Lucky Traders is a subsidiary of United Traders, a US based trading company with a 31
December year end, and it is involved in the buying and selling of electronic accessories. Most of
the inventories that Lucky Traders sells are imported from the parent company that is based in
America.
Given the nature of the business, Mr. Luckiness expresses his concern on the fact that the
company is trading with companies that are not local companies. The company has been
experiencing losses, because of this; Mr. Luckiness is concerned that the company’s functional
currency is US Dollars as the invoices that they receive are quoted in US Dollars.
The consultant company for Lucky Traders have recommended that the company should enter a
Foreword Exchange contract to hedge for the risk of the exchange rate.
On 1 December 2019 Lucky Traders entered into the contract with Take A Little an American
based company to supply to them 15 000 boxes of accessories when the exchange rate was $ 1:
NAD14.00 and each of the box worth US$ 1 589. The stock was shipped FOB on the 10th
December 2019 when the exchange rate was $1: NAD13.00.
Due to the delay in the customs and clearance of the orders stock only arrived at the premises of
Lucky Traders on 15 December 2019 when the exchange rate was $1:NAD16.00 the debt was
not settled as at 31 December 2019 and the final payment was only made on the 31 January
2020. When the exchange rate was $1: NAD 17.50 at 31 December 2019
The company entered the FEC contract with Capelex Bank to fix the rate on the 31 January 2020
at $1:NAD15.50. Due to the outbreak of Covid-19 US Dollar has strengthen and Namibian dollar
has declined and the rate moved to $1: NAD 18.00.

The Forward Exchange Contract had the rates below:
Date $:NAD
01/12/19 -
31/12/19 1:17.00
31/01/2020 1:21.00

Required:


2.3 Calculate total loss/gain made foreign exchange on the transaction above for the
year ended 31 December 2019

2.4 Prepare the journal entry on 31 January when the transaction was fully settled.

Below are the statements of financial position for Jupiter Plc, Neptune Limited, Pluto Limited and Venus Co for the year ended 30 April 2021.

i) Share CapitalNotes to the Above Accounts

• All ordinary shares other than those in Venus Co have a par value of 50 pence.
• Ordinary shares in Venus Co have a par value of K1.

ii)     Exchange Rates

• Rate at 1 May 2020: £1 = K10  £1 = €1.25
• Average for year to 30 April 2021: £1 = K10 £1 = €1.55
• Rate at 30 April 2021: £1 = K12 £1 = €1.60

iii) Neptune Limited

• Jupiter Plc purchased 7,500,000 ordinary shares in Neptune Limited on 31 October 2020. The purchase consideration was made up of 2 new ordinary shares in Jupiter valued at £1.20 each for every 3 shares held in Neptune Limited and £11,000,000 paid in 12 months’ time. Jupiter Plc has recorded the £11,000,000 payable in current borrowings and investments, but the accountant has not recorded the number or value of shares issued in Jupiter Plc’s investments.
• Jupiter Plc’s cost of capital is 10% and Neptune Limited’s cost of capital is 8%
• Profit for the year to 30 April 2021 for Neptune Limited was £1,000,000.
• At the date of acquisition, the fair value of Neptune Limited’s freehold properties was agreed to be £4,000,000 higher than book value; properties had an average remaining useful life of 10 years at the date of acquisition. This fair value adjustment has not been included in Neptune Limited’s books of account.
• It is group policy to capitalise development expenditure. Neptune Limited writes off development expenditure as it is incurred. At 31 October 2020 Jupiter Limited had written off development expenditure amounting to £600,000 and the total development expenditure written off up to 30 April 2021 amounted to £1,800,000.
• On 29 April 2021, Jupiter Limited remitted a payment to Pluto Limited for £100,000 to clear Jupiter Limited’s current account balance with Pluto Limited at the year end. Pluto Limited did not receive this cheque until 2 May 2021 and has not reflected this payment in trade receivables.
• At the date of acquisition, the non-controlling interest in Neptune Limited was agreed to have a fair value of £3,750,000.

iv) Pluto Limited

• Neptune Limited paid £1,648,000 to acquire 800,000 ordinary shares in Pluto Limited on 1 May 1996. Neptune Limited had no significant influence over Pluto Limited at this time as there was a controlling shareholder.
• Jupiter Plc paid £600,000 to acquire 300,000 ordinary shares in Pluto Limited on 1 May 2020.
• The retained earnings for Pluto Limited were as follows:

• The inventories of Jupiter Plc include goods which had cost Pluto Limited £2,300,000 and to which Pluto Limited had added a 25% mark up.
• At the point of acquisition, the non-controlling interest in Pluto Limited was agreed to have a fair value of £1,200,000

v)  Venus Co

• Venus Co is a company incorporated in Krulia.
• Jupiter Plc acquired 1,750,000 of the ordinary shares in Venus Co on 1 May 2020 at a cost of £400,000 when the retained earnings of Venus Co stood at K6,000,000.

