Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets: 1. Antique Painting that was given to Taryn by her father 5 years ago. Taryn’s father bought it on 20 August 1984 for $2,500. Taryn sold it on 1’st June 2020 for $25,000 2. Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20’th May 2020, she bought on 1’st January 2015 for the amount of $20,000 3. Taryn sold her Harry Potter’s collection for the amount of $1,500 on 4’th January 2020, she bought it second hand on 10’th October 2018 for $350. 4. Taryn sold her gold necklace for $2,000 on 20’th March 2020, she bought it for $1,200 on 8’th August 2018 5. Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500 Advise the Capital Gain Tax Consequences for the above transactions,

Oak Creek Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales: Sales for the year are expected to total 1,000,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020.

Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume.

Direct materials: Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2021 are 630,000 kg.

1. Prepare the sales budget by quarters for 2020.

2. Prepare the production budget by quarters for 2020.

3. Prepare the direct materials budget by quarters for 2020.

The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:

Accounts Payable ............  $56,000
Accounts Receivable .........  $42,000
Cash ........................  $11,000
Common Stock ................  $63,000
Cost of Goods Sold ..........  $52,000
Income Tax Expense ..........  $12,000
Insurance Expense ...........  $21,000
Inventory ...................  $70,000
Land ........................  $68,000
Mortgage Payable ............  $49,000
Patent ......................  $31,000
Prepaid Insurance ...........  $17,000
Rental Revenue ..............  $46,000
Retained Earnings ...........  $72,000 (at January 1, 2020)
Sales Revenue ...............  $95,000
Supplies ....................  $19,000
Wage Expense ................  $38,000

ABC Company has not yet recorded adjusting entries related to the following
two items:

(1)  $11,000 of supplies were used up during 2020.

(2)  ABC Company has provided services to a customer totaling $14,000 as of
     December 31, 2020. However, the customer has not yet paid ABC Company.

Calculate the total assets reported in ABC Company's December 31, 2020 balance
sheet after the appropriate adjusting entries have been recorded and posted.

FC.71 Five-star sells school related products. Their top seller, the five subject spiral notebook, has done very well. The notebook's sales during the back-to-school season (July through October) over the last three years are shown below:

For the five-subject notebook, Five-star's projected sales for the 2020 back-to-school season of are 375,000. Based on the past sales and this year's projected sales, answer the following questions.

Given the above information and using the most appropriate forecasting method, what should be the forecast for July 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for August 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for September 2020 sales? (Display your answer to the nearest whole number.)

   

What is the forecast for October 2020 sales? (Display your answer to the nearest whole number.)

If the Federal Reserve Bank monetary policy committee members implies  that in 2020 there may be less interest rate hikes than expected. How does that affect the currencies of the developing countries? How does that affect the Euro/Dollar parity for 2020?.

It is a discrete math problem about probability:

You flip a nickel (5 cents coin) and roll a six-sided die.
Points are assigned as follows. The nickel showing heads is worth 1 point and the
nickel showing tails is worth 5 points. The points for the die correspond simply to
the number on its upper surface. Each outcome is equally likely and we define the
following events.

A: The sum of points is greater than 7. B: The sum of points is even.

(a) Define the sample space in set notation.
(b) Write down A and p(A).
(c) Write down B and p(B).
(d) Write down A ∩ B and p(A ∩ B).
(e) Write down A ∪ B and p(A ∪ B).
(f) Write down p(A) in terms of p( ¯ A).

(g) How are p(A), p(B), p(A ∩ B), and p(A ∪ B) related (equation)?
(h) Are A and B mutually exclusive?
(i) Write down p(A|B).
(j) Are A and B independent?
(k) Write down p(B|A).
(l) Write down p(A ∩ B) in terms of p(A) and p(B).

It is a discrete math problem about probability:

You flip a nickel (5 cents coin) and roll a six-sided die.
Points are assigned as follows. The nickel showing heads is worth 1 point and the
nickel showing tails is worth 5 points. The points for the die correspond simply to
the number on its upper surface. Each outcome is equally likely and we define the
following events.

A: The sum of points is greater than 7. B: The sum of points is even.

(a) Define the sample space in set notation.
(b) Write down A and p(A).
(c) Write down B and p(B).
(d) Write down A ∩ B and p(A ∩ B).
(e) Write down A ∪ B and p(A ∪ B).
(f) Write down p(A) in terms of p( ¯ A).

