1. Discuss one fringe benefit. Is it taxable? If so, how is it taxed? What type of employee would get these benefits (i.e. CEO, CPA, Administrative Assistant)?

You work as an analyst for an institution located in Riyadh, Kingdom of Saudi Arabia (or KSA).

The Saudi Arabia’s Monetary Authority, KSA’s Central Bank, has recently released a report on the regulation of the quantity of money in the country for the upcoming Year 2021.

In answering the questions that follow: show all relevant formulas and calculations. Keep two decimal points.   

As part of the report, Saudi’s Central Bank created a reference value for money growth between 2020 and 2021, according to which they expect real growth to stay between -4.2% and -6.3%, inflation rate to be between 3.9% and 5.8%, and velocity growth to range between -1.8% and -3.1%.

Using the averages for the figures provided above, calculate KSA’s estimated money growth rate. (2 points)

Suppose that the Central Bank’s report also states that between 2019 and 2020, due to the anticipated inflation in the MENA region brought on by 2020, the Saudi Arabian Monetary Authority is planning to DECREASE the country’s ‘M2’ from SR 230 billion to SR 205 billion (SR = Saudi Riyal).

According to the report, between 2020 and 2021, the KSA’s measure of velocity is expected to stay constant at 3.25.  

Using the Quantity Theory of Money, calculate the percentage change in the KSA’s nominal GDP. (1.5 points)

*** Note: Question 4(b) is not related to Question 4(a).   

The report states that, due to the anticipated deflation in the MENA region brought on by EXPO 2020, between 2020 and 2021, the Saudi Consumer Price Index is expected to DECREASE from 185 to 155.

Using Fisher’s Equation, determine the impact of this change on the level of the nation’s real GDP. (1.5 points)

*** Note: Question 4(c) is a continuation from Question 4(b) and is not related to Question 4(a).

BECN 250 – Money and Banking – Formulas

CPI = Cost of Basket in Current YearCost of Basket in Base Year × 100%

GDP deflator= Nominal GDPReal GDP

Inflation rate 1= New CPI - Old CPIOld CPI ×100% = New Cost of Basket - Old Cost of BasketOld Cost of Basket × 100%

Percentage change = New - OldOld ×100%

% Δ M + % Δ V = % Δ P + % Δ Y = % Δ Nominal GDP   

Money growth + Velocity growth = Inflation + Real growth

Hello,

I have an accounting question

Pronghorn Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pronghorn Inc. follows IFRS.

The tax rates were all enacted by the beginning of 2020.

Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Date

Date

(To record benefit from loss carryback.)

Date

Recording Notes Receivable: Issuance, Payment, and Default

Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes:

1. On October 31, 2019, Marydale accepts a 6-month, 9% note from Customer A in lieu of a $3,600 cash payment for services provided that day.
2. On February 28, 2020, Marydale accepts a 6-month, $2,400, 7% note from Customer B in lieu of a $2,400 cash payment for services provided on that day.
3. On April 30, 2020, Customer A pays the entire note plus interest in cash.
4. On August 31, 2020, Customer B pays the entire note plus interest in cash.

Required:

Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale's records. For a compound transaction, if an amount box does not require an entry, leave it blank.

June Rentals Inc. owns a large commercial storage unit that it had purchased on January 1, 2018 for $6 million cash and is accounted for in a separate account, classified as "Storage Property." The company decided to use the revaluation model to account for its storage properties and revalues them when they recognize that a substantial difference exists between net book value and fair value. June uses the straight-line depreciation method over the asset's 40-yr useful life (no residual value).

The asset's fair values were as follows on the following dates:

Dec 31, 2018: $5.85 million; Dec 31, 2019: $6.004 million (substantial difference from NBV); Dec 31, 2020: $5.846 million

On January 3, 2021, June sold building for $5.846 million. June uses IFRS.

Required:

1. Assuming June uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2018, 2019, 2020, and 2021. (Don't forget the depreciation entries.) Also, be sure to record the entry for the sale of the equipment.
2. Assuming June uses the proportional method for revaluation, prepare the required journal entries for 2019 to recognize the revaluation.

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

1. Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

2. Prepare an income statement through gross profit.

3. Prepare the current assets section of the balance sheet at June 30, 2020. (List Current Assets in order of liquidity.)

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.

a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

b) Prepare an income statement through gross profit.

c) Prepare the current assets section of the balance sheet at June 30, 2020. (List Current Assets in order of liquidity.)