(Calculation of depreciation; three methods)

On January 1, 2016, SugarBear Company acquired equipment costing $150,000, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $12,000. The estimated output from this equipment is as follows: 2016—15,000 units; 2017—24,000 units; 2018—30,000 units; 2019—28,000 units; 2020—18,000 units. The company is now considering possible methods of depreciation for this asset.

Required

a.  Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses:

i.The straight-line method

ii.The units-of-production method

iii.The double-diminishing-balance method

b. Briefly discuss the criteria that a company should consider when selecting a depreciation method.

In response to the adverse effects of COVID-19, the federal government introduced some palliative measures such as Canada Emergency Response Benefit (CERB) and Canada Emergency Wage Subsidy (CEWS).

1. Are CERB and CEWS tools of fiscal or monetary policies?
2. Which component(s) of aggregate demand (AD) would CERB directly impact?
3. Which component(s) of aggregate demand (AD) would CEWS directly impact?
4. Is CERB a transfer payment? Explain
5. On Wednesday, April 15, 2020, the federal government made some changes to CERB eligibility criteria. Information on the Canada Revenue Agency (CRA)’s website states that “The CERB is now available if you earned $1000 (before taxes) or less during an eligibility period.” Now that the eligibility criteria have been relaxed, what effect would it have on the labour supply of those who will earn $1001 (before taxes) during an eligibility period?
6. Given that the federal government intends to phase out the CERB in September 2020, what do you think the government anticipate would happen to the unemployment rate by September 2020?
7. For CERB to achieve the desired objective, what do you think the federal government anticipates would happen to the marginal propensity to expend (MPE)?

1 What is the GOVERNMENT FAILURE for some workers resulting from this legislation, i.e. which workers end up being WORSE off as a result of this legislation? Use a carefully labeled graph, and assuming any logical numbers, to support your answer to the question above.

2   Some government officials decide it is a market failure that the price of renting an apartment is too high for some people. The government then passes legislation INTENDED to help those wanting to rent apartments. What is the GOVERNMENT FAILURE for some people resulting from this legislation, i.e. which people end up being WORSE off that were intended to be better off as a result of this legislation? Use a carefully labeled graph, and assuming any logical numbers, to support your answer.

3 Assume there is a significant negative externality in supplying a good or service. Using a carefully labeled graph, show the supply curve that does NOT reflect the negative externalities and the supply curve that does reflect these externalities. Make sure each is carefully labeled.

4 Explain, using a carefully labeled graph, why the price of oil has PLUMMETED recently. EXPLAIN the movement from one equilibrium to another.

5 Assume the President of the United States states “we will no longer put much resources into enforcing our immigration laws.” Explain how the predictable increase in illegal immigration will harm some American low-skilled workers. Use a carefully labeled graph to support your answer. Besides the illegal immigrants and employers benefitting, who else benefits from illegal immigration?

6 GDP in the year 2010 was $300,000,000,000 when the population was 10,000,000. GDP in 2020 in that same country was $550,000,000,000 and the population was 12,000,000. Calculate the annual growth rate in GDP PER CAPITA. Show your math.

7 Using a carefully labeled graph, show and explain how licensing requirements can harm CONSUMERS.

8A basket of goods and services cost $200 in the year 2000. That same basket of goods costs $438.22. What has been the annual inflation rate? SHOW YOUR MATH.

In a 250-300 word summary, address the following:

• Identify one critical risk you could encounter that could prevent you from meeting each of your goal/objectives.
• Develop a contingency plan for the identified risk. Explain how this could maximize management efficiency and the allocation of resources. What leadership qualities are essential when dealing with the identified critical risk?

The company is a startup football league like AAFL., XFL

PROMPT:   The  article refers to the ‘theory of competitive harm’ in which a company (like Facebook) can be charged with anticompetitive practices for buying startups ‘that might ultimately unseat them.’

Assuming that the investors in the startup were not coerced into accepting the terms of the buyout transaction and that all elements of proper corporate governance were observed, is there actually a problem with having a large company acquire a much smaller company whose business concept is attractive to the large company?

Question 1 (New Zealand External Reporting Environment)

Explain ONE potential benefit and ONE potential problem that can result from the adoption of IFRSs in New Zealand.

