Wasatch Corp. (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC’s deductible DRD in each of the following situations:

a. WC’s 2020 taxable income (loss) without the dividend income or the DRD is $10,000.

b. WC’s 2020 taxable income (loss) without the dividend income or the DRD is $(10,000).

c. WC’s 2020 taxable income (loss) without the dividend income or the DRD is $(101,000).

Disney reported the following information related to his ownership in pass through entities for 2020.

Calculate Disney’s AGI (showing your work). What is the amount of any suspended loss and why is it suspended?

Cranford Company completed and transferred out 2,900 units in May 2020. There were 200 units in the Work-in-Process Inventory on May 31, 2020, 30% complete as to conversion costs and 100% complete as to materials. The month's charges for conversion costs and material costs were $13,320 and $9,610, respectively. There was no beginning inventory on May 1, 2020. What is the cost of the work transferred-out during May, assuming that Cranford uses weighted-average process costing?

1. On December 10, 2020, Astor, a US based corporation purchased inventory on credit from a vendor located in Qatar for 300,000 Qatar rial. Astor paid the Qatar vendor the 300,000 rial on February 10, 2021. The exchange rate between Qatar rial and US dollar on each of the following dates were:
                                                               Spot   

            December 10, 2020                 $.275  

            December 31, 2020                 $.268  

            February 10, 2021                   $.273

Prepare all necessary journal entries.

1. MXN is the symbol for the Mexican Peso. MXN/USD .05. A 2020 Toyota Supra costs $49,000 in the U.S. and 1,200,000 Mexican Pesos in Mexico. Based on this information, please answer the following questions.

1. What is USD/MXP in real currency exchange rate terms?
2. Is the USD over or undervalued?
3. Where am I better off buying the Toyota Supra? In Mexico or in the U.S.?
4. Based on the official/nominal MXN/USD currency exchange rate, what would I expect to pay for the Supra in Mexico?
5. Based on the real cost of the same car in both countries, if Purchasing Power Parity (PPP) were to hold true, what would USD/MXN be?
6. Based on the nominal currency exchange rate, if Purchasing Power Parity (PPP) were to hold true, what would I expect to pay for the Supra in the U.S.?

2) Lizzy owns a costume jewelry store in South Africa. She imports most of her jewelry from Zambia. She reads in the newspaper that Zambia is expected to lower interest rates. Is she better off waiting until Zambia actually lowers interest rates before she imports more jewelry from Zambia or should she import more jewelry now, before interest rates decline in Zambia? Explain your answer.

Create a XSD Schema to validate and provide structure for the XML document below:

<?xml version="1.0" encoding="UTF-8" ?>
<forecast qTime="28/10/20 10:00 PM" qLocation="Singapore">
<weather yyyymmdd="20200430">
<year>2020</year>  
<month>04</month>
<date>30</date>
<comment>Plenty of sunshine</comment>
<code>sunny</code>
<highest>32.6</highest>
<lowest>28.4</lowest>
</weather>
<weather yyyymmdd="20200218">
<year>2020</year>  
<month>02</month>
<date>18</date>
<comment>Plenty of sunshine</comment>
<code>sunny</code>
<highest>34.6</highest>
<lowest>30.5</lowest>
</weather>
<weather yyyymmdd="20200710">
<year>2020</year>  
<month>07</month>
<date>10</date>
<comment>Partly sunny</comment>
<code>partlySunny</code>
<highest>33.1</highest>
<lowest>29.2</lowest>
</weather>
<weather yyyymmdd="20200616">
<year>2020</year>  
<month>06</month>
<date>16</date>
<comment>Considerable clouds</comment>
<code>cloudy</code>
<highest>30.5</highest>
<lowest>25.4</lowest>
</weather>
<weather yyyymmdd="20200612">
<year>2020</year>  
<month>06</month>
<date>12</date>
<comment>Cloudy with a thunderstorm</comment>
<code>thunderstorm</code>
<highest>29.1</highest>
<lowest>23.2</lowest>
</weather>
<weather yyyymmdd="20200421">
<year>2020</year>  
<month>04</month>
<date>21</date>
<comment>Plenty of sunshine</comment>
<code>sunny</code>
<highest>32.2</highest>
<lowest>29.8</lowest>
</weather>
<weather yyyymmdd="20200628">
<year>2020</year>  
<month>06</month>
<date>28</date>
<comment>A morning shower, then rain</comment>
<code>rain</code>
<highest>30.2</highest>
<lowest>22.7</lowest>
</weather>
<weather>
<weather yyyymmdd="20200502">
<year>2020</year>  
<month>05</month>
<date>02</date>
<comment>Cloudy with a thunderstorm</comment>
<code>thunderstorm</code>
<highest>28.1</highest>
<lowest>26.9</lowest>
</weather>
<weather yyyymmdd="20200428">
<year>2020</year>  
<month>04</month>
<date>28</date>
<comment>A morning shower</comment>
<code>rain</code>
<highest>28.8</highest>
<lowest>22.2</lowest>
</weather>
<weather yyyymmdd="20200410">
<year>2020</year>  
<month>04</month>
<date>10</date>
<comment>Partly sunny</comment>
<code>partlySunny</code>
<highest>33.7</highest>
<lowest>29.3</lowest>
</weather>
<weather yyyymmdd="20200730">
<year>2020</year>  
<month>07</month>
<date>30</date>
<comment>Plenty of sunshine</comment>
<code>sunny</code>
<highest>32.3</highest>
<lowest>28.4</lowest>
</weather>
<weather yyyymmdd="20200706">
<year>2020</year>  
<month>07</month>
<date>06</date>
<comment>Plenty of sunshine</comment>
<code>sunny</code>
<highest>34.5</highest>
<lowest>30.6</lowest>
</weather>
</forecast>

