Critically analyzing China’s monetary policy between 1995 and 2005. Provide any websites, textbooks, etc. if used to obtain information.

Background

With capital controls, think of China as a closed economy; without capital controls, think of China as a small open economy. Remember the relation between net exports and net capital flows. Try to reason as a business person and answer to the best of your abilities.

Briefly research China’s exchange rate regime between 1995 and 2005. (Please note that after 2005, China’s exchange regime has changed, and became more flexible, with an abrupt acceleration in the degree of flexibility in 2015, even though there continues to be debate about its rigidity and fairness to foreign economies, so stay focused on this period that is simpler to analyze.

1. Describe how China’s exchange rate regime operated over this period and locate China’s exchange rate regime on the “Impossible Trinity Triangle”.
2. For each of the following objectives, evaluate whether the regime was effective or not, and why:

• Maintaining low inflation.
• Providing monetary policy independence (as measured by …).
• Promoting competitiveness of Chinese exports.

Adrian is a salesperson who represents several wholesale companies. On January 2, 2018, she receives by mail a commission check from Ace Distributors in the amount of $10,000 and dated December 30, 2017. Adrian is concerned about the year in which the $10,000 is taxable. Although the check is dated 2017, she contends that it would have been unreasonable for her to drive the 50 miles to the Ace offices on a holiday to collect the check. Further, Adrian maintains that even if she had made the trip to collect the check, by the time she returned home, her bank would have closed and she could not have received credit for the check until after the first of the year. Adrian would like you to determine whether she should include the $10,000 on her 2017 or 2018 tax return. §61; Reg. §1.451-1; Murphy v. U.S., 71 AFTR 2d 93-1862 (CA9, 1993); Kahler, 18 T.C. 31 (1942); Zahirdueen Premji, et ux. v. Commissioner, TC Memo 1996-304.

For the following scenario, please explain whether a contract has been formed. Discuss whether all requirements have been met for a valid contract, including consideration. If the contract is void or voidable, say so and then explain why. Be sure to include more than one reason for your conclusion, if applicable. Finally, is the agreement executory or executed? Why? Is it express or implied? Why? Is it bilateral or unilateral? Why? Be sure to explain your answer fully, so that I can be sure you understand these concepts.

Scenario: (This scenario takes place in Ohio, where the age of majority is 18 and the drinking age is 21.) One Sunday, after smoking a fair amount of cannabis and feeling "high", Lara (17 years old) goes to Joe's house. Joe is a 21-year-old guy in the neighborhood who sells alcohol to people from his home on Sunday, when the liquor stores are closed. Lara asks Joe if she can buy a six pack from him. He says "sure" and gives her the beer. She promises to pay him next week.

Spencer Grant is a New York-based investor. He has been closely following his investment in 200 shares of Vaniteux, a French firm that went public in February 2010. When he purchased his 200 shares at 16.68 euro per share, the euro was trading at $1.3654/euro. Currently, the share is trading at 28.37 euro per share, and the dollar has fallen to $1.4016/euro.  Spencer considers selling his shares at this time but he chooses not to sell them after all. He waits, expecting the share price to rise further after the announcement of quarterly earnings. His expectations area correct, and the share price rises to 31.62 euro per share after the announcement. The current spot exchange rate is $1.3022/euro.

a. If Spencer sells his shares today, what percentage change in the share price would he receive? (Round to two decimal places)

b. What is the percentage change in the value of the Euro versus the dollar over this same period? (Round to two decimal places)

c. What would be the total return Spencer would earn on his shares if he sold them at these rates?

c a.) If he sold his shares today, it would yield the following amount in euros ______ (round to two decimal places)

c b.) The sales proceeds in U.S Dollars is $ _______ (Round to the nearest cent)

c c.) The original investment (cost) of 200 shares in Vaniteux in euros is _____ (Round to two decimal places)

c d.) The original investment (cost) of shares in U.S Dollars calculated at the original spot rate is $ _____ (Round to the nearest cent)

c e.) The rate of return on Spencer's investment, net proceeds divided by initial investment is ____ % (Round to two decimal places)

Exercise 3:

Create a worksheet that gives a price quote. You will select an item name and enter the quantity of that item purchased. Use Data Validation to create a drop down list for your item names. Your worksheet should look up the item name in the Price Table to find the Unit Price. Then it should calculate the Total Before Discount. Look up this amount in the Discount Table to find the discount percent. Then your worksheet should calculate the Discount Amount, the Total After Discount, add in Sales Tax (use an assumption for tax percentage), and give the final Total Due for the order. Place the Price Table, Discount Table and Sales Tax Percentage in the assumptions area.

