In a effort to better predict the demand for courses offered by a certain MBA program, it was hypothesized that students' academic backgrounds affect their choice of MBA major, thus, their course selection. A random sample of last year's MBA students was selected. The results are shown below. (A) State the null hypothesis and alternative hypothesis. (B) USING EXCEL Can we infer that undergraduate degree affects MBA students' course preferences?

Business Combination

On 1 July 2020, Tall Ltd acquired all of the assets and liabilities of Blacks Ltd. In exchange for these assets and liabilities, Tall Ltd issued 100 000 shares that at date of issue had a fair value of $6.30 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Blacks Ltd amounted to $4200.

The asset and liabilities of Blacks Ltd at 1 July 2020 were as follows:

                                                                                               Carrying amount                               Fair value

Assets

             Cash                                                                                              $1 000                                      $1 000

             Accounts receivable                                                               10 000                                      10 000

             Inventory                                                                                    64 000                                      68 000

             Equipment                                                                               320 000                                    232 000

             Accumulated depreciation – equipment                    (96 000)                                              —

             Patents                                                                                      240 000                                    280 000

Liabilities

             Accounts payable                                                                 (16 000)                                   (16 000)

             Debentures                                                                            (64 000)                                   (64 000)

The accountant for Tall Ltd, Mr Spencer, knows that AASB 3 has to be applied in accounting for business combinations. However, he is confused as to how to account for the goodwill, what recognition criteria is applied to assets and liabilities acquired in the business combination, and how the varying dates such as the date of exchange and acquisition date will affect the accounting for the business combination.

Provide Mr Spencer with advice on the issues that are confusing him.

Required

1. Explain how to account for goodwill.                                                                                         

2. Discuss the importance of identifying the acquisition date                                                                   

3. What recognition criteria is applied to assets and liabilities acquired in the businesscombination. Explain.                                                                                                         

4. Prepare the acquisition analysis at 1 July 2020 for the acquisition of Blacks Ltd by Tall Ltd.                                                                                                                                                                         

5. Prepare the journal entries in the records of Tall Ltd at 1 July 2020.                             

On 1 July 2020, Tall Ltd acquired all of the assets and liabilities of Blacks Ltd. In exchange for these assets and liabilities, Tall Ltd issued 100 000 shares that at date of issue had a fair value of $6.30 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Blacks Ltd amounted to $4200.

The asset and liabilities of Blacks Ltd at 1 July 2020 were as follows:

                                                                                                Carrying amount                               Fair value

Assets

             Cash                                                                                             $1 000                                      $1 000

             Accounts receivable                                                               10 000                                      10 000

             Inventory                                                                                   64 000                                      68 000

             Equipment                                                                              320 000                                   232 000

             Accumulated depreciation – equipment                     (96 000)                                              —

             Patents                                                                                     240 000                                   280 000

Liabilities

             Accounts payable                                                                 (16 000)                                  (16 000)

             Debentures                                                                            (64 000)                                  (64 000)

The accountant for Tall Ltd, Mr Spencer, knows that AASB 3 has to be applied in accounting for business combinations. However, he is confused as to how to account for the goodwill, what recognition criteria is applied to assets and liabilities acquired in the business combination, and how the varying dates such as the date of exchange and acquisition date will affect the accounting for the business combination.

Provide Mr Spencer with advice on the issues that are confusing him.

Required

1. Explain how to account for goodwill.                                                                                              

2. Discuss the importance of identifying the acquisition date                                                                      

3. What recognition criteria is applied to assets and liabilities acquired in the business combination. Explain.                                                                                                         

4. Prepare the acquisition analysis at 1 July 2020 for the acquisition of Blacks Ltd by Tall Ltd.                                                                                                                                                                          

5. Prepare the journal entries in the records of Tall Ltd at 1 July 2020.                              

Study 3    (Total = 25 Marks)
Business Combination

On 1 July 2020, Tall Ltd acquired all of the assets and liabilities of Blacks Ltd. In exchange for these assets and liabilities, Tall Ltd issued 100 000 shares that at date of issue had a fair value of $6.30 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Blacks Ltd amounted to $4200.

The asset and liabilities of Blacks Ltd at 1 July 2020 were as follows:

Carrying amount Fair value
Assets
Cash $1 000 $1 000
Accounts receivable 10 000 10 000
Inventory 64 000 68 000
Equipment 320 000 232 000
Accumulated depreciation – equipment (96 000) —
Patents 240 000 280 000
Liabilities
Accounts payable (16 000) (16 000)
Debentures (64 000) (64 000)


The accountant for Tall Ltd, Mr Spencer, knows that AASB 3 has to be applied in accounting for business combinations. However, he is confused as to how to account for the goodwill, what recognition criteria is applied to assets and liabilities acquired in the business combination, and how the varying dates such as the date of exchange and acquisition date will affect the accounting for the business combination.

Provide Mr Spencer with advice on the issues that are confusing him.

Required
1. Explain how to account for goodwill.     

