Question 1

Rogers Co. had a sheet metal cutter that cost $96,000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2015, the old cutter is exchanged for a new cutter with a fair value of $48,000. The exchange had commercial substance. Rogers also received $12,000 cash. Assume that the last fiscal period ended on December 31, 2014, and that straight-line depreciation is used.

Instructions

(a) Show the calculation of the amount of the gain or loss to be recognized by Rogers Co.

(b) Prepare all entries that are necessary on April 3, 2015.

Candy  Company manufactures candy and has the following information for june 2010. Sales totaled $4,125,000.00 and gives a 4% commission to its sales staff charged as a selling expense. A total of 100,000 direct labor hours were worked for the month with a rate of $6.00 per hour. Raw materials purchases $ 500,000.00 Salaries of Sales Staff 320,000.00 Salary of General Manager 250,000.00 Utilities Expense - Factory 190,000.00 Rent for factory 170,000.00 Administrative Salaries 140,000.00 Rent for Sales Shop 130,000.00 Indirect labor 120,000.00 Factory supervisor's salary 90,000.00 Indirect materials 45,000.00 Utilities Expenses - Office 47,000.00 Factory supplies 45,000.00 Maintenance cost in the factory 35,000.00 Depreciation - Factory Equipment 25,000.00 Depreciation - Office Administrative Equipment 22,000.00 Office Supplies Expense 15,000.00 Insurance for Administrative Offices 6,000.00 Insurance for Factory Premises 5,000.00 Miscellaneous Expense - Office 3,500.00

Inventory levels are as follows: Beginning Inventory Ending Inventory Raw Materials $180,000.00 $140,000.00 Work In Process 180,000.00 200,000.00 Finished Goods 150,000.00 125,000.00  

Find  

. Manufacturing cost , Cost of Goods Manufactured , Cost of Goods Sold , Net Operating Income

