On May 5, 2009, Lloyd purchased a machine for $84,000. The estimated life of the machine was 10 years,

with an estimated residual value of $10,000. The service life in terms of “output” is estimated at 8,000 hours

of operation. SHOW ALL WORKING

1. Refer to the above data. Assume Lloyd uses straight-line depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is: a. $7,400. b $8,400. c $3,700.d Some other amount.

2. Refer to the data above. Assume Lloyd uses 200%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2010 (the second year of ownership) is:

a $8,400.b $13,120. c $15,120. d Some other amount.

3 Refer to the data above. Assume Lloyd uses 150%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is:

a $8,400. b $6,300. c $12,600. d Some other amount.

4 Refer to the data above. Assume Lloyd uses the units-of-output method and that the machine was in operation for 1,000 hours in 2009 and 1,800 hours in 2010. The book value of the machine at December 31,2010 is:

a $48,100. b $58,100. c $25,900. d Some other amount

Answer the following questions using the annual report of Colgate in Appendix A. Required: a. For 2009, 2010, and 2011 identify Colgate’s (1) tax payment/obligation if it paid the statutory tax rate, (2) tax provision made in the books, and (3) the actual tax payment/obligation. Broadly quantify how Colgate’s statutory tax payment differs from its actual tax payment. Also explain why these differences occur. b. What is Colgate’s effective tax rate for each of the three years? Why is it different from its statutory tax rate? Explain at least one of these differences in detail. c. What is Colgate’s tax provision? Why is it different from its tax obligation/payment? d. You are in the process of forecasting Colgate’s income for the next year. What tax rate would you apply to your forecast and why? (Come up with a rate if possible.) e. Examine Colgate’s deferred tax assets and liabilities. Explain why they arise in general. Provide a detailed explanation of how at least two of the deferred assets/liabilities arise and “guess” at the approximate duration over which these assets/liabilities are expected to reverse. f. Examine the “movement” in the deferred tax assets/liabilities between 2011 and 2010 and explain the major changes.

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

1. By January 2014 the US population had grown to 317.3 million and the US Federal Debt was a reported $17.3 trillion. Calculate the January 2014 Federal Debt per capita and use the calculation in a meaningful sentence.

2. From class we learned that in 2010 the federal debt (in millions) was $13,561,623 and the population of the U.S. was 309 million. Use these values to compute the federal debt per capita in 2010.

3. In 1980, a Domino’s large pizza cost $4.99. What would be the cost of that pizza in 1995 dollars?

4. In 1986, a certain model of car cost $13,000. What would be the cost of that car in 2012 dollars? How does this compare to the actual cost of a typical new car in 2012?

5. According to a NY Times article on December 13, 2009, the average selling price of a 32” LCD TV was $600. What would be the cost of that same TV in 2015 dollars?

6. In 2009, the price of a package of crayons was $2.80. If it was the year 1988, what would the price be?

7. Use the chart below to answer: Using the starting value of $112 in 1995, which year was a better price when considering inflation? 2000, 2007 or 2011? (Assume that 1995 is a fair value for the goods and services.)

Discussion Questions:

1. Discuss the different types of unemployment that exist in the economy.
2. Explain what is participation rate in the labor force?
3. How much does the labor force participation rate affect the unemployment rate?
4. Do you think one type of unemployment is worse than others and why?
5. What can governments do to assist in reducing this type of unemployment?

Calculations:

1. Table 1.0 below provides nominal GDP, real GDP and GDP deflator data.

(a)            Complete Table 1.0

(b)             What is the base year for the GDP deflator?

(c)             Calculate the percentage change in nominal GDP, real GDP, and the GDP deflator between 2014 and 2015.

(d)            Was the increase in nominal GDP due mostly to an increase in real GDP or to an increase in the price level?            

