C1. Reducing a High Unemployment Tax Rate

Over the past two years, Kermit Stone, the controller of Hilton Company, has been concerned that the company has been paying a large amount of money for state unemployment taxes. On reviewing the “unemployment file” with the head accountant, Deborah Murtha, he learns that the company’s tax rate is near the top of the range of the state’s experience-rating system.

After calling the local unemployment office, Stone realizes that the turnover of employees at Hilton Company has had an adverse effect on the company’s tax rates. In addition, after consulting with Murtha, he discovers that the eligibility reports that come from the state unemployment office are just signed and sent back to the state without any review.

The eligibility reports are notices that an ex-employee has filed a claim for unemployment benefits. By signing these reports “blindly,” the company, in effect, tells the state that the employee is eligible for the benefits. Any benefits paid are charged by the state against Hilton Company’s account.

Stone is convinced that the rates the company is paying are too high, and he feels that part of the reason is the “blind” signing of the eligibility reports. Besides this, he wonders what other steps the company can take to lower its contributions rate and taxes.

The Roche Radius, defined to the orbital distance at which a satellite tidally torn apart by the parent body, is named after Edward Roche, who first derived it in 1848. Recall that his radius is given by: )1/3 d=r (2 M m Where r is the radius of the satellite, m the mass of the satellite, and M is the mass of the parent body.

(a) Recast this equation in terms of the density of the satellite (m), the density of the parent body (M), and radius of the parent body (R).

(b) Let s consider the Saturn system, and apply this equation. Saturns moon Pan orbits the planet at a distance 1.34  105 km; inside of a gap in the rings! Calculate the ratio of Pans orbital radius to its calculated Roche Radius (Pan = 0.42 g/cm2, Saturn = 0.687 g/cm2, RSaturn = 58,000 km). Comment on whether this moon is safe from tidal disruption, or not.

(c) Using what you know about the Roche Radius, and the above example, calculate the radius of the moon required to create the rings of Saturn as seen today (assuming that it was just one moon, with the density of pan and near the present-day orbit of Pan). The total mass in Saturns rings is approximately 3  1019 kg. (Hint for calculating Saturns mass: 0.687 g/cm2 = 687 kg/m3)

Elijah is a lawyer who works in Singapore. He is single and lives in Singapore with his
parents. Until April 2018 his work did not involve travel. At that time,he accepted an offer
from Legal Ease, his employer, to travel temporarily to Australia to provide legal advice to
large numbers of former residents of Singapore setting up businesses in Melbourne,
Adelaide and Hobart. Elijah enters Australia on 25 April 2018. He intends to spend three
months travelling between the three cities, staying in various motels. Legal Ease asks
him towards the end of the three months to take up a position in Hobart for a further nine
months. In early July, he leases a serviced executive apartment for nine months near his
workplace in Hobart. The apartment is his home base during his stay in Australia. He
freights more clothing and some personal effects to Australia. Elijah’s parents visit him on
two occasions. Although based in Hobart, his commitments require some limited travel.
On average, Elijah travels at least once a week to meet clients outside Hobart.
Required:
Advise Elijah whether he is a resident of Australia for tax purposes
In your response give reasons and refer to sections of legislation and cases, where
relevant.

International Trade

Think of the importance of trade in your life. Look simply at what you’re wearing today. When you shop, do you look for the “Made in the USA” label? Perhaps you believe we might be better off as a nation economically if we produced more goods in the attempt to become more self-supportive. Perhaps you believe we should increase the amount of goods traded internationally. Opinions and speculation vary as much as the number of economists that predict economic climate. Having said this, as a nation, simply put, we trade. And with that activity come many rules and regulations to try and ensure our best interests are protected. Based on this;

How is international trade regulated? Log on to www.wto.org and click the “Trade Topics” tab to learn about the scope of trade agreements and trade controversies. What is involved in “trade agreements”? Explain in detail.

Log on to www.bea.gov and view the “International” tab, then “Trade in Goods and Services.” What is the current balance of trade for the United States? Has this balance been increasing or decreasing? Based on the current economic conditions, how do you thing this balance will move in the near future, and why? Explain in detail.

**Provide a different answer than previous answers of this same question. Answer in minimum 250 words**

France stands as one of the world's leading economic powers, possessing large agricultural, industrial and service sectors. France operates a mixed economy that combines capitalist and socialist characteristics. Capitalism involves private ownership of capital and other means of production. Under socialism, the government directs economic activity and owns all or part of most industries. Despite extensive reforms over the years that have reduced government intervention in the economy, the French government still exercises great control over the economy, owning shares in many of the country's largest companies.