2. Discuss the importance of identifying the acquisition date     

3. What recognition criteria is applied to assets and liabilities acquired in the business combination. Explain.     

4. Prepare the acquisition analysis at 1 July 2020 for the acquisition of Blacks Ltd by Tall Ltd.     

5. Prepare the journal entries in the records of Tall Ltd at 1 July 2020.   

At the beginning of 2016, the Healthy Life Food Company purchased equipment for $42 million to be used in the manufacture of a new line of gourmet frozen foods. The equipment was estimated to have a 10-year service life and no residual value. The straight-line depreciation method was used to measure depreciation for 2016 and 2017. Late in 2018, it became apparent that sales of the new frozen food line were significantly below expectations. The company decided to continue production for two more years (2019 and 2020) and then discontinue the line. At that time, the equipment will be sold for minimal scrap values. The controller, Heather Meyer, was asked by Harvey Dent, the company’s chief executive officer (CEO), to determine the appropriate treatment of the change in service life of the equipment. Heather determined that there has been an impairment of value requiring an immediate write-down of the equipment of $12,900,000. The remaining book value would then be depreciated over the equipment’s revised service life. The CEO does not like Heather’s conclusion because of the effect it would have on 2018 income. “Looks like a simple revision in service life from 10 years to 5 years to me,” Dent concluded. “Let’s go with it that way, Heather.” Required: What is the difference in before-tax income between the CEO’s and Heather’s treatment of the situation? Discuss Heather Meyer’s ethical dilemma.

Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6:

You have recently become CEO of a corporation with offices in three countries: the U.S., Japan, and Germany. You have begun to plan your first annual conference with all managers and supervisors/team leads from your three locations. It will be held in a central location (face-to-face) and you wish to share many things with your leadership team.

One of the things you wish to share is that of various leadership styles they may wish to consider as they work in their respective locations. Not all leadership styles are appropriate for all situations or all cultures.   

Instructions

Create a PowerPoint presentation that includes the following (in addition to a title and references slide):

• The definition of leadership (in your own words) and identify several skills leaders need to excel at that managers do not necessarily need to be good at.
  
• A concise description of the leadership styles (see below) with a brief paragraph or bullets on each style identifying its key traits, strengths or weaknesses, and identify which of the three countries above might benefit from or work well for each style of leadership. You may identify more than one country per leadership style.
  
  Provide researched information (at a minimum 4 outside sources) on the following:
  1. Transformational leadership.
  2. Transactional leadership.
  3. Servant leadership.
  4. Autocratic leadership.
  5. Democratic leadership.
  6. Bureaucratic leadership.
  7. Charismatic leadership.

• A concluding / summary slide recommending the style of leadership that would best suit each country of your multi-national management team.

[A senior engineer from a European electronics company] was sent to Saudi Arabia on a four-year assignment, at a cost to his employer of about $4 million. During those four years, he learnt fluent Arabic, gained new technical skills, and made friends with important businesspeople in the Saudi community. But upon returning home, the man was shocked to find himself frequently scolded that ‘the way things were done in Saudi Arabia has nothing to do with the way we do things at headquarters’. Worse, he was kept waiting almost nine months for a permanent assignment which, when it came, gave him less authority than he had had abroad. Not surprisingly, the engineer left to join a direct competitor a few months later and ended up using the knowledge and skills he had acquired in Saudi Arabia against his former employer.

What are the main issues of this case?

What recommendations would you give for these issues?

You are an assistant to the attorney for FUN company. To complete this assignment you must write a two-to-three page report discussing the legal issues and likely outcome of the case below:

SAD Co. vs. FUN Company: Several weeks ago, SAD Co. CEO met with FUN’s CEO for lunch to discuss potential business ventures between both companies. After a few shots of whiskey, SAD’s CEO tells FUN’s CEO that SAD is interested in purchasing a commercial building that FUN owns in a central area in West Palm Beach. SAD is interested in this building because of the specific location in which it is located. SAD believes that owning a building in that specific location will increase their business significantly. SAD’s CEO offers FUN’s CEO to purchase that specific building for $5 million. FUN’s CEO responds that FUN estimates that the building is worth $9 million and that they are willing to sell the building for that price give that they have no use for it. SAD’s CEO takes out a $1.00 bill gives it to FUN’s CEO and says “this is my payment so that you give me time to talk to my board and see if we are willing to pay $9 million.” FUN’s CEO laughs and puts the $1.00 bill in his pocket. Both CEO’s shake hands and say goodbye and leave. The next day SAD’s CEO calls an emergency meeting to discuss the $9 million purchase price and the board agrees to the purchase of the building for $9 million. Immediately after the meeting, SAD’s CEO calls FUN’s CEO on the phone and tells him that SAD agrees to purchase the building for $9 million. FUN’s CEO tells SAD’s CEO that FUN has decided not to sell the building because after their meeting yesterday they realized how much potential the building actually had. SAD is now demanding that FUN honor its word and sell them the building for$9 million.

If you take this sample and break into 2 samples, one for graduate degrees (MBA and MSE) and one for undergraduate degrees (BA and BSE), would you believe the populations have different GPAs?

1. What test would you perform?
   1. Z-test of a mean
   2. T-test of a mean
   3. T-test of 2 sample means
   4. Chi-square test
2. What is the value of the test statistic?
   1. 2.02
   2. 2.68
   3. 3.06
   4. 3.11
3. What is the p-value?
   1. 0.0074
   2. 0.0280
   3. 0.0373
   4. 0.0746
4. Based on a significance level of 0.05, would you reject or fail to reject and why?
   1. Reject because p < alpha
   2. Reject because p > alpha
   3. Fail to reject because p < alpha
   4. Fail to reject because p > alpha