3. If you need P15,000 now (April 1, 2020), how much loan should you apply for from a friend who charges 12% simple discount if the loan is payable on July 1, 2020?  

1. Taylor Rule. Suppose the Quarter 1 2020 federal funds rate was 0.25%. If the output gap is -7% and the inflation gap is -5%, according to the Taylor Rule, what is the Fed’s target rate for Quarter 2 of 2020?

Assume you have received an invoice dated April 12, 2020 for $15,670.00 with terms of 2/10/n30. How much will you pay, assuming you will send payment on Monday, April 20, 2020.

need a justification paragraph to the following case

Introduction

The story of Enron Corp.is the story of a company that reached dramatic heights, only to face a dizzying fall. Its collapse affected thousands of employees and shook Wall Street to its core. At Enron's peak, its shares were worth $90.75; when it declared bankruptcy on December 2, 2001, they were trading at $0.26. To this day, many wonders how such a powerful business, at the time one of the largest companies in the U.S, disintegrated almost overnight and how it managed to fool the regulators with fake holdings and off-the-books accounting for so long.

Enron was formed in 1985, following a merger between Houston Natural Gas Co. and Omaha-based InterNorth Inc. Following the merger, Kenneth Lay, who had been the chief executive officer (CEO) of Houston Natural Gas, became Enron's CEO and chairman and quickly rebranded Enron into an energy trader and supplier. Deregulation of the energy markets allowed companies to place bets on future prices, and Enron was poised to take advantage. In 1990, Lay created the Enron Finance Corp. To head it, he appointed Jeffrey Skilling, whose work as a Mckinsey consultant had impressed Lay. Skilling was at the time one of the youngest partners at Mckinsey.

The Enron scandal was publicized in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audits and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was cited as the biggest audit failure.

After the U.S Congress adopted a series of laws to deregulate the sale of natural gas in the early 1990s, the company lost its exclusive right to operate its pipelines. With the help of Jeffrey Skilling, who was initially a consultant and later became the company's chief operating officer, Enron transformed itself into a trader of energy derivative contracts, acting as an intermediary between natural - gas producers and their customers.

As the boom years came to an end and as Enron faced increased competition in the energy - trading business, the company's profits shrank rapidly. Under pressure from shareholders, company executives began to rely on dubious accounting practices, including a technique known as "mark-to-market accounting" to hide the troubles. Mark to market allowed the company to write unrealized future gains from some trading contracts into current income statements, thus giving the illusion of higher current profits.

The severity of the situation began to become apparent in mid-2001 as a number of analysts began to dig into the details of Enron's publicly released financial statements. An internal investigation was initiated following a memorandum from a company vice - president, and soon the Securities and Exchange Commission (SEC) was investigating the transactions between Enron and Fastow's SPEs.

As the details of the accounting frauds emerged, the stock price of the company plummeted from a high of $90 per share in mid-2000 to less than $1 by the end of November 2001, taking with it the value of Enron employee’s pensions, which were mainly tied to the company stock. Lay and Skilling resigned, and Fastow was fired two days after the SEC investigation started. On December 2, 2001, Enron filed for Chapter 11 bankruptcy protection. Many Enron executives were indicted on a variety of charges and were later sentenced to prison. Arthur Andersen came under intense scrutiny and eventually lost a majority of its clients. The damage to its reputation was so severe that it was forced to dissolve itself. In addition to federal lawsuits, hundreds of civil suits were filed by shareholders against both Enron and Anderson.

The scandal resulted in a wave of new regulations and legislation designed to increase the accuracy of financial reporting for publicly traded companies. The most important of those measures, the Sarbanes -Oxley Act (2002), imposed harsh penalties for destroying, altering or fabricating financial records. The act also prohibited auditing firms from doing any concurrent consulting business for the same clients.

