Domino Inc. has the following plant, property, and equipment assets on its balance sheet for 2021 and 2020:

Determine what percent of the company’s depreciable assets are depreciated at the end of 2020 and 2021.

• On October 1, 2020, Philly Company purchased inventory from a German supplier for 80,000 Euros due on January 31, 2021.
• Simultaneously, Philly entered into a forward contract for 80,000 Euros for delivery on January 31, 2020.
• Payment was made to the foreign supplier on 1/31/2021.
• Spot rates on October 1, December 31, and January 31, were $1.62, $1.51, and $1.45, respectively.
• Forward rates on October 1 and December 31 were $1.33 and $1.39 respectively.

Required: Prepare all journal entries related to the above transactions on October 1, 2020, December 31, 2020, and January 31, 2021.

(a)
Explain when a revaluation decrement should be shown as a negative item in ‘Other Comprehensive Income’, rather than being debited to the profit or loss?

(b)
ChopChop Pty. Limited purchased a block of land in Melton, VIC, on 1 December 2019. The land was purchased for $500,000 in cash. Since then, the value of the land has increased due to rapid development in public transport in the area. On the 30th of March 2020, the land had market value of $750,000. On the 4th of April 2020, the land was sold for $825,000. ChopChop is NOT registered for GST.
Required:
Prepare journal entries for:
(1) 30 March 2020
(2) 4 April 2020

Rupert Ltd is preparing a Cash Flow Statement for the year ended 30 June 2020. The following information is available:

The Income Statement contained the following data as at 30 June:

Required:

Using the direct method, prepare the Operating Activities section of the Cash Flow Statement for the year ended 30 June 2020. Show workings.

Michael Jordan Earned $30,100,000 playing for the Chicago Bulls in 1997. In 1997 the CPI was equal to 1.60. In 2020 LeBron James earned $37,400,000 playing for the Los Angeles Lakers. The CPI in 2020 is equal to 2.58. Calculate the real wage for Micheal Jordan in 1997 and Lebron James in 2020.

Please enter your answers as numeric answers rounded to the nearest dollar with no decimals (ie. 15,553,342 or $10,432,675 not $15,553,341.73 or $10,432,675.2). Because these will be large numbers it is a good idea to use commas to separate millions, thousands, and hundreds.

What was the real wage for Michael Jordan in 1997?  

What is the real wage for LeBron James in 2020?  

Question)

Mikakos Ltd is an Australian company that purchases inventories (PPE) from Shultz AG, which is a German company. The most recent acquisition involved the acquisition of inventories for 150,000 pounds with contract terms including FOB shipping point. Credit dates are:

Date                          Event                                   Exchange Rate

1 May 2020              Inventories Ordered              A$1= 0.55 pounds

11 May 2020            Inventories shipped              A$1= 0.58 pounds

30 June 2020 End of reporting period       A$1= 0.60 pounds

31 July 2020             Payment                           A$1= 0.64 pounds

Required: Prepare the journal entries for Mikakos Ltd to record this transaction.

1. Over the past decade or so, marketers have begun to realize that eventually everything comes down to how good of a service a firm can provide, referred as service dominant logic (SDL). a. True b. False

2. Strategy is a long-term plan of action for an individual, organization, government, or a business entity to achieve its goals and objectives. a. True b. False

3. “Value” reflects the relationship between benefits and costs. When expressed mathematically it is the ratio between what one gets over what is sacrificed (given). a. True b. False

4. A firm can have competitive advantage if it provides more value for the same price or same value at a lesser price or a mix of both such that a customer perceives higher value obtained at relatively a lesser price. a. True b. False

5. The concept of “positioning” refers to how firms, themselves or their offerings, want to be perceived in the minds of consumers in a target segment of the market. a. True b. False

6. “Demands” are wants or specific needs of prospective consumers not supported by their ability to purchase. a. True b. False

7. A target market is that segment(s) of the larger market on which a company will focus its marketing effort. a. True b. False

8. “Marketing Strategy” refers to development of an optimal marketing mix to achieve the goals and objectives of a firm, which maps on to its business as well as corporate strategy. a. True b. False

9. The outcomes of a firm's marketing strategy are determined by its interaction with the consumer decision process. a. True b. False

