Company C is a US C Corporation. It builds and operates energy plants that produce electricity. Country P has significant needs for energy, but it does not have the expertise or financial capability to borrow in the public markets to fund projects of this magnitude. Country P has determined that the best way to entice foreign power investors to invest, operate, and accept the risks inherent with this market is by offering a 10-year income tax holiday on profits derived from constructing and operating the power plant. This would also include any potential withholding taxes on distributing profits. By offering a tax holiday Country P will offer to pay a reduced rate to purchase the power produced by the power plant. In this way the local citizens will benefit by having electricity at a reduced rate. Company C is interested in pursuing this project and is now asking you to determine the US tax consequences of the operating results. You learn that the expected investment is $1B and that 95% of the investment would be funded by offering debt in the public market. Company C would set up a CFC in the Netherlands and subscribe the debt offering. The coupon rate on the debt will be 7%. Company C expects that the Operating Cash Flows in Country P to be 15% of the total investment. The total investment would be the sum of public borrowings plus Company C’s contribution to equity of $50M. Company C does not desire to leave excess cash flow in Country P due to the risks associated with that market and would like the flexibility to invest elsewhere in the world for other projects (i.e. the money is not needed in the US). Consequently, the Company wishes to assert permanent reinvestment under GAAP (ASC 740). The excess cash flow would go to an intermediate holding company in the Netherlands to service the interest expense on the public borrowing. Assume that the Netherlands does not have a tax and that the loan balance is not amortizing (i.e. interest only). Thus, the structure of entities is a U.S. Parent (USP), owning as a first tier CFC (CFC1), a Netherlands Company. CFC1 would be funded with a $50M investment in equity from USP. CFC1 would borrow $950M in the public market. CFC1 would then invest $1B into CFC2 as equity. CFC2 would operate in Country P.

a) Using Pre 2017 rates and rules assume that neither Sec. 904(c) look through nor check the box is available. What, if any, is the expected annual U.S. tax and the underlaying tax rate on the investment?

b) Using Pre 2017 rates and rules assume either 904(c) look through or check the box is implemented. What, if any, is the expected annual U.S. tax and the underlying tax rate on the investment?

c) Using Post 2017 Act rates and rules what, if any, is the expected U.S. tax and tax rate on the investment (rather than guessing what year in service the asset is in assume this is year 1). Further assume that the entity holding the debt has checked open the operating entity (i.e. its one aggregate calculation)

QUESTION 1

Ernest and his partner Mary run a second-hand bookshop. The business is incorporated under the name of Ketchum Ltd, and they are the only shareholders.

As the business is small they do not employ a full-time accountant, but pay a local firm to prepare their accounts after the end of the accounting period from information they supply. You are on a summer work placement with this firm and have been asked to prepare             a first draft of the accounts for Ketchum Ltd for the year ending 31^st December 2019.

A list of closing balances reported in Ketchum Ltd’s statement of financial position as at 31^st December 2018 is set out below:

Further information:

1. The shop premises were acquired under a 50-year lease on 1^st January 2016 and are being depreciated to a zero residual value.
2. The fixtures and fittings were also bought on 1^st January 2016 and are being depreciated over 10 years to a zero residual value.
3. Depreciation is provided on a straight line basis for both the shop premises and the fixtures and fittings.
4. The business pays its insurance premium annually on 1^st July to cover the following twelve month period. This is the only prepayment as at 31^st December 2018.
5. The accrued expenses relate to the accountant’s fees for preparing last year’s accountants, paid in March 2019. This is the only accrual as at 31^st December 2018.
6. All profits earned are subject to a 20% corporate income tax paid on 31^st December of the year in which they are earned.

During the year to 31^st December 2019, the following transactions and events took place:

1. The business made cash sales of £107,375. It also made credit sales to internet retailers of £76,787.50.
2. Inventory costing £94,725 was bought during the year. All items were bought on credit. Suppliers were paid £96,437.50 over the course of the year.
3. The inventory of books as at 31^st December 2019 cost £34,375.
4. During the year some fixtures that had cost £2,500 when purchased were sold for £1,375. New fixtures were acquired for cash at a cost of £3,750 and are also being depreciated over 10 years to a zero residual value. No depreciation is charged in the year of disposal but a full year’s depreciation is charged in the year of acquisition.
5. The part-time shop assistant was paid wages of £13,625 over the year.
6. Receipts from credit customers totalled £68,162.50.
7. Electricity bills totalling £2,287.50 were paid during the year. The company has recently changed its electricity supplier and is now being billed quarterly in arrears. At the end of December 2019 the bill for the quarter ended on 31^st January 2020 had not yet been received, but was estimated to be £862.50.
8. You have been told that the fees charged for preparing the accounts will be the same as last year. The bill will be sent out in March 2020.
9. The insurance premium of £1,125 for the year to 30^th June 2020 was paid during July 2019.
10. In December 2019 £10,000 was paid off the bank loan, and interest of £1,000 was paid on 31^st December 2019. Overdraft interest of £118.75 was charged and paid.
11. Administrative expenses of £1,581.25 were paid as they arose.
12. Ernest and Mary received directors’ wages of £1,250 per month each.

