12. Farmer Inc. began business on January 1, 2021. Its pretax financial income for the first 2 years was as follows: 2021 $240,000 2022 560,000 The following items caused the only differences between pretax financial income and taxable income.
1. In 2021, the company collected $420,000 of rent; of this amount, $140,000 was earned in 2021; the other $280,000 will be earned equally over the 2022–2023 period. The full $420,000 was included in taxable income in 2021.
2. The company pays $10,000 a year for life insurance on officers.
3. In 2022, the company terminated a top executive and agreed to $90,000 of severance pay. The amount will be paid $30,000 per year for 2022–2024. The 2022 payment was made. The $90,000 was expensed in 2022. For tax purposes, the severance pay is deductible as it is paid.
The enacted tax rates existing at December 31, 2021 are: 2021 20% 2023 30% 2022 25% 2024 30%
Instructions (a) Determine taxable income for 2021 and 2022. (b) Determine the deferred income taxes at the end of 2021, and prepare the journal entry to record income taxes for 2021. (c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2022. (d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2022. (e) Compute the net deferred tax expense (benefit) for 2022. (f) Prepare the journal entry to record income taxes for 2022. (g) Show how the deferred income taxes should be reported on the balance sheet at December 31, 2022.
In: Accounting
Maximum Word Count 500 words
Essay 20 Marks
b) On Thursday, 4th June 2020, a group of students from University of Ghana Business School (UGBS) and the Department of Political Science were debating whether Management should be classified as a Science or an Art. The students from the Department of Political Science were of the view that Management is an Art whiles those from UGBS believed that it should be considered as a Science. A student from UGBS retorted: “You people even call Political Science a Science how much more management, what is really Science about your Politics?”. Based on this debate, do you think management is a Science or an Art? Give examples to support your argument.
In: Operations Management
The following are quotes from a currency dealer in the New York currency market:
|
Currency |
Spot quote |
|
Australian dollar (AUD/USD) |
0.7832 - 0.7834 |
|
Brazilian real (USD/BRL) |
3.2335 - 3.2365 |
|
British pound (GBP/USD) |
1.3507 - 1.3509 |
|
Canadian dollar (USD/CAD) |
1.2555 - 1.2557 |
|
Euro (EUR/USD) |
1.1948 - 1.1949 |
|
Japanese yen (USD/JPY) |
111.44 - 111.45 |
|
Mexican peso (USD/MXP) |
19.3653 - 19.3718 |
|
New Zealand dollar (NZD/USD) |
0.7181 - 0.7184 |
|
Thai baht (USD/THB) |
32.1240 - 32.1430 |
|
Egyptian pound (USD/EGP) |
17.6860 - 17.8460 |
|
South Korean won (USD/KRW) |
1067.53 - 1069.53 |
|
Swiss franc (USD/CHF) |
0.9789 - 0.9791 |
1a. Which currency above has the widest bid ask spread?
Which has the narrowest?
b. Which currency above has the widest percentage bid ask spread?
Which has the narrowest?
2. Using the quotes provided above, answer the following question. (Phrase your answer to the second part of each of the following as either “If you sell one (identify the currency) to the dealer, you will receive (specify the number of units) (identify the currency)” or ““If you buy one (identify the currency) from the dealer, you will pay (specify the number of units) (identify the currency)”.)
a. What is the bid price in the quote for the Australian dollar? Explain what it means.
b. What is the ask price in the quote for the New Zealand dollar? Explain what it means.
c. What is the bid price in the quote for the Mexican peso? Explain what it means.
d. What is the ask price in the quote for the Egyptian pound? Explain what it means.
3. Using the quotes provided above, how many US dollars a customer would receive from this dealer in exchange for one million
a. British pounds?
b. Thai baht?
c. Swiss francs?
d. New Zealand dollars?
(In these transactions, the customer is selling foreign currency and buying US dollars.)
4. Using the quotes provided above, how many units of the following foreign currencies would a customer receive from this dealer in exchange for one million US dollars?
a. Canadian dollars
b. Korean won
c. euros
d. Australian dollars
(In these transactions, the customer is selling US dollars and buying foreign currency.)