Quick Facts:

• French Republic
• Capital: Paris
• Population 63.5 million
• Area 543,965 sq km (210,026 sq miles)
• Major language French
• Major religion Christianity
• Life expectancy 78 years (men), 85 years (women)
• Currency Euro
• President: Emmanuel Mac

How does the French anti-globalization movement make sense given their culture and economic system? Why?

• How do these article relate other countries with anti-globalization sentiments like Great Britain, India, and the United States or do they?
• What current economic and cultural influences will effective globalization in the near future? Are these factors going to have a positive or negative effect? Why?
• In your opinion, is globalization beneficial?

This problem summarizes typical transactions engaged in by not-for-profit organizations.

The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following events (in summary form):

1. It received a $10,000,000 endowment contribution, all in stocks and bonds.

2. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in unrestricted contributions.

3. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years.

4. It recognized depreciation on the furniture, fixtures, and equipment, purchased earlier in the year.

5. It spent $2,400,000 on educational programs.

6. It earned $300,000 in interest and dividends on its endowment investments.

7. By year-end the value of its investments had appreciated by $600,000.

8. It incurred $1,300,000 in administrative expenses.

9. Near year-end it received a pledge of $4,500,000, to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate.

a. Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made. Use the terms without donor restrictions or donor restrictions in each journal entry.

1) Match the terms with their correct definitions.
___ Organization

___ Manager

___ Managing

___ Management process

___ Human resource management

a) Someone who is responsible for accomplishing the organization’s goals

b) Consists of people with assigned roles who work together to achieve goals

c) The five basic functions of planning, organizing, staffing, leading and controlling

d) To perform five basic functions: planning, organizing, staffing, leading and controlling

e) Acquiring, training, appraising, and compensating employees

2-Match the terms with their correct definitions.
___ Planning
___ Organizing
___ Staffing
___ Leading
___ Controlling
a) Getting others to get the job done, and motivating subordinates
b) Selecting employees, and setting performance standards
c) Giving each subordinate a specific task; establishing departments
d) Establishing goals and standards, and developing rules and procedures e) Setting standards, and taking corrective action as needed

3- Which is NOT what a manager should know about? a) Marital status and near-future vacation plans
b) Equal opportunity and affirmative action
c) Employee health and safety
d) Handling grievances and labor relations

4- Does Human Resource Management help improve profits and performance? why if yes ?

5- Should human resource management be involved in ethics? Why?

Buyers determine demand while sellers determine supply. Both laws of supply and demand establish market forces that make economies work to search for their market equilibrium. The impact of COVID-19 is an unprecedented event that affects the global economy. In the article, the overall retail sales dramatically dropped by 34.8%, with jewellery and luxury goods drop of 67% but supermarkets increase of 12%, in the first five months of 2020. However, online-based consumption, like demand for food delivery, online education (Zoom), stay-at-home activities and online grocery shopping surged dramatically since the outbreak of pandemic.

1) Based on your learning in Microeconomics, explain how COVID-19 has a favourable and an adverse impact in today’s situation, with aids of diagram “Market Forces of Supply and Demand” and “Elasticity”.

2) Illustrate with TWO real examples (one favourable and one adverse impact) in the retail industry in Hong Kong or Mainland China or your country to show your understanding and application of supply and demand as well as elasticity.

3) Principle 6 of Economics states, “Markets are usually a good way to organize economic activity”. Hopefully COVID-19 will end some time in the near future. Predict how the retail industry would become in the economy with the aftermath of the pandemic.

You are the manager in charge of the audit of Burning Limited (“Burning”). Burning is a private company engaging in the production of furniture products. The management of Burning is considering the listing of the company to the Hong Kong Stock Exchange (“HKEX”) in the near future and has asked your accounting firm to submit a proposal for appointment as Burning’s reporting accountant.

The management has asked your accounting firm to include the following clauses in the proposal:

1. Your firm agrees to offer a flexible fee structure of HK$4,000,000, payable in four equal instalments with the last instalment only payable upon successfully listing the shares of Burning to the HKEX;

2. Your firm agrees not to charge for any additional work that might be found necessary during the listing exercise;

3. Your firm agrees to participate in the Burning road show with the sponsors, and assist the management to respond to questions from institutional investors on Burning’s financial matters; and

4. When conducting the exercise, your accounting firm will work on information to be provided by the management of Burning and will complete the work as quickly as possible with minimal questions / issues to be raised.

Required:

1. Discuss what “independence of mind” and “independent in appearance” are.

2. Comment on the potential issues regarding your firm’s proposal to Burning serving as the reporting accountant, and how you would explain to the management of Burning that the proposal has to be revised.