10. Marketing across cultural boundaries is a difficult and challenging task. a. True b. False

11. Collectivism is a defining characteristic of American culture. a. True b. False

12. Cause-related marketing (CRM) is marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause. a. True b. False

13. Demographics describe a population in terms of its size, distribution, and structure. a. True b. False

14. Gerontographics is one segmentation approach to the mature market that incorporates aging processes and life events to the physical health and mental outlook of older consumers. a. True b. False

15. A subculture refers to segments of ethnic, religious, or regional sub-groups of a larger culture whose members share distinguishing values and patterns of behavior. a. True b. False

16. The Choctaw are the largest Native American tribe. a. True b. False

17. India is a homogeneous country. a. True b. False

18. Muslims in America are culturally diverse, including Arab Americans, African Americans, Asian Americans, and Hispanics. a. True b. False

19. Firms can create value with product by offering the following: a. Product line width b. Product depth c. Product variants d. Peripheral product e. All the above

20. Decisions involving how to compete in a marketplace such as whether to be a cost leader, product differentiator, or a mix of both are part of a ___________ of the company. a. Corporate Strategy b. Business Strategy c. Marketing Strategy d. All the three e. None of above

21. _____ is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. a. Marketing b. Consumer behavior c. Psychographics d. Demographics e. Psychology

22. To survive in a competitive environment, an organization must provide its target customers more _____ than is provided to them by its competition, sometimes referred as the “competitive advantage” of the organization. a. product b. service c. value d. feedback e. attention

23. Which of the following are considered as the first step of marketing strategy development? a. the company's own ability to meet customer needs b. competitors' capabilities and strategies c. consumers' needs d. conditions in the market e. all the above

24. Which of the following is NOT evaluated when analyzing a company's own ability to meet customer needs? a. competitors b. financial strengths c. general managerial skills d. production capabilities e. reputation

25. What is the first step in the consumer decision process? a. problem recognition b. budget setting c. information search d. outlet selection e. alternative evaluation and selection

26. Which is NOT an external influence on consumer behavior? a. culture b. family c. social status d. perception e. marketing activities

27. The totality of an individual's thoughts and feelings about him or herself is known as _____. a. lifestyle b. self-concept c. internal influences d. external influences e. consumption outcomes

28. Karen was at the checkout at the grocery store and remembered that she was out of chewing gum that she normally likes to keep in her purse. Without much thought, she grabbed two packages of the gum she likes. What type of consumer decision does this illustration? a. primary decision b. top-of-mind decision c. low-involvement decision d. automatic decision e. self-related decision

29. _____ is the complex whole that includes knowledge, belief, art, law, morals, customs, and any other capabilities and habits acquired by humans as members of society. a. Reference group b. Government c. Culture d. Authority e. Gestalt

30. Which of the following is a cultural factor that affects consumer behavior and marketing strategy? a. demographics b. values c. language d. nonverbal communications e. all the above

31. The boundaries that culture sets on behavior are called _____. a. rules b. norms c. prescriptions d. precepts e. sanctions

32. _____ values reflect a society's view of the appropriate relationships between individuals and groups within that society. a. Other-oriented b. Environment-oriented c. Self-oriented d. Externally oriented e. Internally oriented Conceptual

33. Which of the following is an example of a self-oriented value? a. religious/secular b. individual/collective c. risk taking/security d. tradition/change e. diversity/uniformity

34. The United States is comprised of a culture that accepts a wide array of personal behaviors and attitudes, foods, dress, and other products and services. Thus, the United States values _____. a. uniformity b. collectivism c. power d. diversity e. cooperation

35. A shift back to an emphasis on postponed gratification in America would most likely _____. a. increase the use of credit b. decrease the use of credit c. alter the timing of television commercials d. expand the use of Internet shopping e. none of the above

36. Which of the following is a segment used to describe consumers with respect to their environmental activism? a. True Blues b. Eco-Centrists c. Ailing Recluse d. Healthy Hermits e. Green Earths

37. Marketers have responded to Americans' increasing concern for the environment with an approach called _____. a. green marketing b. clean marketing c. environmental marketing d. activist marketing e. cause-related marketing

38. A woman who is married where both she and her husband work and share homemaking and child care responsibilities is classified as _____ with respect to gender orientation. a. transgender b. gender inconsistent c. traditional d. modern e. cutting-edge

39. What is the approximate population of the United States today? a. 100 million b. 249 million c. 320 million d. 350 million e. 498 million

40. Which of the following factors define a person’s socio-economic status (SES)? a. income b. education c. occupation d. all the above e. none of above