TABLE 1.0

2. Consider the following data on Canadian GDP:

                                NOMINAL GDP                             GDP DEFLATOR

YEAR             (IN BILLIONS)                (BASE YEAR 2010)

2011                              $725                                         101.2                                          

2012                               $762                                             102.4

a.            What was the growth rate of nominal income between 2011 and 2012? (Note: The growth rate is the percentage change from one period to the next.)

b.            What was the growth rate of the GDP deflator between 2011 and 2012?

c.            What was real income in 2011 measured in 2010 prices?

d.            What was real income in 2012 measured in 2010 prices?

e.            What was the growth rate of real income between 2011 and 2012?

f.            Was the growth rate of nominal income higher or lower than the growth rate of real income? Explain.

3. Suppose that the residents of Wolfgang spend all of their income on cauliflower, broccoli, and carrots. In 2014 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2015 they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. If the base year is 2014, what is the CPI in both years? What is the inflation rate in 2015?

Type down (easy to copy and paste) your thoughts (ie, agree or disagree and why ? ) after reading the following paragraph. (must be 5 sentences, 1 paragraph. 150-250 words)

I think in certain cases, that trying your best is good enough and that perfection in itself is relative to other people. You gage how perfect something is or how perfect you think you are to other people. I think that perfection is something you work towards that you don't necessarily achieve unless you tell yourself it's perfect, and at that point it's really settling for the best possible thing. I disagree with Bower that people are scared of failure, which is why they don't pursue perfection, I think people are completely able to handle losses, because these losses make them better, but it's the fact that they are appeased by other people that it is good enough. You need to have the mind set that even if you tried your best, it is not good enough unless you have the results. I'm not saying that we should just look at results, but the process is also important and needs to be considered too.

Innovation comes from making mistakes, from the lack of fear to do anything except push forward. They key thing is to strive, but I think Bowers did a terrible job of making that point because I just thought the whole time he was belittling people's effort. I feel even if you don't get the results you want, you put in the effort, it isn't perfect but you shouldn't settle. Bowers just came off as somebody who was asking fro a lot and full of himself and a bit of an over-exaggeration. I think that we should definitely push for perfection where it matters, like driving cars, although that's more like a constant vigilance kind of thing, making credit cards, things of life and death.

