As controller of the Parent Company who is ready to prepare financial statements, you have the following information:

1. You, the Parent Company, have 141 subsidiaries or investees.
2. 80 of these subsidiaries are located in the United States and are 100% owned and controlled by you (the Parent.)
3. 20 of these companies are located in the United States but you only own 30% of the company.
4. 40 of these subsidiaries are 100% owned and are located in the European Union, which uses IFRS as the accounting framework. 38 of these 40 subsidiaries use the Euro to denominate their financial statements; 2 of the 40 subsidiaries do not use the Euro; one uses the Polish Złoty PLN and the other uses the Danish krone to denominate financial statements.
5. One 100% owned subsidiary is in Switzerland which allows IFRS or U.S. GAAP to be used as the accounting framework. Financial statements are denominated in the Swiss Franc.

REQUIRED: What are the steps you would use (the Parent Company) to prepare consolidated financial statements for the parent company, the 121 100% owned subsidiaries, and the 20 companies in which you are heavily invested. [Consider IFRS, foreign currency; NCI, and anything else you think is pertinent.]

Appen Ltd. incurred fixed manufacturing costs of $25,000 during 2020. Other information for 2020 includes:

            The budgeted denominator level is 2,500 units.

            Units produced total 2,600 units.

            Units sold total 1,600 units.

            Variable cost per unit is $5

            Beginning inventory is zero.

The fixed manufacturing cost rate is based on the budgeted denominator level. There is no spending variance for fixed manufacturing cost.

Under absorption costing, calculate the production-volume variance. Clearly label whether the variance is ‘favourable’ or ‘unfavourable’ (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) Show all workings.

The following are transactions for the account period of 5/1/2020 through 5/31/2020 for the Sandy’s East Coast Kites and Novelties, a sole proprietorship owned by Windy Uberflier. Create a trial balance, Income Statement, Statement of Owners Equity, and Balance Sheet at the end of day on 5/31/20. Don’t forget to adjust accounts.

1. 5/1/20 - Deposited $53,000 into a business bank account for the company.
2. 5/1/20 - Signed a lease for retail and manufacturing space and paid cash for the first six months rent of $4,200. (Hint- When to you count rent as revenue?)
3. 5/1/20 - Bought office supplies to be used immediately from Dewey’s Office and Hunting Supply on account for $600.
4. 5/1/20 - Bought a one-year liability insurance policy from Louie’s Ducky Insurance Company and Nail Salon for $12,000 cash.
5. 5/1/20 - Bought novelty inventory with a wholesale value of $5,000, paying $2,500 in cash and promising to pay the balance on 6/1/20.
6. 5/2/20 - Bought a Chevy truck from Donald’s Truck and Egg Supply with an extended bed and saddle tanks for $23,000 cash.
7. 5/3/20 - Bought a truck shell from Huey’s Truck Accessories and Novelties for $2,500 on account.
8. 5/4/20 - Invested personal computer equipment to the company having a fair market value of $3,400.
9. 5/10/20 - Signs a contracted to perform a Kite Demo in Philadelphia on 6/1/20 and is paid $2,500 cash.
10. 5/11/20 - Paid Huey’s Truck Accessories and Novelties $1,500 cash.
11. 5/11/20 - Purchased an ad in the local newspaper The Righteous Dempublicrat for $200 on account.
12. 5/20/20 - Performed a Kite Demo to the Boy’s and Girl’s Club of Greater Hoboken with a promise to receive $2,500 cash from Scrooge McDuck by 9/1/20.
13. 5/20/20 - Paid $1,000 cash to Huey’s Truck Accessories and Novelties.
14. 5/20/20 - Purchased 45 gallons of gas for truck for $160 cash.
15. 5/22/20 - Paid $200 cash to the local newspaper for ad purchased on 5/11.
16. 5/23/20 - Hired a new employee who will start on 5/26 and will be paid $15 per hour (working 8 hours a day M-F), and instantly paid her a bonus of $1,000 cash. Paydays are the first day of the month.
17. 5/24/20 - Bought a trailer from Huey’s Truck Accessories and Novelties for $2,120 paying $620 cash down and putting the remaining balance on account.
18. 5/25/20 - Received a check from Scrooge McDuck for $850 for partial payment for Kite demo on 5/20.
19. 5/28/20 - Customer purchases an ACME Super Duper Flier and various novelty accessories for $4,220 cash. The wholesale value of the merchandise was $2,110.
20. 5/28/20 - Withdraws $2,500 in cash from the business to quarantine with style.

On January 1, 2020, Caliber Corporation issued 9% bonds dated January 1, 2020, with a face amount of $10 million. The bonds mature in 2029 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid annually on December 31.

1. What is the amount of the annual interest payment?

2. What is the price of the bond on the issue date? (state method used)

3. Was the bond sold at a discount or a premium? Explain why.

4. What is the "actual" cost of this debt?

5. What is the price of the bond if the market yield is 8%? (state method used)

6. Is this bond sold at a discount or premium? Explain why.

7. What is the "actual" cost of this debt?

In December 2017, the U.S. Senate passed the Tax Cuts and Jobs Act of 2017. The act is effectively altering the rate of taxation for individuals and businesses. Describe the potential effects of this major tax reform on the the U.S. future economic growth. Please include examples from markets for loanable funds and foreign currency exchange.

In a recent Dew Research Poll, 1000 U.S. adults were asked about their online versus in-store clothes shopping. One finding was that 32% of respondents never clothes-shop online. Construct and interpret a 95% confidence interval for the proportion of all U.S. adults who never clothes-shop online.

Provide two reasons why you think the gold standard or the fiat system (our current system in the U.S.) would be better or worse for the future of the U.S. and/or the global economy. Next describe how you believe the current pandemic crisis could affect the International Monetary System and/or International Monetary Fund?

Provide two reasons why you think the gold standard or the fiat system (our current system in the U.S.) would be better or worse for the future of the U.S. and/or the global economy. Next describe how you believe the current pandemic crisis could affect the International Monetary System and/or International Monetary Fund?

Briefly describe the effect on the money supply of the following monetary policies:

• The Fed purchases $20 million worth of U.S. Treasury bonds.
• The Fed increases the discount rate.
• The Fed decreases the discount rate.
• The Fed sells $40 million worth of U.S. T-bills.
• The Fed decreases the required reserve ratio.