On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book value. Apple accounts for its investment in Pear using the initial value method and Pear doesn't pay any dividends.

On January 1st 2015 Pear Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest each July 1 and January 1. Pear uses straight line amortization on these 20 year bonds.

On January 1, 2020, Apple Company acquired all of the Pear bonds for $955,000.

1. Make the necessary worksheet entries for 2020

2. In 2020, Apple reported unconsolidated income of $900,000 and Pear reported income of $100,000 what is consolidated income

3. make the necessary worksheet entries for 2021

4. in 2021, Apple reported unconsolidated inocme of $800,000 and Pear reported income $125,000 what is consolidated income

During the past year, Argentina has struggled with high inflation rates (~45%) and a depreciating currency, with the peso losing around 50% of its value vis a vis the US dollar. The central bank’s bench mark interest rate is currently 60%. Early data suggests that Argentinian real GDP growth will be negative in 2018. The CEO of a small Canadian company sees this economic crisis as a potential opportunity to expand into Argentina, by acquiring a local company at low cost, financed by borrowing in pesos. Knowing you have just completed an MBA economics class, she asks you what you think of the opportunities and threats the current economic conditions in Argentina might create for her plan. What would you tell her

1. Who started Facebook? How old was he then? Now? How much control does the founding CEO have over his firm? Why? Why was he able to demand and receive control of Facebook, even as the firm went public? What strategic factors were at work in Facebook’s rise that gave the founder such leverage? Who is Facebook’s COO? What is that person’s role, responsibilities, and accomplishments?

New poll reveals Facebook's standing with Americans has slumped after Cambridge Analytica scandal

Facebook has been hit by claims that Cambridge Analytica, a data company that worked for Donald Trump’s election campaign, obtained infomation from 50 million of their users.

Alexander Nix, the Cambridge Analytica CEO, was also filmed discussing potential bribery and entrapment with undercover reporters. He has since been suspended.

Mark Zuckerberg, the Facebook founder and CEO, issued an apology after the company’s plunging share price wiped more than $50 billion (£35 billion) of its value.

Over the weekend the company also took full-page adverts out in a string of major newspapers pledging to regain their users’ trust.

1. Analyze and evaluate the poll using the 4 critical questions to determine whether the poll is problematic or not.

2. The 4 critical questions are what is being claimed, how good is the evidence, what other information is relevant, and are relevant fallacies avoided.

This course is for SCIE211-Scientific Reasoning and Analysis

Your consulting firm has been hired by an important European-based multinational conglomerate, ' GKY Group'. The Group has required assistance for designing its long term global strategy.

The CEO, Mr. Lundberg, is particularly interested in understanding the long term growth potential of the U.S economy. Until now his company has had an aggressive expansion strategy in the U.S. This strategy has been based on a combination of acquisitions of smaller competitions, as well as major investment in expanding the group's own U.S plants.

Management Accounting Questions:

Grace Myer is the founder and CEO of Myer Sisters Apparel, a retailer of high?end women’s business apparel.  Earlier this year Grace opened her fourth retail store in Sydney’s Eastern Suburbs. While Grace has been pleased with the new store’s progress, she is concerned by the growing number of customer complaints and the low sales per square metre compared to some of her better?known competitors, such as Davie Laurie and HighChair Nine.  

When Grace had only one store that she individually owned and operated, she was able to control most of the details of the business. While she worked with a few employees, she always knew what they were doing. As the number of stores and the size of the stores increased, the number of employees also grew.  When Grace was running the one store, she rarely heard a customer complaint, and her sales per square metre were $500, compared to $400 today.  This concerned Grace greatly as her expansion plansfor Myer Sisters had to slow down because the stores were not producing the returns that she expected. T

he store managers were also complaining to Grace because of the high training costs of bringing on new employees. The turnover rate seemed to be very high and Grace could not understand why. She was paying one of the highest wages in the area to the sales clerks and store managers, yet they were leaving to work elsewhere. The customers were also complaining about the lack of helpfulness of the sales clerks. Even after extensive employee retraining, Grace was still hearing many complaints.  

Required:

1. Based on your understanding of the differences between intrinsic motivation and extrinsic motivation, discuss why paying good wages is not enough to elicit high performance in Myer Sisters.