41. Juan is interested in knowing occupational influences on purchases of satellite radio systems. Which of the following occupations are most likely to purchase this type of product? a. wholesale and retail trade b. professional, scientific and technical c. mining and construction d. all the above e. none of above

42. Budweiser is a popular brand of beer. Part of this company's market research of U.S. consumers looked at education levels of beer consumers. What education level is the likely consumer of beer (that with highest propensity to buy and consumer beer) to have attained? a. did not graduate high school b. graduated high school c. attended college d. graduated college e. none of the above

43. Martha is 93 years old, but she perceives herself to be about 65 years old. Sixty-five is Gertrude's _____ age. a. felt age b. real age c. cognitive age d. perceptual age e. chronological age

44. A(n) _____ is a group of persons who have experienced a common social, political, historical, and economic environment. a. census age group b. age cohort c. cognitive group d. chronological group e. demographic group

45. Which generation is NOT part of the mature market? a. pre-Depression b. Depression c. Generation X d. baby boomers e. All the above are part of the mature market.

46. Which of the following are bases for subcultures in the United States? a. ethnic groups b. religions c. geographic areas d. generations e. all the above

47. Which of the following is predicted to be the fastest-growing racial group in the United States between 2010 and 2030? a. Whites b. Blacks c. Hispanics d. Asian e. South Americans

48. According to the Pew Hispanic Center, which generation of Hispanic adults is born in the United States to U.S. born parents, has the highest education and income levels, is most likely to identify themselves as Americans, is most likely to have English as the primary language, and is somewhat less likely to ascribe to traditional values? a. first-generation adults b. second-generation adults c. third-generation adults d. primary-generation adults e. secondary-generation adults

49. Which subculture is the most diverse group, with numerous nationalities, languages, and religions? a. Hispanics b. African Americans c. Asian Americans d. Native Americans e. Asian-Indian Americans

50. Which type of subculture arises because of the climatic conditions, the natural environment and resources, the characteristics of the various immigrant groups that have settled there, and significant social and political events? a. ethnic b. regional c. religious d. generational e. transient

Point/Counterpoint from chapter 14. Take a stand. Do you agree or disagree? Write a minimum of one paragraph.

Chapter 14

Exporting E-waste: A Fair Solution?