Barnes & Noble Education Provides COVID-19 Update Mar 17, 2020 Update on Full-Year 2020 Outlook BASKING RIDGE, N.J.--(BUSINESS WIRE)-- Barnes & Noble Education, Inc. (NYSE: BNED), a leading solutions provider for the education industry, today announced various steps it is taking to help address some of the challenges that the schools and students it serves are facing due to the disruptions caused by the COVID-19 virus. Yesterday, the Company announced that it has joined VitalSource® and other leading publishers in providing free access to eTextbooks for students at BNED campuses that have closed due to COVID-19 through the remainder of the Spring 2020 term. Given the continued transition to online and distance learning programs by colleges and universities nationwide, to help students, BNED is also offering targeted free self-tutoring and writing services through its bartleby® suite of services, which will continue to provide students with 24/7 on-demand access to academic assistance. Michael P. Huseby, Chief Executive Officer and Chairman, BNED, said, “Our top priority remains providing schools and students with solutions during this time of unprecedented disruption, while simultaneously protecting the health and safety of our employees and customers. As an organization, we are closely monitoring the continuing developments and following the guidance of the World Health Organization, Center for Disease Control (CDC) and local health authorities. While we cannot predict how long this situation will last, BNED remains committed to actively supporting our students, faculty and the educational institutions we serve during this time. Given the economic uncertainty associated with the ongoing COVID-19 outbreak, including the continued closures of educational institutions nationwide, we are limited in our ability to accurately predict what the negative financial impact to BNED will be in fiscal 2020, and therefore believe it is appropriate to withdraw financial guidance for fiscal 2020.” BNED’s fiscal fourth quarter is historically a lower revenue quarter for the company because it does not include the fall and spring back-to-school rush periods; nonetheless, due to the uncertainty regarding the duration and extent of the disruptions caused by COVID-19, BNED is withdrawing its fiscal 2020 outlook. The Company does not intend to provide further updates to its fiscal year 2020 outlook unless deemed appropriate. ABOUT BARNES & NOBLE EDUCATION, INC. Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services and academic solutions, a digital direct-to-student learning ecosystem, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better, more inclusive and smarter world. For more information, visit www.bned.com. Forward-Looking Statements This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,” “projections,” and similar expressions, as they relate to us or our management, identify forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Such statements reflect our current views with respect to future events, the outcome of which is subject to certain risks, including, among others: general competitive conditions, including actions our competitors and content providers may take to grow their businesses; a decline in college enrollment or decreased funding available for students; decisions by colleges and universities to outsource their physical and/or online bookstore operations or change the operation of their bookstores; implementation of our digital strategy may not result in the expected growth in our digital sales and/or profitability; risk that digital sales growth does not exceed the rate of investment spend; the performance of our online, digital and other initiatives, integration of and deployment of, additional products and services including new digital channels, and enhancements to higher education digital products, and the inability to achieve the expected cost savings; the risk of price reduction or change in format of course materials by publishers, which could negatively impact revenues and margin; the general economic environment and consumer spending patterns; decreased consumer demand for our products, low growth or declining sales; the strategic objectives, successful integration, anticipated synergies, and/or other expected potential benefits of various acquisitions may not be fully realized or may take longer than expected; the integration of the operations of various acquisitions into our own may also increase the risk of our internal controls being found ineffective; changes to purchase or rental terms, payment terms, return policies, the discount or margin on products or other terms with our suppliers; our ability to successfully implement our strategic initiatives including our ability to identify, compete for and execute upon additional acquisitions and strategic investments; risks associated with operation or performance of MBS Textbook Exchange, LLC’s point-of-sales systems that are sold to college bookstore customers; technological changes; risks associated with counterfeit and piracy of digital and print materials; our international operations could result in additional risks; our ability to attract and retain employees; risks associated with data privacy, information security and intellectual property; trends and challenges to our business and in the locations in which we have stores; non-renewal of managed bookstore, physical and/or online store contracts and higher-than-anticipated store closings; disruptions to our information technology systems, infrastructure and data due to computer malware, viruses, hacking and phishing attacks, resulting in harm to our business and results of operations; disruption of or interference with third party web service providers and our own proprietary technology; work stoppages or increases in labor costs; possible increases in shipping rates or interruptions in shipping service; product shortages, including decreases in the used textbook inventory supply associated with the implementation of publishers’ digital offerings and direct to student textbook consignment rental programs, as well as the risks associated with the impacts that public health crises may have on the ability of our suppliers to manufacture or source products, particularly from outside of the United States; changes in domestic and international laws or regulations, including U.S. tax reform, changes in tax rates, laws and regulations, as well as related guidance; enactment of laws or changes in enforcement practices which may restrict or prohibit our use of texts, emails, interest based online advertising, recurring billing or similar marketing and sales activities; the amount of our indebtedness and ability to comply with covenants applicable to any future debt financing; our ability to satisfy future capital and liquidity requirements; our ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms; adverse results from litigation, governmental investigations, tax-related proceedings, or audits; changes in accounting standards; and the other risks and uncertainties detailed in the section titled “Risk Factors” in Part I - Item 1A in our Annual Report on Form 10-K for the year ended April 27, 2019. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release.

Please summarize this to one or two paragraph.

