Sotheby’s has acquired a new Rothko painting and it has decided to auction it. There are two anonymous art-lover bidders of the painting, we will refer to them as Bidder A and Bidder B to protect their anonymity. In this auction format, Bidder A and Bidder B simultaneously submit a written bid for the Rothko painting. However, the auction has a weird twist. Sotheby’s requires that Bidder A must submit an odd number (in millions of US dollars) between 1 and 9 (that is, the bid must be 1, 3, 5, 7, or 9) and Bidder B’s bid must be an even number between 2 and 10 (that is, the bid must be 2, 4, 6, 8 or 10). The bidder who submits the highest bid wins the Rothko and pays a price equal to her bid. The winning bidder’s payoff equals his valuation of the item less the price she pays, whereas the losing bidder’s payoff is 0. Assume that Bidder A has a valuation of 7 (million US dollars) and that Bidder B has a valuation of 8 (million US dollars).

a) (10 points) Write down the strategic form of this game.

b) (10 points) Find all of the Nash equilibria of the game you wrote in part a.

Show every step of your calculations

What lessons from colonial history in the Americas can teach us to find better solutions to current migration issues?

What type of data would I pull from the US Census Bureau for a geographical statistical model for a manufacturing firm?

4. Taxes paid for a given income level

Charles is getting ready to do his taxes. He is single and lives in San Diego. Charles earned $300,000 in 2011. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2011.

Based on the IRS table, Charles calculates that his marginal tax rate is ______ when his annual income is $300,000.

Charles calculates that he owes ______ in income taxes for 2011.

Charles then calculates that his average tax rate is ______  , based on the annual income level and the amount of taxes he owes for 2011.

After figuring out what he owes in taxes in 2011, Charles decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of taxable income from the federal government.

The maximum amount that Charles is willing to pay to learn this strategy and reduce his taxable income by $2,000 is ____ . (Hint: Sheltering some income means finding a legal way to avoid being charged income tax on that income. For example, someone who has $50,000 in income and shelters $10,000 pays income tax on only $40,000.)

Assume Tom, Duck and Harry are appointed directors of the company, Masks R Us Pty Ltd. The company needs a ware-house to keep its stock.  During the process of incorporation, all three of them sold the property they co-owned to the company for $1 million.  That property, which the company now uses as a ware-house, had a market value of $500,000.  

Explain whether Tom, Duck and Harry have breached any duties under the Corporations Act 2001 (Cth)?  Use a relevant precedent to support your answer.

suggest steps the company might take to reduce its losses and establish profitability,

the cenario:

Roots Corporation reported quarterly loss of $5.6 million in first quarter of 2018. Comparing to last year, the net loss increased from $5.1 to $5.6 million. The clothing retailer applies expansion strategy in US and is opening its first “brand activation centre” in Boston that will allow shoppers to familiarize themselves with the Canadian brand. It also plans to open 10 to 14 stores in the US by the end of 2019. Sales from corporate retail stores and e-commerce channels accounted for $44.2 million, up nine per cent from $40.5 million in last year’s first quarter. Jim Gabel, president and CEO of Roots, explained, “while sales in the quarter were good, we believe they would have been even stronger had we not faced a major ice storm across approximately 80 per cent of our store network in mid-April.” Roots remains confident about achieving its full-year target, between $35 million and $40 million of adjusted net income and between $410 million and $450 million of sales for fiscal 2019.

Reference:

Roots reports quarterly loss despite improvement in sales. (June 13, 2018). Retrieved from:https://www.thestar.com/business/2018/06/13/roots-reports-quarterly-loss-despite-improvement-in-sales.html

The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine.

32.7
34.0
34.7
35.4
36.0
36.2
37.3
37.6
37.7
37.9
38.1
38.5
38.6
39.0
39.2
39.4
39.9
40.7
41.4
41.8
42.5
42.8
43.7
49.0

An airline always overbooks if possible. A particular plane has 100 seats on a flight in which a ticket sells for $325. The airline sells 105 such tickets for the flight.

(a) If the probability of an individual not showing up is 0.065, assuming independence, what is the probability that the airline can accommodate all the passengers who do show up? Show your work.

(b) If the airline must return the $325 ticket price plus a penalty of $410 to each passenger that cannot get on the flight, what is the expected payout (penalty plus ticket refund) that the airline will pay? Show your work.

1.According to GAAP, to be useful, accounting information must be all of the following EXCEPT:

1. Relevant
2. Reliable
3. Subjective
4. Comparable

2.

An increase in the cost of goods sold would cause a company’s profit margin to

              a.    increase.

              b.    decrease.

              c.     remain unchanged.

              d.    Must be offset by an increase in the selling price.

3.

Which of the following is not an element of internal control?

1. Assigning responsibilities to individuals who have the authority to administer them
2. Separation of duties whenever possible
3. Assigning to one individual the responsibility for accounting for and custody of assets
4. Relying on internal and external audits