• Which fiscal policy did U.S. government use during the COVID 19 pandemic? (i.e. expansionary or contractionary fiscal policy). What is the CARES Act passed by the U.S. Congress? What is the purpose of the CARES Act? Explain in terms of economics

4. Assume that Canada and Haiti, and the U.S. and Haiti, have similar voting patterns in the U.N. General Assembly. According to Adhikari (2019), what impact is this expected to have on the amount of foreign aid that Canada and the U.S. send to Haiti? (2.5 points)

In congressional testimony, former Federal Reserve Chairman Ben Bernanke said:

Another significant factor influencing medium-term trends in inflation is the public’s expectations of inflation. These expectations have an important bearing on whether transitory influences on prices, such as changes in energy costs, become embedded in wage and price decisions and so leave a lasting imprint on the rate of inflation.

What did Bernanke mean when he said that the public’s expectations of inflation could become “embedded in wage and price decisions”? Please verbally and graphically explain using AD/AS analysis.

What would be the effect on the short-run Phillips curve of the public coming to expect a higher rate of inflation? Please verbally and graphically explain using the Phillips curve.

15. At December 31, the stockholders’ equity of Smith Company was as follow:
Common stock, $5 par value: 1,100,000 shares issued
and 1,000,000 shares outstanding $5,500,000
Additional paid-in capital    1,400,000
Retained earnings 1,500,000
Treasury stock, (100,000 shares)     (700,000)
Total stockholders’ equity $7,700,000
The book value per share of common stock is
a. $7.00
b. $7.20
c. $8.40
d. $7.70

16. The fraud triangle applies to
a. U.S companies but not international companies.
b. international companies but not U.S. companies.
c. U.S. and Canadian companies but not other international companies.
d. U.S and international companies.

17.. Lewis Company gathered the following reconciling information in preparing its April bank reconciliation:
Cash balance per books, 4/30 $19,800
Deposits in transit 2,700
Notes receivable and interest collected by bank 6,600
Bank charge for check printing 150
Outstanding checks 13,500
NSF check 1,260
The adjusted cash balance per books on April 30 is
a. $12,930.
b. $14,190.
c. $23,730.
d. $24,990.

18. An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a
a. debit to Bad Debt Expense for $14,000.
b. debit to Allowance for Doubtful Accounts for $12,900.
c. debit to Bad Debt Expense for $12,900.
d. credit to Allowance for Doubtful Accounts for $14,000.

19. Stockton Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are $600,000 and credit sales are $2,700,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Stockton Company make to record the bad debt expense?
a. Bad Debt Expense   33,000
  Allowance for Doubtful Accounts    33,000
b. Bad Debt Expense   27,000
  Allowance for Doubtful Accounts    27,000
c. Bad Debt Expense   27,000
  Accounts Receivable    27,000
d. Bad Debt Expense   33,000
  Accounts Receivable    33,000

20. Depreciation is a process of
a. asset devaluation.
b. cost accumulation.
c. cost allocation.
d. asset valuation.

21. On September 1, Joe's Painting Service borrows $150,000 from National Bank on a 4-month, $150,000, 6% note. The entry by Joe's Painting Service to record payment of the note and accrued interest on January 1 is
a. Notes Payable  153,000
  Cash   153,000
b. Notes Payable  150,000
Interest Payable  3,000
  Cash   153,000
c. Notes Payable  150,000
Interest Payable  9,000
  Cash   159,000
d. Notes Payable  150,000
Interest Expense  3,000
  Cash   153,000

22. All of the following are intangible assets except
a. copyrights.
b. goodwill.
c. patents.
d. research and development costs.

23.       If a corporation has only one class of stock, it is referred to as
a. classless stock.
b. preferred stock.
c. solitary stock.
d. common stock.

Shames Company is located in London, England. The local currency is the British pound (£). On January 1, 20X8, Pit Company purchased an 70 percent interest in Shames for $403,000, which resulted in an excess of cost-over-book value of $80,000 due solely to a trademark having a remaining life of 10 years. Pit uses the equity method to account for its investment.

Shames’s December 31, 20X8, trial balance has been translated into U.S. dollars, requiring a translation adjustment debit of $6,500. Shames’s net income translated into U.S. dollars is $71,000. It declared and paid a £20,000 dividend on May 1, 20X8.

Relevant exchange rates are as follows:

  
Required: DO JE
a. Record the dividend received by Pit from Shames.
b. Prepare the entries to record Pit’s equity in the net income of Shames and the parent’s share of the translation adjustment
(Record the equity accrual, Record the parent's share of subsidiary's translation adjustment.

c. Show a calculation of the differential reported on the consolidated balance sheet of December 31, 20X8, and the translation adjustment from differential. (Amounts to be deducted should be entered with a minus sign. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

d. Record the entry to recognize the translation adjustment for the increase in the differential.

e. Record the entry to amortize the trademark for 20X1

f. Calculate the amount of the translation adjustment reported on the statement of comprehensive income as an element of other comprehensive income. (What amount and is it a credit or debit balance)

Locate the Consumer Price Index – August 2020 publication

  Helpful Tip: You can find the answers to the questions below in the first two pages of the publication.

• What happened to the CPI inflation rate in March, April, and May 2020? Why do you think this happened?

• What happened to the core rate of inflation in March, April, and May 2020? Why do you think this happened?

Dutch Bakers has a $100,000 deferred tax liability that will create taxable income in 2020. Dutch established the deferred tax liability in 2017 when the tax rate was 40%, and in 2018 the tax rate enacted for 2020 was increased to 50%.
Part 2: In 2018, the year the tax rate change for 2020 is enacted, the effect of the change on tax expense will be a:

1. Debit of $50,000

2. Debit of $40,000

3. Debitof25,000

4. $0

Tai Corp discontinued their tea division in 2020. The division made an operational loss of $2 million in 2020, and their assets were sold at a net loss of $1 million. The firm incurred a $500,000 cost on severance pay and retraining their employees for different functions. Tai Corp included the $500,000 cost on their 2020 income statement as part of their operational expenses. Are they acting in accordance of US GAAP? Why or why not?

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.

(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