2. Grace is considering implementing an alternative reward system for her staff: A “gain? sharing” plan, with a focus on generating sales revenue.  Specifically, 15% of any revenue in excess of the target sales level of $4 million per year will be placed in a “bonus pool” for distribution to allstores(last year’ssales were $3 million).  For example, if Myer Sisters as a group achieves total sales revenue of $4.5 million ($0.5 million more than the target level), then 15% of the additional $0.5 million in sales revenue will be distributed to employees.  All sales staff will receive a portion of the bonus pool, with store managers receiving a greater percentage compared to sales clerks.   Do you think this gain sharing plan is a good idea? Support your answer using

(a) Goal Setting Theory;

(b) Expectancy Theory and

(c) Agency Theory as appropriate (i.e., you do not need to refer to every part of every theory).

3. Based on your understanding of the various principles of incentive system/performance evaluation system design, make three suggestions as to how Myer Sisters’ performance measurement/incentive system could be improved.

1. Richard Branson, the CEO and Founder of the Virgin Companies, famously said that employees come first, not customers, rationalizing that when firms take care of their employees, the employees will take care of the clients. This belief fits with one of the Four Types of Corporate Culture. Please tell me which, and why you chose the one that you did.

2. , briefly, the 5 Steps that Manager Take, and offer some details on the 3^rd step in the process, Motivate and Communicate.

On January 1st 2000 Froto Company acquired 100% of the voting stock of Bilbo Company at book value.

Froto uses the initial value method (cost) and Bilbo doesn't pay any dividends.

On October 1st 2020 Froto sold some merchandise (inventory) to Bilbo company for $1,000,000 credit

the inventory had cost Bilbo $600,000. Both Bilbo and Froto use the perpetual inventory method.

During 2020 Bilbo had sold 70% of the merchandise acquired from Froto for $750,000 but had not paid off Froto

During 2021 Bilbo sold the remaining merchandise for $325,000 and paid off Froto

In 2020 Froto (unconsolidated) reported income of $1,000,000 and Bilbo reported income of $40,000

In 2021 Froto (unconsolidated) reported income of $1,200,000 and Bilbo reported income of $77,000.

Company X is a U.S.-based IT company with operations and earnings in a number of foreign countries. The company's profits by subsidiary, in local currency (in millions), are shown in the following table for 2019 and 2020.

     Net Income           Japanese Subsidiary       Britih Subsidiary

2019                   JPY 200                            GBP 100.00

2020                   JPY 1,480                         GBP 108.40

The average exchange rate for each year, by currency pairs, is the following.

Exchange Rate      JPY = 1 USD                 USD = 1 GBP

      2019                     97.57                               1.5646

      2020                      90.88                               1.6473

Use the above data, Students answer the following questions.

1. What is Company X's consolidated profits in U.S. dollars in 2019 and 2020?

2. If the same exchange rates are used for both years, what is the change in corporate earnings on a "constant currency" basis?   

Using the results of the constant currency analysis in part b, is it possible to separate Company X's growth in earnings between local currency earnings and foreign exchange rate impacts on a consolidated basis?           

In 2020, Tom and Amanda Jackson (married filing jointly) have $300,000 of taxable income before considering the following events:

(Use the dividends and capital gains tax rates and tax rate schedules.)

On May 12, 2020, they sold a painting (art) for $122,500 that was inherited from Grandma on July 23, 2018. The fair market value on the date of Grandma’s death was $96,250 and Grandma’s adjusted basis of the painting was $27,500. They applied a long-term capital loss carryover from 2019 of $11,250. They recognized a $12,625 loss on the 11/1/2020 sale of bonds (acquired on 5/12/2010). They recognized a $4,750 gain on the 12/12/2020 sale of IBM stock (acquired on 2/5/2020). They recognized a $20,000 gain on the 10/17/2020 sale of rental property (the only §1231 transaction), of which $10,000 is reportable as gain subject to the 25 percent maximum rate and the remaining $10,000 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2014). They recognized a $13,250 loss on the 12/20/2020 sale of bonds (acquired on 1/18/2020). They recognized a $7,625 gain on the 6/27/2020 sale of BH stock (acquired on 7/30/2011). They recognized an $12,250 loss on the 6/13/2020 sale of QuikCo stock (acquired on 3/20/2013). They received $1,000 of qualified dividends on 7/15/2020. After completing the required capital gains netting procedures, what will be the Jacksons’ 2020 tax liability? (Do not round intermediate calculations.)