Point

Yes Exporting is always and everywhere a win-win situation: The more companies and countries export, the more they improve market efficiency. Exporting enables companies to increase sales, improve productivity, and diversify activities. Likewise, exporting helps countries generate jobs, accelerate innovation, and improve living standards. In broader terms, it promotes connections among countries that improve foreign relations and stabilize international affairs. Despite these virtues, some contend there is a dark side of exporting, namely the trade of hazardous waste in the form of obsolete tech equipment. E-waste—trash composed of computers, monitors, electronics, game consoles, hard drives, television, smartphones, and other items—inexorably increases as the Information Age rolls on. In 2006, nearly 66 million used electronic components were collected for reuse or recycling in the United States; most were exported. By 2016, e-waste was pushing several hundred million pieces, representing more than 4 million tons.58 Ongoing trends crank out newer, cooler, faster, smaller, fancier devices that, in replacing their predecessors and then eventually being replaced themselves, will increase e-waste nearly 500 percent over the next decade. Where Should E-waste Go? Where to put all this e-trash is a tough question. Many countries and municipalities in the United States, for example, ban outright dumping of e-waste in local landfills. This legislation means that disposing of e-waste products, when possible, in any given industrialized country costs from $2,500 to $4,000 a ton. In contrast, untreated waste can be sold to countries in Africa and Asia—where it will be recycled, reused, or dumped—for reportedly as little as $50 a ton.59 Low costs are a result of cheap labor, different environmental regulations, and growing processing capacity. Plus, the absence of public opposition reduces processing expenses and desperate folks seeking work dampens public objections. As might be expected, major e-waste shipping routes show that the industrial nations export the bulk of their e-waste to developing countries, notably China, Malaysia, India, Mexico, Nigeria, and Bangladesh (see Map 14.1).60 Benefits for All Exporting e-waste to recycling centers throughout the world is an efficient solution to an escalating problem. First and foremost, recycling sustains our resources and helps us protect the environment. In developing countries, industries have sprung up to recycle old computers, monitors, circuit boards, scanners, printers, routers, cell phones, and network cards. While rudimentary, these industries create jobs in places where jobs are hard to find and difficult to sustain. To their credit, developing countries have converted their superior location economics into vital jobs, income, and markets. There are more than 6,000 businesses employing 100,000 workers at ground zero of the e-waste trade: Guiyu, China. Previously subsistence farmers and fishermen, they now process an endless stream of truckloads of e-waste that arrive daily.61 Mexico has similar spots, many waiting for the 18-wheelers full of spent batteries from cars, phones, computer, solar appliances, and tools that cross the U.S.–Mexican border each day. Again, the locals benefit. Despite the dangerous, dirty work of recycling spent batteries, people living near the Acumuladores de Jalisco plant find opportunity. As the wife of one worker said, “There are not many other jobs around here.”62 Similarly, exporting e-waste helps entrepreneurs in developing countries create value by recovering, recycling, and reusing scarce resources. Copper, a valuable commodity, can represent nearly 20 percent of a mobile phone’s total weight. Rising commodity prices have made these activities quite profitable. Atul Maheshwar, owner of a recycling depot in India, says of U.S. exports, “If your country keeps sending us the material, our business will be good.”63 In addition, some of the equipment shipped to Asia helps improve the local standard of living. Graham Wollaston of Scrap Computers, a recycler in Phoenix, claims that virtually every component of old electronic devices is reusable. Old televisions turn into fish tanks in Malaysia, while silicon shortage creates demand for old monitors elsewhere. “There’s no such thing as a third-world landfill,” Mr. Wollaston explains. “If you were to put an old computer on the street, it would be taken apart for the parts.”64 Similarly, Luc Lateille of the Canadian firm BMP Recycling says, “We don’t send junk—we only send the materials that they are looking for.”65 Exporting hazardous waste also helps MNEs improve their social responsibility. Samsung, Mitsubishi, and Nokia, among others, increasingly take a cradle-to-grave responsibility for their products. The eCycling Leadership Initiative, launched in 2010, commits makers of consumer electronics to recycle a billion pounds of e-waste responsibly by 2016; in 2011, members spent more than $100 million to recycle about 500 million pounds of old electronics. Elsewhere, state regulation spurs laggards to support green recycling. Since 2004, more than 20 U.S. states have required manufacturers to recycle used electronics. Like-minded laws are on deck in other states. Companies often comply by exporting their e-waste to countries that have an interest in recycling and the infrastructure to do it. A Tough Solution Certainly, callous companies dump useless, toxic e-waste around the world. And, yes, some of it pollutes landfills, poisons waterways, and fouls the air. Overall, though, exporting e-waste works for citizens, consumers, companies, and countries. Ultimately, nations really don’t have a choice. The U.S. Environmental Protection Agency, for example, concedes inappropriate practices have occurred in the recycling of e-waste, but suggests stopping its export is not truly practical. Likewise, poor nations really have no choice; they must generate income some way or condemn themselves to poverty.