Required:

1. Using the information provided by Ernest and Mary, and Ketchum Ltd’s statement of financial position as at 31^st December 2018, prepare the following:
   1. A table summarising the effects of all transactions and events listed above on assets, liabilities, equity, revenue, and expenses of Ketchum Ltd.

Ernest and his partner Mary run a second-hand bookshop. The business is incorporated under the name of Ketchum Ltd, and they are the only shareholders.

As the business is small they do not employ a full-time accountant, but pay a local firm to prepare their accounts after the end of the accounting period from information they supply. You are on a summer work placement with this firm and have been asked to prepare             a first draft of the accounts for Ketchum Ltd for the year ending 31^st December 2019.

A list of closing balances reported in Ketchum Ltd’s statement of financial position as at 31^st December 2018 is set out below:

Further information:

1. The shop premises were acquired under a 50-year lease on 1^st January 2016 and are being depreciated to a zero residual value.
2. The fixtures and fittings were also bought on 1^st January 2016 and are being depreciated over 10 years to a zero residual value.
3. Depreciation is provided on a straight line basis for both the shop premises and the fixtures and fittings.
4. The business pays its insurance premium annually on 1^st July to cover the following twelve month period. This is the only prepayment as at 31^st December 2018.
5. The accrued expenses relate to the accountant’s fees for preparing last year’s accountants, paid in March 2019. This is the only accrual as at 31^st December 2018.
6. All profits earned are subject to a 20% corporate income tax paid on 31^st December of the year in which they are earned.

During the year to 31^st December 2019, the following transactions and events took place:

1. The business made cash sales of £107,375. It also made credit sales to internet retailers of £76,787.50.
2. Inventory costing £94,725 was bought during the year. All items were bought on credit. Suppliers were paid £96,437.50 over the course of the year.
3. The inventory of books as at 31^st December 2019 cost £34,375.
4. During the year some fixtures that had cost £2,500 when purchased were sold for £1,375. New fixtures were acquired for cash at a cost of £3,750 and are also being depreciated over 10 years to a zero residual value. No depreciation is charged in the year of disposal but a full year’s depreciation is charged in the year of acquisition.
5. The part-time shop assistant was paid wages of £13,625 over the year.
6. Receipts from credit customers totalled £68,162.50.
7. Electricity bills totalling £2,287.50 were paid during the year. The company has recently changed its electricity supplier and is now being billed quarterly in arrears. At the end of December 2019 the bill for the quarter ended on 31^st January 2020 had not yet been received, but was estimated to be £862.50.
8. You have been told that the fees charged for preparing the accounts will be the same as last year. The bill will be sent out in March 2020.
9. The insurance premium of £1,125 for the year to 30^th June 2020 was paid during July 2019.
10. In December 2019 £10,000 was paid off the bank loan, and interest of £1,000 was paid on 31^st December 2019. Overdraft interest of £118.75 was charged and paid.
11. Administrative expenses of £1,581.25 were paid as they arose.
12. Ernest and Mary received directors’ wages of £1,250 per month each.

Required:

1. Using the information provided by Ernest and Mary, and Ketchum Ltd’s statement of financial position as at 31^st December 2018, prepare the following:
   1. A table summarising the effects of all transactions and events listed above on assets, liabilities, equity, revenue, and expenses of Ketchum Ltd.

2. A statement of profit or loss for 2019.

3. A statement of cash flows for 2019.

4. A statement of financial position as at 31^st December 2019.

Show your workings.