5. Using the quotes provided above, how many units of the foreign currency indicated would it take to purchase one million US dollars
a. Australian dollars
b. Brazilian real
c. British pounds
d. Mexican pesos
(In these transactions, the customer is selling foreign currency and buying US dollars.)
6. Using the quotes provide above, how many US dollars would it cost to purchase one million
a. euros?
b. New Zealand dollars?
c. Mexican pesos?
e. Egyptian pounds?
In: Finance
1.) Individual A and B have the following preferences: uA = (x1A) · (x2A)3 and uB = (x1B ) · (x2B ). Their endowments are given by ωA = (3, 0) and ωB = (0, 3). Solve for (and graph) competitive equilibrium and the contract curve.
2.) Individual A and B have the following preferences: uA = ln(x1A) + ln(x2A) and uB = ln(x1B ) + ln(x2B ). Their endowments are given by ωA = (2, 6) and ωB = (2, 4). Solve for (and graph) competitive equilibrium and the contract curve.
3.) Now re-solve problem 2 but replace individual A’s preferences with uA = x1Ax2A +x2B. That is, individual B has a positive externality on individual A.
In: Economics
In: Biology
A parental mystery: Mr. and Mrs. Smith have just arrived home with their new baby. As soon as they walk in the door, they get a call from the hospital maternity ward. The nurse who discharged the Smiths is calling to say he is now worried that she sent the wrong baby home with them. They return to the hospital for a battery of blood tests to clear up the confusion. The results are found in the table below:
|
|
|
|
Hemoglobin Type |
|
Mr. Smith |
Type A |
MM |
Hh |
|
Mrs. Smith |
Type B |
MN |
HH |
|
Baby Emma |
Type O |
NN |
Hh |
Help them interpret the results of the blood test. Could baby Emma be their daughter? Why or why not?
Both the blood-type systems are examples of codominance, and sickle-cell anemia (hemoglobin type) is an example of an autosomal recessive trait that also exhibits codominance. Help them interpret the results of the blood test. Could baby Emma be their daughter? Why or why not?
In: Biology
You have finally completed training at your new job as a therapist and feel fully informed about policy and procedure. You are excited to start seeing clients. A referral for individual therapy is given to you from the secretary and you initiate services with the client. During your initial intake assessment, you determine the client meets diagnostic criteria for PTSD. You staff your intake session with your supervisor, who proceeds to tell you the client needs to be diagnosed with an adjustment disorder in order to fit with a more strength-based and wellness approach that characterizes the agency. Your supervisor tells you that the agency diagnoses clients with the least restrictive diagnosis and urges you to change your diagnosis because of a belief that PTSD is to stigmatizing to clients. However, the client has already been informed they meet criteria for PTSD and they do not agree with your new diagnosis and do not want to engage in treatment.
How would you handle a situation?
Also discuss how you would ethically handle situations in which clients.
In: Psychology
A researcher collected data from a small random sample of ten students by asking them individually how much time (y) they spent studying and how much time (x) they spent on social media, on one day during an exam week. Both times were given in hours, rounded to the nearest half hour. They shown in the table below.
| x | 5 | 2.5 | 3 | 4.5 | 2.5 | 2 | 3 | 2 | 6.5 | 6 |
| y | 2 | 4.5 | 2 | 1 | 4 | 3.5 | 2 | 4 | 0 | 0.5 |
The researcher wishes to find a simple linear regression model Yi ∼ N(a + bxi , σ2 ).
(i) Find data summaries for this data and use them to calculate estimates for the slope and intercept parameters (b and a) for this linear regression. (ii) Construct the ANOVA table for this regression. (iii) Calculate the coefficient of Determination, R2 and comment on how well the regression line fits the data. (iv) Find a 90% confidence interval for the mean expected number of hours of studying in a day, for an individual who spends 1.5 hours on social media.
In: Math
ETHICS
Why Be Moral?
Plato tells the story of Gyges (The Republic, Book II), a shepherd, who finds a magic ring. When Gyges turns the ring 180˚, he becomes invisible, and upon turning the ring again, he reappears. Under the cloak of invisibility he performs a series of unethical and immoral acts, including murder. He is a villain and rogue yet becomes wealthy and famous. Gyges not only accrues benefits by appearing to be moral but also enjoys the bounty reaped from wrongdoing with no punishing consequences – he will never be caught!
