The dataset HomesForSale has data on houses available for sale in three Mid-Atlantic states (NY, NJ, and PA). Table 1 shows the mean and standard deviation from the three Mid-Atlantic states, in thousands of dollars. Use this table, the knowledge that within the US the average house sells for about 265 thousand dollars1, and a 5% significance level to answer the following questions.

Table 1 Mean housing prices for New York, New Jersey, and Pennsylvania


Click here for the dataset associated with this question.


1According to the US Census in April 2011.

(a) Test whether the average cost of a house in New York is significantly greater than the US average.

Give the test statistic and the p-value.

Round your answer for the test statistic to two decimal places and your answer for the p-value to three decimal places.

test statistic = Enter your answer in accordance to item (a) of the question statement

p-value = Enter your answer in accordance to item (a) of the question statement

Is the average cost of a house in New York significantly greater than the US average?

Choose the answer from the menu in accordance to item (a) of the question statementChoose the answer from the menu in accordance to item (a) of the question statement  YesNo

(b) Test whether the average cost of a house in New Jersey is significantly greater than the US average.

Give the test statistic and the p-value.

Round your answer for the test statistic to two decimal places and your answer for the p-value to three decimal places.

test statistic = Enter your answer in accordance to item (b) of the question statement

p-value = Enter your answer in accordance to item (b) of the question statement

Is the average cost of a house in New Jersey significantly greater than the US average?

Choose the answer from the menu in accordance to item (b) of the question statementChoose the answer from the menu in accordance to item (b) of the question statement  YesNo

(c) Test whether the average cost of a house in Pennsylvania is significantly greater than the US average.

Give the test statistic and the p-value.

Round your answer for the test statistic to two decimal places and your answer for the p-value to three decimal places.

test statistic = Enter your answer in accordance to item (c) of the question statement

p-value = Enter your answer in accordance to item (c) of the question statement

Is the average cost of a house in Pennsylvania significantly greater than the US average?

Choose the answer from the menu in accordance to item (c) of the question statementChoose the answer from the menu in accordance to item (c) of the question statement  YesNo

(d) Which state shows the most evidence that the state average is greater than the US average?

New York

New Jersey

Pennsylvania

3. Y received stock as a gift from her father in 2019. Her father purchased the stock several years ago of $30,000. The stock was worth $20,000 at the time the gift was received. Y sold the stock for $18,000 in 2020.

How much gain or loss, if any, should Y report on her 2020 tax return?

Assume the same facts as above, except that Y sold the stock for $25,000. How much gain or loss, if any, should Y report on her 2020 tax return?

Amazon leased equipment from United Machines on July 1, 2020, in a finance lease. The present value of the lease payments discounted at 10% was $82,000. Ten annual lease payments of $12,000 are due each year beginning July 1, 2020. United Machines had constructed the equipment recently for $66,000. What net effect did the lease have on the income statement of United Machines for the year ending December 31, 2020? Ignore taxes. a. $23,000 b. $0 c. $16,000 d. $19,500 e. $3,500

In python,

Here's some fake data.

df = {'country': ['US', 'US', 'US', 'US', 'UK', 'UK', 'UK'],
   'year': [2008, 2009, 2010, 2011, 2008, 2009, 2010],
   'Happiness': [4.64, 4.42, 3.25, 3.08, 3.66, 4.08, 4.09],
   'Positive': [0.85, 0.7, 0.54, 0.07, 0.1, 0.92, 0.94],
   'Negative': [0.49, 0.09, 0.12, 0.32, 0.43, 0.21, 0.31],
   'LogGDP': [8.66, 8.23, 7.29, 8.3, 8.27, 6.38, 6.09],
   'Support': [0.24, 0.92, 0.54, 0.55, 0.6, 0.38, 0.63],
   'Life': [51.95, 55.54, 52.48, 53.71, 50.18, 49.12, 55.84],
   'Freedom': [0.65, 0.44, 0.06, 0.5, 0.52, 0.79, 0.63, ],
   'Generosity': [0.07, 0.01, 0.06, 0.28, 0.36, 0.33, 0.26],
   'Corruption': [0.97, 0.23, 0.66, 0.12, 0.06, 0.87, 0.53]}

I have a list of happiness and six explanatory vars.
exp_vars = ['Happiness', 'LogGDP', 'Support', 'Life', 'Freedom', 'Generosity', 'Corruption']

1. Define a variable called explanatory_vars that contains the list of the 6 key explanatory variables

2. Define a variable called plot_vars that contains Happiness and each of the explanatory variables. (Hint: recall that you can concatenate Python lists using the addition (+) operator.)