Counterpoint

no In theory, recycling is beneficial and exporting e-waste does improve efficiency. Still, recycling your e-waste does not always mean you’re doing the right thing. Explained the director of the Basel Action Network, “The dirty little secret is that when you take [your electronic waste] to a recycler, instead of throwing it in a trashcan, about 80 percent of that material, very quickly, finds itself on a container ship going to a country like China, Nigeria, India, Vietnam, Pakistan— where very dirty things happen to it.”66 Added the chief executive of RSR, a Dallas-based lead recycler that operates solely in the United States, “We’re shipping hazardous waste to a neighbor ill-equipped to process it, and we’re doing it legally, turning our heads, and pretending it’s not a problem.”67 Growing exports of hazardous waste encourage dangerous recycling industries in many developing countries. Going forward, exports will accelerate as e-waste increases far faster than other sorts of rubbish. Collectively, the tsunami of e-trash imposes far more costs than the pittance that recycling it generates. A Witch’s Brew Most developing countries lack the regulatory codes or disposal infrastructure to safeguard against such dangers. Locals often use crude methods that, besides being illegal in the United States, expose workers and residents to a witch’s brew of toxins. For example, some e-waste contains trace amounts of precious metals like copper and silver. Extracting them encourages cash-strapped, loosely regulated recyclers to use unsafe, antiquated open-air incineration methods. Burning electronic parts to separate copper, solder, or other metals from plastic coatings releases dioxins and other hazardous chemicals. Indeed, snagging that sliver of silver unleashes a mixture of more than a thousand chemicals, including toxic metals (e.g., lead, barium, and mercury), flame-retardants, cadmium, acids, plastics, and chlorinated and brominated compounds. Local air quality suffers as “circuit boards are burned after acid washing, spewing deadly smoke and exposing workers and people living around these facilities.”68 Once local scrap shops finish disassembling equipment, the trash goes into public landfills, the acid runoff flows into groundwater, and the noxious fumes follow air currents—all mercilessly contaminating the environment. Casual Inhumanity Madhumita Dutta of Toxics-Link Delhi argues that these problems are less disturbing than the “appalling” working conditions in recycling facilities: “Everything from dismantling the computer to pulling out parts of the circuit boards to acid-washing boards to recover copper is done with bare hands without any protective gear or face protection.” Rare is the worksite that uses proper disposal practices. Workers and society, to say nothing of environmental sustainability, suffer. What, then, of the premise of charity—that is, sending computer equipment from countries where it has little use to countries where it can make a difference? Critics shred this straw man, asserting that wealthier countries and powerful companies conveniently donate obsolete equipment to dodge high recycling expenses. “Too often, justifications of ‘building bridges over the digital divide’ are used as excuses to obscure and ignore the fact that these bridges double as toxic waste pipelines,” said one critic.69 Moreover, most of the computer equipment sent is worthless trash—waste that can be neither repaired nor resold.70 Institutional Gaps Some argue that manufacturers need to step up and take full responsibility for the hazardous materials they used to build products that had earned them profits.71 Companies have moved in this direction, sponsoring green campaigns to recycle e-waste. Substantive progress has been slow, however. Environmentalists recommend that countries set tougher standards to monitor, control, and certify cross-border shipments of e-waste. That has proven disappointing. Inspections of e-waste cargo headed from European seaports to developing countries, for example, found that nearly half was illegal.72 Then again, presumed solutions can lead to unintended problems. The fact that many U.S. states require companies to take responsibility for recycling electronic equipment has curtailed the export of e-waste to developing countries—but only of the more valuable components. Processors cherry-pick parts that can be refurbished for reuse. The remainder is disassembled, with urban miners targeting silver, gold, and palladium. The final batch of trash, the worst of the worst, has no reuse market and is shipped to developing countries for disposal.73 Who to Turn To? Others endorse stronger enforcement of the Basel Convention on the Transboundary Movement of Hazardous Wastes and their Disposal, a United Nations treaty that regulates the generation, management, movements, and disposal of hazardous waste. It proposes aggressive measures, including an international ban on the export of all toxic waste, no matter whether for recovery, recycling, reuse, or final disposal. As of 2015, 182 states and the European Union are parties to the Convention. Haiti and the United States have signed the Convention but not ratified it.74

Sheffield Corporation, a clothing retailer, had income from operations (before tax) of $427,500, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020:

Sheffield also had the following account balances as at January 1, 2020:

As at January 1, 2020, Sheffield had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $246,240. In January 2020, the piece of land was sold for proceeds of $246,240. In applying the revaluation model, Sheffield maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of.

In 2015, Sheffield purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Sheffield records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio’s carrying amount on December 31, 2019, was $125,400. The entire portfolio was sold in November 2020 for proceeds of $143,640.

Sheffield’s income tax expense for 2020 was $112,860. Sheffield prepares financial statements in accordance with IFRS.

Calculate net income for the year ended December 31, 2020.

Calculate retained earnings as at December 31, 2020.

Calculate net income for the year ended December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Sheffield’s income tax expense would not change.

Calculate retained earnings as at December 31, 2020, if Sheffield prepares financial statements in accordance with ASPE. Assume that under ASPE, Sheffield’s retained earnings at January 1, 2020, would be $530,100.

Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer.

The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows:

Comprehensive Accounting Cycle Review

15.ACR  Quigley Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

• 1.On January 1, 2020, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
• 2.On January 1, 2020, Quigley also issued 1,000 shares of common stock for $23,000.
• 3.Quigley reacquired 300 shares of its common stock on July 1, 2020, for $49 per share.
• 4.On December 31, 2020, Quigley declared the annual cash dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2021.
• 5.Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
• 6.The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
• 7.The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
• 8.The unearned rent was collected on October 1, 2020. It was the receipt of 4 months' rent in advance (October 1, 2020 through January 31, 2021).
• 9.The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

Instructions

(Ignore income taxes.)

(c)  

Prepare a multiple-step income statement for the year ending December 31, 2020.

(d)  

Prepare a retained earnings statement for the year ending December 31, 2020.

(e)  

Prepare a classified balance sheet as of December 31, 2020.

Total assets $273,400