Questions
On 1 November 2019 Pippen Ltd contacts Jordan Inc to enquire about US$20m worth of machinery...

  1. On 1 November 2019 Pippen Ltd contacts Jordan Inc to enquire about US$20m worth of machinery that Jordan Inc is manufacturing. By the 30 November the two companies have agreed sale terms after making extensive enquiries, including those on finance terms, exchange rates and forward rates. The eventual sale is concluded on 1 December 2019, whereby Jordan Inc of the USA sells machinery to Pippen Ltd of Portugal for the payment amount of €20m to be made on 1 March 2020.

On the sale date of 1 December, Jordan Inc also enters into a forward contract with its bank to sell €20m in exchange for US Dollars on 1 March 2020.

The relevant spot and forward exchange rates for the Euro/US$ on the various dates are as follows:

1-Dec-19: Spot €1=US$1 & Forward Rate to 1-Mar-20 €1=US$1.04

31-Dec-19: Spot €1=US$1.05 & Forward Rate to 1-Mar-20 €1=US$1.10

1-Mar-20: Spot €1=US$1.12

Jordan Inc’s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803.

Assume that the forward contract discount or premium is allocated on a straight-line basis.

  1. How many US$ does Jordan Inc expect to receive under the Forward Contract on 1 March 2020? [2 marks]
  1. Assuming that Jordan Inc designates the forward contract as a cash flow hedge of a foreign currency receivable, provide the journal entries for these transactions in US$ on each of the dates (1-Dec-19, 31-Dec-19 (year-end) and 1-Mar-20). [6 marks]
  1. Show the impact on Net Income for these transactions in 2019 and 2020 under Cash Flow Hedge accounting. [4 marks]
  1. Now assume that Jordan Inc designates the forward contract as a fair value hedge of a foreign currency receivable. In this case, prepare the journal entries for these transactions in US$ on each of the dates (1-Dec-19, 31-Dec-19 (year-end) and 1-Mar-20). [6 marks]
  1. Show the impact on Net Income for these transactions in 2019 and 2020 under Fair Value Hedge accounting. [4 marks]

In: Accounting

Please read case and answer the question thank you. Mark Zuckerberg, the founder of Facebook, once...

Please read case and answer the question thank you.

Mark Zuckerberg, the founder of Facebook, once proclaimed in an interview that the “age of privacy” had to come to an end. According to Zuckerberg, social norms had changed and people were no longer worried about sharing their personal information with friends, friends of friends, or even the entire Web. This view is in accordance with Facebook’s broader goal, which is, according to Zuckerberg, to make the world a more open and connected place. Many Facebook features are premised on this position. Supporters of Zuckerberg’s viewpoint believe the 21st century is an age of “information exhibitionism,” a new era of openness and transparency.Facebook has a long history of invading the personal privacy of its users. In fact, the very foundation of Facebook’s business model is to sell the personal information of its users to advertisers. In essence, Facebook is like any broadcast or cable television service that uses entertainment to attract large audiences, and then once those audiences are in place, to sell air time to advertisers in 30- to 60-second blocks. Of course, television broadcasters do not have much if any personal information on their users, and in that sense are much less of a privacy threat. Facebook, currently with almost 1.8 billion users worldwide, clearly attracts a huge audience.Although Facebook started out at Harvard and other campuses with a simple privacy policy of not giving anyone except friends access to your profile, this quickly changed as its founder Mark Zuckerberg realized the revenue-generating potential of a social networking site open to the public.

1.Do people who use Facebook have a legitimate claim to privacy when they themselves are posting information about themselves?

2. How will changing your settings on Facebook help protect your privacy?

3. How can you prevent your Timeline from being indexed by Google or other search engines?

In: Operations Management

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company...

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.

Mar. 31 Acquired 6% Distribution Transformers Corporation bonds costing $500,000 at face value.
Sep. 1 Acquired $1,050,000 of American Instruments’ 8% bonds at face value.
Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.
Oct. 2 Sold the Distribution Transformers bonds for $535,000.
Nov. 1 Purchased $1,500,000 of M&D Corporation 4% bonds at face value.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments bonds $ 990,000
M&D Corporation bonds $ 1,570,000

(Hint: Interest must be accrued.)

In: Accounting

On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...

On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year life, straight-line, which were capitalized following GAAP.