3. Using sns.pairplot, make a pairwise scatterplot for the WHR data frame over the variables of interest, namely the plot_vars. To add additional information, set the hue option to reflect the year of each data point, so that trends over time might become apparent. It will also be useful to include the options dropna=True and palette='Blues'.

The Shamrock Pub provides catering services to local businesses. The following information was available for The Shamrock Pub for the years ended December 31, 2019 and 2020.

Shamrock management is preparing for a meeting with its bank concerning renewal of a loan and has collected the following information related to the above balances.

1.The cash reported at December 31, 2020, reflects the following items: petty cash $1,560 and postage stamps $120. The other current assets balance at December 31, 2020, includes the checking account balance of $3,900.

2.On November 30, 2020, Shamrock agreed to accept a 6-month, $4,940 note bearing 12% interest, payable at maturity, from a major client in settlement of a $4,940 bill. The above balances do not reflect this transaction.

3.Shamrock factored some accounts receivable at the end of 2020. It transferred accounts totaling $10,000 to Final Factor, Inc. with recourse. Final Factor will receive the collections from Shamrock's customers and will retain 2% of the balances. Final Factor assesses Shamrock a finance charge of 3% on this transfer. The fair value of the recourse liability is $360. However, management has determined that the amount due from the factor and the fair value of the resource obligation have not been recorded, and neither are included in the balances above.

4.Shamrock charged off uncollectible accounts with balances of $1,570. On the basis of the latest available information, the 2020 provision for bad debts is estimated to be 2.5% of accounts receivable.

Based on the above transactions, determine the balance for (1) Accounts Receivable and (2) Allowance for Doubtful Accounts at December 31, 2020. (Round answers to 0 decimal places, e.g. 125.)

Accounts receivable ending balance$

Allowance for doubtful ending balance$

Prepare the current assets section of The Shamrock Pub's balance sheet at December 31, 2020. (Round answers to 0 decimal places, e.g. 125.) and,

Compute Shamrock's current ratio and accounts receivable turnover for December 31, 2020. The accounts receivable turnover in 2019 was 4.37.

The unadjusted inventory balance of Ultim Corp. is $100,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized.

a. On December 31, the physical inventory excluded $250 of merchandise inventory set aside for shipment to a customer, which has not yet shipped.

b. On December 31, the physical inventory excluded $1,000 of merchandise inventory out on consignment in the customers’ showrooms.

c. On December 31, the physical inventory excluded $800 of merchandise held on consignment.

d. $750 of in-transit merchandise was shipped f.o.b. destination to a customer and was excluded from the physical inventory count. The merchandise was turned over to a common carrier on December 28, 2020, and is expected to arrive at the customer on January 2, 2021.

e. Ultim Corp. ordered merchandise on December 26, 2020. The merchandise ($800) was shipped to Ultim Corp. f.o.b. shipping point, and was expected to arrive January 2, 2021. The merchandise was not included in the physical inventory count.

f. A return to a vendor of merchandise for $1,000 was in-transit on December 31, 2020, and was excluded from the physical inventory count. The merchandise was shipped f.o.b. shipping point on December 30, 2020.

Required

Considering items a through f, determine the adjusted inventory balance for Ultim Corp.

