If you understand the meanings of many words, you can be said to have a "good vocabulary." Words are the basis of thought. We think with words, we understand words, and we communicate with words.

A large vocabulary is a significant asset. It allows us to use precise words that say exactly what we intend. In addition, we understand more effectively what we hear and read. A large vocabulary also enables us to score well on employment and intelligence tests. Lewis M. Terman, who developed the Stanford-Binet IQ tests, believed that vocabulary is the best single indicator of intelligence.

In the business world, where precise communication is extremely important, surveys show a definite correlation between vocabulary size and job performance. Skilled workers, in the majority of cases, have larger vocabularies than unskilled workers. Supervisors usually know the meanings of more words than the workers they direct, and executives generally have larger vocabularies than employees working for them.  

Having a good vocabulary at our command doesn't necessarily ensure our success in life, but it certainly gives us an advantage. Improving your vocabulary will help you expand your options in an increasingly complex world.  

Vocabulary can be acquired in three ways: accidentally, incidentally, and intentionally. Setting out intentionally to expand your word power is, of course, the most efficient vocabulary-building method.  In addition, with all of the technology and tools at our disposal, such as the Internet, Siri, Wikipedia, Dictionary.com, it is easy to look up and expand our vocabulary daily.

Consider your childhood--who/what was the most influential component of you developing your vocabulary? Explain.  

How strong is your vocabulary?

If you understand the meanings of many words, you can be said to have a "good vocabulary." Words are the basis of thought. We think with words, we understand words, and we communicate with words.

A large vocabulary is a significant asset. It allows us to use precise words that say exactly what we intend. In addition, we understand more effectively what we hear and read. A large vocabulary also enables us to score well on employment and intelligence tests. Lewis M. Terman, who developed the Stanford-Binet IQ tests, believed that vocabulary is the best single indicator of intelligence.

In the business world, where precise communication is extremely important, surveys show a definite correlation between vocabulary size and job performance. Skilled workers, in the majority of cases, have larger vocabularies than unskilled workers. Supervisors usually know the meanings of more words than the workers they direct, and executives generally have larger vocabularies than employees working for them.  

Having a good vocabulary at our command doesn't necessarily ensure our success in life, but it certainly gives us an advantage. Improving your vocabulary will help you expand your options in an increasingly complex world.  

Vocabulary can be acquired in three ways: accidentally, incidentally, and intentionally. Setting out intentionally to expand your word power is, of course, the most efficient vocabulary-building method.  In addition, with all of the technology and tools at our disposal, such as the Internet, Siri, Wikipedia, Dictionary.com, it is easy to look up and expand our vocabulary daily.

What are some strategies and methods you might use to expand your vocabulary (intentionally)?

• Assume that you are a partner of Apples and Oranges, CPAs. During the last year, you were part of the team that audited Parker and Smith, Inc., a small publicly held company. The audit went quite well, and the client had high praise for the work done by you and the other members of the audit team. One day six months after the completion of the audit, you receive this email from Jerome Parker, a president of Parker and Smith:

Hi [your name],

We are still talking around here about the good job you and the other members of the audit team did on our audit. You all seemed to have a thorough understanding of our business, and we found working with you a pleasure. Based on the good experience we had with the audit, we would like to engage your firm to do additional work for us. Specifically, we’d like your help in designing a new financial information system for our company. We’re also considering investing in stock being offered by one of our suppliers, and we’d like your input into that decision. Hope you can help us here! Looking forward to hearing from you. Regards, Jerome.

Write a letter to Mr. Parker in response to his email. Remember that you want to maintain a good working relationship with Parker and Smith. You also want to maintain proper professional and ethical standards.

Margaret Jones established the “Jones Family Trust” in 2000 with XYZ Pty Ltd as the corporate trustee. Margaret and her husband Dean are the directors of the trustee company. The trust holds a variety of investments in property and cash. The trust was established to protect investments as Dean is always concerned that he could be sued for negligence.

