Laelia Ltd sells airplanes for $20,000 each. These airplanes are designed for individual use and can transport customers up to 200 kilometres in one go. Laelia Ltd can also provide custom-designed hangars for its customers’ airplanes at Dawson Creek, Queensland for $2,500 per year. These hangars can only cater to airplanes sold by Laelia Ltd due to regulations. Laelia Ltd sells these items either separately or as a package.

On 1 October 2020 Laelia Ltd enters into a contract to sell an airplane and one year of hangar facilities to Peter Do for $20,500. Cash payment is required at this date, after which legal title to the airplane passes to Peter Do and the hangar services commence. Peter Do is free to fly the airplane anywhere and he is not bound by any restriction. Please ignore effects of GST.

REQUIRED:

(a) Explain how Laelia Ltd would account for the revenue associated with this transaction with Peter Do in accordance with the requirements of AASB 15 ‘Revenue from Contracts

Step 1 – Identify the contract

Step 2 – Identify the performance obligation(s)

Step 3 – Identify the transaction price

Step 4 – Allocate the transaction price

Step 5 – Recognise the revenue as performance obligation(s) is(are) satisfied

For large U.S. companies, what percentage of their total income comes from foreign sales? A random sample of technology companies (IBM, Hewlett-Packard, Intel, and others) gave the following information.†

Another independent random sample of basic consumer product companies (Goodyear, Sarah Lee, H.J. Heinz, Toys 'R' Us) gave the following information.

Assume that the distributions of percentage foreign revenue are mound-shaped and symmetric for these two company types.

(a) Use a calculator with mean and standard deviation keys to calculate x₁, s₁, x₂, and s₂. (Round your answers to two decimal places.)

(b) Let μ₁ be the population mean for x₁ and let μ₂ be the population mean for x₂. Find a 98% confidence interval for μ₁ − μ₂. (Round your answers to two decimal places.)

Wildhorse Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WILDHORSE RESORT TRIAL BALANCE AUGUST 31, 2017 Debit Credit Cash $25,000 Prepaid Insurance 9,900 Supplies 8,000 Land 26,000 Buildings 126,000 Equipment 22,000 Accounts Payable $9,900 Unearned Rent Revenue 10,000 Mortgage Payable 66,000 Common Stock 102,400 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 82,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $279,500 $279,500 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017. 2. An inventory count on August 31 shows $431 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,152 was earned prior to August 31. 5. Salaries of $410 were unpaid at August 31. 6. Rentals of $791 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.

Question 1: Tax Incidence with Linear Supply and Demand (60p) In the market for tulips , the demand curve is: qd = 50 − 3p and the supply curve is: qs = 2p. Assume for now that there are no externalities or pre-existing market distortions, so these represent the true social marginal benefit and marginal cost curves. The government decides to raise revenue by taxing consumers t = 5/3 for every tulip purchased. a) Graph the supply and demand curves, and indicate how the curves shift after implementation of the tax. Label deadweight loss, tax revenue, consumer and producer surplus. Show the price paid by consumers and the price received by producers, and use these to indicate the burden borne by each party due to the tax. b) Calculate the change in consumer and producer surplus from the tax, and how much revenue is raised by the tax. Also, using the pre-tax price, the post-tax price and the tax, calculate what proportion of the tax is borne by each party. c) Calculate the demand and supply elasticity at the pre-tax equilibrium and use the elasticities to confirm your answer for what proportion of the tax is borne by each party. d) Calculate the deadweight loss from the tax directly from supply and demand functions. Then, use the Harberger formula for deadweight loss to confirm your answer.

How many unmarried male shoppers might I possibly reach with advertising campaigns for the following combinations of TV​ shows? Keep in​ mind, we want to avoid​ "double counting" males who may watch both channels. For​ simplicity, though, assume that the chance a male watches one cable channel does not influence the chances they will watch a different channel.

When two events are considered to be unrelated to one​ another, the probability of them BOTH happening is just​ "Probability of Event

​A"times×​"Probability

of Event​ B". This is represented as

​"Upper P left parenthesis Upper A intersect Upper B right parenthesisP(A∩B)​".

The combined probability of the events is​ "Probability of Event

​A"plus+​"Probability

of Event

​B"minus−​"Upper P left parenthesis Upper A intersect Upper B right parenthesisP(A∩B)​".

Multiply the the combined probability of watching both channels by the total number of unmarried male shoppers. Use the provided table above to answer the question.

Fill in the table below. ​(Round to the nearest whole​ number.)

Among married principal​ shoppers, (---------)1 is the ratio of females to males. ​(Round to two decimal​ places.)

Among married principal shoppers who watch Comedy​ Central, (-------------)​:1 is the ratio of females to males. ​(Round to two decimal​ places.)