Reda Bhd is a company engaging in palm oil plantation which is based in Pahang. On 1
January 2010, the company acquired a factory building and a machine at a cost of
RM4,000,000 and RM800,000 respectively. The estimated useful life of the factory building
and the machine were as follows:
Factory building 50 years
Machine 20 years
Depreciation for all the assets is computed based on the straight-line method. The company
applied the revaluation model for all its property, plant and equipment. The followings are the
relevant information of the machine and the factory building.
Machine
On 30 November 2014, the operation manager of the company has proposed to the board of
directors, a new machine to replace the old machine. The new machine is equipped with the
latest technology which can increase the production capacity of the company. In line with this
decision, the company decided to conduct impairment test for the old machine.
As at 31 December 2014, Reda Bhd received a few offers from other factories to purchase
the available machine at RM500,000. Disposal cost for the machine is RM50,000. The value
in use is approximately RM750,000.
Factory building
At the end of 2016, the carrying value of the factory building was as follows:
RM
Net revalued amount as at 31 December 2014 4,500,000
Accumulated depreciation (From year 2015 to 2016) (200,000)
Impairment loss as at 31 December 2016 (600,000)
Carrying value as at 31 December 2016 3,700,000
The factory building was revalued on 31 December 2014 at RM4,500,000. During the year
2019, there were indications that the impairment loss recognised in 2016 may have been
reversed. The estimated recoverable amount is RM4,300,000.

Calculate the followings:
i. The impairment loss for the machine as at 31 December 2014.

ii. The amount of the reversal of impairment loss to be recognised in the Statement
of Profit or Loss for the factory building as at 31 December 2019. Show all
workings.

c. Prepare the journal entries to record the reversal of impairment loss for the factory
building as at 31 December 2019.

Based in Winnipeg, Manitoba, Clearview Security Technologies Inc. (Clearview) was founded to provide security systems, facilities controls, and related services. Clearview established a solid reputation for quality and the business grew, thanks to strong relationships with large long-term customers in Canada and the United States. Clearview has experienced little competitive pressure in its core market and the company's offerings are standardized, enabled by significant technological and financial barriers to entry.

The Research and Innovation Group (RIG) is the development side of the company. Where Clearview's primary lines are standardized, the RIG is all over the map. Clearview uses this smaller division to provide contract software and consulting to a wide range of business types.

The RIG is considering a new contract that will strain resources for not only the RIG, but the entire company. The project involves new technology, a new customer, and a new geographic area. The director of operations has warned you that it will be substantially more risky than anything Clearview does in its core business. With an upfront cost of C$8.5 million, managers want to develop an understanding of expected financing costs. The director of finance explained that understanding cost of capital will be a key part of maintaining and improving Clearview's competitive edge. RIG managers have noticed competing bids for the contract and it is expected that margins will be pushed down.

You have been asked to calculate the company's weighted average cost of capital (WACC), based on the following information. Over the last five years the annual dividends on the firm's stock have grown at 6 percent per year and this growth is expected to continue indefinitely. A dividend of $1.25 was recently paid. Common shares trade at $45 with 250,000 outstanding and no preferred shares. The yield on long-term government bonds is currently 3 percent and you believe the appropriate expected market risk premium is 5 percent (the long-term average). The stock's beta is 1.05. Clearview also has 25-year bonds with $1,000 face value, 6.5-percent semi-annual coupons, and 20 years to maturity. The bonds trade at 94.5. The initial bond offering raised $15.5 million and initially sold at par. The firm's marginal tax rate is 27 percent.

1. The cost of equity and debt
   1. Calculate Clearview's cost of equity using the constant growth model approach and the CAPM approach. Take the arithmetic average of the two results.
   2. Determine Clearview's after-tax cost of debt. Solving for the cost of debt is best done with a financial calculator, although trial and error will also yield the correct result. The bond valuation formula is required in this approach, substituting values for kb until the bond value is determined. A third method for determining the cost of debt is an approximation formula: kb approx. = ((annual coupon + (face – price)) ÷ years remaining) ÷ ((face + price) ÷ 2). The trial and error737approach can be completed much faster if the approximation method is used first to narrow the trial and error range.
2. The weight of equity and debt
   1. Calculate the weights of equity and debt in Clearview's capital structure.
   2. Determine Clearview's WACC.
3. The company will use its current capital structure to set target weights for debt and equity, with flotation costs of 2 percent for long-term debt and 7.5 percent for equity. How much capital must Clearview raise in order to cover the project cost and all flotation charges?