• At the date of acquisition, the fair value of net assets was the same as the book value of net assets.

vi) Borrowings

• Jupiter Plc’s non-current liabilities includes borrowings which are denominated in Euros. The loan is for €4,000,000. This loan was last translated at 30 April 2020. No adjustment for movements in exchange rates have been made since this date. The loan remains in Jupiter Plc’s statement of financial position at the sterling value as at 30 April 2020

vii) Goodwill

• Positive goodwill is carried at cost and is reviewed annually for impairment.
• Negative goodwill is credited directly to retained earnings.
• An impairment review of goodwill had been carried out at year end and concluded that there had been no impairment of the goodwill associated with any of the investee companies.
• It is the group’s policy to value any non-controlling interests at their fair value.

YOU ARE REQUIRED TO:

Prepare the group statement of financial position for the Jupiter Plc Group as at 30 April 2021.
All your calculations should be made to the nearest £000.

Spartan Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia.

Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canadian and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600,000 on its branch profits in Canada and U.K. income taxes of $700,000 on its branch profits in the United Kingdom. Spartan financed its Canadian operations through a $10 million capital contribution, which Spartan financed through a loan from Bank of America. During the current year, Spartan paid $600,000 in interest on the loan.

Spartan sells its quidgets to Australian customers through its wholly-owned Australian subsidiary. Spartan reported gross income of $3,000,000 on sales to its subsidiary during the year. The subsidiary paid Spartan a dividend of $670,000 on December 31 (the withholding tax is 0 percent under the U.S.–Australia treaty). Spartan paid Australian income taxes of $330,000 on the income repatriated as a dividend.

Requirement:

1. Compute Spartan’s foreign source gross income and foreign tax (direct and withholding) for the current year.
2. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan’s FTC limitation calculation. Compute Spartan Corporation’s FTC limitation using your calculation from part (a) and any excess FTC or excess FTC limitation (all of the foreign source income is put in the foreign branch FTC basket).

You can agree or disagree with the statements & why or why not? You can add to the statements or ask questions. Each of these statements are about why Multiple studies conducted in the United States, Canada, Germany, and the United Kingdom show that the probability of dying in the hospital is higher if you are admitted on the weekend.

A) Personally, I believe there is a high chance of dying on the weekends because that is when the hospital seems to be the busiest. Hospitals tend to be understaffed therefore when that weekend rush comes they are being stretched in all types of directions. It’s no secret people party and drink more on the weekend which can lead to MVA’s on top of the sick patients that are coming in. A theory I believe in as well is that people who work during the week wait until the weekend to be seen or have their kids seen at a emergency department. Also, like some of my classmates stated there are certain imaging that cannot be performed on weekends.

B) Honestly, I have never heard or even though of this being something to study about. With the researching I did the main reason for this phenomenon is an understaffed hospital. Another factor the plays a role is a lack of tests getting done and back in time, including a lack of procedures. In order to eliminate this issure hospital could start scheduling more people for the weekends, that way more people could get in and get out and get the care they need. They could also have certain areas open on weekends, like certain lab tests that can be done. Also, making sure they schedule people in case of emergency procedures. This field is full of unknown, you never know what is going to come through the doors but it wouldnt hurt to be prepared.

Corporation manufactures quidgets at its plant in Sparta, Michigan. Spartan sells its quidgets to customers in the United States, Canada, England, and Australia.

Spartan markets its products in Canada and England through branches in Toronto and London, respectively. Spartan reported total gross income on U.S. sales of $15,000,000 and total gross income on Canadian and U.K. sales of $5,000,000, split equally between the two countries. Spartan paid Canadian income taxes of $600,000 on its branch profits in Canada and U.K. income taxes of $700,000 on its branch profits in the United Kingdom. Spartan financed its Canadian operations through a $10 million capital contribution, which Spartan financed through a loan from Bank of America. During the current year, Spartan paid $600,000 in interest on the loan.

Spartan sells its quidgets to Australian customers through its wholly-owned Australian subsidiary. Spartan reported gross income of $3,000,000 on sales to its subsidiary during the year. The subsidiary paid Spartan a dividend of $670,000 on December 31 (the withholding tax is 0 percent under the U.S.–Australia treaty). Spartan paid Australian income taxes of $330,000 on the income repatriated as a dividend.