Additional information: Pomegranate uses the complete equity method to account for its investment in Starfruit on its own books. Goodwill recognized in this acquisition was impaired by a total of $2,000,000 in 2018 and 2019, and by $500,000 in 2020. It is now December 31, 2020, the accounting year-end.

Here is Starfruit Company’s trial balance at December 31, 2020:

Dr (Cr)

Current assets $28,200,000

Plant & equipment, net 188,000,000

Intangibles 2,000,000

Liabilities (180,000,000)

Capital stock (1,000,000)

Retained earnings, January 1 (29,500,000)

Acumulated other comprehensive income, January 1 (500,000)

Dividends 400,000

Sales revenue (24,000,000)

Cost of goods sold 10,000,000

Operating expenses 6,500,000

Other comprehensive income (100,000)

Question:

On the 2020 consolidated income statement, the noncontrolling interest in net income of Starfruit is

$150,000

$175,000

$200,000

$750,000

In: Accounting

On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for...

On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year life, straight-line, which were capitalized following GAAP.

Additional information:

Pomegranate uses the complete equity method to account for its investment in Starfruit on its own books. Goodwill recognized in this acquisition was impaired by a total of $2,000,000 in 2018 and 2019, and by $500,000 in 2020. It is now December 31, 2020, the accounting year-end. Here is Starfruit Company’s trial balance at December 31, 2020:

Dr (Cr)
Current assets $28,200,000
Plant & equipment, net 188,000,000
Intangibles 2,000,000
Liabilities (180,000,000)
Capital stock (1,000,000)
Retained earnings, January 1 (29,500,000)
Acumulated other comprehensive income, January 1 (500,000)
Dividends 400,000
Sales revenue (24,000,000)
Cost of goods sold 10,000,000
Operating expenses 6,500,000
Other comprehensive income (100,000)
$ 0

On the 2020 consolidation working paper, eliminating entry (R) reduces the Investment in Starfruit by

$ 3,600,000

$64,800,000

$68,200,000

$81,000,000

In: Accounting

On January 1, 2017, Nobel Corporation acquired machinery at a cost of $1,200,000. Nobel adopted the...

On January 1, 2017, Nobel Corporation acquired machinery at a cost of $1,200,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2020, a decision was made to change the residual value to $100,000. The amount that Nobel should record as depreciation expense for 2020 is

In: Accounting

NGD recently acquired a new piece of land in Suffolk County on April 1, 2012. The...

NGD recently acquired a new piece of land in Suffolk County on April 1, 2012. The land cost $5,000,000. NGD reports under IFRS and revalues its land. On December 31, 2017, the fair value of the land is $4,500,000. On December 31, 2020, the fair value of the land is $5,300,000.

Provide all necessary journal entries for 2012 through 2020.

In: Accounting

Develop 5 interview questions you feel you will be asked during an interview for a professional...

Develop 5 interview questions you feel you will be asked during an interview for a professional role or a role within a hospital.

Write what your response would be to each of the 5 questions you identified.

Post your questions and responses to discuss with the class. Answer the following questions in your response:

  • What did you learn from your classmates? What strategies will you use to prepare for an interview?

                                                                               

In: Nursing

The following three games are scheduled to be played at the World Curling Championship one morning....

The following three games are scheduled to be played at the World Curling Championship one morning. The values in parentheses are the probabilities of each team winning their respective game.
Game 1: Finland (0.2) vs. Canada (0.8)

Game 2: USA (0.3) vs. Switzerland (0.7)

Game 3: Germany (0.4) vs. Japan (0.6)
(a) The outcome of interest is the set of winners for each of the three games. List the complete sample space of outcomes and calculate the probability of each outcome.

(b) Let X be the number of European teams that win their respective games. Find the probability distribution of X.

(c) Find the expected value and variance of X.

(d) If two European teams win their games, what is the probability that Finland is one of them?

In: Statistics and Probability

A company acquired land, buildings and equipment from a bankrupt company at a lump sum price...

A company acquired land, buildings and equipment from a bankrupt company at a lump sum price of $180,000. At the time of acquisition the company paid $12,000 to have the assets appraised. The appraisal disclosed the following values.

Land.........$120,000
Buildings..$. 80,000
Equipment $40,000

What cost should be assigned to the land, buildings and equipment respectively?

A) $96,000, $64,000 and $32,000
B) $120,000, $80,000 and $40,000
C) $90,000, $60,000 and $30,000
D) $$64,000, $64,000 and $64,000

In: Accounting