Myth of income inequality in US
Although US is the largest economy in the world, some says it is one of the worst income inequal countries among the industrialized countries and Income inequality in US is not improving.
Q1) Does this claim have any truth in it? If so, discuss it with specific economic data.
Does the new Trump Tax cut make income inequality worse? Does lock-down due to COVID-19 hurt the low-income class more than the high-income class?
Q2) Some says, “In US, the upper class is doing better, the middle class is disappearing and more people are living under poverty.”
If so, what is the social, economic and psychological consequence from growing income inequality?
Q3) Some says US government should do something to reduce the gap between the poor and the rich? Do you agree or not?
Q4) If so, is it a good idea to raise more tax from the wealthy and provide more welfare safety nets to the poor, or increase of minimum wage, or free higher education with Government subsidy or universal basic income?
Q5) Is any better idea of government policy over this matter? since middle class struggles with heavier consumer debt due rising rent cost, medical cost, and education cost, and job insecurity due to automation.
In: Economics
Determine the pressure in ?? at the tropopause for the US Standard Atmosphere ( surface temperature ??℃ ). Assuming that the temperature is isothermal at −??℃ from the tropopause, determine the pressure at a height of ??? ??. ( ? = ??? ??−??? −? , ? = ? ∙ ?? ?? −? , ?? = ???? ??, ? = ? ∙ ?℃ ??−? ).
In: Physics
Q5) What are non-tariff trade barriers? Provide a few examples using food products that are imported or exported from the US.
In: Economics
Analyse how imported tariff by US on imported steel , almiuum and ather product from chine affected china and DOMESTIC INDUSTRIES
In: Economics
5. A vaccine against the novel coronavirus has been invented. The scientist said in an interview that the experiments yielded a statistically significant result. Explain in clear, unambiguous, statistical terms what this means. *your answer has to be perfect, yet simple enough so millions of lay people understand it. That is: simplicity without losing statistical truth.
In: Statistics and Probability
Using the patient information provided, respond to the following questions: (a) What cultural considerations are important for you to remember while you interview Ms. Li? (b) What is the abuse assessment screen? (c) If abuse is discovered, what should you do?
Patient Information:
Patient: Sue Li
Age: 20
Ethnicity: Asian American
In: Nursing
Using the patient information provided, respond to the following questions: (a) What cultural considerations are important for you to remember while you interview Ms. Li? (b) What is the abuse assessment screen? (c) If abuse is discovered, what should you do? Patient Information: Patient: Sue Li Age: 20 Ethnicity: Asian American
In: Nursing
You have just interviewed for a job that you really would like to have. You have heard it is a good idea to follow up an interview with a thank-you note or letter and an indication of your enthusiasm for the position. Select the strategy you will use for your follow-up, and explain why you chose it and then write your THANK YOU
In: Operations Management
Excessive executive compensation in the financial services industry ranks high among examples of failed corporate governance. Corporate government at the government-sponsored mortgage giants Fannie Mae and Freddie Mac were particularly weak. The politically appointed board at both enterprises failed to understand the risks of sub-prime loan strategies being employed, did not adequately monitor the decisions of the CEO, did not exercise effective oversight of the accounting principles being employed (which led to inflated earnings), and approved executive compensation systems that allowed management to manipulate earnings to receive lucrative performance bonuses. The audit and compensation committees at Fannie Mae were particularly ineffective in protecting shareholder interest., with the audit committee allowing the company’s financial officers to audit report prepared under their direction and used to determine performance bonuses. Fannie Mae’s audit committee also was aware of management’s use of questionable accounting practices that reduced losses and recorded one-time gains to achieve financial targets linked to bonuses. In addition, the audit committee failed to investigate formal charges of accounting improprieties filed by a manager in the Office of the Controller.
Fannie Mae’s compensation committee was equally ineffective. The committee allowed the company’s CEO, Franklin Raines to select the consultant employed to design the mortgage firm’s executive compensation plan and agreed to a tiered bonus plan that would permit Raines and other senior managers to receive maximum bonus without great difficulty. The compensation plan allowed Raines to earn performance-based bonuses of $52 million and a total compensation of $90 million between 1999 and 2004. Raines was forced to resign in November 2004 when the Office of Federal Housing Enterprise Oversight found that Fannie Mae’s executives had fraudulently inflated earnings to receive bonuses linked to financial performance. Securities and Exchange Commission investigators also found evidence of improper accounting at Fannie Mae and required the company to restate its earnings between 2002 to 2004 by $6.3 billion.
Poor governance at Freddie Mac allowed its CEO and senior management to manipulate its financial data to receive performance-based compensation as well. Freddie Mac’s CEO Richard Syron received 2007 compensation of $19.8 million while the mortgage company’s share price declined from a high of $70 in 2005 to $25 at year end 2007. During Syron’s tenure as CEO, the company became embroiled in a multibillion-dollar accounting scandal, and Syron’s personally disregarded internal reports dating to 2004 that cautioned of an impending financial crisis at the company. Forewarnings within Freddie Mac and by Federal Regulators and outside industry observers proved to be correct, with loan underwriting policies at Freddie Mac and Fannie Mae leading to combined losses at the two firms in 2008 of more than $100 billion. The price of Freddie Mac’s shares had fallen to below $1 by the time of Syron’s resignation in September 2008.