Now imagine a second magic ring given to a just and upright individual. Will the temptation to engage in wrong-doing for personal gain be too great? Knowing there will be no punishing consequences, would a good person quickly turn into a scoundrel? Given the situation just described, why the need to be moral?
What would you do if you were given a Gyges ring?
Discuss your answer in 100-150 words minimum.
For further references:
https://www.youtube.com/watch?v=4qjGp6TWqe4
https://www.youtube.com/watch?v=oMl4AeBpVQE
In: Psychology
The customer billing and collection functions of the ThanksMe Company, a small paint manufacturer, are attended to by a receptionist, an accounts receivable clerk, and a cashier who also serves as a secretary. The company’s paint products are sold to wholesalers and retail stores.
The following describes all the procedures performed by the employees of the ThanksMe Company regarding customer billings and collections:
1. The mail is opened by the receptionist, who gives the customers’ purchase orders to the accounts receivable clerk. Fifteen to twenty orders are received each day. Under instructions to expedite the shipment of orders, the accounts receivable clerk at once prepares a five-copy sales invoice form, which is distributed as follows:
a) Copy 1 is the customer billing copy and is held by the accounts receivable clerk until notice of shipment is received.
b) Copy 2 is the accounts receivable department copy and is held for the ultimate posting of the accounts receivable records.
c) Copies 3 and 4 are sent to the shipping department.
d) Copy 5 is sent to the storeroom as authority for release of the goods to the shipping department.
2. After the paint order has been moved from the storeroom to the shipping department, the shipping department prepares the bill of lading and labels the cartons. Sales Invoice Copy 4 is inserted in the carton as a packing slip. After the trucker has picked up the shipment, the customer’s copy of the bill of lading and Copy 3, on which any undershipments are noted, are returned to the accounts receivable clerk. The company does not back order in the event of undershipments; customers are expected to reorder the merchandise. The company’s copy of the bill of lading is filed by the shipping department.
3. When Copy 3 and the customer’s copy of the bill of lading are received by the accounts receivable clerk, Copies 1 and 2 are completed by numbering them and inserting quantities shipped unit prices, extensions, discounts, and totals. The accounts receivable clerk then mails Copy 1 and the copy of the bill of lading to the customer. Copies 2 and 3 are stapled together.
4. The individual accounts receivable ledger cards are posted by the accounts receivable clerk using a one-write system, whereby the sales register is prepared as a carbon copy of the postings. Postings are made from Copy 2, which is then filed, along with staple-attached Copy 3, in numerical order. Monthly, the general ledger clerk summarizes the sales register for posting to the general ledger accounts.
5. Since the ThanksMe Company is short of cash, the deposit of receipts is also expedited. The receptionist turns over all mail receipts and related correspondence to the accounts receivable clerk, who examines the checks and determines that the accompanying vouchers or correspondence contain enough detail to permit the posting of the accounts. The accounts receivable clerk then endorses the checks and gives them to the cashier, who prepares the daily deposit. No currency is received in the mail, and no paint is sold over the counter at the factory.
6. The accounts receivable clerk uses the vouchers or correspondence that accompanied the checks to post the accounts receivable ledger cards. The one-write system prepares the cash receipts register as a carbon copy of the postings. Monthly, the general ledger clerk summarizes the cash receipts register for posting to the general ledger accounts. The accounts receivable clerk also corresponds with customers about unauthorized deductions for discounts, freight or advertising allowances, returns, and so on and prepares the appropriate credit memos. Disputed items of large amounts are turned over to the sales manager for settlement. Each month the accounts receivable clerk prepares a trial balance of the open accounts receivable and compares the resulting total with the general ledger control account for accounts receivable.
Required:
I) Identify four (4) internal control weaknesses in the ThanksMe Company’s procedures related to customer billings and remittances and the accounting for these transactions.
II) For each weakness, identify one (1) error or irregularity that could result.
III) For each weakness, list one (1) substantive audit procedure for testing the significance of the potential error.
In: Accounting