Recording Notes Receivable: Issuance, Payment, and Default Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes: On October 31, 2019 Marydale accepts a 6-month, 12% note from Customer A in lieu of a $3,600 cash payment for merchandise delivered on that day. On February 28, 2020 Marydale accepts a 6-month, $2,100, 12% note from Customer B in lieu of a $2,100 cash payment for merchandise delivered on that day. On April 30, 2020 Customer A pays the entire note plus interest in cash. On August 31, 2020 Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale's records. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Oct. 31, 2019 Record sale Dec. 31, 2019 Record accrued interest income b. Feb. 28, 2020 Record sale c. Apr. 30, 2020 Record collection of note receivable d. Aug. 31, 2020 Record collection of note receivable

1. Santa Clara Electronics, Inc. of California currently exports 1,000,000 electric switches per year to the Argentina under an import agreement that expires in five years. In the Argentina, the imported switches are currently sold for peso equivalent of $75 per set. Santa Clara’s costs, including shipping, are $50 per set, and its current pre-tax profit is $25 per set. Similar costs and prices would occur in Argentine production. The market for this type of switch in the Argentina is stable (neither growing nor shrinking, and Santa Clara holds the major portion of this market.

   The Argentine government has invited Santa Clara to open an assembly plant so that imported switches can be replaced by local production. If Santa Clara makes the investment, it will operate the plant for 5 years and then sell the building and equipment to Argentine investors for $5,000,000. Santa Clara will be allowed to repatriate all net income and depreciation to the US at the end of each year. Santa Clara traditionally evaluates all foreign investments in U.S. dollar terms.  

   Investment:   Santa Clara’s anticipated outlay in 2020, expressed in US dollars and sufficient for the full five years, would be:

                         Building and Equipment                          $40,000,000

                         Working Capital                                            $10,000,000

                         Total Outlay                                              $50,000,000

              All investment outlays will be made in 2020, and all operating cash flows will occur at the end of years 2021 through 2025.

   Depreciation:           Building and equipment will be depreciated over five years on a straight-line basis to a $5,000,000 salvage value. At the end of the fifth year, the $10,000,000 of net working capital may be repatriated to the United States, as may the remaining net book value (salvage value) of the plant.

   Exchange Rates:           The Argentine peso (Ps) is currently at parity (US$1 = APs1) and is expected to remain at this level for the next five years.

   Sales: Locally manufactured switches will be sold APs75 each. Sales volume will remain 1,000,000 switches per year for the next five years.  

   Operating Expenses (current peso costs):

              Materials purchased in Argentina                 Aps30 per set

              Material imported from US parent               Aps20 per set

              Total variable costs                                    Aps50 per set

   The Aps20 purchase price for components sold by Santa Clara to its Argentine subsidiary consists of Aps15 of direct costs incurred in the United States and Aps5 of pretax contribution margin to Santa Clara. These peso costs (and profits) are expected to remain constant. Other operating costs include APs 5,000,000 in annual fixed operating costs by the Argentine subsidiary.

   Taxes:           Both the Argentina and the United States have a corporate income tax rate of 40 percent.

   Concessionary Loan: The Argentine government will assist Santa Clara’s local financing by provided a subsidized loan of 50 million peso loan. The loan will be a five-year amortizing loan (with annual payments) bearing an interest rate of 5 percent. Without the loan, Santa Clara’s normal borrowing rate would be 10 percent.

   Cost of Capital:           Upstate uses a 15 percent discount rate to evaluate all domestic and foreign projects.

              Estimate the value of the project’s cash accruing to the parent.

   		-$26,935,125
   		-$12,932,540
   		-$16,672,196
   		-$34,027,351
   		-$20,662,714

Suppose US (N) and Mexico (S) both can produce soccer balls (SB) and footballs (FB). The unit labor requirements for soccer balls and footballs in the US and Mexico are: a N SB = 10; a N FB = 2; a S SB = 10; a S FB = 10

After trade, if the world relative price pW FB pW SB = 1, which product the US decides to produce? Why? Show full derivation in algebra.

Draw and show the gains from trade for the US using the PPF/CPF graph again. (Use the quanity of Football as the X-axis, draw and label PPF, before and after budget constraints, indifference curves, imports and exports)

After trade, if the US relaxed the immigration policy which increased its population to 150 workers. Which product the US decides to produce then? Does the new immigration policy affect the comparative advantage of the US? Please explain.

If the world relative price pW FB pW SB = 1, would Mexico be better off, worse off, or no change, compared with autarky. Why?