1.As the use of gold as currency became more standardized, what happened to the gold trade?

a.)The dollar's convertibility was suspended.

b.)Banks printed paper money to represent a specific amount of gold in the vault.

c.)Americans lost faith in their currency and hoarded gold.

d.)Gold held little practical value other than as jewelry.

2.What is the central issue that causes bank runs and panics?

a.)Banks withhold deposits from creditors

b.)Banks fail to pay interest to their depositors

c.)Banks print more money than they have gold in their vaults

d.)Banks do not loan out enough funds to stimulate the economy

3.Before a Central Bank was established in the United States, people known as __________ were able to buy and sell the monies from individual states.

a.)federal funds traders

b.)currency traders

c.)the Board of Governors

d.)equity salesmen

4. Which of the following statements regarding central banks is true?

a.)Central banks require greater reliance on the gold standard.

b.)Central banks undermine international trade.

c.)A central bank controls the state and local bank locations and number of branches.

d.)A central bank has the sole authority with respect to the money supply.

5.Which statement below is true about the discount rate?

a.)It is the interest rate that the federal government pays to the public via the sale of Treasury securities.

b.)This is the rate used when banks borrow directly from the Fed.

c.)It is the same as the fed funds rate.

d.)It is the rate that banks charge other banks to loan money overnight.

1)The powers of Congress are enumerated in Article ____ of the Constitution. The founders established Congress in Article
I, Section 1, which states, “All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.”

2)_________ refers to members of Congress benefiting on projects that are spent in their districts. Earmarks are legislative provisions that provide funding for pork barrel projects. Pork barrel projects include federally funded parks, community centers, theaters, military bases, and building projects that benefit particular areas.

Group of answer choices

Government waste

Franking privilege

3)The _____________ is at the top of the leadership hierarchy. The Speaker is second in succession to the presidency and is the only officer of the House mentioned specifically in the Constitution.

Majority Whip

Speaker of the House of Representatives

Minority Whip

Senate Pro Tempore

Pork barrel

Government corporations

4) The President of the U.S. Senate is ______________.

Majority Whip

Senate Pro Tempore

Speaker of the House of Representatives

Vice President

5) Congress members receive free postage. What is this called?

Group of answer choices

franklin privilege

franking privilege

Free Postage Act of 1891

congressional benefits

6)Presidents exercise only one power that cannot be limited by other branches: the _______.

pardon

voting

veto

approving treaties

The _____Amendment was enacted in the wake of the only president to serve more than two terms, the powerful Franklin D. Roosevelt. Currently, presidents can only serve 2 terms in office for a total of 8 years.

11

20

21

22

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Bonobo’s Balloons Inc. purchased the $60,000 par value bonds of Gnomes R Us on January 1, 2020. The coupon rate is 8% and the bonds mature in 5 years. The market rate of interest is 12%. The bonds pay interest semi-annually every June 30 and December 31. The bonds were purchased for $51,167.90 and were classified as available-for-sale. Bonobo’s Balloons uses the effective-interest rate method to amortize bond discounts and premiums. At December 31, 2020, the market value of the bonds was $65,000. Bonobo’s Balloons sold the bonds on January 1, 2021, for $65,000.

Instructions

1. Compute the carrying value of the investment at December 31, 2020.
2. Compute the amount of interest revenue earned on this investment at June 30, 2020.
3. Compute the amount of unrealized gain or loss recognized on December 31, 2020. In which financial statement should this amount be reported?
4. Compute the amount of gain or loss recognized on the sale of the investment at January 1, 2021. In which financial statement should this amount be reported?
5. If this investment was instead classified as held-to-maturity, how would this have affected the amount of unrealized gain or loss on December 31, 2020, and how would this have affected its reporting?

Computations:

Carrying value at December 31, 2020:

Interest revenue at June 30, 2020:

Unrealized gain/loss at December 31, 2020:

Gain or loss at January 1, 2021:

Requirement 5:

Cheyenne Company purchases an oil tanker depot on January 1, 2020, at a cost of $648,500. Cheyenne expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $79,920 to dismantle the depot and remove the tanks at the end of the depot’s useful life.

Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2020, is $44,627.

Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2020. Cheyenne uses straight-line depreciation; the estimated salvage value for the depot is zero.

On December 31, 2029, Cheyenne pays a demolition firm to dismantle the depot and remove the tanks at a price of $84,200. Prepare the journal entry for the settlement of the asset retirement obligation.

Use the amounts you calculated for the 2020 income statement as needed.

1.What is the Cash from Operating Activities in 2020 ($millions)?

2.What is the Cash from Investing Activities in 2020 ($millions)?

3.What are the Dividends in 2020 ($millions)?

4.What is the Net Change in Cash in 2020 ($millions)?

5.Calculate the Free Cash Flow. What is the Change in Net Operating Working Capital in 2020 ($millions)?

6.What is the Free Cash Flow in 2020 ($millions)?

Here are closing share prices (adjusted to include dividends) of 5 companies with past12 months of data and adjusted closing prices for the ASX200 index. Calculate, present and discuss the main summary statistics of monthly returns for each REIT and the overall market index. How does the risk and return characteristics of each REIT compare to the overall market index? Show your analysis process.

Pharoah Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020.

The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $117,800. The company’s actual funding (contributions) of the plan in 2020 amounted to $254,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,178,000 on January 1, 2020. Assume no benefits paid in 2020.

- Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).

- Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020

- Indicate the pension-related amounts that would be reported on the income statement partial, comprehensive income statement, and the balance sheet partial for Pharoah Company for the year 2020.

Ashley Company began operations in 2020. Ashley’s pretax financial income for 2020 was $450,000. The tax law in 2020 says that the tax rate in 2020 is 25%, but it will be 20% in 2021 and in future years. Ashley’s pretax financial income for 2020 contained the following items that are treated differently for financial purposes than they are for tax purposes: Differences Amount included in Pretax Financial Income Amount included in Taxable Income Difference1 1. Interest earned on State of Ohio Bonds. (Note: Interest on these bonds is exempt from Federal Income Tax.) $ 9,000 $ 0 $ 9,000 2. Gross profit on installment sales. 300,000 200,000 100,000 3. Warranty expense. 19,600 13,600 6,000 4. Depreciation on machinery. 20,000 200,000 180,000

1 Note: Each difference shown above is shown as an absolute value. Therefore, that number contains no information about whether that difference should be added or subtracted in preparing the reconciliation of pretax financial income to taxable income. You are responsible for deciding how each difference should be treated.

Instructions:

A. Prepare a reconciliation of pretax financial income to taxable income for Ashley Company for 2020.

B. Compute Ashley’s Income Tax Payable as of the end of 2020.

C Compute the year-end balances in any deferred income tax asset and/or deferred income tax liability accounts that exist as of the end of 2020.

D. Compute Ashley’s Income Tax Expense for 2020.