The percentage of all​ SyFy-watching principal shoppers that are married is calculated as​ follows:

% of all SyFy dash watching Principal Shoppers are Married = equals StartFraction Female Married Pricipal Shopper Subscript SyFy + Male Married Pricipal Shopper Subscript SyFy Over All Principal Shoppers Subscript SyFy EndFraction% of all SyFy

(---------------) % of all​ SyFy-watching principal shoppers are married. ​(Round to two decimal​ places.)

Approximately​ speaking, do married men or married women principal shoppers say they watch more of the cable channels listed​ here?

Fill in the table below. ​(Round to two decimal​ places.)

Principles of Caribbean Tax and Tax Management:

Brick & Stone

Notes on the Income Statement

1. The cost of sales includes goods valuing $250,000 that were purchased for Mr. Stone’s personal use

2. Salaries & Wages include $25,000 per month, and $20,000 per month, paid to Mr. Stone and Mr. Brick respectively.

3. $65,000 of the rent relates to the private dwelling of Mr. Brick’s wife

4. The rates of depreciation n the fixed assets of the business are below those given in the Wear and Tear schedule of the Income Tax Act. The Wear and Tear allowance total 35% of qualifying assets valuing $300,000

5.The partners agreed to dispose of an old pick up truck with a net book value of $35,000 for $25,000. The pick up had a tax written down value of $30,000

6. The telephone expense includes 20% for private calls made from Mr. Stone’s cellular phone.

7. The electricity relates to the private dwelling of Mr. Brick

8. Entertainment expenses relate solely for the promotion of the business to new and prospective customers

9. Donations of $60,000 were made to a local political party to fund its campaign. The remainder was donated to an approved local children’s home.

10. The partners could not determine if all of the customers would be able to settle their bills on time so a general provision of $80,000 was made to cushion the effect of any debt going bad.

11. Fines and penalties include traffic offences of $5,000 and penalties $10,000 for non filing of VAT returns for the period January to march 2010

Note that the business was owned solely by Mr Brick and registered in Trinidad and Tobago as a Sole Trading business in 2009. However, through continuous growth, Mr. Brick decided to enter into a partnership agreement with Mr. Stone, thus the status of the business was changed in 2009. The partnership agreement stated that the partners are to share profit and loss in the ration 45:55.

Additional Information:

- Mr. Stone is a director for a local company and received gross emoluments of $250,000 per annum; payroll taxes amounted to $15,000 and are deemed to be correct

- Personal allowance if $60,000

- Income tax rate is 25%

- Mr. Brick rents his private dwelling for $15,000 per month for 8 months with effect from May 1, 2011

- The partners each paid estimated obligations f $10,000 per quarter on March 31, June 30, September 30, and December 31.

Tip: The income tax rate is 25% and the income tax threshold is $1,500,000.

REQUIRED:

b. Given the information provided, compute the tax liability of Mr. Brick and Mr. Stone.

c. Brick met in a motor vehicle accident and died January 1, 2017. Stone asked for your professional consultation on the business as a going concern. What would your consultation to Mr. Stone be?      

MULTIPLE REGRESSION

The date set below was collected from a random sample of 15 households on the following variables: (1) Weekly Income, (2) House Rent, (3) Food Expense, (4) Entertainment Expense, and (5) Weekly Savings.

Sampled    Weekly   House       Food       Entertain/   Weekly
Individual   Income   Rent       Expense   Expense   Savings
Case 1   $250       85       95       25       20
Case 2   $190       75       90       10       0
Case 3   $420       140       120       40       50
Case 4   $340       120       130       0       40
Case 5   $280       110       100       30       15
Case 6   $310       80       125       25       25
Case 7   $520       150       140       55       80
Case 8   $440       175       155       45       0
Case 9   $360       90       85       20       95
Case 10   $385       105       135       35       30
Case 11   $205       80       105       0       5
Case 12   $265       65       95       15       15
Case 13   $195       50       80       10       20
Case 14   $250       90       100       25       0
Case 15   $480       140       160       45       45

A multiple regression was run with WEEKLY SAVINGS as the DEPENDENT VARIABLE and the rest as the INDEPENDENT VARIABLES.

SAVINGS = b + b INCOME + b RENT + b FOOD + b ENTERT

The resulting computer output is on the next page.