How E-bay failed in China? Sep 12, 2010 By Helen H.Wang and China Tracker This weekend, eBay’s CEO John Donahoe shared the stage with Alibaba’s maverick founder Jack Ma at his annual Alifest conference in Hangzhou, China. Gady Epstein, Forbes Beijing bureau chief, has an intriguing blog post about how Donahoe wished a happy birthday to Jack Ma who not only defeated eBay in China, but also “encroaches on eBay’s home turf.” Since Epstein referenced my recounting of the eBay-Alibaba battle, I thought it might serve readers well to provide an excerpt here from my book The Chinese Dream: In 2004, eBay had just entered China and was planning to dominate the China market. Alibaba was a local Chinese company that helped small- and medium-sized enterprises conducting business online. Most people in the West had barely heard about it. When eBay entered the China market, Jack Ma, founder and CEO of Alibaba, was alarmed that “someday, eBay would come in our direction.” He knew too well that there was no clear distinction between small businesses and individual consumers in China. As a defensive strategy, Ma decided to launch a competing consumer-to-consumer (C2C) auction site, not to make money, but to fend off eBay from taking away Alibaba’s customers. A new Web site named Taobao—meaning “digging for treasure”—was launched free of charge for individuals buying and selling virtually any consumer goods, from cosmetics to electronic parts. In 2004, I visited Alibaba at its headquarters in Hangzhou. It is located on a campus of three ten-story buildings in the northeastern part of Hangzhou, about a ten-minute taxi drive from West Lake. In the lobby, a flat panel TV was streaming video clips of Jack Ma speaking at various public events where his admirers, most of them in their twenties, were cheering him like a rock star. While visiting Alibaba’s headquarters in Hangzhou, I felt the same “insanely great” energy of entrepreneurship as I felt in Silicon Valley. When I asked a senior manager at Alibaba whether the company was worried that it would be bought by eBay, I was blown away by the answer: “We will buy eBay!” EBay, on the other hand, began its most aggressive campaigns to dominate the market and thwart competitors. Soon after Taobao was launched, eBay signed exclusive advertising rights with major portals Sina, Sohu, and Netease with the intention of blocking advertisements from Taobao. In addition, eBay injected another $100 million to build its China operation, now renamed “eBay EachNet,” and was spreading its ads on buses, subway platforms, and everywhere else. Ma fought back cleverly. Knowing that most small business people would rather watch TV than log on to the Internet, Ma secured advertisements for Taobao on major TV channels. In 2004, one could easily feel the heat of fierce competition between eBay EachNet and Taobao. When I was taking a taxi in Shanghai, I noticed the ads of eBay EachNet on the back of the driver’s seat; when I checked into my hotel, I heard the ads for Taobao popping up on TV almost every half hour. Since its name means “digging for treasure” in Chinese, it attracted a lot of attention by a smart play on words. While most people in the West had never heard of Taobao, its name was heard loud and strong in China. Nevertheless, most industry observers were suspicious about Taobao’s future, particularly its sustainability. Unlike eBay EachNet, which charged its sellers for listing and transaction fees, Taobao was free to use. Neither Ma nor any members from the management team gave a definite timeline as to how long this “free period” was going to last. “Free is not a business model,” the doubters said. Some thought Ma was crazy and nicknamed him “Crazy Ma.” No doubt Crazy Ma was changing the game. Taobao got a quick start with its free listings and continued to gain momentum as more and more users switched from eBay EachNet to Taobao. According to a Morgan Stanley report, Taobao was more customer focused and user friendly than eBay EachNet. With most users not sophisticated about auctions, the majority of Taobao’s listings were for sales. Only 10 percent of its listings were for auctions, while eBay EachNet had about 40 percent of its listings for auctions. Taobao had also better terms for its customers: it offered longer listing periods (fourteen days) and let customers extend for one more period automatically. EBay EachNet did not have this flexibility. Taobao’s listings appeared to be more customer-centric while eBay EachNet’s listings more product-centric. For example, Taobao’s listings were organized into several categories, such as “Men,” “Women,” and so on, while eBay EachNet stuck to its global platform, grouping users into “Buyers” and “Sellers.” At that time, China had about three hundred million cell phone users versus ninety million Internet users. Taobao offered instant messaging and voice mail to mobile phones for buyers and sellers because Chinese users were cell-phone savvy rather than computer savvy. It was clear that Taobao had an upper hand against its global counterpart because it really understood Chinese customers. As a result, Taobao had higher customer satisfaction than eBay EachNet. According to iResearch, a Beijing-based research firm, the user satisfaction level was 77 percent for Taobao versus 62 percent for eBay EachNet. The experience of competing with eBay gave Ma tremendous confidence. He was determined to win: “eBay may be a shark in the ocean, but I am a crocodile in the Yangtze River. If we fight in the ocean, we lose—but if we fight in the river, we win.” By March 2006, Taobao had outpaced eBay EachNet and became the leader in China’s consumer-to-consumer (C2C) market, with 67 percent market share in terms of users, while eBay EachNet had only 29 percent market share. “The competition is over,” Ma exclaimed. “It’s time to claim the battlefield.” On December 20, 2006, Meg Whitman, eBay's then CEO, flew to Shanghai to take part in a press conference to announce a new joint venture with Beijing-based Internet portal Tom Online, which provides wireless value-added multimedia services. It was, in reality, a formal announcement of eBay’s withdrawal from the online auction market in China. EBay shut down its China site, eBay EachNet, and took a back seat to a company with only $173 million in revenue and no experience in the online auction business. Jack Ma represents a new generation of savvy Chinese competitors who should not be underestimated. They study their markets and bring to bear their local knowledge. They learn from their competition and from their own mistakes as they move up the competitive landscape. The case of Alibaba provides an invaluable lesson for multinationals to succeed in China market: First, eBay failed to recognize that the Chinese market and the business environment are very different from that of the West. EBay sent a German manager to lead the China operation and brought in a chief technology officer from the United States. Neither one spoke Chinese or understood the local market. It was eBay’s biggest mistake. Second, because the top management team didn’t understand the local market, they spent a lot of money doing the wrong things, such as advertising on the Internet in a country where small businesses didn’t use the Internet. The fact that eBay had a strong brand in the United States didn’t mean it would be a strong brand in China. Third, rather than adapt products and services to local customers, eBay stuck to its “global platform,” which again did not fit local customers’ tastes and preferences.

Retrieved from: https://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/#b53cbc35d57a

Question 1:

a) To enter the Chinese market, Ebay spent a lot on advertising yet it failed. What was the problem with their advertising strategy?

b) At its start, what strategy helped Taobao gain more customers than ebay?

c) Certainly, entering a foreign market with a large capital is important, but does it guarantee success?

d) Many other foreign companies failed in China although they were successful in their home countries. Amazon’s failure in China is a very recent example. What are the reasons behind their failure?

e) What are your recommendations for businesses wanting to enter the Chinese market?

About 130,000 high school students took the AP Statistics exam in 2010. The free-response section of the exam consisted of five open-ended problems and an investigative task. Each free-response question is scored on a 0 to 4 scale (with 4 being the best). For one of the problems, a random sample of 30 student papers yielded the scores that are graphed in the dot plot of part (a) in the previous problem. The mean score for this sample is x̄ = 1.267 and the standard deviation is s = 1.230.

