In many (maybe most) organizations, the HR office is often viewed as a cost center and not a revenue center by many (maybe most) managers who work in business units, such as marketing. After reading chapter 2, watch the following video. Then, compare and contrast what the speaker says about this "cost center" philosophy (regarding the training function specifically) to the chapter. Discuss the solutions he offers. Do you believe they are effective? Explain your answer and offer any alternative or additional solutions.

"A local delivery company has purchased a delivery truck for $19,000. The truck will be depreciated under MACRS as a five-year property. The trucks market value (salvage value) is expected to decrease by $2,100 per year. It is expected that the purchase of the truck will increase its revenue by $11,000 annually. The O&M costs are expected to be $3,800 per year. The firm is in the 40% tax bracket, and its MARR is 15.3%. If the company plans to keep the truck only two years, what is the net present worth?"

You are in a meeting with Andrea Schwager, the new CEO of your company, discussing property, plant, and equipment, when she asks the following: “The accountants are telling me that, if we sell a piece of equipment for an amount in excess of its carrying amount on our statement of financial position, then we record a ‘gain,' which increases net income. If it increases net income, then why don't we call it a ‘revenue'? Wouldn't this be more understandable for financial statement users?”

Answer Andrea Schwager's questions.

On January 1,20X6 ,the company sold for 1,800 a piece of equipment costing 3,900. At the date of sale of the equipment had accumulated depreciaition of 2,400. The company recorded the cash received as other revenue in 20X6. Also, the company continued to record depreciation for this equipment in both 20X6 and 20X7 at the rate of 10% of cost.

Recording correcting entries on Dec31,20X7

Case 1: When the company has not yet closed the 20X7 books.

Case 2: When the company has closed the 20X7 books.

Suppose, in a country, the government decides to start redistributing income from rich households to poor households. The government considers two policy options:

1. Incentivize rich households to donate to the charity of their choosing — for example, the government could match each dollar the household donates to their charity.

2. Enact an income tax on high income households and directly redistribute the tax revenue to poor households.

Considering both efficiency and equity, provide a reason that (a) would be preferable to (b). Provide a reason that (b) would be preferable to (a). Explain.

MNCs require strategic global planning. Strategic global plan results from critical analysis of both external and internal environment. It is critical in gaining market share, profitability and to survive. We have also seen many MNCs do not survive or move into another industries. Review THREE (3) major functions of marketing, production and finance that are used in implementing strategic plan. Give example of MNC that shows its marketing, production and financial (revenue) plan work.

Suppose the individuals view their loss of income from income taxes as offset by the benefits of public services purchased with revenues. How are their labor supply decisions affected?

(a) Draw the optimal choice of a representative individual in leisure-consumption space before tax imposition.

(b) Describe the change of budget constraint when the income tax is imposed and all the revenue from income tax is returned as the individual’s consumption through public service provision.

(c) Show the change of optimal choice of the representative individual.

2: Relative sales value method.

Armstrong Company purchased a plot of ground for $800,000 and spent $2,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $100,000, $75,000, and $50,000 each, respectively.

Instructions: Complete the table below to allocate the cost of the lots using a relative sales value method.

The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.

A portion of the land owned by Timberline had been leased on April 16, 2018, to a service state operator at a yearly rental of $12,000. One year’s rent was collected in advance at the date of the lease and credited to Unearned Rental Revenue. The lease runs from April 16, 2018 through April 15, 2019.

On December 31, 2020, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $102,049, accepting $40,000 down and agreeing to accept the balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is imputed.

1. Instructions: Complete the note amortization table.

2. Instructions: Journalize the transactions for the note origination, interest recognition, and the note collection at maturity.