructure and services related to the cloud will reach an estimated $174.2 billion, up 20 percent from the amount spent in 2013.”

Question : Are there certain types of information that should remain within Canadian borders? If Canadian data is at greater risk of disclosure when transferred to the United States, why not ban all public and private outsourcing to the United States? Discuss.

Question : How can personal information be protected when stored on a transnational cloud server?

Which Economic Model best describes and analyzes this article?

‘NO EXCESSIVE BARKING’: A Chevy Chase dog park divides the rich and powerful

A sign that reads “NO EXCESSIVE BARKING’ sits behind Chubbs, right, and Louie, left, a French bulldog who is the unofficial mayor of the dog park. (Bill O’Leary/The Washington Post) By Jessica Contrera August 28, 2019 at 7:00 a.m. EDT Everyone knows there’s a problem with Chubbs. Dirt is smeared across his face. His tongue is rolling out of his mouth. He’s surrounded by signs that say “NO EXCESSIVE BARKING.” But the 5-month-old golden retriever does not know how to read. At a dog park in one of Maryland’s wealthiest suburbs, he spends this sunny August morning rolling on his back. He opens his mouth, and then, he does it. He woofs. Twice. “CHUBBS!” four humans around him yell, trying to stop him from doing what dogs do — just not in Chevy Chase Village this summer. Here in this community of the rich and powerful, where the average household income is $460,000, barking is the subject of a ferocious (fur-ocious?) debate — one that has divided the two-legged one-percenters for nearly a year. The drama began last fall when the village spent $134,000 to turn a muddy triangle of land into a park where pups could run off-leash in a fenced refuge. Chase tennis balls. Sniff one another’s butts. But after about a month, signs decrying the barking of those dogs began appearing around the park. The village police started receiving almost daily calls about the noise, mostly from one particular neighbor whose house backs up to the park. By spring, the tension had escalated so much that the Chevy Chase Village Board of Managers called a public hearing. Then another in June. And another in July.
At the center of it all is Elissa Leonard, chair of the village board and wife to Jerome H. Powell, who is also a chair — of the Federal Reserve. In recent months, her husband has been under attack from President Trump, who appointed him but blames him for the tanking stock market. “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” the president tweeted Friday. Leonard, meanwhile, is on the receiving end of a different siege: from village residents who say their peace and quiet has been disturbed by barking dogs. “Around dinner time, I’d like to be able to sit on my deck and maybe read a book and chat with a friend or have a glass of wine, and the dogs are barking,” Joanie Edwards, the neighbor who had been calling police, testified at the meeting in May. “As residents of Chevy Chase, how many times is it acceptable for you to be bothered in your house every day?” Tom Bourke, a real estate developer whose house sits across the street from the park, asked in June. “You’ve created a nuisance.” The park regulars, he acknowledged, were trying to hush their hounds. He heard that they were ostracizing the yappiest dogs, including, he told the board, “a certain standard poodle whose name should be withheld.” “But there are people,” chimed in Bourke’s wife, Dale, “and I don’t mean to characterize the District, but I just notice that they have District plates on their cars, and they have very little regard for us or our property . . . there are dogs barking and they’re just not doing anything.” “I hear you,” Leonard said again and again, with the patience of a dog trainer. She explained to the residents that no, they could not restrict access just to dogs from the immediate neighborhood (where the houses for sale currently range in price from $1.1 million to $22.5 million). The village purchased this 15,000-square-foot parcel of land in the 1980s, in part, using state money, so it had to remain open to the public. For years, it had been a favorite spot of local dog owners, so when the village wanted to update its parks, a dog park just made sense. Neighbors voiced their support. A unanimous vote followed. But now the park was somehow both a wild canine circus sabotaging property values and a beloved gathering space for only the politest of pooches. Leonard, whose Norwich terrier, Pippa, does not frequent the park, tried to make both sides happy. To limit barking in the early hours, the board changed the opening time from 7 to 8 a.m. To stop outsiders from driving to Chevy Chase Village and parking on the Bourkes’ street — taking the spots where the family liked their lawn maintenance service to park — the dog park was wiped from the village website. To determine the extent of the barking and the parking, the board paid $1,300 for a woman with a graduate degree in epidemiology to spend weeks studying the behavior of the dogs and their humans. During 54 visits, the researcher witnessed seven dog owners who drove to the park instead of walking. “One of these people,” she testified in June, “did allow his dog to relieve himself on the green space next to the street.” But on the barking, no conclusion was reached. What was minimal to some was enough for Edwards to call the police, exasperated that she had to turn on music inside her home so she didn’t have to hear the dogs. She doesn’t want to be the bad guy, she said in an interview. But as a retired elementary school teacher, she now spends her days at home painting. She does landscapes from her travels and portraits of people, vibrant creations so popular in her circle that friends and strangers have also commissioned her
to paint their most beloved companions: their pets. She and her husband, a lawyer, used to have dogs of their own. Her last, a black lab named Zoe, died four years ago. “People in the community keep saying, ‘She should get another dog, if she had a dog, it would be different,’ ” Edwards said. “Well, first of all, I am a very considerate person, and if I had a dog, and he was barking in my back yard, I would bring him in. If my children were in a restaurant crying, I would take them out.” The fence, she says, should come down, so the dog park is just a park. At a public hearing on Sept. 9, Leonard and the board may decide to do just that. The dog lovers are planning to crowd the hearing, have organized a letter-writing campaign and started a Facebook group, Save the Chevy Chase Dog Park, with more than 100 likes. “What are they going to do next, ban dancing?” asked Pat Murphy, the group’s moderator. Murphy, who lives in a nearby section of Chevy Chase, says he literally does “not have a dog in this fight.” He does not own a dog. He used to take his son’s miniature Australian shepherd to the park, but his son moved away this summer. Now he sometimes walks alone to the park, where every morning, the conversation returns to the handful of complaining neighbors. “They should be put in jail,” said Doug Gansler, a former Maryland attorney general and an unsuccessful gubernatorial candidate, while his King Charles spaniel, Jack, searched for a new dog to hump. “Doug!” scolded Patty Martin, mother to the park’s unofficial mayor, a French bulldog named Louie, and wife to the head of gastroenterology at Washington Hospital Center. She, too, thought the complainers were being selfish. “Where’s the democratic process?” Martin asked in an interview last week. “Why is the 1 percent deciding for the 99 percent?” “This is not verified,” she continued, “But we have heard through reliable sources that this woman has threatened a lawsuit against the village over the park. Well, many dog park users are lawyers, too, so we’re wondering, should we get a lawyer? Do we have grounds to sue?” While lawyers consulted lawyers, her husband contacted media outlets. Eventually, the story made its way to this reporter, and to her recently adopted mutt, who visited the park in hopes of sniffing out what was really going on. Despite their owners’ fretting, Chubbs, Jack, Louie and all the other dogs appear unaware that their joyful morning romp has caused such a kerfuffle. The aforementioned “standard poodle whose name should be withheld” did not make an appearance. After this reporter’s dog spent some time digging (for the truth, we presume), he was asked what he thought of the park. He woofed. Twice. The police did not arrive.

I need a theater/performance/television studies expert or anyone who's an expert in social media or Afram Studies--PLEASE! Basically, anybody knowledgeable about this area of expertise.

Define "Black Twitter" and provide a social media example (a platform, incident, phenomenon, hashtag, or personality) and its connections to the term and readings. Reference the readings of Sarah Florini, Sanjay Sharma, or Andre Brock.