The average age of CEOs is 56 years. Assume the variable is normally distributed, with a standard deviation of 4 years. Give numeric answers with 4 decimal places.

a) If one CEO is randomly selected, find the probability that he/she is older than 63. Blank 1

b) If one CEO is randomly selected, find the probability that his/her mean age is less than 57. Blank 2

c) If one CEO is randomly selected, find the probability that his/her age will be between 53 and 59. Blank 3

d) If 36 CEOs are randomly selected, find the probability that their mean age is between 53 and 59. Blank 4

e) Explain the reason the answers to c) and d) above are differen

The case narrative below will be used to answer the following question:

College Products

College Products is a division of a large manufacturing company. The company makes a variety of collegiate branded products, sold on campuses worldwide. Most employees are paid on an hourly basis. Employees receive yearly reviews to evaluate performance and to determine an appropriate pay increase. College’s payroll is processed by the corporate payroll department from input documents prepared by College. The following HR and payroll procedures are related to the hourly payroll employees at College.

Department supervisors initiate requests for additional employees by filling out a three-part employee requisition form. After a requisition is completed, the department supervisor signs it, files a copy by date, and gives the remaining two copies to the production supervisor. The production supervisor reviews and signs the copies and gives them to the HR manager. The HR manager reviews the request with the division controller. They both sign the requisition. The pay rate for the job also is determined at that time and included on the requisition. If the requisition is approved, the HR manager initiates hiring procedures by placing advertisements in local papers and announcing the opening internally. The HR manager and the supervisor interview the applicants together. They then evaluate the applicants and make a selection. The HR manager and the employee fill out the two-part wage and deduction form. The HR manager files a copy of the wage and deduction form and the personnel requisition by employee name. The remaining copies of each form are given to the division accountant.

The HR manager selects and reviews the records from the personnel file for employees who are due for their annual review. The HR manager puts some basic employee information on a three-part review form and gives it to the appropriate supervisor for evaluation. The supervisor completes and signs the form, files a copy, and gives the remaining copies to the production supervisor, who reviews and signs the evaluation. The production supervisor returns it to the HR manager. The HR manager reviews it with the controller. They assign a new rate and sign the review form, which is given to the division accountant.

The division accountant uses the new employee information and the employee review form to prepare payroll action notices. The accountant signs the payroll action notices and files them with the other related forms by date. Each week, a clerk in the corporate payroll department retrieves the payroll forms from the division accountant, checks the signature on all payroll action notices, and processes the payroll. The forms, checks, and reports are sent back to the division accountant. The division accountant refiles the forms and gives the checks to the production supervisor, who in turn distributes them to the employees.

Source: Cengage, LA, Dull, RB, & Gelinas, UJ 2014, Accounting Information Systems, Cengage Learning Australia, Melbourne.

Question. Alan Harrison has been recently appointed as the CEO of “College Products”. Three days after his appointment, he met with all middle managers and announced that College Products has to adopt a cost leadership strategy. All managers (including the HR manager) have been asked to come up with a plan in their department to adopt this strategy. In approximately 300 words suggest two changes that can be implemented in the above case study to align the process with cost leadership strategy.

College Products

College Products is a division of a large manufacturing company. The company makes a variety of collegiate branded products, sold on campuses worldwide. Most employees are paid on an hourly basis. Employees receive yearly reviews to evaluate performance and to determine an appropriate pay increase. College’s payroll is processed by the corporate payroll department from input documents prepared by College. The following HR and payroll procedures are related to the hourly payroll employees at College.

Department supervisors initiate requests for additional employees by filling out a three-part employee requisition form. After a requisition is completed, the department supervisor signs it, files a copy by date, and gives the remaining two copies to the production supervisor. The production supervisor reviews and signs the copies and gives them to the HR manager. The HR manager reviews the request with the division controller. They both sign the requisition. The pay rate for the job also is determined at that time and included on the requisition. If the requisition is approved, the HR manager initiates hiring procedures by placing advertisements in local papers and announcing the opening internally. The HR manager and the supervisor interview the applicants together. They then evaluate the applicants and make a selection. The HR manager and the employee fill out the two-part wage and deduction form. The HR manager files a copy of the wage and deduction form and the personnel requisition by employee name. The remaining copies of each form are given to the division accountant.

The HR manager selects and reviews the records from the personnel file for employees who are due for their annual review. The HR manager puts some basic employee information on a three-part review form and gives it to the appropriate supervisor for evaluation. The supervisor completes and signs the form, files a copy, and gives the remaining copies to the production supervisor, who reviews and signs the evaluation. The production supervisor returns it to the HR manager. The HR manager reviews it with the controller. They assign a new rate and sign the review form, which is given to the division accountant.

