Write a motivation letter for an undergraduate program into a university to study information technology.

Answer for 8 and 9

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? 6% [To 1 decimal place.]

2. What was the current yield on this bond on October 15, 2016?5.36% [To 2 decimal places.]

3. What was the yield to maturity for this bond on October 15, 2016? 5.679% [To 3 decimal places.]

4. What was the risk premium for this bond on October 15, 2016? 1.179% [To 3 decimal places.]

5. What was the nominal yield on this bond on October 15, 2020?6% [To 1 decimal place.]

6. What was the current yield on this bond on October 15, 2020?6.15% [To 2 decimal place.]

7. What was the yield to maturity for this bond on October 15, 2020?6.346% [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.]

Part C Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Following information was extracted from the Statement of Financial Position at 30 June 2020:

Other information was available for the year ended 30 June 2020:

1. Sales are recorded for income tax purpose at the time the sales are made.
2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
5. Insurance is allowed as a tax deduction when it is paid.
6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

1. Determine the amount of taxable income for the year ended 30 June 2020.
2. Determine the amount of income tax expense for the year ended 30 June 2020.
3. Prepare a journal entry to record current tax liability on 30 June 2020.
4. Determine the amount of tax base for machine.
5. Determine the amount of temporary difference for machine.
6. The temporary difference for machine is deductible in this question, is this correct? Explain.
7. Provide journal entry to record DTA or DTL for machine.

Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Following information was extracted from the Statement of Financial Position at 30 June 2020:

Other information was available for the year ended 30 June 2020:

1. Sales are recorded for income tax purpose at the time the sales are made.
2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
5. Insurance is allowed as a tax deduction when it is paid.
6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

1. Determine the amount of taxable income for the year ended 30 June 2020.
2. Determine the amount of income tax expense for the year ended 30 June 2020.
3. Prepare a journal entry to record current tax liability on 30 June 2020.
4. Determine the amount of tax base for machine.
5. Determine the amount of temporary difference for machine.
6. The temporary difference for machine is deductible in this question, is this correct? Explain.
7. Provide journal entry to record DTA or DTL for machine.

Part C Question 3 Accounting for Income Taxes                                                   

Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

  $                      $

Following information was extracted from the Statement of Financial Position at 30 June 2020:

Other information was available for the year ended 30 June 2020:

1. Sales are recorded for income tax purpose at the time the sales are made.
2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
4. The machine was purchased two years ago at a value of $400,000. It is depreciated evenly over its useful life and it has no residual value. The useful life is ten years based on accounting policy, but it is depreciated over eight years according to the taxation rule.
5. Insurance is allowed as a tax deduction when it is paid.
6. Income tax rate is 30%.

Required: (Narrations are not required in this question)

1. Determine the amount of taxable income for the year ended 30 June 2020.
2. Determine the amount of income tax expense for the year ended 30 June 2020.
3. Prepare a journal entry to record current tax liability on 30 June 2020.
4. Determine the amount of tax base for machine.
5. Determine the amount of temporary difference for machine.
6. The temporary difference for machine is deductible in this question, is this correct? Explain.
7. Provide journal entry to record DTA or DTL for machine.

During this week, a recession begins to strike the island. Three of the five employers have reduced their workforce sizes. The unemployment rate has gone from 0% to 7%. Unfortunately, the employers are not able to offer severance, so those who have lost their jobs do not have any financial security.

While your island deals with this recession, ClemCock seems to be thriving. In fact, ClemCock has a new IT company and is recruiting individuals to work for it. This company offers competitive salaries and full health benefits. During the recruiting process, representatives from ClemCock have come to your island to interview potential candidates for the positions. For many, interest in moving to ClemCock has piqued.

Because ClemCock’s economy is stimulated, their government and private sector have been able to invest in innovative medical technology. Their hospitals offer state of the art equipment and devices. Your island’s hospital equipment pales in comparison--and you note that several individuals are traveling to ClemCock for critical medical procedures. Because of this, your hospitals are losing profit. Also, many doctors and nurses on your island are questioning why their facilities are not keeping up with ClemCock’s technology.

Vision: Provide highest quality of life for all inhabitants

Mission: Maintain current levels of employment, education, and health

Values Statements:

• We value respect for all people.

• Everyone should contribute to society following policies and regulations.

• Society should maintain efficiency and effectiveness to innovate change as needed and interact with the environment.

You are worried that your citizens will begin to emigrate to the other island. You know that this will only cause your island’s financial situation to further deteriorate. In addition, you must find a way to appease the healthcare providers on your island.

Going forward, how will you ensure your island’s prosperity?

Risk-Based Reimbursement

For your assignment, a primary care physician is often reimbursed by Health Maintenance Organizations (HMOs) via capitation, fee-for-service, relative value scale, or salary. Capitation is considered as a risk-based compensation.

In an effort to understand the intricacies involved with physician reimbursement, particularly in an era of health care reform, identify and interview an expert in the field, such as:

·      Hospital Administrator

·      Managed Care Organization (MCO) executive

·      Health care Consultant

·      Legal Professional

Assumption: MCOs use risk-based reimbursement for primary care physicians.

Ask the following questions in the interview:

·      What kind of risk do the MCOs assess?

·      Does risk-based compensation limit the freedom of primary care physicians in any way in terms of patient care? Why or why not?

·      How does the capitation model of reimbursement work? Do physicians generally prefer one model over the other? Why or why not?

·      Why do HMOs prefer the prepaid, monthly premium?

·      Is pay-for-performance a better model than existing models of compensation? Are there limitations to it as well?

Feel free to add additional follow-up questions for depth and clarification as you see fit.

.

Risk-Based Reimbursement

For your assignment, a primary care physician is often reimbursed by Health Maintenance Organizations (HMOs) via capitation, fee-for-service, relative value scale, or salary. Capitation is considered as a risk-based compensation.

In an effort to understand the intricacies involved with physician reimbursement, particularly in an era of health care reform, identify and interview an expert in the field, such as:

·      Hospital Administrator

·      Managed Care Organization (MCO) executive

·      Health care Consultant

·      Legal Professional

Assumption: MCOs use risk-based reimbursement for primary care physicians.

Ask the following questions in the interview:

·      What kind of risk do the MCOs assess?

·      Does risk-based compensation limit the freedom of primary care physicians in any way in terms of patient care? Why or why not?

·      How does the capitation model of reimbursement work? Do physicians generally prefer one model over the other? Why or why not?

·      Why do HMOs prefer the prepaid, monthly premium?

·      Is pay-for-performance a better model than existing models of compensation? Are there limitations to it as well?

Feel free to add additional follow-up questions for depth and clarification as you see fit.

.

National savings in US is equal to 40 billion dollars. Suppose US is an open economy and the real interest rate on Canada bonds increases. All else equal, what would we expect to happen to US investment and net capital outflow? Select one:

a. Net capital outflow decreases and US investment increases.

b. Net capital outflow increases and US investment increases.

c. Net capital outflow increases and US investment decreases.

d. Net capital outflow decreases and US investment decreases.