How did deregulation in the US banking industry impact the global economy. Please explain the impact not only in the US, but on a global level (the documentary specifically talks about China and Singapore). How did expectations play a role in this situation?

From the movie Inside Job?

Claim of Right Doctrine Examples:

1. Clara rented her garage apartment to Jared and collected $450, the first-month’s rent, in advance. She also collected $500 as a security deposit that she will return to Jared if he doesn’t damage the apartment. How much of the $950 is included in Clara’s gross income?

2. Shannon signs a $100,000 contract to develop a plan for integrating the computer operations of State University in December. Under the contract, she receives a $30,000 cash advance against future payments on the contract upon signing the contract. The contract stipulates that if Shannon does not produce an acceptable plan, she must repay any portion of the advance not earned to date. Does Shannon have any income from the receipt of the advance? When?

3. a. Tom, a contractor, was paid $20,000 in May for adding a screened porch onto the house of a customer. In November,         certain spots in the porch began leaking. The customer threatened to sue and requested $5,000 of         the $20,000 cost be          returned to him due to the leaking. None was returned to the customer in 2020. How much gross income must Tom            report in the current year, 2020?

      b. The dispute between Tom and his customer was settled in court in 2021, the following year. The court required Tom to          pay $3,000 to the customer for the water leakage problem. When should Tom report the $3,000 deduction? In 2020 or in       the year of settlement, 2021?

Fixed Annuity Example:

      Renee purchased a 10-year annuity for $4,000. It pays her $100 per month, and she received $1,200 from the annuity during the year. How much of the $1,200 is included in gross income?

      Expected return/value of the annuity =

      Exclusion % =             Cost_____    

                              Exp. Return/Value

      Excluded Income =

      Gross income =

Life Annuity Examples:

1.    George, age 68, purchased a life annuity for $30,000. He begins receiving $300 per month in January. What amount is included in his gross income?

      Expected return =

      Exclusion % =       Cost    

                              Exp. Return

      Excluded Income =

      Gross income =

2.    Don has been employed by Longbow Corporation for 25 years. During that time, he bought an annuity at a cost of $50 per month ($15,000 total cost). The annuity will pay him $200 per month after he reaches age 69. Don turned 69 in April 2020 and received 8 payments on the contract.

a. How much gross income does Don report in the current year?

       Expected return = 16.8* x ($200 x 12) = $40,320         *Don is age 69 when the annuity payments begin.

       Exclusion % =    Cost    =              $15,000 = 37.2%

                                Exp. Ret./Value      $40,320

       Monthly Excluded Income = 37.2% x $200 = $74

     Monthly Gross Income = $200 - $74 = $126       

      Annual Gross Income = $126 x 8 monthly receipts = $1,008 (May thru December)

b.    What amount would be included in Don’s gross income in 2038?

      [$15,000 ÷ $74 (exclusion amount)] = 202.7 payments   So, cost is recovered with 203rd payment:

      2020:

      2021 – 2036:

       2037:

        Don recovers his investment of $15,000 (with his 203^rd monthly receipt) in March 2037. Therefore, in 2038, he will include

c.    Assume Don dies on August 4, 2031, after receiving his August payment. What amount would be included and deducted on his final tax return?

            2020:

            2021 – 2030:

            2031:

       Don only received 136 of the 202 payments expected from the contract. Therefore, he has not recovered all of his $15,000 investment through his excluded portions.

      Income on 2031 return:

      Deduction on 2031 return:

Overview of Business Entity Taxation:

Susan lives in the US and has $1000 to invest. She has to decide between buying a one year CD (certificate of deposit) from a bank in the US or one in France. The US CD, denominated in dollars, pays an interest rate of 3%, while French CD, denominated in Euro, pays an interest rate of 2%. The dollar-euro spot rate is 1.4 and the dollar–euro forward rate is 1.5. What should Susan do?

Jetta production cost in 2002 and 2003 was 14,000 Euro per Jetta. Jetta sold in US at $15,000 in 2002 and 2003. Forward hedge exchange rate was 1 $/Euro in 2003. Rate without hedge (i.e. market exchange rate) was 1.25$/Euro in 2003. If 12,000 Jetta were sold in US, in 2003, by 60% forward hedge and 40% not hedged. What would be profits or loss from sales of 12,000 Jetta in US?  