The division accountant uses the new employee information and the employee review form to prepare payroll action notices. The accountant signs the payroll action notices and files them with the other related forms by date. Each week, a clerk in the corporate payroll department retrieves the payroll forms from the division accountant, checks the signature on all payroll action notices, and processes the payroll. The forms, checks, and reports are sent back to the division accountant. The division accountant refiles the forms and gives the checks to the production supervisor, who in turn distributes them to the employees.

Source: Cengage, LA, Dull, RB, & Gelinas, UJ 2014, Accounting Information Systems, Cengage Learning Australia, Melbourne.

Question. Alan Harrison has been recently appointed as the CEO of “College Products”. Three days after his appointment, he met with all middle managers and announced that College Products has to adopt a cost leadership strategy. All managers (including the HR manager) have been asked to come up with a plan in their department to adopt this strategy. In approximately 300 words suggest two changes that can be implemented in the above case study to align the process with cost leadership strategy.

Assume that you are a newly appointed junior auditor in Ernst & Young, an auditing firm. After a 3month rigorous training on the job, you have been awarded the certificate of completion and is now ready to embark on your very first assignment. Today, your first job was to evaluate the audit evidence gathered by your team from Shinas Trading and see if they are reliable or not based on ISA 500. The following are the evidences gathered in various forms: a) You have been analyzing the cash balance of Shinas Trading and comparing it with the bank balance. To properly analyze the difference, you asked for the bank reconciliation prepared by the bookkeeper. She immediately gave it to you properly signed by the staff. b) Your colleague, the auditor in-charge of observing the physical count of inventory, gave to you their team’s report on their observation. You immediately filed it in the audit evidence file. c) During interview with the managing director of the company, she gave verbal confirmation that Shinas Trading has a long-term loan from Bank Muscat and payments are updated. d) Shinas Trading has a computerized system in its purchasing process. This is an indication of a good internal control system. Part of the audit evidences filed are electronic copies of the purchase order forms of the company. e) Also filed in the audit evidence folder are a complete set of photocopies of payroll sheets (salary sheets). Employee signatures contained in the sheets are also photocopies of the original. Required: Evaluate the reliability of each of the documents above and identify the one that is considered the most reliable and least reliable. (2 marks each)

Perma-bearJim Chanos recently was interviewed on financial news channel for his short position on Tesla (stock price collapsed from $960 to $360 in 4 week due to Covid-19). He also claims to have predicted the 2008 financial crisis. Over the last 3 decades, however, he managed to lose 99% of his investor's money. If an investor who have seen that interview and decided to invest in his fund are likely suffering from which of the following cognitive error? I. Representitativeness heuristic II. Availability heuristic III. Confirmation bias. IV. Affect heuristic.

IV only

I and II only

III only

III and IV only

I, II, III and IV

1. You receive a patient as a direct admission from a physician’s office. During the patient’s transfer from the wheelchair to the bed you note a limp. The patient’s daughter is present and comments, “This is the fourth time she’s been admitted to this hospital in the past year.” The patient and her daughter demonstrate a close, loving relationship. The daughter not only encourages her mother but also sets boundaries regarding her mother’s anxiety. (Learning Objectives #3, #4, and #5)
   1. What categories of data (provide definitions as well) would you expect to collect in this admission interview?
   2. Describe the characteristics of collected data and their impact on collected data.
   3. Where could you find helpful data sources?
   4. Describe the role of observation of incompetent nursing care.

Medical research has shown that repeated wrist extension beyond 20 degrees increases the risk of wrist and hand injuries. Each of 24 students at a university used a proposed new computer mouse design. While using the mouse, each student's wrist extension was recorded. Data consistent with summary values given in a paper are given. Use these data to test the hypothesis that the mean wrist extension for people using this new mouse design is greater than 20 degrees. (Use

α = 0.05.

Use a statistical computer package to calculate the P-value. Round your test statistic to two decimal places and your P-value to three decimal places.)

1. State your conclusion.

Reject H₀. We have convincing evidence that the mean wrist extension for all people using the new mouse design is greater than 20 degrees.

2. Are any assumptions required in order for it to be appropriate to generalize the results of your test to the population of students from this university?

We need to assume that the 24 students used in the study are representative of all students at the university.

3. Are any assumptions required in order for it to be appropriate to generalize the results of your test to the population of all university students?

1. We need to assume that the 24 students used in the study are representative of all students who use a wireless mouse.

2. We need to assume that the 24 students used in the study are representative of all students at the university.

3.. We need to assume that the 24 students used in the study are representative of all students who own PCs.

4. We need to assume that the 24 students used in the study are representative of all university students.

5.We need to assume that the 24 students used in the study are representative of all students in computer science classes

I am missing T and the third question