(g) How are p(A), p(B), p(A ∩ B), and p(A ∪ B) related (equation)?
(h) Are A and B mutually exclusive?
(i) Write down p(A|B).
(j) Are A and B independent?
(k) Write down p(B|A).
(l) Write down p(A ∩ B) in terms of p(A) and p(B).

1. Bill has bought a new home in Canberra. He borrowed $600 000 at a rate of 3.5% p.a., which is to be repaid in annual instalments over a thirty year period. The first instalment is due on 19 March 2020.

a. Choosing a valuation date of 19 March 2019, write down the equation of value that will give Bill’s annual repayments. Support your answer with a fully labelled cash flow diagram, drawn from Bill’s perspective.

b. What are Bill’s annual repayments?

c.Choosing a valuation date of 19 March 2049, write down the equation of value that will give Bill’s annual repayments. Your equation of value should include the sn function.

d.Confirm that solving part c gives the same answer as your response to part b. To earn full marks for this question, you must give all the values of the functions that appear in part c above.

2. The recently released recommendations of the Banking Royal Commission (the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry) include the elimination of commission payments to mortgage brokers. Returning to the details of question above:

Theresa was Bill’s mortgage broker. Bill’s bank will pay her commission amounts of $1 000 annually from 19 March 2020 through to 19 March 2049 (inclusive). If we view the bank’s mortgage business as making neither a profit nor a loss, then (in the absence of any internal capital transfers) Theresa’s commission payments have to effectively come from Bill.

a. As at 19 March 2019, what is the total value of Theresa’s commission (use a valuation interest rate of 3.5% p.a.)? Your answer needs to be supported by

• a cash flow diagram (from Theresa’s perspective),

• a valuation date and

• an equation of value.

If the value of Theresa’s commission comes from Bill, then the total amount of Bill’s loan is $600 000 plus your answer to part a above. But Bill’s payments are only of an amount calculated by you in parts b and d of question 1 above. This suggests that the effective interest rate the bank requires on its funds is not the 3.5% p.a. that it communicates publicly.

b. Is the effective interest rate that bank requires on its funds higher or lower than the 3.5% p.a. that it communicates publicly? Why? (Answer this last part by reference to an appropriate equation of value and cash flow diagram. No numerical calculations are required.)

c. Calculate the effective interest rate discussed in part b above. Carefully explain how you reached your answer.

d. If Bill had been offered the effective rate discussed in part b above, by how much would his annual payments increase or decrease?

Coronavirus: A visual guide to the economic impact  

Global shares take a hit
Big shifts in stock markets, where shares in companies are bought and sold, can affect many investments in pensions or individual savings accounts (ISAs).
The FTSE, Dow Jones Industrial Average and the Nikkei have all seen huge falls since the outbreak began on 31 December.
The Dow and the FTSE recently saw their biggest one day declines since 1987.

Investors fear the spread of the coronavirus will destroy economic growth and that government action may not be enough to stop the decline.
In response, central banks in many countries, including the United Kingdom, have slashed interest rates.
That should, in theory, make borrowing cheaper and encourage spending to boost the economy.
Global markets did also recover some ground after the US Senate passed a $2 trillion (£1.7tn) coronavirus aid bill to help workers and businesses.
But some analysts have warned that they could be volatile until the pandemic is contained.

In the United States, the number of people filing for unemployment hit a record high, signalling an end to a decade of expansion for one of the world's largest economies.
  


Factories in China slowed down
In China, where the coronavirus first appeared, industrial production, sales and investment all fell in the first two months of the year, compared with the same period in 2019.
China makes up a third of manufacturing globally, and is the world's largest exporter of goods.


Restrictions have affected the supply chains of big companies such as industrial equipment manufacturer JCB and carmaker Nissan.
Shops and car dealerships have all reported a fall in demand.
Chinese car sales, for example, dropped by 86% in February. More carmakers, like Tesla or Geely, are now selling cars online as customers stay away from showrooms.

Growth set to stagnate
If the economy is growing, that generally means more wealth and more new jobs.
It's measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year.
The world's economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, according to the Organisation for Economic Cooperation and Development (OECD).

The think tank has forecast growth of just 2.4% in 2020, down from 2.9% in November.
It also said that a "longer lasting and more intensive" outbreak could halve growth to 1.5% in 2020 as factories suspend their activity and workers stay at home to try to contain the virus.

Questions:
1. Elaborate the impact of this Covid-19 from the article. [30 marks]