Use the layout shown below starting your title in A4:

Price Quote (title)

Item:     (input)

Quantity: (input)

Unit Price:

Total Before Discount:

Discount %:

Discount Amount:

Total After Discount:

Sales Tax:

Total Due:

(The price and discount information is shown below…you may need to reconfigure the layout to meet your needs. All information shown below needs to be included in your Lookup Tables, even if it is not used in the problem.)

Price Information:

Unit Price                          Item #                 Item Name        

9.99                                   H5528                 Hat       

5.99                                   L8511                  Lanyard                             

14.99                                 T3592                  T-shirt                                             

19.99                                 D7435                 Drawstring Bag               

Discount Information:

Total Price

Before Discount ($)         Discount

$0 – $99.99                               0%

$100 – $399.99                        5%

$400 – $999.99                      10%

$1000 and over                      15%

This is an extract describing a fashion house noted for custom-made gowns in Ghana. Use the case information to answer the questions that follow. Pistis is a Ghanaian based fashion house headquartered in Accra. The company currently stands at the frontline of the fast growing African fashion industry while making major strides on the international markets. Pistis, at the core, prides itself on creating master pieces for every client and, as result, has garnered a name as the leader in special occasion clothes. From their unique hand beaded bridal gowns to their creative use of African fabrics such as kente, the brand aims at making every woman standout as royalty in a Pistis gown. All clothing are specially made to order and the organisation does not stock clothing. There are minimum slots per month for the clothes that can be made so its best to confirm an order when you are certain with the dates to start the process. The organisation has only one facility in Ghana but has a website where orders can be placed online. Pisits was started in 2008 by Kabutey and Sumaya right after graduating from Vogue Style School of School and Design in Accra, Ghana. The brand was founded on a common vision of uniquely providing the perfect fit and style to a fast evolving woman who exuberates ambition, reveres culture and embraces innovation. By acknowledging the demand in the growing African and global market, the brand, through the years, has grown expediently by focusing on providing customers with the best service through rigorous product development in regard to originality and quality. Pistis has been featured in various shows such as the Runway Dubai Season III, Glitz Africa Fashion Week 2013, Radiance Bridal Show and headlining 3 seasons of the Vlisco Fashion Show in Ghana. In addition, Pistis has had the opportunity to dress the finalists for the Miss Malaika Pageant Ghana for 2012, 2013, and 2014 seasons. Through the years, Pistis has had the opportunity to dress dignitaries, celebrities, corporate executives, religious leaders and most importantly, the hardworking everyday woman.


a. If a key need of the customer segment the organisation aims to fill is increase rate of innovation, how would the key customer need identified influence the implied demand uncertainty? (3 Mark) b. Which capabilities of responsiveness (mention 2) does the organisation’s supply chain possess (use information from the case to explain why)? c. How can the organisation use the pricing driver to a. Match supply and demand b. Increase responsiveness c. Increase efficiency?

West Coast Tours runs boat tours along the west coast of British Columbia. On March 5, 2020, it purchased, with cash, a cruising boat for $846,000, having a useful life of 10 years or 12,900 hours, with a residual value of $201,000. The company’s year-end is December 31.

Required:
Calculate depreciation expense for the fiscal years 2020, 2021, and 2022 by completing a schedule. (Note: Depreciation is calculated to the nearest month. Assume actual hours of service were: 2020, 750; 2021, 1,810; 2022, 1,565.)

Martinez Corporation prepared the following reconciliation for its first year of operations:

The temporary difference will reverse evenly over the next two years. The enacted tax rate for 2020 and future years is 20%. The amount reported as net deferred income taxes on Martinez's balance sheet at December 31, 2020, should be a Deferred Tax  of $   .

Provide whether the balance sheet account is a Deferred Tax "Asset" or "Liability" and the value.

On January 1, 2019, Company X has an asset with a cost of $300,000 and accumulated

depreciation of $120,000. Estimated future cash inflows are $150,000 and the fair value

is $125,000. There is a 5-year remaining life and the company uses straight-line

depreciation. The asset will continue to be used in operations. At the beginning of

2020, Company X determines the fair value of the asset to be $160,000. Prepare entries

for 2019 and 2020.

IFRS: Assume the same facts except that Company X uses IFRS. Prepare the necessary

journal entries for 2019 and 2020.