1. Trevonne had a $750,000 line of credit with Treyenne State bank. They had an outstanding balance of $150,000 at the beginning of 2020, paid $72,000 on the balance on January 28, 2020, borrowed an additional $165,000 on March 16, 2020. If the interest rate is seven percent compounded monthly, what is the balance on the line of credit as of March 31, 2020.

accounting question

On 1 April 2010 Parent Ltd acquired 90% of the equity in Subsidiary Ltd for $650 000 cash. At this date the equity of Subsidiary Ltd comprised:

Part A

(a) Assume the net assets of Subsidiary Ltd were at fair value on 1 April 2010. Prepare the notional journal entry to offset the carrying amount of the asset Investment in Subsidiary Ltd and the parent’s portion of equity in Subsidiary Ltd in accordance with the requirements of NZ IFRS 3 Business Combinations and NZ IFRS 10 Consolidated Financial Statements.

(b) Assume the net assets of Subsidiary Ltd were not at fair value on 1 April 2010. At the date of acquisition Subsidiary Ltd had an unrecognised intangible asset of $22 000 and a contingent liability of $8 000. Prepare the notional journal entry to offset the carrying amount of the asset Investment in Subsidiary Ltd and the parent’s portion of equity in Subsidiary Ltd in accordance with the requirements of NZ IFRS 3 Business Combinations and NZ IFRS 10 Consolidated Financial Statements.

(c) Briefly explain why the amount of acquired goodwill recognised above in (a) and (b) will not be the same amount.

Part B

Assume the net assets of Subsidiary Ltd were at fair value on 1 April 2010. Prepare the notional journal entry to identify the non-controlling interest (NCI) in Subsidiary Ltd to be reported in the group accounts as at 31 March 2017 in accordance with the requirements of NZ IFRS 3 Business Combinations and NZ IFRS 10 Consolidated Financial Statements. Parent Ltd measures the NCI at the NCI’s proportionate share of the acquiree’s identifiable net assets.

Additional information provided for Part B:

(i) During March 2016 Subsidiary Ltd made sales to Parent Ltd and realised a profit of

$2 000. At 31 March 2016 this purchase was included in the inventory balance of Parent Ltd.

(ii) During March 2017 Subsidiary Ltd made sales to Parent Ltd and realised a profit of

$3 000. Parent Ltd had not sold this purchase of inventory by 31 March 2017.

(iii) At the date of consolidation 31 March 2017 the equity of Subsidiary Ltd comprised:

(iv) The directors of Parent Ltd believe the acquired goodwill in Subsidiary Ltd was impaired by $4 500 in the year ended 31 March 2017.

Question 1 continued:

Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at January 1, 2020 include:    

¹ These prior service costs are from 2019 and already included in PBO on January 1,2020.

Required:

1. Determine the pension expenses recognized in 2020.
2. Prepare the journal entries to reflect the accounting for the pension plan for 2020.
3. Prepare the ending balances (31 December 2020) for plan assets, PBO, and calculate net pension liability.
4. What will be the expected impact of the current pandemic (Covid-19) on PBO?  

1.What is a 'technology dead end’? Why are technology dead ends important for economic growth? Illustrate with an example. Hint: Easterly (2002) talks about all this in ch. 9.

2.In your opinion, does intellectual property (i.e. temporary ownership of ideas) incentivize the creation of more new ideas or does it lower the rate of subsequent innovation and creative expression? Explain briefly how or why. Gilbert (2011) may help you think about this.

Consider the production function ? = ?? ?? ? where ? is output, ? is capital, ? is labour and ?, ? and ? are positive parameters.

a. Derive the parametric conditions under which production exhibits CRS, IRS and DRS, respectively.

b. Let ?(?,?0) be the isoquant associated with output level ?0. Derive the expression for ?(?,?0). In a graph, illustrate this function and the effect of an innovation represented by an increase in the value of ?.

c. For output level ?0, let the cost-minimizing input levels be ? ∗ (?, ?) and ? ∗ (?, ?), where ? and ? are the prices of labour and capital, respectively. Derive the functions ? ∗ (?, ?) and ? ∗ (?, ?).

a)- From the time period of 1970 and more significantly in 1980s & 1990s, the financial institutions are seriously facing growing market risks. Given the greater need for risk reduction, financial innovation came to assist financial institutions by offering new financial products and services that help financial institution to manage risk in a better way. Briefly define hedging and its role in diversifying risk.

b)- Explain and differentiate the following: Forward Markets, Financial Futures Markets and Options

What kinds of innovations effected the way that agricultural markets transitioned from craft production to mass production? Discuss a specific innovation that effected the evolution of agricultural production. How did the make-up of the agricultural labor force change and how did changes in efficiency and productivity in agricultural labor effect supply, demand and wages in the agricultural markets? What other policies and structural changes have affected agricultural production in the US in the past 300 years?

Assume that you are a young, motivated entrepreneur, hungry to start your own company and reach great success.

Of the following 4 entrepreneurial strategies, which one or combination of more than one, would you select in starting your business? Explain why you made that choice.   (You may also explain the product or service that your company provides since that may influence the choice of your strategy)

Growth

Innovation

Network

Financing and Governance