Question 2 (Inventories)

As a part of the auditing team assigned in relation to Mandalay Ltd, you have been asked to verify the inventories at the Henderson branch at 30 June 2020. The company uses a perpetual method to account for inventories. In undertaking the task you note that there is a shipping container beside the main warehouse containing goods that Mandalay Ltd wants to sell. You ask the accountant at the Henderson branch whether he plans to include the goods in the truck in the calculation of the inventories on hand at 30 June 2020. The accountant says that the goods will not be included.

You then obtain a copy of the invoice in relation to the container of goods. The container was shipped on 24 June from Sydney, marked FOB Sydney, and the total invoice price was $200 000. The freight bill amounted to $12 000, with terms requiring payment within 30 days. The accountant says he will not pay the invoice until mid-July, and so the inventories will not be included in determining the inventories on hand at 30 June 2020.

Required:

Answer the following parts-

1. Does Mandalay Ltd have a liability that should be recorded at 30 June 2020?
2. Should the container of goods be included in the determination of the inventories balance at 30 June 2020? If so, what journal entry would be required?

Question 3 (Property, Plant and Equipment)

Trabitz Ltd has acquired a building. Which of the following items should be included in the cost of the building? If an item is excluded from the cost of the building, explain why.

1. Real estate agent’s fees
2. Cost incurred in evaluating a different building found to be unsuitable
3. Interest on the bank loan to acquire the building, and an application fee to the bank to get the loan, which is secured on the building
4. Cost of changing the name on the building
5. Cost of refurbishing the lobby to the building to attract customers and make it more user friendly

Cost of changing the parking bays

Pharoah Carecenters Inc. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Pharoah, whose fiscal year ends on December 31.

(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2020, to December 31, 2022.)

Journalize the listed transactions for the years 2020 and 2023. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Part 2

Assume that the fair value of the bonds at December 31, 2020, was $1,254,000. These bonds are classified as available-for-sale securities. Prepare the adjusting entry to record these bonds at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Part 3

Based on your analysis in part (b), show the balance sheet presentation of the bonds and interest receivable at December 31, 2020. Assume the investments are considered long-term. Indicate where any unrealized gain or loss is reported in the financial statements. (Enter account name only and do not provide descriptive information.)

Comprehensive Problem: Consolidation Working Paper and Financial Statements Pierre

Corporation acquired 75 percent of Selene Corporation’s common stock for $20,100,000 on January 2,

2017. The estimated fair value of the noncontrolling interest was $5,900,000. Selene’s book value at date

of acquisition was $10,000,000, and its identifiable net assets were fairly stated except for previously

unreported completed technology, valued at $4,000,000, with a remaining life of 5 years, straight‑line. It

is now December 31, 2020, and you are preparing consolidated financial statements for Pierre and Selene.

Following is information on intercompany transactions

1. On January 2, 2018, Pierre sold equipment to Selene for $6 million and recorded a gain of $2 million.

The equipment had a remaining life of 10 years at that time.

2. Selene supplies Pierre with component parts for its products, at a markup of 20 percent on cost.

During 2020, Selene made sales totaling $20 million to Pierre. Pierre had parts purchased for $1.8

million and $2.4 million in its 2020 beginning and ending inventory balances, respectively.

3. Pierre sells materials to Selene for use in its manufacturing processes, at a markup of 20 percent on sell‑

ing price. During 2020, Pierre made sales totaling $15 million to Selene. Selene had materials purchased

for $3 million and $2.8 million in its 2020 beginning and ending inventory balances, respectively

Goodwill arising from this acquisition was impaired by $3 million during the years 2017–2019, and no

further goodwill impairment occurred in 2020. Pierre uses the complete equity method to report the in‑

vestment in Selene on its own books. The separate December 31, 2020, trial balances of Pierre and Selene

appear below, before Pierre’s end‑of‑year adjustment to record its equity in Selene’s net income and other

comprehensive income for 2020.

in thousands) Pierre Selene

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000 $ 2,500

Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,600 10,000

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 30,000

Investment in AFS debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 6,000

Plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452,000 144,000

Investment in Selene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,225 —

Current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,000) (2,800)

Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (489,825) (163,700)

Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,000) (2,000)

Retained earnings, January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (88,500) (19,600)

Accumulated other comprehensive income, January 1. . . . . . . . . . . . . . . . . . (1,500) (400)

