A German seller and a U.S. buyer form a contract. The buyer breaches. The seller sues in a German court and wins damages, but the buyer’s assets are in the United States. If a U.S. court enforces the judgment, it will be because of

Question 33 options:

Who is the most powerful person in the U.S.? Discuss the difference of the power, role, and influence of the President compared to the Speaker of the House, the Senate Majority Leader and other positions of power in the U.S. today. What are the more important constraints or limits on the President's power? Should the President "represent" the American people or "lead" them?

What is the interest rate that the United States Government must pay if they want to borrow for ten years?

Does this rate change from one day to the next?

If I buy a ten-year U.S. treasury bond what cash flows would I expect to receive from the U.S. Government?

The balance sheet for Tactex Controls Inc., provincially incorporated in 2018, reported the following components of equity on December 31, 2019.

In 2020 and 2021, the company had the following transactions affecting shareholders and the equity accounts:

Required:
1. Prepare journal entries to record the transactions and closings for 2020 and 2021. The company uses a cash dividends account to record declared dividends.

2. Prepare a statement of changes in equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

3. Prepare the equity section of the company’s balance sheet as of December 31, 2021.

Progressive Inc. (Progressive) is an investment company that recently raised $3,000,000 from a public financing. The Board of Directors has instructed the CFO to invest up to $2,000,000 in investments that it intends to actively trade and therefore will account for these investments at fair value through profit or loss.

On the advice of the company’s investment advisor, the following shares were purchased in October 2019:

During December 2019, Progressive received cash dividends of $40,000 from its investment in Monarch Bank of Canada.

In 2020, the following transactions took place:

January 25 50,000 shares of Leslee Resources Ltd. were purchased for $125,000.

May 17 6,000 shares of Monarch Bank of Canada were sold at $45 per share

June 17 75,000 shares of Lucky Limited were purchased at $15 per share

September 25 100,000 shares of Leslee Resources Ltd. were sold for net proceeds (i.e. after commissions) for $165,000. (For the purposes of determining the cost of shares sold, use the weighted average cost).

As part of its banking arrangement, the company pays no commissions on the purchase of shares but is charged a 2% commission on the sale of all investments.

Market Price of investments – presented on a per share basis

Required:

a) Prepare all journal entries relating to these investments for 2019.

b) Prepare all journal entries relating to these investments for 2020.

c) Briefly discuss why these investments are valued at current market value while other assets such as property, plant and equipment are not adjusted to fair market value.

Problem 23-08

Comparative balance sheet accounts of Oriole Company are presented below.

Additional data:

Oriole’s 2020 income statement is as follows.

(a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Prepare a statement of cash flows using the indirect method.

1. When the exchange rate between the U.S. dollar and Japanese yen changes from $1 = 100 yen to $1 = 90 yen: All Japanese producers and consumers will lose. U.S. consumers of Japanese TV sets will benefit. U.S. auto producers and autoworkers will lose. Japanese tourists to the U.S. will benefit.

2.

The Social Security Trust Fund (OASI):

3.

The national debt represents:

4.

Supply-side economists advocate:

(TCO G) Let the exchange rate be defined as the number of dollars per Japanese yen. Assume there is an increase in U.S. interest rates relative to that of Japan. (30 points)

(Part A) Would this event cause the demand for the dollar to increase or decrease relative to the demand for the yen? Why? (5 points)

(Part B) Has the dollar appreciated or depreciated in value relative to the yen? (5 points)

(Part C) Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in Japan? Illustrate by showing the price of a U.S. e-reader in Japan before and after the change in the exchange rate. (10 points)

(Part D) If you had a business exporting goods to Japan, and U.S. interest rates rose as they have in this example, would you plan to expand production or cut back? Why? (10 points)

The Bretton Woods system of fixed exchange rates collapsed because

A.inflationary U.S. monetary policy forced other countries to gain international? reserves, which led to recession in those countries.

B.inflationary U.S. monetary policy forced other countries to lose international? reserves, which led to inflation in those countries as well.

C.inflationary U.S. monetary policy forced other countries to gain international? reserves, which led to inflation in those countries as well.

D.inflationary U.S. monetary policy forced other countries to lose international? reserves, which led to recession in those countries.

When a country experiences a speculative attack on its? currency, it

A.loses international reserves and may be forced to devalue its currency.

B.loses international reserves and may be forced to revalue its currency.

C.gains international reserves and may be forced to devalue its currency.

D.gains international reserves and may be forced to revalue its currency

There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, and the federal government did not challenge the merger. Although the merger created a single seller in this market, the existence of a monopoly may not have much impact on U.S. consumers. Which of the following statements are plausible reasons for the limited impact of the merger?