Who Pays, who Provides and who Measures US Healthcare?

The costs of healthcare are higher in the United States compared to any other developed country in the world, but this does not equate to best health status for our populations (OECD, 2018).

1. Who pays for US Healthcare?
2. Who provides US Healthcare Services?
3. Who measures healthcare service results (quality of life years (QALY) disability of life years (DALY)?

Please cite all resources used to obtain your answers.

Resources:

CDC. (2018). Health People 2020. https://www.cdc.gov/nchs/healthy_people/hp2020.htm

CMS. (2018). CMS Innovations. https://innovation.cms.gov/

NACCHO. (2018) Directory of Public Health Services. https://www.naccho.org/membership/lhd-directory

OECD. (2018). Health at a Glance (2017). http://www.oecd.org/health/health-systems/health-at-a-glance-19991312.htm

Green Co. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $4 million. At the beginning of 2018, Green decided to change to the straight-line method.

Required:
1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?
2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years’-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?

Journal entry

1. Record the entry relating to the machine for 2018 using straight-line method

2. Record the entry relating to the machine for 2018 using sum-of-the year's digits method

PART D:

Several years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar’s acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transfer.

The following selected account balances were from the individual financial records of these two companies as of December 31, 2018:

Assume that Icecap sold inventory to Polar at a markup equal to 25% of cost. Intra-entity transfers were $70,000 in 2017 and $112,000 in 2018. Of this inventory, $29,000 of the 2017 transfers were retained and then sold by Polar in 2018, whereas $49,000 of the 2018 transfers was held until 2019.

Required:

For the consolidated financial statements for 2018, determine the balances that would appear for the following accounts: (i) Cost of Goods Sold; (ii) Inventory; and (iii) Net income attributable to the noncontrolling interest.                                                                                     

On July 1, 2018, Gupta Corporation bought 20% of the outstanding common stock of VB Company for $110 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $500 million and a book value of $290 million. Of the $210 million difference, $46 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $130 million was attributable to buildings that had a remaining depreciable life of 10 years, and $34 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $40 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018, assuming Gupta accounts for this investment by the equity method. 2. Determine the amounts to be reported by Gupta.

Preacquisition Contingency On January 3, 2018, Prance Corporation purchased all of the busi‑ness operations of Step Corporation for $10 million cash. The acquisition is recorded as a merger. Step’s identifiable assets and liabilities are listed below at their fair values:Current assets $ 900,000Plant and equipment $5,000,000Estimated liability: defective product lawsuits (500,000)Other liabilities (3,000,000)The $500,000 estimated liability represented Step’s best estimate of likely losses due to lawsuits pending as of January 3, 2018. Later in 2018, as unfavorable information regarding the January 3, 2018 status of defective products became available, the estimated liability was increased to $650,000. Then, in late 2019, after observing that competitors were more frequently winning similar lawsuits, management re‑vised the estimated liability downward to $300,000.Required Prepare the entries made by Prance to record the original acquisition entry and the subsequent value changes in 2018 and 2019

1. Special Deductions and Limitations (LO 11.3)

   Fisafolia Corporation has gross income from operations of $426,600 and operating expenses of $362,610 for 2018. The corporation also has $42,660 in dividends from publicly traded domestic corporations in which the ownership percentage was 45%.

   Below is the Dividends Received Deduction table to use for this problem.
   

   Percent Ownership 2018 Dividends Received Percentage Less than 20 percent 50% 20 percent or more, but less   than 80 percent 65% 80 percent or more 100%

   If require, round final answers to the nearest dollar.

   a. Calculate the corporation's dividends received deduction for 2018.
   $

   b. Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $319,950.

   Calculate the corporation's dividends received deduction for 2018.
   $

   c. Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation’s dividends received deduction for 2018.
   $

Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2018, the company issued 320,000 executive stock options permitting executives to buy 320,000 shares of Pastner stock for $29 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2018 (graded vesting). Pastner elects to measure the fair value of all options on January 1, 2018, to be $6.60 per option (tranche) using a single weighted-average expected life of the options assumption.

Required:
1. Determine the compensation expense related to the options to be recorded each year 2018–2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately.
2. Determine the compensation expense related to the options to be recorded each year 2018–2021, assuming Pastner uses the straight-line method to allocate the total compensation cost.

Pegory Inc. acquired 20% of the outstanding common stock of sunderson inc. on 1/1/18. The purchase price paid was $1,250,000 cash for 50,000 shares. Sunderson declared adn paid a cash dividend of $0.80 per share on June 30, 2018. Sunderson reported net income of $730,000 for 2018.

Instructions:

A) Prepare the journal entries for Pegory in 2018, assuming Pegory cannot exercise significant influence over Sunderson and Sunderson is not an actively traded stock. (Cost Method)

B) Prepare the journal entries for Pegory in 2018, assuming Pegory cannot excercise significant influence over Sunderson and the fair value of Sunderson stock in the active market is $27 per share on 12/31/18. The sescurities should be calssified as available-for-sale. (Cost Method)

C) Prepare the journal entries for Pegory in 2018, assuming Pegory can exercise significant influence over Sunderson. (Equity Method)

Charles and Joan Thompson file a joint return. In 2017 they had taxable income of $92,370 and paid tax of $14,571. Charles is an advertising executive, and Joan is a college professor. During the fall 2018 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $70,000 in 2018. They expect their 2018 tax liability will be $8,022, which will be the approximate amount of their withholding. Joan anticipates that she will work on academic research during the fall semester.

During September, Joan decides to perform consulting services for some local businesses. Charles and Joan had not anticipated this development. Joan is paid a total of $35,000 during October, November, and December for her work.

What estimated tax payments are Charles and Joan required to make, if any, for tax year 2018? Do you anticipate that the Thompsons will be required to pay an underpayment penalty when they file their 2018 tax return? Explain your answer.