Question 4 Week 10

(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the intra-group transactions between the parent entity and the subsidiary entity will need to be eliminated on consolidation?

b) What is a non-controlling interest, and how should it be disclosed?

(c) How are non-controlling interests affected by intra-group transactions?

(d) What are the three steps we use to calculate total non-controlling interest? (1 mark).

Need a fresh answer not paraphrase.

1. Suppose we have the following information on GMAT scores for business and non-business majors:

Business Majors                      Non-Business Majors

n₁ = 8                                      n₂ = 5

X₁ = 545                                  X₂ = 525

s₁ = 120                                   s₂ = 60

1. Using a 0.05 level of significance, test to see whether the population variances are equal.
2. Using a 0.05 level of significance, test the clam that average GMAT scores for business majors is above the average GMAT scores for non-business majors in the population. Assume unequal population variances.

Non-Financial Performance: Many city and county governments are discovering that you can control only what you measure. As a result, many municipal governments are introducing non-financial performance measures to help improve municipal services. Use the Google search engine to perform a search for “municipal government performance measurement.” Google will provide a list of Internet sites that outline various city efforts in using non-financial performance measures. Report on the types of measures used by one of the cities from the search.

Suppose we have the following information on GMAT scores for business and non-business majors: Business Majors Non-Business Majors n1 = 8 n2 = 5 _ _ X1 = 545 X2 = 525 s1 = 120 s2 = 60

a. Using a 0.05 level of significance, test to see whether the population variances are equal.

b. Using a 0.05 level of significance, test the clam that average GMAT scores for business majors is above the average GMAT scores for non-business majors in the population. Assume unequal population variances.

Question 8 A factory uses a diagnosis test whether a part is defective or not. This test has a 0.90
probability of giving a correct result when applied to a defective part and a 0.05 probability
of giving an incorrect result when applied to a non-defective part. It is believed that one
out of every thousand parts will be defective.

(a) Calculate the posterior probability that a part is defective if the test says it is defec-
tive.
(b) Calculate the posterior probability that a part is non-defective if the test says it is
non-defective.
(c) Calculate the posterior probability that a part is misdiagnosed.

Assume a non-pipelined processor takes 100 ns to process an instruction. The same instruction can be executed in a 5-stage pipelined processor, where each stage takes 20 ns.

(i) What is the minimum number of instructions for which the speedup achieved by the pipelined processor compared to the non-pipelined processor is at least 4?

(ii) The instruction takes the same time (100 ns) to execute whether on the pipelined processor or on the non-pipelined processor. So why do we say pipelining speeds up execution?

The publisher of an online newspaper knows that there are two types of customers. ‘students’ and ‘non-students’. Although they cannot distinguish what type of buyer is actually making a purchase of a subscription, they know the demand curves for each type of buyer. These are given by the following:

Students: p = 80 - q
Non students: p = 100 - q
where is q is the number of articles that are purchased. Assume that the marginal cost of supplying articles equals zero.
a. What is the maximum willingness to pay for 80 articles for the students?
b. What is the maximum willingness to pay for 80 articles for non students?
c. Assuming that buyers purchase the subscription that gives them the maximum consumer surplus, and they only purchase one subscription, what will student buyers and non-student buyers do if faced with the following choices:
Basic: 80 articles at $32 per month.
Premium: 100 articles at $50 per month
d. Assuming that buyers purchase the subscription that gives them the maximum consumer surplus, and they only purchase one subscription, what will student buyers and non-student buyers do if faced with the following choices:
Basic: 80 articles at $32 per month.
Premium: 100 articles at $35 per month

e. What is the highest price that can be charged for the premium version so that the non- students purchase this rather than the basic subscription, given the price of the basic is $32.

f. What is this pricing behaviour called?

On January 1st, 2000 the Rahel S. Abate Corporation sold 20,000 of its 12.0%, 25-year, $1,000 face value bond to yield 10.0% annually, interest is paid semiannually. Interest payment dates are June 30th and December 31 of each year. The company uses the effective interest method to amortize any bond discounts or premiums. The issuing cost incurred were $500,000, they are to be amortized straight line over the estimated useful life of the bond. On July 01st, 2014, the Rahel S. Abate Corporation retires 6,000 of its bonds through an open market purchase (it repurchases them for cash). At that time the bonds were quoted on the market at a price of 103. Sunny Gavaskar, the Toronto industrialist, had purchased the bonds. Expense/amortize the bond issue cost to Interest Expense

1. Calculate the cash received from the sale of the bonds
2. Prepare the journal entries on the books of the Rahel S. Abate Corporation to record the following January 01^st, 2000: issuance of the bonds (Gross or Net Method is acceptable).
3. Prepare the journal entries on the books of the Rahel S. Abate Corporation to record the following Payments of interest for the year 2000, and any other amortization
4. Prepare the journal entries on the books of the Rahel S. Abate Corporation to record the following July 01^st, 2014, the extinguishment of 6,000 bonds.
5. Payments of interest for December 31^st ,2014, and any other amortization
6. Prepare the accounting entry on July 01^st, 2014 if the policy of the Rahel S. Abate Corporation had been to carry the bonds at fair market value.

1. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 15 hot dogs and 8 hamburgers. A hot dog cost $2.25 in 2006 and $5.40 in 2007. A hamburger cost $5.75 in 2006 and $7.86 in 2007. Calculate the CPI for both years and then find the inflation rate.

2. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 25 sandwiches and 40 magazines. In 2006, a sandwich cost $4.50 and a magazine cost $3.99. In 2007, a sandwich cost $5.75. If the inflation rate in 2007 was 21 percent, then how much did a magazine cost in 2007?

3. When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $525.00. He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $699.00. What is the OVERALL rate of inflation for Anders' gym membership?

4. In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 12 in 1949, 96 in 1987, and 117.5 in 2000. Calculate the value of the courthouse in 2000 dollars and the value of the hospital in 2000 dollars and compare your answers. Which one cost more?

5. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 156 in 2001 and 227.25 in 2006. What is Ruben's 2006 salary in 2001 dollars? What does this mean about how his purchasing power increased or decreased?