Analysis

            Enron was a company that thrived use of latest technologies and had a code of ethics that prohibited managers and executives from being involved in another business entity that did business with their own company. However, the codes of ethics that was voluntary and was set aside by the board of directors and the top management. The legal structure allowed top management to enter these arrangements, that constituted a conflict of interest and while it's a fiduciary duty the managers and executives had to behave and act in the best interest of the company and its shareholders. But there was discretion for them to exercise their own business judgment regarding what was in the best interest of the company. A path filled with unethical and illegal activities was followed. Management was succumbing to greed and dishonesty by secretly exercising stock options and constructed faulty falsely financial report which enabled to hide billions of dollars of debt. Enron management abandoned the basic accounting standards of integrity and created a noncompliance that existed different than GAAP or SEC reporting standards.

Enron's chief financial offer, Andrew Fastow, was the alleged mastermind behind camouflaging an estimated one billion dollars of debt that resulted to the Enron's bankruptcy. practices. To misrepresent its true financial condition, he took the role by involving special purpose entities and unconsolidated partnerships. By concealing the debts, and presenting inaccurate financial condition he hide Enron's true financial standing. In the year 2000, Enron financially fell short and resulted to the long-awaited demise of bankruptcy. David Duncan had the responsibility of representing the interests of Arthur Andersen in Enron Company. He was acting as the head auditor thus hold the responsibility to maintain the highest professional accounting and auditing ethics, and leading his auditing team in an unbiased and responsible approach. However, he was acting negligently, and followed a complete lack of ethics throughout his involvement with Enron. Nancy Temple acted in sole interest of the client. Whistle blowing by an employee, Sherron Watkins, is termed to be an employee's moral responsibility. Sherron Watkins owed loyalty to herself as well as the investors, which is exactly why she blew the whistle at Enron. Andersen ruined their goodwill and having the charges overturned was not easy going to change how the government and the public view and rate them. The company had lost all of their credential investors. The investors shake hands with Anderson’s competitors. Without the money coming from the investors the Anderson company was not able to survive the business in the market.

Solution

            Enron’s bankruptcy scandal not only not effected Enron and its shareholders but it affected the market as well lower company’s values that were in the same industry. The scandal surrounding Enron bankruptcy has its impact on their competitors because of them being in the similar industry the thought that they too were doing the same thing that lead to the downfall of Enron. To avoid such conflict government regulations and rules are required to be updated for the new economy, not relaxed and eliminated. The government must regulate the constitution of the board of directors by including professionals such as accountants and auditors. Government can tighter regulation and monitoring on rogue board members by requiring for individual audits of the members. In certain ways, the culture of Enron was the main cause of the collapse. The company must advocate is strict adherence to proper corporate governance principles; and encourage their employees to act in the best interest for the company. A proper implemented and formulated structured control procedure also helps in minimizing the risks.

Furthermore, to limit errors and risks when auditing special projects, external auditors must ensure that the company gives detailed disclosures of the financial transactions occurred in the special projects along with detailed substantial communication that provides proper detailed description on the relevancy of the financial interest involved. Moreover, should be strict adherence to proper corporate governance principles. It will help senior leadership to act in the interest of the shareholders of the company instead of self-interest.

Construction Ltd. had the following activity related to its shares for the year ended December 31, 2020. Common shares outstanding, January 1: 150,000 $3, cumulative preferred shares outstanding, January 1: 3,000 During 2020 April 1: Declared a 2-for-1 stock split on common shares July 1: Issued 20,000 common shares. August 1: Issued 1,000 $2, non-cumulative preferred shares. October 1: Repurchased 50,000 common shares. December 1: Declared a 15% stock dividend on common shares. Net income for the year was $476,000. No dividends were declared or paid in 2020. Required : Calculate basic earnings per share for 2020. Round to the nearest cent.

Using C programming

I have a file that contains earthquake data that I will copy and paste below. I want to use either bubble or insertion sort to sort the file by latitude in ascending order, then create a new file containing the sorted data.

example file to sort:

time,latitude,longitude,depth,mag,magType,nst,gap,dmin,rms,net
2020-10-17T17:22:03.840Z,32.877,-116.2991667,0.31,1.16,ml,21,119,0.07747,0.26,ci
2020-10-17T17:17:29.980Z,34.1611667,-116.452,2.75,0.87,ml,17,66,0.05224,0.22,ci
2020-10-17T17:03:54.460Z,33.5396667,-116.4613333,8.66,0.63,ml,18,126,0.06084,0.16,ci
2020-10-17T16:55:01.080Z,63.254,-151.5232,8,1.4,ml,,,,0.9,ak

Meyer reported the following pretax financial income (loss) for the years 2020–2022. 2020 $120,000 2021 (150,000) 2022 180,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020–2022. Instructions a. Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.