The trust records for the 2019-20 income tax year disclose the following:

Receipts ($)

95,000 Rent from investment properties

5,000   Interest from a bank account

Payments ($)

1,500   Accounting expenses for tax return

12,000 Repairs to investment properties

8,000   Interest on a loan for the investment property

2,000   Legal expenses incurred in defending a claim by a tenant

Margaret does not work. Dean is a senior tax manager and received a salary of $180,000 in 2019-20 income tax year.

They have three children:

•           a son, Paul, aged 22 years, a student at university who earned $10,000 for the year;

•           a daughter, Racheal, aged 18, also a university student who earned only $3,000 for the year; and

•           a second daughter, Kate, aged 14 years, a full time high school student with no other income.

Dean has his grandfather living with him and he had no income for the year. All family members are beneficiaries of the trust and Dean had also established a corporate beneficiary which was able to receive trust distributions.

Required:

Advise as to how the net income can be distributed in the most tax-effective way citing relevant legislation to support your answer.

Sandhill Holdings Inc., a publicly listed company in Canada, ventured into construction of a mega-shopping mall in Edmonton, which is rated as the largest shopping mall in North America. The company’s board of directors, after much market research, decided that instead of selling the shopping mall to a local investor who had approached them several times with excellent offers that he steadily increased during the year of construction, the company would hold this property for the purposes of capital appreciation and earning rental income from mall tenants. Sandhill Holdings retained the services of a real estate company to find and attract many important retailers to rent space in the shopping mall, and within months of completion at the end of 2017, the shopping mall was fully occupied.

According to the company’s accounting department, the total construction cost of the shopping mall was $50 million. The company used an independent appraiser to determine the mall’s fair value annually. According to the appraisal, the fair values of the shopping mall at December 31, 2017, and at each subsequent year end were:

The independent appraiser felt that the useful life of the shopping mall was 20 years and its residual value was $8 million.

Note that the mall’s rental income and expenses would be the same and thus can be omitted from the analysis for this exercise.

Prepare the necessary journal entries for 2018, 2019, and 2020 if it decides to treat the shopping mall as an investment property under IAS 40: Use fair value model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

__________

___________

_____________

Prepare the necessary journal entries for 2018, 2019, and 2020 if it decides to treat the shopping mall as an investment property under IAS 40: Use Cost model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

_________________

__________________

___________________

XYZ company is a well-known property and construction company in the USA. XYZ company has embarked on an expansion plan to increase its income. XYZ issued the following debt security to raise the needed funds. the accounting periods ends on 31 December.

On 1 June 2020, XYZ company issued 12% bonds dated 1 June 2020, with a principal amount of $60,000,000. The bonds will mature on 30 May 2025. On the issuance date, for bonds of similar risk and maturity, the market yield is 10%. interest paid semiannually on 1 June and 1 December. on 1 October 2021 ABC company redeemed half of the bond payable at a price of $30,150,000 including accrued interest.

Required:

1) Prepare the journal entry to record the bond payables. show all computations.

2)Compute the gain/loss on the redemption of bond payable. prepare journal entries to record the redemption of bond payables.

3)Prepare a partial statement of financial position for XYZ company, to show presentation of bond payables as at 31 December 2021. show all computations.

Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 15 percent return on its investment.

During the past week, management of the company’s Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an additional $125,000 of invested capital would be needed.

Required:

1. Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired.

2. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor?

3-a. Compute the ROI of the competitor as it is now and after the intended upgrade.

3-b. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor?

4. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading.

5-a. Assume that Megatronics uses residual income to evaluate performance and desires a 12 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

5-b. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor?

Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)

Compute the ROI of the competitor as it is now and after the intended upgrade.

Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading. (Round your answer to 2 decimal place. (i.e., .1234 should be entered as 12.34).)

Assume that Megatronics uses residual income to evaluate performance and desires a 12 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

A large portion of US oil production comes from hydraulic fracturing (fracking). Production from fracked wells quickly declines, requiring constant drilling of new wells and installation of associated pipelines to keep production at current high levels. Assume that the Trump Administration carries out the threat to levy steep tariffs on imported steel. Companies that supply pipe to the oil industry for wells and pipelines see steep price increases for steel and have to raise their prices. Fill in the table below and explain the effects on U.S. and global oil markets.

Explain your answers.