6. For the purposes of the Goods and Services Tax (GST), when a registered business makes a GST-free supply it means that:
A. ☐ It is liable for GST on the supply, but is not entitled to an input tax credit on GST paid on its business inputs affecting that supply  
B. ☐ It is liable for GST on the supply, and is entitled to an input tax credit on GST paid on its business inputs affecting that supply
C. ☒ It is not liable for GST on the supply, and is entitled to an input tax credit on GST paid on its business inputs affecting that supply
D. ☐ It is not liable for GST on the supply, and is not entitled to an input tax credit on GST paid on its business inputs affecting that supply

7. Cheng runs an accountancy practice, and has purchased a photocopier for $5,000 to use in his practice. The amount of GST included in the purchase price is:
A. ☐   $500.00
B. ☒   $454.55
C. ☐   $475.55
D. ☐   $50.00

8. Which of the following statements is correct?
A. ☐ If an employer provides a benefit to anyone other than an employee, the benefit cannot be a fringe benefit
B. ☐   If anyone other than an employer provides a benefit to an employee, a fringe benefit does not arise
C. ☐   All of the above statements are true
D. ☒   All of the above statements are false

9. The decision in Myer leads to the principle that ordinary income:
A. ☒ Includes receipts from a business transaction that is undertaken with an intention to profit
B. ☐ Includes receipts from all transactions undertaken by a business whether they are capital or revenue
C. ☐ Includes profits from the realisation of a capital item
D. ☐ Includes all interest earned from a loan to another subsidiary of a parent company

10. Jake bought a house in July 2018. It was in fairly good condition, but needed painting. Jake rented out the house for 10 months, and then painted all the walls.

The painting is:
A. ☐ Deductible under s25-5
B. ☐ Not deductible due to being an “initial repair”
C. ☒ Not deductible, as painting something is not really repairing it
D. ☐ Not deductible as the walls are an entirety
9. The decision in Myer leads to the principle that ordinary income:
A. ☒ Includes receipts from a business transaction that is undertaken with an intention to profit
B. ☐ Includes receipts from all transactions undertaken by a business whether they are capital or revenue
C. ☐ Includes profits from the realisation of a capital item
D. ☐ Includes all interest earned from a loan to another subsidiary of a parent company

10. Jake bought a house in July 2018. It was in fairly good condition, but needed painting. Jake rented out the house for 10 months, and then painted all the walls.

The painting is:
A. ☐ Deductible under s25-5
B. ☐ Not deductible due to being an “initial repair”
C. ☒ Not deductible, as painting something is not really repairing it
D. ☐ Not deductible as the walls are an entirety

You recently completed your undergraduate degree in Business Administration, majoring in Finance, at University of Scranton. You are now working at PPL Corporation, at their corporate headquarters, in Allentown, PA. Your first assignment is to estimate the weighted average cost of capital for the company. You can start by studying the annual report of PPL Corporation available at their website. You can use public information about the company, available at various sources, such as Yahoo Finance. You should identify the source of your data. In effect, you have to find the current values of the following quantities for the corporation. If you are unable to find a number precisely, you will have to estimate it.

1. Income tax rate

2. Market value of debt

3. Market value of equity

4. Cost of debt

5. Cost of equity

Please show work in excel and sources.

1. Future costs associated with a restructuring can only be recognized if they:

Select one:

a. will lead to a legal obligation in the future.

b. will lead to a constructive obligation in the future.

2. A construction company has contracted with a major university to build a new sports complex. The contract calls for two sports arenas to be built in the next three years. The company will receive $24,000,000 for the project and their engineers originally estimated a total cost to construct the two arenas of $20,400,000. The two arenas are scheduled for completion in May of 2007. If an actual cost of $9,200,000 is expended in 2004, and the engineers estimate another $12,800,000 is to be expended to complete construction, how much income is to be recognized under the percentage-of-completion method in 2004?

