Question 2
E Inc (“EI”) is a company incorporated and tax resident in the US and recently the Board of Directors of EI (“the Board”) are looking to expand their business operations to Asia. Singapore is being considered one of the desirable locations for setting up the new Asian Headquarter (“HQ”).

Required: (a) From an international tax perspective, comment and appraise the use of Singapore as the Asian HQ. In other words, why should EI choose Singapore as its Asian HQ?

(b) Based on some online tax research, EI’s Board have identified a number of potential tax incentives the Singapore HQ may potentially qualify. For the purpose of this part, illustrate the benefits for EI to obtain Pioneer Service Incentive and Development & Expansion Incentive under the Economic Expansion Incentives (Relief from Income Tax Act) (“EEIA”).

(c) For the purpose of this part, illustrate the benefits for EI to obtain the investment allowance incentive under the EEIA and indicate under what circumstances EI should consider applying for this incentive.

In June 2002, it was discovered that Worldcom, a large US telecommunication company, committed one of the largest accounting frauds. Worldcom illegally capitalized $3.8 billion access fees during the year 2001 and the first quarter of 2002. The fees were paid to local network operators to connect calls from Worldcom services to telephones linked to local networks. This is a typical operating expense item for telecommunication companies. However, Worldcom capitalised these expenditures as assets and amortized them over future fiscal periods. Worldcom was persecuted and the penalties and corrections to the accounts eventually led it into bankruptcy.

The amount of capitalized access fees for each of the quarters are detailed as follows (in USD millions):

Quarter 1, 2001 $780

Quarter 2, 2001 $605

Quarter 3, 2001 $760

Quarter 4, 2001 $920

Quarter 1, 2002 $790

Required:

a) Describe how Worldcom’s accounting treatment of access fees affect the line items in the income statements, balance sheets and statements of cash flows.

b) Which accounting principle did Worldcom violate?

c) Assume that capitalized access fees were amortized over 5 years using the straight-line method. Compute the amount of misstatement for each quarter.

d) Without considering tax effects, prepare the journal entries for correcting the misstatements as of the reporting date of Quarter 1, 2002.

Consider the University Database with the following relations:

Professors (pid, pname, dept, ext)

Students (sid, sname, major-dept, year)

Courses (cid, cname, dept, credithours)

Enrollment (sem-year, sid, cid, grade)

Teaches (pid, cid, sem-year, class-size)

where,

Professors: All professors have professor id (pid), name (pname), department that they work (dept), and a phone number extension for their office (ext).

Students: All students have id (sid), name (sname), department for their major (major-dept), and a year (year i.e, freshman, sophomore, junior, etc). Courses: All courses have a course id (cid), course name (cname), department (dept), and total credit hours (credithours).

Enrollment: has a semester year (sem-year), enrolled student id (sid), course id (cid), and grade that student earns (grade).

Teaches: has a professor id (pid), course id (cid), semester year (sem-year), and class size (class-size).

Attributes “dept” in relations Professors and Courses, and attribute “major-dept” in relation Students have the same domain, and have values like “CDS”, “EE”, “CE”, etc. Attribute “sem-year” has values like “Spring2016”, “Fall2015”, etc. Assume that cids are unique, i.e. if there are multiple sections of a course, each section has a unique cid.

Express the queries below using Relational Algebra.

1. Find sids, names and major-dept of students who enrolled in a course that is taught by professor James.

2. Find pid and names of professors who teach no courses in “Fall2015”.

3. Find cid and cname of courses that are offered by “CDS” department that are taught by professors who are from another department in “Fall2015".

