The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO? Evaluate the specific functions of the WTO and relate these to the question at hand.

Suppose that the Federal Reserve decided to adopt an easy money policy and cut the market interest rates in the U.S. What will happen to the U.S. dollar value in the foreign exchange market? Explain why.

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Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $53,000 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $46,000. For 2020, J.D. was allocated $6,000 of ordinary income from Clampett, Inc., and no separately stated items. What is J.D.'s basis in his Clampett, Inc., stock after all transactions in 2020?

Multiple Choice

• $52,000.

• None of the choices are correct.

• ($6,000).

• $46,000.

• $40,000.

The dollar-value LIFO method was adopted by Blossom Corp. on January 1, 2020. Its inventory on that date was $399,900. On December 31, 2020, the inventory at prices existing on that date amounted to $380,800. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112.

On December 31, 2021, the inventory at prices existing on that date was $421,245, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.

1. Cook Ltd owns all of the share capital of James Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2019 or 30 June 2020.

1. In January 2020, Cook Ltd sells inventories to James Ltd for $10 000 in cash. These inventories had previously cost Cook Ltd $7 000, and remain unsold by James Ltd at the end of the period.                                                             

2. In February 2020, Cook Ltd sells inventories to James Ltd for $15 000 in cash. These inventories had previously cost Cook Ltd $12 000, and are on-sold externally on 2 April 2020.                                                                          

3. In February 2020, James Ltd sells inventories to Cook Ltd for $22 000 in cash (original cost to James Ltd was $16 000) and one quarter (25%) are on-sold externally by 30 June 2020.                                                                   

4. In March 2020, Cook Ltd sold inventories for $10 000 to Zara Ltd, an external entity. These inventories were transferred from James Ltd on 1 June 2019. The inventories had originally cost James Ltd $8000, and were sold to Cook Ltd for $12 000.                                                                                                      

Required

In relation to the above intragroup transactions, prepare adjusting journal entries for the consolidation worksheet at 30 June 2020. Only the adjusting entries need be shown.

question 1 Prepare the journal entries for the following independent situations: a) Records Plus paid for several patents on January 1, 2020 for a total price of $300,000. The patents have a legal life of 25 years and are expected to provide revenues for the next 12 years. Record the purchase on January 1, 2020 and the annual depreciation on December 31, 2020. b) January 1, 2020, PG Mower Ltd. paid $800,000 to acquire Garden Man Ltd. Garden Man had assets valued at $2,300,000 and liabilities of $1,650,000. Record the purchase in PG Mower Ltd.’s records.

question 2 Ivan Manufacturing purchased equipment and a delivery van on January 1, 2020. The equipment cost $95,000 and has an estimated useful life of 8 years with a residual value of $10,000.

The delivery van cost $125,000 and has an estimated life of 5 years or 200,000 kilometres and a residual value of $20,000. The delivery truck is expected to be driven 25,000 and 50,000 kilometres in 2019 and 2020, respectively.

Required

1 Ivan has decided to depreciate the equipment using either the straight-line method or double declining method. Calculate depreciation for the equipment for 2020 and 2021 using the straight-line method AND the double declining method.

2 Ivan has decided to depreciate the delivery van using the units-of-production method

calculate depriciation for the delivery of truck for 2020 and 2021

Sales will grow by 10% in 2020. All costs, assets, and current liabilities vary directly with sales. Interest Exp., Common Stock, Tax Rate and Div. payout ratio are constant. L-T Debt=Plug number.

A. Prepare a 2020 forecast. What is the 2020 Dividend and Addition to Retained Earnings?

B. If a bank will allow Atlantic to borrow 2.5 times prior year EBITDA, how much total Long-Term Debt would the bank allow in 2020?

C. What is Atlantic’s Days Accounts Payables in 2020? By how many Days would A/P need to increase to balance the Balance Sheet if Long-Term Debt = $70,000?

Misty Mark, an infamous archer, decided to open an archery and fitness business called Bows and Biceps. The following is a list of transactions for Bows and Biceps for the first month. Put the transactions in a T account ledger and then create a trial balance, Income Statement, Statement of Owner’s Equity, and Balance Sheet on 5/31/20.

1. 5/1/2020 - Deposited $10,000 into a bank account in the name of the business.
2. 5/1/2020 - Signed a one-year lease for a building and paid the first six month’s rent of $4,200.
3. 5/2/2020 - Bought equipment from Archery Supply, Inc for $2,000.
4. 5/10/2020 - Enrolled 10 students in a Bow Hunting for Beginners class to be held on 5/29. Each student paid $50 for the class
5. 5/15/2020 - Misty gives her personal exercise equipment with a fair market value of $3,000 to the business.
6. 5/25/2020 - Enrolled 10 students in a Fit to Shoot class to be held next month. Each student paid $25 for the class.
7. 5/28/2020 - Purchased $500 in office supplies from Andy’s Office Supply on credit. Half of the supplies were used immediately, the other half was stored in the supply closet for future use.
8. 5/31/2020 - Misty withdraws $1,000 to take a vacation after working so hard to set up the business.

Choose TWO variables that you feel are correlated and explain why you feel that they are correlated. Do you suspect the relation is positive or negative? Why? Which would be considered the independent variable, which the dependent variable? Why?

Run a regression analysis in Excel and provide the results in your post along with your raw data. Looking at the R² value, explain what this indicates about the strength of the relation. Then write out your Regression Equation, state if your p-value and conclusion.