COMPUTER OUTPUT PART I

WEEKLY SAVINGS
REGRESSION FUNCTION & ANOVA FOR SAVINGS

SAVINGS = 23.14156 + 0.591446 INCOME - 0.341793 RENT
- 1.119734 FOOD - 0.907868 ENTERT

R-Squared         = 0.917562
Adjusted R-Squared     = 0.870454
Standard error of estimate    = 10.9635
Number of cases used    = 12

Analysis of Variance
                                   p-value
Source SS     df MS     F Value Sig Prob
Regression 9364.86    4    2341.21    19.47795 0.000677
Residual 841.39 7     120.198
Total 10206.250 11

COMPUTER OUTPUT PART II

WEEKLY SAVINGS
REGRESSION COEFFICIENTS FOR SAVINGS

            Two-Sided   p-value
Variable         Coefficient Std Error     t Value    Sig Prob
Constant    23.14156    18.34071     1.26176    0.247451
INCOME    0.59145     0.07388     8.00526    0.000091
RENT    -0.34179     0.19849    -1.72199    0.128743 *
FOOD       -1.11973     0.24633    -4.54565    0.002650
ENTERT      -0.90787     0.32460    -2.79689    0.026643

* indicates that the variable is marked for leaving

Standard error of estimate = 10.9635
Durbin-Watson statistic = 1.683103

Use the above computer output to respond to the following questions:
The Model was:

(a)   The multiple regression model is:
ANSWER

(b)   What is the estimated multiple regression?
ANSWER

(c)   What are the estimated values of b , b , b , b , and b ?
ANSWERS   b = ?
       b = ?
       b = ?
       b = ?
       b = ?

(d)   What relationship exists between (i) SAVINGS and INCOME?, SAVINGS and RENT?, SAVINGS and FOOD expense, SAVINGS and ENTERTAINMENT expense?
ANSWERS

(e)   Which of the four independent (explaining) variables are (is) significant in the multiple regression and which ones are (is) not significant and why? (Use α = 0.05 level of significance). Use α = 0.05 level ANSWERS

The statistically significant explaining variables are (Use α = 0.05 level):

Those that are not significant (Use α = 0.05 level):

(f)   Are the results in line with Maslow’s hierarchy of needs? Explain.

Many business students are familiar with the pressure to get internships or part-time jobs in their career field while in school. The surest route to the career track for many is to take on these limited-duration work assignments. Internships do give employers an easy way to size up potential applicants in a setting identical to the one in which they would perform. And unlike employees, interns are easily terminated if they don’t pan out. It’s the same situation for part-time or summer workers, who are sometimes let go at a moment’s notice. Internships are such a powerful tool for finding jobs that some students have begun to take on low-paid or even unpaid work assignments. While such “early bird” internships used to be primarily associated with large organizations, many startups have begun to attract students. For example, Remy Agamy took an internship at a three-person design company, knowing that it wasn’t likely to turn into a job. Still, in the job market she found that other prospective employers were keen on learning what she’d done in this internship. “I think we talked more about my eight-week internship than my four years of consulting experience,” she said. The value of internships for students, however, has long been questioned. While there may be a promise of a chance to learn, many students complain of doing little more than acting as unpaid, unskilled labor. Christina Isnardi is one student who felt exploited by the system. She described working 16- or 17-hour days at Lions Gate Entertainment, doing work like taking breakfast orders or working in locations far from the actual film set. “We just feel as though our dreams are holding us hostage to this unfair, unethical labor practice.” Isnardi’s experiences are not uncommon. Interns working for organizations as diverse as MTV, Warner Music Group, and Madison Square Garden describe similar experiences, which is why all these organizations have all faced lawsuits from former interns. In what might seem like a dream job, other students have negotiated great-sounding internships at organizations that regularly hire interns and pay them, but then don’t know what to do with these temporary employees. One student we know of was encouraged to make the best use of his time during his summer internship in a major city, including taking a paying job elsewhere and just staying in touch by phone when work hours overlapped! Because of his ingenuity, he reported it was a very productive summer, but the internship didn’t provide the learning opportunity he was seeking. Many major organizations maintain internship programs as part of a broader corporate social responsibility (CSR) value. Whether internships have value remains an open question. Most of the controversy does suggest that students need to know the details before agreeing to these arrangements, because not all internships offer a fair living wage or a strong career experience. HR departments are responsible for monitoring and designing internship programs. Question 1: Discuss the main concerns in the case. Why are these problems related to OB and HR? explain.

Question 2: As an upcoming employee student, what specific characteristics would you look for in an internship? Is there any form of good practice in intership at Lions Gate Entertainment? Discuss.

Question 3: In line with your answers in question 1, what are the recommendations you can offer? Be s[pecific with your answers.

As tax rates get higher, at some point, taxes can get so high that the (quantity/price) effect dominates the(price/quantity) effect, and raising taxes further will  (increase/decrease)  increase  decrease  total revenue.

Which of the following represents a firm’s demand curve for a resource?

​Average fixed cost curve

​Average total cost curve

​Average variable cost curve

​Marginal revenue product curve

​Marginal resource cost curve