A 2010 Pew Research poll asked 1,306 Americans "From what you've read and heard, is there solid evidence that the average temperature on earth has been getting warmer over the past few decades, or not?". The table below shows the distribution of responses by party and ideology, where the counts have been replaced with relative frequencies.

b) What is the probability that a randomly chosen respondent believes the earth is warming or is a liberal Democrat?  (please round to four decimal places)

c) What is the probability that a randomly chosen respondent believes the earth is warming given that he is a liberal Democrat?  (please round to four decimal places)

d) What is the probability that a randomly chosen respondent believes the earth is warming given that he is a conservative Republican?  (please round to four decimal places)

f) What is the probability that a randomly chosen respondent is a moderate/liberal Republican given that he does not believe that the earth is warming?  (please round to four decimal places)

Collins Inc. acquired 100% of the voting common stock of Merton Inc. on January 1, 2010. The book value and fair value of Merton’s accounts on that date are following. Credit balances are indicated by parentheses. Collins used the equity method to account for investment.

1.Assume that Collins issued 24,000 shares of common stock with a $5 par value and a $42 fair value for all of the outstanding stock of Merton. In this acquisition transaction, how much goodwill should be recognized?

$720,000

$188,000

$210,000

$100,000

2.Assume Collins had Common Stock 5,000,000 and Retained Earnings 1,000,000 at

Of acquisition. What will be the consolidated Retained Earnings (as of January 1, 2010

$6,000,000

$480,000

$1,000,000

$1,480,000

3. Assume that Collins issued 24,000 shares of common stock with a $5 par value and a $42 fair value for all of the outstanding stock of Merton. At the date of acquisition, at what amount is the investment recorded on Collins’ books?

$720,000

$820,000

$1,008,000

$120,000

This is the challenges/impact PDPA 2010 on banking industry.

1. Market Access

The revised Payment Services Directive has resulted in the expansion in the list of activities that payment institutions can carry out. Payment institutions can provide account information for accounts held at other payment service providers. This is weaken the banks market power.

2. Consumer Preferences

Retail consumers now demand to be able to integrate e-commerce, social media and retail payments. There is also an expectation to be able to switch across digital platforms. As banks are subject to myriad compliance obligations as discussed in the previous paragraphs, they are not in a position to offer these facilities to their customers. Due to compliance obligations, banks are forced to invest more on data security and resilience of their systems rather than on User preferences.

3. Evolution of Payments Technology

Payments technology as eidenced by contactless cards, online payments, mobile payments, are increasingly becoming common place. Keeping pace with this rapid evolution will require huge invesrments.

Give ways on how to manage this impact.

Since 2010 housing market in BC is on the never ending price rise. Vancouver has faced the highest price boom ever since then and the average rental apartments in the city has risen to the unprecedented $2300.00 rent. Discuss the reasons behind the price surges considering the balance of supply and demand in the market and predict how the market will respond post Covid-19. Try to focus on the driving forces behind the rise and the other current environmental factors which will or may come to effect post Covid-19.

Bob makes the following gifts in 2017:

In 2010 he gifts $190,000.00 to his daughter Maya to buy a home;

In 2011 he gifts $50,000.00 to Maya by paying UPMC Hamot for a surgery Maya

had to have her appendix removed; and

In 2015 he gave her $250,000.00 as a part of his estate planning

1. Does Bob have to file a gift tax return?

2. What is his gift tax liability for each year?

In 2010, the Top-slice Golf Company decided to augment their very successful line of golf clubs with a new line of professional caliber golf balls. The executives at Top-Slice were aware of the difficulty of penetrating the golf ball market but feel, with their name recognition and the possibility of receiving endorsements from tour professionals that were playing Top-Slice clubs, chances for success were substantial. The company purchased $175 million of equipment and buildings in 2011 to begin production. The Top-Slice golf ball has not performed up to expectations. The tour professionals did not care for the ball and did not endorse it. Significant improvements in golf balls by Callaway and Nike and the continued dominance of the Titleist ProV1 series made entering the market very difficult.

On July 1, 2017, the Board of Directors voted to sell off the golf ball manufacturing division. The company continued to operate the facility at current levels of production until the sale of the division was completed on June 1, 2018. Top-Slice has a April 30 year end and the controller and CEO are concerned about the proper reporting for the disposal of the golf ball manufacturing division in the year-end April 30, 2018 financials. The company wants to issue the financial statements to the public by the end of June 2018.   You are to draft a report to the controller and CEO identifying the issues and accounting choices associated with reporting the disposal and the authoritative guidance that exists to determine the proper manner of reporting the assets, liabilities, and results of operation for the division.

Case 3: Passing along Costs In 2010, the costs of powdered milk, cocoa, coffee, and wheat rose at double-digit rates. Wildfires in Russia had caused wheat and other crop prices to shoot up. Cocoa prices reached a 33-year high in July, helped along by speculative activities, including the London-based commodity trading house Armajaro Holdings Ltd.’s move to store 240,000 metric tons of cocoa, worth roughly $1 billion. Tea prices went up significantly on account of higher fuel costs and poor harvests in India. Big consumer-goods companies often find ways to offset the commodity price increases, sometimes through cost-cutting and sometimes by passing along higher prices to retailers and consumers. J.M. Smucker Co. raised prices about 9 percent on products in its coffee lineup, which includes Folgers, Dunkin’ Donuts, and Millstone brands. In response to rising milk prices,Danone, which makes yogurt products, increased prices in markets including Mexico and Poland. Unilever’s chief financial officer noted that tea costs have gone up, and Unilever has already sent that higher cost down the chain on its consumer tea products.

a. Suppose the price of coffee beans increases by $0.20 per pound. What is the effect of this raw material price increase on the demand for roasted coffee?

b. If one pound produces 50 cups of coffee, would the price of a cup of coffee rise by $0.01? Explain.

The article reports that J. M. Smucker Co. plans to increase its coffee prices by 9 percent. If Smucker has a lot of rivals but has brand name that has value, will this 9 percent increase in retail prices imply that profit will rise by 9 percent? Explain.

a. Is it optimal for a firm to slash prices to retain market share? Explain

b. Is cutting prices during a recession and then raising them in a recovery a good strategy? Explain.

In 2010, Apple wanted to lower the price of down‐loading TV shows from iTunes from $ 1.99 to $ 0.99. But Apple had to get permission from, and convince, the management of the networks with whom they share the revenue from each download. Apple argued that lowering the price would benefit both Apple and the networks. Managers at the networks disagreed, and wanted the price kept at $ 1.99. a. What did Apple believe about the price elasticity of demand for downloaded shows? b. What did the networks believe about the price elasticity of demand for downloaded shows?

1. Top of the World, Ltd. reported the following summarized balance sheet at December 31, 2010:

During 2011, Top of the World, Ltd. completed these transactions that affected stockholders’ equity:

Taking into account the transactions above, prepare a statement of stockholders’ equity for Top of the World for the period ended December 31, 2011.  Use the format used in lecture and provided in your text, Illustration 10-20.   Assume net income for 2011 was $6,730.