Placid Lake’s 2015 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $300,000. Scenic reported net income of $110,000. Placid Lake declared $100,000 in dividends during this period; Scenic paid $40,000. At the end of 2015, selected figures from the two companies’ balance sheets were as follows: Placid Lake Scenic Inventory . . . . . . . . . . . . . . . . . . . . . . . $140,000 $ 90,000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 200,000 Equipment (net) . . . . . . . . . . . . . . . . . . 400,000 300,000 During 2014, intra-entity sales of $90,000 (original cost of $54,000) were made. Only 20 percent of this inventory was still held within the consolidated entity at the end of 2014. In 2015, $120,000 in intra-entity sales were made with an original cost of $66,000. Of this merchandise, 30 percent had not been resold to outside parties by the end of the year. Each of the following questions should be considered as an independent situation for the year 2015. a.What is consolidated net income for Placid Lake and its subsidiary? b.If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? c.If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? d.What is the consolidated balance in the ending Inventory account? e.Assume that no intra-entity inventory sales occurred between Placid Lake and Scenic. Instead, in 2014, Scenic sold land costing $30,000 to Placid Lake for $50,000. On the 2015 consolidated balance sheet, what value should be reported for land? f.Assume that no intra-entity inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2014, Scenic sold equipment (that originally cost $100,000 but had a $60,000 book value on that date) to Placid Lake for $80,000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2015, consolidation of these two companies to eliminate the impact of the intra-entity transfer? For 2015, what is the noncontrolling interest’s share of Scenic’s net income?

The table below reflects the actual and structural budget deficit as a percentage of GDP.

a. Graph the above data with “years” in the horizontal axis, and “deficit as % of GDP” in vertical axis.

b. From 2010 to 2014 the actual budget deficit is above the structural budget deficit. Explain why.

c. From 2016 to 2018 the actual budget deficit is below the structural budget deficit. Explain why.

d. Which period was the fiscal policy contractionary?

e. Which period was the fiscal policy expansionary?

What is the weighted average accumulated expenditure?

What is the avoidable interest?

All interest are paid in cash on December 31^st. Prepare the journal entry to record cash payment of interest, the capitalization of interest and the recognition of interest expense, if any, at December 31, 2010.

Do cash incentives improve learning? A high-school teacher in a low-income urban school in Worcester, Massachusetts, used cash incentives to encourage student learning in his AP Statistics class. In 2010, 15 of the 80 students enrolled in his class scored a 5 on the AP Statistics exam. Worldwide, the proportion of students who scored a 5 in 2010 was 0.15. Is this evidence that the proportion of students who would score a 5 on the AP Statistics exam when taught by the teacher in Worcester using cash incentives is higher than the worldwide proportion of 0.15?

Conduct a hypothesis test at the significance level α = 0.05 to determine if evidence is present regarding the use of cash incentives to motivate AP Statistics students to do better on their AP exams.

The following data set provides information on acres harvested and planted by year and value in the US. Year ASPARAGUS - ACRES HARVESTED ASPARAGUS - ACRES PLANTED 2015 21,700 23,500 2014 23,800 25,800 2013 24,500 26,800 2012 25,300 27,800 2011 26,800 28,400 2010 28,000 29,200 2009 29,200 30,700 2008 32,200 33,700 2007 38,600 40,900 2006 43,200 44,700 2005 49,300 51,700 2004 61,500 66,000 2003 58,000 62,000 2002 66,000 70,500 2001 70,150 75,150 2000 77,400 82,800 1999 75,890 79,590 1998 74,430 From the data set, use the planting data for the United States for recent years. Using a calculator or statistical software, find the equation for the linear regression line for 2010 to 2015. What is the y-intercept?

1. John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $500,000. He estimates that the boat he wants will cost $400,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 10% (compounded annually) to buy the boat at retirement?
2. On January 15, 2010, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2014, at an estimated cost of $5,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 8% compounded annually. The first deposit was made on July 1, 2010. Dolan should make four annual deposits of ?

2. The accompanying data table show the percentage of tax returns filed electronically in a city from 2000 to 2009. Complete the parts below.

Year   Percentage
2000   27
2001   29
2002   35
2003   42
2004   45
2005   49
2006   55
2007   59
2008   61
2009   67

​b) Calculate the MAD for the forecast in part a. ​(Round to two decimal places as​ needed.)

​d) Calculate the MAD for the forecast in part c (Round to two decimal places as​ needed.)

In 2010 Casey made a taxable gift of $6.8 million to both Stephanie and Linda (a total of $13.6 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)

c. This year Casey made a gift worth $16.8 million to Stephanie. Casey is married to Helen in a common-law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split.

In a construction project today, 600 square meters of thermic isolation is required. Main inputs consist of styro-foam and labor. In 2010, the cost of styro-foam was $8 per kg, knowing that the isolation used weighs 12 kilograms per 50 square meter. The cost index in 2010 was 190 while today in 2017 it is equal to 180. The estimated labor cost for a first installation is $27000. Past experience has shown that the cost related to the labor required for producing each new pump is lowered by 20%. Use the cost of the sixth installation as your standard cost to estimate the total direct labor cost, if the project needs 10 installations per each square meter. Calculate the total cost of the installed thermic isolation for this project.

2. Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years.

(a) Using 2000 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as the CPI.

(b) How much did prices rise between 2000 and 2010? Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.

(c) Suppose you are a senator writing a bill to index Social Security and federal pensions. That is, your bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflator or the CPI? Why?