Select one:

a. $1,163,636

b. $836,364

c. $3,600,000

d. $2,000,000

c. will lead to a constructive and legal obligation in the future.

d. will lead to a provision for restructuring cost

Part 1: Financial Acumen

Keeping abreast of the financial measures and metrics employed by a company allows employees to better understand its health and position at any given time. Using Campbellsville University library link or other libraries and the Internet:

1. Review at least three (3) articles on financial acuity. Summary the articles in 400 – 600 words. Use APAformatting throughout including in-text citations and references.

2. Discuss the benefits of establishing solid financial acumen in a company? Discuss your personal experiences in a situation where financial acumen was either not supported as an organizational hallmark or, conversely, was built into the company's culture.

Part 2: Sarbanes-Oxley (SOX)

Write a 200-word commentary on Sarbanes Oxley and the importance this act has for American businesses today. Your commentary should include the following:

A. Rationale for SOX
B. Provisions of SOX
C. Enforcement of SOX

1. Explain how a firm may transition from the short-run production decision to the long-run production decision. In your explanation, us applicable graphs (6%) to illustrate short-run and long-run laws in operation. (10%)

Collect annual Data on the following series: real GDP, Government Expenditure, Investment, and Population for 30 years from an economy of Norway in "Current US dollar, all units and year must be same ' in excel file

https://fred.stlouisfed.org/

Use this diagram for the questions that follow. Assume a trading authority of around US$1,000,000 or around HK$ 8,000,000.

Market DATA= Spot rate(US$/HK$): 0.1289

180-day forward: 0.1302

180-day US$ LIBOR: 3.00%

180-day HK$ HIBOR: 1.50%

What is the HK$ forward premium (+) or discount (-)? Use the standard number of digits in expressing the interst rate as in "7.89%

What is the US$ - HK$ interest rate differential?

During the investment horizon of 180 days you would be an owner of (US$ or HK$)

During the investment horizon of 180 days you would be an the borrower of ________. Express your answer in terms of US$ or HK$ that you would be borrowing.

At the end of the investment period you would owe, (US$ or HK$)

At the end of the investment period you would own _______ . Express your numerical answer in terms of the currency, US$ or HK$, that you would own.

At the end of the investment period, after you paid off your loan, you would have a profit of _______. Express your answer in terms of either US$ or HK$.

2. The managers of three different supermarkets in the US desire to test the effectiveness of a new store design on sales. The manager of supermarket A decides to let store directors choose on their own whether they judge appropriate to implement the new design. The manager of supermarket B randomly chooses stores to assign the new design. The manager of supermarket C randomly draws stores in each US State separately.

(a) State whether each of the three experimental designs is observational or experimental, providing an explanation. (7.5p)

(b) Which experimental design is implemented in each of the three studies? (7.5p)

(c) Which kind of bias will arise from design A? Why? (5p)

(d) Compare the quality of statistical results from Designs B and C.State which of the two prevails on your opinion and why. (5p)

China has recently retaliated to US tariffs on steel and aluminum and has imposed a wide range of tariffs on U.S agricultural export that are destined to China. These tariffs are expected to have a significant negative impact on the U.S. agriculture products.

If the U.S. Agricultural products, which are heavily subsidized by the US government are not exportable to China due the existing trade war, how does this affect:

1) the U.S. farmers

2) the American tax payer

3) short term food supply in America

4) long term food supply in America

Discuss each in detail.

5) Assuming that China seeks its food supply from Africa, do you think that China might get cheaper agricultural products from Africa and as a result, America, but not China will be on the losing side?

We have a lot of data and information. If you want to forecast something, find data for it from the library. Let us call this data Dependent variable . Also find data for variables,( let us call them Independent Variables) that influence dependent variables.

Your task is to find data for one dependent variable and more than one independent variables. The independent variables must be related to the dependent variable.

Using your data,  run the regression on Excel and comment on how good and robust is the relationship between the dependent variable and the independent variables.

Important: You must indicate the source of data.(failure to indicate this gets automatic zero).  Data should be original. No data from the text books or data that has been already used for regression may be used.