______     6.      You are trying to decide whether to run your business as a corporation or as an individual owner (for example, as a “sole proprietorship”). One of the factors is the problem of double taxation. Assume that the corporate income tax rate is 35%, the individual income tax rate on dividend income is 15%, and the individual income tax rate on other income is 39.6%. (Note – use these tax rates. Don’t use the actual tax rate schedule.) The business is expected to generate $625,000 of taxable income. Similar to the example given in class, assume that the amount of dividend income is equal to the corporate after-tax cash flow. How much more after-tax cash flow will you have if you run the business as a sole proprietorship rather than as a corporation? Hint: fill out the following table to help answer the question.

______     7.      You are trying to decide whether to run your business as a corporation or as an individual owner (for example, as a “sole proprietorship”). One of the factors is the problem of double taxation. Assume that the corporate income tax rate is 35%, the individual income tax rate on dividend income is 15%, and the individual income tax rate on other income is 39.6%. (Note – use these tax rates. Don’t use the actual tax rate schedule.) The business is expected to generate $720,000 of taxable income. Similar to the example given in class, assume that the amount of dividend income is equal to the corporate after-tax cash flow. How much more after-tax cash flow will you have if you run the business as a sole proprietorship rather than as a corporation? Hint: fill out the following table to help answer the question.

Please write a short paragraph about your interest in pursuing a M.B.A. degree at XYZ UNIVERSITY.

What are the theoretical framework and conceptional framework for "Student’s satisfaction with the education services provided by the University" research?

Please describe Sarbanes-Oxley legislation.

How it may have an effect on the University Flea Market

Why work?” discuss the role “life energy” plays in going to university and choosing a meaningful career.

Are production and productivity correlated?

(b)Provide examples of internal and external failure costs relevant to a university.

What do we mean by “purple pricing” as Northwestern University games? sports facility management

Question 1:

Jaycar, an electronics store sponsors the Canterbury Bulldogs, a team that competes in the NRL. An individual store owner is looking to promote the sale of their 160W solar panels and is planning to offer a discount on the price of the panels from Monday to Friday based on the number of home games won in the past weekend of NRL. The owner of the store has asked us to do some analysis of the promotion assuming the following:

(a) The number of wins each weekend out of eight games is a binomial random variable with a probability of the home team winning being equal to p.

(b) The number of solar panels normally sold from Monday to Friday is a Poisson random variable with mean units sold equal to λ.

(c) The number of wins in a weekend for home teams in the NRL and the number of solar panels sold from Monday to Friday are independent.

Question 1 A):

If we let X represent the number of home team wins out of eight games in a weekend of NRL, what will the mean and variance of X be in terms of p.

Question 1 B):

If we let Y represent the number of 160W solar panels sold from Monday to Fridays, what will the mean and variance of Y be in terms of λ.

Question 1C):

The “cost” of the promotion will be a new random variable that is a function of:

the number of home wins over the weekend;

the number of solar panels that will be sold; and the discount offered per game. If we let the cost be a new random variable such that Z = a*X*Y , find the mean and variance of Z. Hint: The variables are assumed to be independent.

The variance of the product of independent variables is given by

Var( XY ) = (E( X))^2*Var( Y ) + (E( Y ))^2*Var(X) + Var(X)*Var( Y ),

and Var(c*X) = c^2*Var(X).

You run a company, GizmoNet, that produces gizmos. Gizmos hook onto iPhones, allowing users to access the internet via a virtual reality interface.

Your company hires software engineers, who are employed for three periods. In period one, they must train at GizmoNet. In this period their total productivity is $10 million, and training costs are $8 million. In periods two and three (after the training) productivity is $17 million and $19 million, respectively. An engineer who received no training would have productivity of $10 million at any other firm in all three periods.

Engineers can quit after training (and always get a job offer at other firms). If they do so, their productivity at other firms is $2 million lower than at GizmoNet in each of the last two periods. Assume no discounting.

b. (10 points) Suppose that the labor market is competitive, so that the firm

must earn zero profit from hiring an engineer. If so, what set of salaries

? , ? , ? must the firm offer to guarantee that the total return on the123

training investment is maximized? To choose an answer if you have more than one possibility, pick the feasible solution that maximizes ? (because

software engineers are impatient and risk averse, so ceteris paribus they prefer to be paid as soon as possible).
Hint: first figure out what has to happen to maximize the return on investment. The figure out any constraints on pay, etc. Only then figure out who should invest and get the return (worker or firm), and to what extent.

c. (5 points) In an economic sense (rather than accounting), who pays for the training investment, and who earns the return on the investment? Briefly explain.

The Montana Movie Theatre Company (Montana) operates movie theatres in 15 different towns throughout western Montana, including in Missoula, a city of 60,000 people with a major state university. In Missoula, Montana owns and operates five movie theatres with a total of 38 screens. Montana operates the only theatre in Missoula and the theatres within a 30-mile radius around Missoula. Montana charges $6 for matinee movie times and $8.50 for evening movies. These prices are about 10% higher than the prices charged around most of the rest of the state. There are no discount ticket prices of any type for senior citizens, students, or any other group. Most movie theatres around the rest of the state offer some, if not all, special individual or group discounts.

Several other movie theatre companies have sought to build movie theatres in Missoula over the last 10 years. Each of these efforts has failed. In addition, Montana has actively lobbied city authorities to keep out any other movie theatre companies.

1. What are the business and the associated legal issues with Montana’s operations?

2. Is there a possible case of monopoly here under federal law? Why or why not?

3. During discovery in a lawsuit situation, what, if any, accounting records should you request if you were engaged by the lawyer for Montana to defend Montana in a monopoly-related lawsuit? If you were engaged by a competitor of Montana to sue Montana in a monopoly-related lawsuit?

4. What other information would you need as a forensic accountant involved in this type of situation defending Montana in a monopoly-related lawsuit? Suing Montana in a monopoly-related lawsuit?

5. What are the services that a forensic accountant, as an expert witness, might be asked to provide in a dispute involving the above scenario defending Montana? Or suing Montana?