1. In 1980 France had a GDP of $325 billion francs and a population of 11.78 million. In 1980 the exchange rate was 1 US dollar was equal to 1.67 francs. In 2010, France had a GDP of $435 billion euros and a population of 21.75 million. In 2010 0.8 euros was equal to 1 US Dollar. The GDP deflator was 51 in 1980 and 125 in 2010. By what percentage did France’s Real GDP per capita rise between 1980 and 2010 in U.S. dollars?

2. Identify the most commonly cited measure of inflation in the United States and explain how it is calculated. Identify and briefly discuss the some of the problems that statisticians have paid considerable attention to in recent years (your answer needs to be thorough).

3. Describe the relationship between inflation levels in prices and inflation levels for prices, wages and interest rates with respect to their ability to affect people's economic status and business outcomes (again, here be thorough and explain what happens when wages, etc. does and does not keep up with inflation).

4. Explain the differences and similarities between the GDP deflator and the CPI. Be thorough in your answer and write in complete sentences.

5. What is Hyperinflation and what are some reasons it may occur and persist? What is deflation, when does deflation usually occur, and is deflation a good or bad thing? Give examples of when each scenario happened in history as well. Again, be thorough in your answer.

6. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 15 hot dogs and 8 hamburgers. A hot dog cost $2.25 in 2006 and $5.40 in 2007. A hamburger cost $5.75 in 2006 and $7.86 in 2007. Calculate the CPI for both years and then find the inflation rate.

7. In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 25 sandwiches and 40 magazines. In 2006, a sandwich cost $4.50 and a magazine cost $3.99. In 2007, a sandwich cost $5.75. If the inflation rate in 2007 was 21 percent, then how much did a magazine cost in 2007?

8. When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $525.00. He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $699.00. What is the OVERALL rate of inflation for Anders' gym membership?

9. In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 12 in 1949, 96 in 1987, and 117.5 in 2000. Calculate the value of the courthouse in 2000 dollars and the value of the hospital in 2000 dollars and compare your answers. Which one cost more?

10. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 156 in 2001 and 227.25 in 2006. What is Ruben's 2006 salary in 2001 dollars? What does this mean about how his purchasing power increased or decreased?

    
     e. Green will repurchase  shares as a result of the debt issue. There are   remaining shares after the repurchase.

     f. Construct the market value balance sheet after the restructuring. (Round your answers to the nearest dollar (e.g., 351))

    g. The required return on Green's equity after the restructuring is  percent.

    
     e. Green will repurchase ??? shares as a result of the debt issue. There are ???? remaining shares after the repurchase.

     f. Construct the market value balance sheet after the restructuring. (Round your answers to the nearest dollar (e.g., 351))

    g. The required return on Green's equity after the restructuring is ?? percent.

For this homework assignment, we present two ideal scenarios. Scenario #1: After graduation from high school, students begin jobs as construction workers and elementary school teachers. They expect their wages to remain relatively level throughout their careers. They marry five years after graduation from high school and raise large families with home schooling by the parents. Before marriage, both men and women work; once couples begin home schooling their children, one parent stays home, either the father or the mother. Scenario #2: After high school, students start pre-medical programs at college. They expect four years of college and four years of medical school, with costs of $40,000 a year. The students’ parents have no extra money, so the students borrow the tuition costs. After medical schools, they work for ten years as surgeons and medical specialists, then have one child that is sent to day care one year after birth and eventually to public school. Both parents work full time. In each scenario, what is the expected progression of income? For each career, what is the expected ratio of future income to current income (older construction worker vs young construction worker; surgeon vs college student). What is the likelihood of working with home schooled families vs one child in public school or day care? In each scenario, what is the expected progression of expenses? Consider current education costs and future costs of raising a family. In Scenario #1, why are expenses low before marriage and high after marriage? In Scenario #2, why are expenses high during college and medical school and low afterwards? In each scenario, do recent high school graduates save for future expenses or borrow from future income? Assume that all the students are good risks and we need not worry about defaults on loans. In which scenario is the real interest rate higher?