1. Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,300. Meg works part-time at the same university. She earns $33,600 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.) a. What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year? Short-term capital gains $ 9,120 Short-term capital losses (2,120 ) Long-term capital gains 15,230 Long-term capital losses (6,230 )

total tax liability=__________(question 1)

2. Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,300. Meg works part-time at the same university. She earns $33,600 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

b. What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year?

total tax liability=____(question 2)

1. The provost at the University of Chicago claimed that the entering class this year is larger than the entering class from previous years but their mean SAT score is lower than previous years. He took a sample of 20 of this year’s entering students and found that their mean SAT score is 1,501 with a standard deviation of 53. The University’s record indicates that the mean SAT score for entering students from previous years is 1,520. He wants to find out if his claim is supported by the evidence at a 5% level of significance. Round final answers to two decimal places. Solutions only.

(A) The parameter the president is interested in is:
(a) the mean number of entering students to his university this year.
(b) the mean number of entering students to all U.S. universities this year.
(c) the mean SAT score of the entering students to his university this year.
(d) the mean SAT score of the entering students to all U.S. universities this year.

(e) None of the above.

(B) The population the president is interested in is:
(a) all entering students to all universities in the U.S this year.

(b) all entering students to his university this year.
(c) all SAT test centers in the U.S. this year.
(d) the SAT scores of all students entering universities in the U.S. this year.

(e) None of the above.

(F) True, False, or Uncertain: The null hypothesis would be rejected.

(G) True, False, or Uncertain: The null hypothesis would be rejected if a 10% probability of committing a Type I error is allowed.

(I) True, False, or Uncertain: The evidence proves beyond a doubt that the mean SAT score of the entering class this year is lower than previous years.

(J) True, False, or Uncertain: If these data were used to perform a two-tail test, the p-value would be 0.1254.

Consider a very simple representation of the before-trade Canadian and U.S. economies. Both countries produce only automobiles and food, according to the technology represented in the following production possibility frontiers: Assuming the working populations of Canada and the US is 25 and 250 respectively.

a. Use well-labelled diagrams, show that Canada can gain from trade with the US. Carefully describe what will happen to Canadian production, employment, and wages after free trade with the US. Be careful to state your assumptions.

b. Recognizing that the above model is a simplification of the real world, analyse the likely short- and long-run employment consequences of free trade with the US on Canadian employment and wages.

c. Within four years of implementation of the Canada-US Free Trade Agreement (FTA) in 1989, employment in Canadian manufacturing dropped by 400,000. This shows that the FTA killed jobs.” True or false? Explain.

In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper:

Pencil's bookkeeper recently graduated from Oddball University, and although the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 20X5 were from Stylus to Pencil, and Stylus sells inventory at cost plus 40 percent of cost. Pencil uses the fully adjusted equity method in accounting for its ownership in Stylus.

Required:
a. What percentage of the intercompany inventory transfer was resold prior to the end of 20X5? (Do not round your intermediate calculations. Round your final answer to nearest whole percentage.)

b. Prepare the appropriate consolidation entries needed at December 31, 20X5, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• Record the entry to eliminate intercompany receivable/payable.
• Record the entry to eliminate the intercompany inventory sale.

Eugenia Monroe, 30 years old, is currently employed at an IT firm where she earns $38,000 a year. She expects that her salary will grow by 3% per year. She expects to retire at age 65. She has recently inherited $75,000 and is now considering what to do with the sum. She has two options: First, she could enroll in a certification program in net work design. The program requires completing 20 Web-based courses over one year. The total cost of the program is $5,000, payable when she enrolls. She will not lose any income because she can study while working. When she obtains the certification, she can expect an increase in salary of $10,000 compared to her current job, and this differential will grow at 3% per year so long as she keeps working in that new position. Second, she could enroll for an MBA. It will be an evening program, and it will cost $25,000 per year, due at the beginning of each of her three years in school. Because it is an evening program, she will not lose any income because she can study while working. When she obtains the MBA degree, she can expect a promotion to manager and an increase in salary of $20,000 compared to her current job, and this differential will grow at 3% per year so long as she keeps working in that managerial position. Using a discount rate of 2.95%, please answer the following questions: Create worksheets in Excel showing the timelines for her two alternatives. Assume that salaries are paid only once, on January 1 of the next year. Hence, when she obtains a qualification in, say, 2018, the higher salary does not kick in until 2019. Calculate the present value of the salary differential for completing the certification program. Subtract the present value of the cost of the program to get the net present value. Calculate the present value of the salary differential for completing the MBA program. Subtract the present value of the cost of the program to get the net present value. Based on your answers above, which choice would you recommend to Eugenia Monroe?

The balance of payments consists of three accounts which together record the flow of money into and out of a country. The current account records the sale and purchase of goods and services, the capital account records the sale and purchase of financial assets, and the official settlements (OS) account records changes in government holding of foreign currencies. Anything that brings domestic currency into the country is recorded as a positive while anything that sends domestic currency out of the country is a negative. Based on this description, identify which UAE account (current, capital, or OS) each transaction would be included in and whether it would be positive or negative.

a) Etihad Airlines buys 2 new airplanes from Boeing (a US company)

b) A London businessman buys 100 shares of Etihad Airlines stock

c) The UAE government buys 100,000 Omani rial

d) A UAE housewife receives an interest payments of 250,000 AED on short-term foreign deposits in a UK bank

e) A petrol station in Iceland buys 3,000 liters of petrol from ADNOC

f) The UAE government sells 1 million US dollars

g) The UAE government lends 1 billion euros to the Greek government