4. Find pid and names of professors who teach only courses offered by “CDS” department.

5. Find pnames and pids of professors who teach every course offered by “CDS” dept.

6. Find sids of students who enroll in “Fall2015” every 3 credit hour course offered by “CDS” department.

7. Find cids and names of courses in which every student majoring in “CDS” enrolled in “Fall2015”.

HelloFresh is at the forefront of disrupting a multi-trillion-dollar industry at the very beginning of its online transition. HelloFresh is a truly local food product, uniquely suited to individual tastes and meal-time preferences offering delivery of a giant box of delicious food with recipes to enable easy and enjoyable meal preparation for a weekly fee. HelloFresh aims to provide each and every household in its 7 markets with the opportunity to enjoy wholesome home-cooked meals with no planning, no shopping, and no hassle required. Everything required for weeknight meals, carefully planned, locally sourced and delivered to your door at the most convenient time for each subscriber. Behind the scenes, a huge data driven technology platform puts us in the prime position for disrupting the food supply chain and for fundamentally changing the way consumers shop for food. HelloFresh has local founders across the globe who are able to leverage the global platform, and at the same time ensure that the HelloFresh product in each market truly reflects the local community. The soft subscription model business enables us to leverage our weekly subscriber touchpoint to consistently manage supply chains and demand, and to optimize the customer experience as well as our business economics. Customers sign-up for a box containing between 2 and 5 meals per week for a flat fee. If the customer is out of town or unavailable he can easily cancel any week without a penalty provided they notify HelloFresh in advance. Dominik Richter has been CEO since starting HelloFresh in 2011. He has responsibility for keeping a general oversight of the business and strategy. Prior to HelloFresh, Dominik worked with Goldman Sachs in London. Dominik graduated with a degree in International Business in 2009, and from the London School of Economics in 2010 with a Masters in Finance. Thomas Griesel has been responsible for the logistics and operations behind HelloFresh since founding with Dominik in 2011. Previously, Thomas had spent time at OC&C Strategy Consultants and worked on a range of his own businesses and ideas. He graduated with a degree in International Business Administration in 2009, and from the London Business School in 2010 with a Masters in Management. 2011 All the way back in 2011, Dominik and Thomas arrived in Berlin, intent on starting a new and disruptive business. With a love of healthy food, nutrition, cooking, and a desire to make access to healthy food as easy as possible for as many people as possible - starting a Food at Home business seemed the natural choice. 2012 After examining business models from Sweden to Japan to very local ideas, they and a group of like-minded individuals formulated the recipe for HelloFresh. The team started early in 2012 packing shopping bags in Berlin, Amsterdam and London with a view to target the highest density population areas in Europe. Quite quickly, they started getting requests from people outside those areas who all wanted to become a part of the HelloFresh family. Wanting to serve as many people as possible, the team developed a logistics model that enabled them to deliver to every single household across a given country. 2013 The HelloFresh product started to rapidly gain in popularity, as subscribers shared the excitement about their weekly boxes, with friends and colleagues. Subscriber referrals accelerated, as it became clear that HelloFresh had finally solved the "What's for dinner tonight" problem for its subscribers. 2014 Having launched on the East Coast of the U.S in December 2012, HelloFresh moved to cover the entire country in September 2014. Over the short time since then, HelloFresh has grown rapidly to become one of the largest players in this market. QUESTIONS Do you consider HelloFresh a form of disruptive or sustaining technology? Is HelloFresh an example of Web 1.0 (ebusiness) or Web 2.0 (Business 2.0)? Describe the ebusiness model associated with HelloFresh. Describe the revenue model associated with HelloFresh.

Ryerson’s badminton team has 4 male members and 7 female members;

Ryerson’s tennis team has 4 male members and 3 female members.

These two groups have different members. The university decides to make the two teams have equal

number of members by randomly moving two persons from the badminton group to the tennis group. It then randomly

selects a person from the tennis group. What is the probability to get a female?

Ryerson’s badminton team has 4 male members and 7 female members; Ryerson’s tennis team has 4 male members and
3 female members. These two groups have different members. The university decides to make the two teams have equal
number of members by randomly moving two persons from the badminton group to the tennis group. It then randomly
selects a person from the tennis group. What is the probability to get a female?

1. Roland Carlow, age 21, is a full-time student at Morgan State University and a candidate for a bachelor’s degree. During 2019, Roland received the following payments:

Private scholarship for tuition   $9,600

Loan from financial aid office $7,200

Cash withdrawn from a qualified tuition program to pay tuition    $10,500

Cash dividends on qualified investments $185

Cash prize award in contest $1,400

What is Roland’s adjusted gross income?

Which of the following is the best description of the relationship between present value (PV) and future value (FV)? 1) FV = PV + Interest Earned 2) PV = FV + Interest Earned 3) PV + FV = Interest Earned 4) PV = FV

Studying how the management of US Steel, a large steel-producing company, decides how many tons of steel to produce and the price to charge for its steel would be considered

    a. descriptive economics.

    b. empirical economics.

    c. microeconomics.

     d.   macroeconomics