The consolidated financial statements of EFGH Ltd and OP Ltd were presented to the Board. The Board is alarmed that the economic entity’s balance sheet (consolidated balance sheet) shows a deferred tax balance when the accounts for EFGH Ltd had no deferred tax asset or deferred tax liability. EFGH management is also planning to acquire another entity XYZ Investments Ltd in the near future. Management pointed out to the Board that on the acquisition, the financial results of this new subsidiary (XYZ Investments Ltd) will also be consolidated in the economic entity financial statements. One of the Board members noted that the new business to be acquired by EFGH Ltd is an investment company. Its financial statements should not be consolidated because it is involved in the investments industry, whereas all of the other companies in the economic entity are involved in the retail industry.

Required: As the financial accountant you are requested to prepare a response to the following questions:

(a) Why does the economic entity have a deferred tax balance?

(b) Should the financial statements of proposed acquired business, XYZ Investments Ltd, be consolidated into the economic entity and why?

(Please note that in your response you must make reference to relevant paragraphs of the Accounting Standard and/or AASB Framework and to other sources of material(Australian), 600 words.)

Typically, if investors expect to stay in the house or will pay off the loan in the near future (say, in less than 5 years), should they pay the discount points in exchange for lower monthly payments? (Hint: see the real world application example that we went through in class)

A. Yes, they should pay the discount points

B. No, they should not pay the discount points

19. During the early years of an amortizing mortgage loan, the lender applies

A. Most of the monthly payment to the outstanding principal balance.

B. All of the monthly payment to the outstanding principal balance.

C. Most of the monthly payment to interest on the loan.

D. All of the monthly payment to interest on the loan.

E. The monthly payment equally to interest on the loan and the outstanding principal balance.

What is loan servicing?

A-Loan servicing is the process of the lender making a loan to a borrower. This term

is only used in regards to mortgages.

B-Loan servicers are the people in an investment bank who packaged together many

mortgages into an MBS for selling to investors.

C-Loan servicers did the pre-qualifying of potential borrowers as commercial banks

could not keep up with the demand.

D-Loan servicers collect monthly payments and manage the paper work associated

with a loan, usually keeping a portion of the payments received.

For our discussion, you will address one of three slightly different versions of the case of a ball falling to the base of a 50.0 m tall building.

• Neglect air resistance.
• The magnitude of the acceleration is 9.80 m/s².
• The eventual position of the ball is at the base of the building, 50.0 m below this initial position.
• Upward is defined as positive. Displacements, velocities and accelerations directed upwards are positive. Conversely, if directed downwards, these same quantities are negative. Thus, the base of the building is located at -50.0 m, and acceleration is -9.80 m/s².
• For the Case you are assigned, answer the following questions. Support your answer with any necessary calculations.
• How long does the ball take to reach the base of the building?
• What is the final velocity of the ball just before striking the ground?
• Answer the additional questions for your Case as specified in the table below.

• Freefall Case 1: Near the edge of the building the ball is thrown upward with an initial velocity of 14.7 m/s, at time t = 0.00 s.

  Additional question: If downward were to have been chosen as the positive direction, how would this affect the values of displacement, velocity, and acceleration given in the description of the case study? Comment on the dependence of physical results, if any, on the choice of the positive direction chosen by observers.

Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $5,000.

The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts.

Record the bad debt adjusting entry using the information determined in part (a).

In the following year, $22,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts.

The company collects $3,500 of the $22,000 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1,000. Record the journal entry (or entries) to restore the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future.

CORPORATE VALUATION

Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $7 million, $8 million, and $13 million. After the fourth year, free cash flow is projected to grow at a constant 8%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $66 million; and it has 20 million shares of common stock outstanding.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations.
   
   $ 24948480.31
2. 
   
3. What is the firm's horizon, or continuing, value? Round your answer to the nearest cent.
   
   $ 1404000000
4. 
   
5. What is the firm's total value today? Round your answer to the nearest cent. Do not round your intermediate calculations.
   
   $ ?

Word limit: 800-1000 words

Questions: 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. 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.

A student wonders if tall women tend to date taller men than do short women. She measures herself, her dormitory roommate, and the women in the adjoining rooms; then she measures the next man each woman dates. The data (heights in inches) are listed below.

(a) Make a scatterplot of these data. (Do this on paper. Your instructor may ask you to turn this in.) Based on the scatterplot, do you expect the correlation to be positive or negative? Near ± 1 or not?

(b) Find the correlation r between the heights of the men and women. (Round your answer to three decimal places.)


(c) How would r change if all the men were 6 inches shorter than the heights given in the table? Does the correlation tell us whether women tend to date men taller than themselves?

(d) If heights were measured in centimeters rather than inches, how would the correlation change? (There are 2.54 centimeters in an inch.)

(e) If every woman dated a man exactly 3 inches taller than herself, what would be the correlation between male and female heights?

1. Search the Internet for a provincial or federal government overall OR a department business plan.
2. Examine the plan for underlying public policy objectives. List and describe the objectives.

Example

Topic :COVID rapid response

The COVID 19 Rapid Response fund was set up to alleviate the suffering of the people. “In March 2020, the Government of Canada announced $1 billion to support a whole-of-government COVID-19 Response Fund, which supports federal public health measures such as enhanced surveillance, increased testing and ongoing support for preparedness in First Nations and Inuit communities” Government of Canada (2020). The policy aims to reduce the suffering of people hit by COVID 19 that led to the loss of jobs and increment of unemployment in the country.

The objective of the response fund is to support researchers that will help develop measures to detect and reduce the transmission of COVID-19. The fund enabled the health care system to test patience suffering from the virus and help contain the spread of COVID 19 Government of Canada (2020). According to a research from the University of Calgary (2020), he objective is to support Alberta-based genomics projects designed to address specific, short-term needs of industry, not-for-profit, and public sector receptors through research conducted by academics in collaboration with these receptors, with near-term outcomes that address the COVID-19 crisis.

1. A blood smear is used to diagnose malaria. In patients with malaria, the protozoa can be found near and inside red blood cells. Explain why a microscope capable of high magnification and high resolution would be needed to diagnose malaria.

2. Histopathology is the use of microscopes to view tissues to diagnose and track the progression of diseases. Why are thin slices of tissue ideal for this procedure?

You are the CFO of Thunderduck Energy, Inc, a public company that specializes in the exploration and development of natural gas. It's near year-end, and you have been in several meetings with management to discuss the end of year net income projections. The company’s employees receive a bonus if the company’s net income in the current year exceeds the net income from the past year. For the current year, the earnings have not been as strong as expected and net income may fall short of last year’s income.

The President has an idea to ensure that net income will increase this year so that the employees will earn their bonus and the shareholders will be happy. The President wants to discuss routine maintenance costs on equipment that were incurred this year. These costs were treated as an expense on the income statement. However, the President is proposing that these costs can be capitalized and should be accounted for as a long-term asset on the balance sheet in order to boost the company’s net income.

Required question:

How would I draft a response in the form of a business memo to my president discussing my recommendation on the President’s suggestion to capitalize the maintenance costs and record the costs as a long-term asset.

*Support the decision with addressing the accounting issue, the parties affected and what factors you considered to make your decision.