Requirement:

1. Compute Spartan’s foreign source gross income and foreign tax (direct and withholding) for the current year.
2. Assume 20 percent of the interest paid to Bank of America is allocated to the numerator of Spartan’s FTC limitation calculation. Compute Spartan Corporation’s FTC limitation using your calculation from part (a) and any excess FTC or excess FTC limitation (all of the foreign source income is put in the foreign branch FTC basket).

(Enter your answers in dollars not in millions of dollars.)

Understanding how healthcare systems impact the community is step one in developing a global perspective. How do the healthcare systems around the globe impact their target communities? Use this discussion to begin developing your understanding of how the healthcare systems around the world impact the community.

Choose two countries and compare their healthcare systems. How are the healthcare systems organized? Who has access to healthcare, and why?

After describing the systems and explaining who has access, rate the systems as good, bad, or neutral. Explain the rationale for your ratings and provide supporting evidence.

Textbook: Global Health Care: Issues and Policies, Chapters 1, 2, and 3

Chapter 1—Global Health: An Introduction

• What is global health?
• How would healthcare change if the Alma-Ata was embraced?
• How does the Affordable Care Act demonstrate support of the Alma-Ata declaration?
• What interventions will be needed to manage the projected future patterns of health?
• What are the consequences of not providing universal healthcare?

Chapter 2—Global Health in Developed Societies: Examples in the United States, Sweden, Japan and the United Kingdom

• Which countries’ health trends surprised you?
• How does U.S. healthcare compare to the healthcare provided in Sweden?
• Does life expectancy differ based on the level of healthcare provided?
• What differences exist in mortality rates?

Chapter 3—Developing Countries: Egypt, China, India, South Africa

• How is the access to healthcare different in each of the countries?
• What similarities exist in the health priorities identified by each of the countries?
• What health issues did you find most surprising, and why?

On June 1, 2020, BlueSky Company provided services to GreenGrass Company and received a 1-year, 8%, $150,000 note, due May 31, 2021. Interest is payable at maturity. BlueSky records adjusting entries annually at December 31.

a. Compute the total interest on the note. How much interest revenue will be recognized in 2020? In 2021?

b. Record the June 1, 2020, journal entry for BlueSky.

c. Record the December 31, 2020, adjusting journal entry for BlueSky.

d. BlueSky’s 2020 preliminary net income of $100,000 was computed without including any amounts related to the receipt of the note or the 12-31-20 adjusting entry. Determine the correct amount of 2020 net income. Ignore taxes.

e. On BlueSky’s December 31, 2019, balance sheet, retained earnings was reported at $300,000. In 2020, the company paid $40,000 in dividends. What is the December 31, 2020, retained earnings balance?

f. What amount(s) will BlueSky report on the December 31, 2020, balance sheet related to the note? How will these amounts be classified?

e. Record the May 31, 2021, journal entry for BlueSky for the receipt of principal and interest.

Monty Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.

(a) Compute the actual return on the plan assets in 2020.

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).

(d) Compute pension expense for 2020.

Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend, the board of directors declared a 10% common share dividend on June 30, 2020, distributable on July 15, 2020. Because performance during 2020 was better than expected, the company’s board of directors declared a $1.20 per share cash dividend on November 15, 2020, payable on December 1, 2020, to shareholders of record on November 30, 2020. The equity section of Pacifica’s December 31, 2019, balance sheet showed:

Required:
1. Journalize the declaration of the share dividend. The market prices of the shares were $17.90 on June 30, 2020, and $19.80 on July 15, 2020. Assume share dividends account is used when dividends are declared.

2.Journalize the declaration of the cash dividend. Assume share dividends account is used when dividends are declared.

3. Prepare the equity section of the balance sheet at December 31, 2020, assuming profit earned during the year was $3,389,000.

1. Two plants can produce drone aircraft. Plant #1 has a fixed startup cost of $33.15M before the first unit rolls off, and plant #2 has an initial fixed cost of $40.5M. Their marginal costs (MC) for producing 1-20 units are below.

Use the data to compute Average Fixed Cost (AFC), Average Variable Cost (AVC) and Average Total Cost (ATC) as a function of the rate of output.

a) Plot the MC, AFC, AVC and ATC curves for both plants.

b) Use ATC to decide the best plant option for a 5 unit order and the best choice for a 20 unit order.

c) Describe briefly the sources of fixed costs vs. variable costs for producing drone aircraft in a facility.