Both organisations were placed into a conservatorship under the direction of the U.S. Government in September 2008 and were provided bailout funds of more than $160 billion by early 2011. The U.S. Federal Housing Finance Agency estimated that the bailout of Fannie Mae and Freddie Mac would potentially reach $200 billion to $300 billion by 2013.
Sources: Chris Isidore, “Fannie, Freddie Bailout: $153 Billion…and counting,” CNNMoney, February 11, 2011;” Adding up the government’s Total Bailout Tab, “ New York Times Online, February 4, 2009; Eric Dash, “Fannie Mae to restate results by $6.3 Billion because of Accounting,” New York Times Online, www.nytimes.com, December 7, 2006; Annys Shin, “Fannie Mae sets executive salaries,” Washington Post, February 9,2006,p.D4; and Scott DeCarlo, Eric Weiss, Mark Jickling, and James R.Cristie, Fannie Mae and Freddie Mac: Scandal in U.S. Housing (Nova Publishers,2006), pp. 266-286.
QUESTION 1
A) Fannie Mae and Freddie Mac are two examples of poor execution of corporate governance in mortgage financial institutions. Identify and discuss the corporate governance issues in this case study.
In: Finance
ACCOUNTING FOR DEPRECIABLE ASSETS CHALLENGE #6
INSTRUCTIONS: USING THE INFORMATON PROVIDED BELOW
1. CALCULATE THE ANNUAL DERECIATION FOR THE DEPRECIABLE ASSETS IN 2017
2. PREPARE THE JOURNAL ENTRIES (USING CORRECT DATES AND EXPLANATIONS) THAT ARE NECESSARY TO RECORD THE FOLLOWING:
THE PURCHASE OF THE ASSETS BOUGHT IN 2017
THE DEPRECIATION FOR EACH OF THE DEPRECIABLE ASSETS FOR THE YEAR ENDED DEC. 31, 2017
THE POTENTIAL SALE OF THE TRUCK ON DECEMBER 31, 2020 USING THE INFORMATION PROVIDED
3. ENTER THE POST REFERENCES IN THE JOURNAL FOR JOURNAL ENTRIES PERPARED IN STEP 2.
(NOTE: ONLY INCLUDE POST REFERENCES FOR THE ENTRIES ACTUALLY POSTED).
4. COMPLETE THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017.
(NOTE: CURRENT PORTION OF NOTE PAYABLE IS $52,800)
5. ANSWER QUESTIONS A-D.
IN 2016 AND 2017, FISH & BAIT COMPANY HAD IN THE FOLLOWING TRANSACTIONS FOR FIXED ASSETS:
PURCHASE DATE TRANSACTION DEPRECIATION METHOD LIFE COST SALVAGE VALUE
1/1/2016 PURCHASED LAND N/A N/A $124,225 N/A
6/30/2016 PURCHASE MACHINERY UNITS-OF-PROD. 24,000 HR $132,000 12,000
1/5/2017 PURCHASE TRUCK DD BALANCE 5 YEARS $65,000 6,000
10/1/2017 PURCHASE STORE EQUIP. STRAIGHT-LINE 8 YEARS $80,000 8,000
ADDITIONAL INFORMATION:
THE COMPANY PAID $5,000 CASH FOR THE TRUCK AND SIGNED A LOAN FOR THE REMAINDER OF THE PURCHASE.
THE COMPANY PAID CASH FOR THE STORE EQUIPMENT.
THE MACHINERY WAS ACTUALLY USED FOR THE FOLLOWING NUMBER OF HOURS:
2016 2,900 HOURS
2017 4,100 HOURS
1. CALCULATE DEPRECIATION
use the space provided below to calculate the 2017 depreciation for the machinery:
complete the table below to calculate the annual depreciation for the truck:
YEAR BOOK VALUE AT BEGINNING OF YEAR DEPREC, RATE ANNUAL DEPREC. EXPENSE
2017
2018
2019
2020
2021
(AT THE END OF THE YEAR)
YEAR ACCUM. DEPREC. BOOK VALUE
2017
2018
2019
2020
2021
use the space provided below to calculate the 2017 depreciation for the store equipment:
2. PREPARE JOURNAL ENTRIES
FISH & BAIT COMPANY
GENERAL JOURNAL
DATE( 2017) DESCRIPTION DEBIT CREDIT
ASSUME ON DECEMBER 31, 2020, THE COMPANY SELLS THE TRUCK FOR CASH OF $8,000
PREPARE THE JOURNAL ENTRY TO RECORD THE SALE OF THE TRUCK
In: Accounting