What is the average collection period, inventory turnover, and total asset turnover for P&G from 2016, 2017, and 2018 using http://financials.morningstar.com/balance-sheet/bs.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/income-statement/is.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/cash-flow/cf.html?t=PG&region=usa&culture=en-US

Establish an excel worksheet for the financial statement analysis framework. Refer to the following financial information;

1. On January 1, 2019, Frances Corp. started doing business and the owners contributed $200,000 capital in cash.
2. The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 2019 to December 31, 2020.
3. On March 1, 2019, MSK Inc. entered into a consulting contract under which Frances Corporation Contract under which Frances Corporation promised to provide consulting to MSK Inc. for the 10-month period from March 1, 2019 to December 31, 2019. In return, MSK promised to pay a monthly consulting fee of $15,000 which was to be paid in January, 2020. Frances fulfilled its contractual obligations during 2019.
4. On July 1, 2019, Frances purchased office equipment for $100,000 cash. The equipment has an estimated useful life of five years and no salvage value. The equipment was immediately placed into use. Frances uses the straight-line method proportion to the number of month’s usage.
5. Through November 30, 2019, the company had paid $66,000 to its employees for 11 months of salaries. Accrued salaries on December 31, 2019 were $6,000.
6. On December 31, 2019, Norbert Corporation advanced $20,000 to Frances Corporation for consulting services to be provided during 2020.

Questions:

1. For each transaction, using the financial statement effect template, analyze the effects of the above transactions of financial statement.
2. At the end of the year, analyze how the adjustment for accrual basis accounting affects the financial statement.
3. Prepare financial statements for the year ended December 31, 2019.
4. If Frances recognized ‘rent expense’ instead of ‘prepaid rent’ on January 1, discuss the effect of this error on the financial statement.

The table below shows the distribution of the opinions of US parents as to whether a college education is worth the expense:

An economist claims that the distribution of the opinions of US teenagers on this question is different from the distribution of the opinions of US parents. To test this claim, you randomly survey 200 US teenagers, and the results are:

Test the economist’s claim.

A.) What are the hypotheses?

B.) What is the value of the test statistic?

C.)What is the p-value?

D.)What is the result of this hypothesis test in terms of rejecting or failing to reject the null hypothesis?

E.) What can we conclude from the hypothesis test?

Explain in your view, four limiting factors for material cost determination in a major university like the University of Ghana and what process would you use to collect the cost.

On 1 July 2020 Tran’s Hardware Pty Ltd had an accounts receivable ledger balance of $75,000 debit and a credit balance in the allowance for doubtful debts ledger account of $15,000.

On 3 July Tran’s was contacted by Nails and Hammers Pty Ltd to notify that the business had been declared bankrupt and that they would not be able to pay the $5,500 owing to Tran’s Hardware from a previous credit sale made to them in June 2020.

The business received notification from Panda House Pty Ltd on 25 July 2020 that, $1,100 (GST inclusive) that had previously been written off as uncollectible in May 2020 would be paid in full in August 2020.

On 31 July 2020 Management reassessed the allowance for doubtful debts at year end and decided on a closing balance of $12,200 (GST exclusive) under the ageing of receivables approach.

Required:

1. Prepare journal entries for each of the above events. Narrations are not required.

b. The owners have approached you, the businesses accountant and asked if, for the financial year ending 30 June 2021, you would change to the direct write-off method for recording bad debts. How does changing the measurement of bad debts from the allowance method to the direct write-off method influence the usefulness of financial information? Ensure you reference the fundamental qualitative characteristics of information prescribed by the Conceptual Framework for Financial Reporting in your response.

• Speak to an elderly individual you know (over the age of 70). Schedule to spend at least 20 minutes with them. Ask them the following questions:
  • What is their favorite memory from childhood?
  • What is their favorite memory from middle adulthood?
  • Ask them the last song they heard on the radio, the last book they read, or what they need from the grocery store.
• Ask them if any of the questions were difficult to answer. Ask if they would share the ways their memory has changed over time and the most frustrating aspect of that change.
• Write a paper describing your conversation, relaying context for the individual you interviewed, the location and time of day of the interview, and how forward they were sharing their answers.
• Relate their answers back to Section 14.3 on Cognitive Processes and memories.
• 2 pages answer please