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 3,000

Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150,000) (50,000)

Cost of sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 35,000

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,500 7,900

Unrealized losses on AFS investments (other comprehensive income). . . . . . 500

100

Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 $ 0

Required

a. Calculate the total goodwill arising from this acquisition and its percentage allocation to the control‑

ling and noncontrolling interests.

b. Prepare a schedule calculating Pierre’s equity in the net income of Selene for 2020, and the noncon‑

trolling interest in Selene’s net income for 2020.

c. Update Pierre’s trial balance for its 2020 equity method entries and prepare a working paper consoli‑

dating the 2020 trial balances of Pierre and Selene.

d. Present the consolidated financial statements of Pierre and Selene, in proper format

Reply to this post in at least 500 word. Discuss what you agreed and disagree with

The discussion board question for this week is ethical relativism correct. To understand the question, you first must know what definition of ethical relativism. According to dictionary.com, "Ethical relativism is the belief that nothing is objectively right or wrong and that the definition of right or wrong depends on the prevailing view of a particular individual, culture, or historical period". An example of ethical relativism would be homosexuality. Many countries are against homosexuality and there are countries that support them. The United States of America are one of the many countries that continue to create strides for the lesbian, gay, bisexual, and transgender Community (LGBT). Uganda is one of the many countries that are against homosexuality. They have an Anti-Homosexuality Act, which was signed in 2014 that will grant you with life in prison or the death penalty

The United States has begun to grant rights to the lesbian, gay, bisexual, and transgender (LGBT) community in 2003 after the United States Supreme Court ruling in Lawrence v. Texas. Back in 1973 Texas had a law that homosexual contact was a criminal act. The police were sent to the home of Mr. Lawrence to responds to a call about weapons. When the police entered the home, they caught Mr. Lawrence and another man in a sexual act. This court ruling found that same sex sodomy is a violation of right to privacy. This day has become the foundation of many LGBT right to come. On June 26, 2015 same sex marriage was established in all fifty states.  

Uganda is one of the many countries in Africa that does not believe in Homosexuality rights. The country of Uganda has signed an Anti-Homosexuality act in 2014 with strict punishments if caught or accused of homosexual acts.  These countries ethical relativism toward homosexuality is totally different than what the United States of America has. Uganda ethical relativism towards this issue is that homosexuality is wrong and has no place in their country. Some of the penalties of getting caught is life in jail or the death penalty. Which is the main reason behind many of the people fleeing the country due to this act in Kenya where being a part of the lesbian, gay, bisexual, and transgender (LGBT) Community is more acceptable.  

I believe ethical relativism is correct There are multiple countries with different ways of living. Some countries believe in polygamy and other countries believe that it is wrong. We may live on the same earth, but we do not live under the same rules. In Nigeria the age of sexual consent is eleven and in the state of Virginia the age of consent is eighteen. According to girlsnotbrides.org forty-four percent of the young women are married before eighteen and seventeen percent married before fifth-teen.  

It is very easy to understand why some of my classmates may choose the ethical relativism is incorrect. A person's culture plays a large part in ethical relativism, but there are many things that are wrong even though they are culture norms. Such as in the sexual consent age in Nigeria. In my eyes at the age of eleven I do not believe a child can give consent.

Reference List  

Britton, Bianca. 2017. “Kasha Nabagesera: The Face of Uganda's LGBT Movement.” CNN. Cable News Network. March 7. https://www.cnn.com/2017/03/05/africa/her-kasha-jacqueline-nabagesera-lgbt-campaigner/index.html.

“The Supreme Court . The Future of the Court . Landmark Cases . Lawrence v. Texas (2003) | PBS.” 2018. THIRTEEN - MEDIA WITH IMPACT. Accessed June 4. https://www.thirteen.org/wnet/supremecourt/future/landmark_lawrence.html.

Blanchard, Bobby. 2017. “Why Does the Texas Criminal Code Still Ban ‘Homosexual Conduct’?” The Texas Tribune. Texas Tribune. March 27. https://www.texastribune.org/2017/03/27/why-does-texas-criminal-code-still-ban-homosexual-conduct/.

Girls Not Brides. 2018. “Nigeria - Child Marriage Around The World. Girls Not Brides.” Girls Not Brides. Accessed June 4. https://www.girlsnotbrides.org/child-marriage/nigeria/.