I am not sure what the correct solution is on your website.

Do we need an allowance journal entry for the years 2021 and 2022 to record the NOL Carryforward benefit?

a. Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized.

b. Assuming that it is more likely than not that $15,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account.

Jade MacIntire is a famous singer. Jade Aquarium, Inc. is a multimedia company with business interests in music, videos, and video games. Both Jade MacIntire and Jade Aquarium need help booking the licensing agreements they have entered into during the past year. They entered into the following licensing agreements:

In January, Jade Aquarium, Inc. purchased the intellectual property rights to the music created by Jade MacIntire to date of the contract, for $20,000. Under the terms of the contract has additionally acquired the right to purchase future compositions created and sung by the artist, for $500 per composition, within five-years from the date of the contract. The corporation can legally sell to another party the compositions it has purchased from the artist.

This year, Jade MacIntire has entered into an agreement with the producers of a Broadway musical, giving them the exclusive right to use a song that she wrote, for a $10,000 consideration. It is not a song Jade MacIntire will ever personally perform.

Jade Aquarium, Inc. has also entered into a licensing agreement with a movie company allowing it to use two of the artist’s most popular compositions in future movies over the next two years. The movie company paid $2,000 for the option to use the songs and will pay an additional $1,500 each time the songs are used in a movie. It is expected that the use of the songs in the movies will bolster the artist’s popularity, increasing the demand for her albums.  

Jade Aquarium, Inc. also collects royalties for songs written by Jade MacIntire and played on air. On average the company collects for 3500 song plays each month. Each play earns the company 9.1 cents in royalties.

Jade Aquarium produced a guitar music app that individuals can download for $2.99, with 20,000 apps downloaded this year. The app is fully functional, but the company anticipates needing to provide software updates twice a year for the next five year; these costs are expected to equal $3,000 and are considered immaterial to the total app developmental cost of $60,000.

At the end of June, Jade MacIntire sold the rights to the use of her album cover images for t-shirts and mugs to Music Outfitters-R-Us for two years. Music Outfitters-R-Us paid Jade MacIntire $20,000 for the rights. Music Outfitters-R-Us has offered Jade a bonus of $10,000 if Jade MacIntire averages at least 50 shows per year over the next two years and $5,000 if Jade MacIntire averages at least 40 shows per year over the next two years. By the end of the year, Jade MacIntire had performed 50 shows.

The probability of Jade MacIntire playing 20-29 shows next year is 15%, 30-39 shows next year is 25%, 40-49 shows next year is 30%, 50+ shows next year is 30%.

Case Questions

1. Summarize the issues specifically related to accounting that are in this case.

2. Providing relevant support from the FASB Codification, discuss the proper accounting treatment for the revenue generating activities. More specifically, at what point(s) in time should revenue be recognized, and for what amount(s)?

3. Find, cite, and summarize the relevant international accounting standard applicable to this case. Compare and contrast relevant U.S. GAAP and IFRS standards.

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60.  [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

1.  What was the nominal yield on this bond on October 15, 2016?  [To 1 decimal place.]

2.  What was the current yield on this bond on October 15, 2016?  [To 2 decimal places.]

3.  What was the yield to maturity for this bond on October 15, 2016?  [To 3 decimal places.]

4.  What was the risk premium for this bond on October 15, 2016?  [To 3 decimal places.]

5.  What was the nominal yield on this bond on October 15, 2020?  [To 1 decimal place.]

6.  What was the current yield on this bond on October 15, 2020?  [To 2 decimal place.]

7.  What was the yield to maturity for this bond on October 15, 2020?  [To 3 decimal places.]

8.  What was the risk premium for this bond on October 15, 2020?  [To 3 decimal places.]

9.  It is now October 15, 2020 and suddenly the Federal Reserve announces a massive program to reduce inflation.  Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%.  If there is no change in the risk premium expected for this Koala, Inc. bond, what will be this bond’s yield to maturity?  [To 3 decimal places.]