1. Suppose the data for a hypothetical economy is given above. This economy produces only 3 things, pizzas, haircuts and tanks. The base year is 2019.

a. Calculate GDP deflator in 2020. Based on GDP deflator, what is the inflation rate from 2019 to 2020?

b. Suppose a representative consumer basket consists of 10 pizzas and 20 haircuts. Using this consumer basket, calculate CPI in 2020 (again, assuming 2019 is the base year). Based on CPI, what is inflation rate

c. Why do you think there is such a dramatic difference in the inflation rates from parts a and b?

QUESTION THREE
The objective of IAS 36 Impairment of assets is to prescribe the procedures that an entity applies to ensure that its assets are not impaired. Telepath acquired an item of plant at a cost of K800,000 on 1 January 2017 that is used to produce and package pharmaceutical pills. The plant had an estimated residual value of K50,000 and an estimated life of five years, neither of which has changed. Telepath uses straight-line depreciation. On 31 December 2019, Telepath was informed by a major customer (who buys products produced by the plant) that it would no longer be placing orders with Telepath. Even before this information was known, Telepath had been having difficulty finding work for this plant. It now estimates that net cash inflows earned from the plant for the next three years will be:
K
year ended: 31 December 2020 220,000
31 December 2021 180,000
31 December 2022 170,000
On 31 December 2022, the plant is still expected to be sold for its estimated realisable value. Telepath has confirmed that there is no market in which to sell the plant at 31 December 2019. Telepath’s cost of capital is 10% and the following values should be used:
K
value of K1 at: end of year 1 0.91
end of year 2 0.83
end of year 3 0.75
Required:
(a) Explain what is meant by assets that may form a cash generating unit and how an impairment review should be done for a cash generating unit. [5 Marks]
(b) Calculate and explain the carrying amounts of the assets above at 31 December 2019 after applying any impairment losses. Calculations should be to the nearest 1,000. [10 Marks]
[TOTAL: 15 Marks]

Problem 2: The following information is available for the first four years of operations for Jones Company

   Year           Earnings Before Tax

   2018           $800,000

   2019              730,000

2. On January 2, 2018, heavy equipment costing $600,000 was purchases. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below

Tax Depreciation

2018       2019           2020           2021           2022 Total

$198,000   270,000       90,000           42,000           0 600,000

3. The company sells its merchandise on an installment contract basis. In 2018, Jones Co. elected, for tax purposes, to report the gross profit from the sales in the year the receivables are collected. However, for financial statement purposes, the company recognized all the gross profit ($800,000) in 2018. these procedures created a $600,000 difference between book and taxable incomes. The future collections of the installment contracts receivables are expected to result in taxable amounts of $200,000 one acc of the next three years.

4. In 2018 Jones Co. recorded $70,000 accrual for litigation liability which will be paid in 2019.

5. The enacted tax rates are 40% for 2018, 34% for the years after

Instructions

Prepare a schedule comparing depreciation for finances reporting and tax purposes for all years

Prepare a reconciliation of Book Income to Taxable Income for 2018

Prepare a schedule of future taxable and (deductible) amounts at the end of 2018

Prepare a schedule of deferred tax (asset) and liability at the end of 2018

Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable

Culver Corporation had the following long-term receivable account balances at December 31, 2019.

Transactions during 2020 and other information relating to Culver's' long-term receivables were as follows:

Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Describe the relevant cash flows in terms of amount and timing.

Determine the amount of interest income that should be reported in 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Determine the portion of the note and any interest that should be reported in current assets at December 31, 2020. (Round answers to 0 decimal places, e.g. 9,871. Do not leave any answer field blank. Enter 0 for amounts.)

Determine the portion of the note that should be reported as a long-term investment at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

eTextbook and Media

Prepare the long-term receivables section of Culver's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Culver's's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Thermodynamics

A 1 m³ rigid tank has propane at 100 kPa and 300 K. The tank is connected to another 0.5 m³ rigid tank which has propane at 250 kPa and 400 K by a ball valve. The valve is opened and both tanks come to a uniform state at 325 K.

1-      State all assumptions you need to solve the problem.

2-      Calculate the final pressure of propane in both tanks?

3-      Calculate the mass of propane before and after opening the valve in each tank.

4-      Sketch the process on a P-V diagram.

5-      Find the compressibility factor of propane in each tank before opening the valve.

6-      Calculate the change in internal energy and enthalpy of propane in each tank.

A clinical trial was conducted to test the effectiveness of a drug for treating insomnia in older subjects. Before​ treatment, 19 subjects had a mean wake time of 103.0 min. After​ treatment, the 19 subjects had a mean wake time of 76.3 min and a standard deviation of 23.4 min. Assume that the 19 sample values appear to be from a normally distributed population and construct a 99​% confidence interval estimate of the mean wake time for a population with drug treatments. What does the result suggest about the mean wake time of 103.0 min before the​ treatment? Does the drug appear to be​ effective? Construct the 99​% confidence interval estimate of the mean wake time for a population with the treatment.

what does blank min <u blank < min

Jesse Brimhall is single. In 2018, his itemized deductions were $9,000 before considering any real property taxes he paid during the year. Jesse’s adjusted gross income was $70,000 (also before considering any property tax deductions). In 2018, he paid real property taxes of $3,000 on property 1 and $1,200 of real property taxes on property 2. He did not pay any other deductible taxes during the year.

b.If property 1 is Jesse’s business building (he owns the property) and property 2 is his primary residence, what is his taxable income after taking property taxes into account (ignore the deduction for qualified business income)?

Taxable income

Jay Oullette, CEO of Bumper to Bumper Inc., anticipates that his company's year-end balance sheet will show current assets of $12,774 and current liabilities of $7,480. Oullette has asked your advice concerning a possible early payment of $3,770 of accounts payable before year-end, even though payment isn't due until later.

Required:

1. Calculate the firm’s working capital and current ratio under each situation.
2. Assume that Bumper to Bumper had negotiated a short-term bank loan of $6,000 that can be drawn down either before or after the end of the year. Calculate working capital and the current ratio at year-end under each situation, assuming that early payment of accounts payable is not made

Quikpak sells returnable containers to major food processors. The price received for the containers is $2 per unit. Of this amount $1.25 is profit contribution. Quikpak is considering an attempt to differentiate its product through quality improvement at a cost of $.05 per unit. Current profits are $40,000 on sales of 100,000 units.

(a) Assuming that average variable costs are constant at all output levels, find Quikpak‘s total cost function before the proposed change.

(b) Calculate the total cost function if the quality improvement is implemented.

(c) Calculate Quikpak‘s break-even output before and after the change, assuming it cannot increase its price.

(d) Calculate the increase in sales that would be necessary with the quality improvement to increase profits to $45,000.

Imagine that at some point during the Ice Age a boulder with a mass of 380kg rolls off a cliff and onto a smooth (approximately frictionless) glacier so that just before it hits the glacier its

̂
velocity is ??? = (68m/s)î + (52m/s)k where the z-axis is the positive vertical direction

(perpendicular to the surface of the earth) and the x-axis is parallel to the surface of the earth.

̂1. (a) (4 points) What is this boulder’s initial momentum (just before it hits the glacier) in î, ĵ, k

notation?

̂
(b) (6 points) What is its momentum just after it hits the glacier in î, ĵ, k notation? How do you

know (think about and discuss force directions and conservation of momentum in component form)?