(a) Find and interpret the standard error of the mean.

(b) Construct and interpret a 99% confidence interval to estimate the mean score on this question. Use the four-step process.

On December 31, 2010, Praxar Company’s plant asset and accumulated depreciation and amortization accounts had balances as follows: Category Plant Asset Accumulated Depreciation and Amortization Land $ 175,000 $ 0 Buildings 1,500,000 328,900 Machinery and equipment 1,125,000 317,500 Automobiles and trucks 172,000 100,325 Leasehold improvements 216,000 108,000 Land improvements 0 0 Depreciation and useful lives: Buildings—150% declining balance; 25 years. Machinery and equipment—Straight line; 10 years. Automobiles and trucks—150% declining balance; 5 years, all acquired after 2007. Leasehold improvements—Straight line. Land improvements—Straight line. Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2011 and other information. a. On January 6, 2011, a plant facility consisting of land and building was acquired from Goode Corp. in exchange for 25,000 shares of common stock. On this date, Praxar’s stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $187,500 and $562,500, respectively. b. On March 25, 2011, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $192,000. These expenditures had an estimated useful life of 12 years. c. The leasehold improvements were completed on December 31, 2007, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2013, was renewable for an additional four-year term. On April 29, 2011. Praxar exercised the renewal option. d. On July 1, 2011, machinery and equipment were purchased at a total invoice cost of $325,000. Additional costs of $10,000 for delivery and $50,000 for installation were incurred. e. On August 30, 2011, Praxar purchased a new automobile for $12,500. f. On September 30, 2011, a truck with a cost of $24,000 and a carrying amount of $9,100 on date of sale was sold for $11,500. Depreciation for the nine months ended September 30, 2011, was $2,650. g. On December 20, 2011, a machine with a cost of $17,000 and a book value of $2,975 at date of disposition was scrapped without cash recovery. Required: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2011. This schedule should include columns for beginning balance, increase, decrease, and ending balance for each of the plants asset accounts. Do not analyze changes in accumulated depreciation and amortization. 2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2011. Round computations to the nearest whole dollar

The subject is Accounting 245

Above is a CSV file from the file do the following:

(a) Subset the data to include only those from 1947 to 1964.

(b) Fit a linear regression model, M1, to model population as a function of the year using this data from 1947 to 1964.
(c) Predict the population for the missing years 1955 and 1960.
(d) Plot the population versus Year including the predicted values for 1955 and 1960 in the range 1947 to 1964. The predicted values must be annotated (marke

On 1 January 2010 Sleepless Ltd purchased 2 factory buildings one in Independence street and another in Mandume Ndemufayo Road, for N$250 000 each. Both factory buildings were initially to be used to manufacture beds for sale to retail stores. The buildings are not specialised and could be used for a variety of manufacturing processes. The estimated useful life of each building is 15 years with no residual value.

Sleepless Ltd lost a major customer effective 1 January 2015 and as a result, had surplus factory space for their requirements. Sleepless Ltd enters a contract to lease the factory building in Mandume Ndemufayo road to a tenant with a commencement date of 1 January 2015. The lease term is 5 years. The rental payments are N$100 000 per year, payable annually in arrears and are to be increased by 20% per year over the lease term. The buildings will revert to Sleepless Ltd at the end of the contract.

Sleepless Ltd holds all investment property under the cost model.

Required:

1.1 Discuss briefly whether Sleepless Ltd should classify this lease contract as a finance

or operating lease.

1.2 Record journal entries of the factory building in Mandume Ndemufayo Road for 20 the year ended 31 December 2015,2016,2017,2018 and 2019.

HMC sold equipment December 5, 2018 for $2,000. It originally purchased the equipment February 1, 2010 for $12,000. The equipment is fully depreciated for book and tax purposes. For tax purposes, the entire gain is recaptured as ordinary income under Section 1245.

Complete Tax forms 4562(Depreciation and Amortization) and 4797(Sale of business property) for the following transaction. Please include all supporting forms used in your calculation. The forms can be found on the IRS's website. I have no way of uploading them to chegg.

The 2010 General Social Survey asked 1,259 US residents: "Do you think the use of marijuana should be made legal, or not?" 48% of the respondents said it should be made legal.

1. The value 48% is a...

A. sample statistic
B. population parameter

2. Construct a 95% confidence interval for the proportion of US residents who think marijuana should be made legal, and interpret it in the context of the data. Round your results to 3 decimal places.

( , )

3. Identify each of the statements below as TRUE or FALSE.

? True False  1. There is a 95% chance that the proportion of US residents that approved of legalization falls within the interval computed in part 2.

? True False  2. The approval rating of 95% of US residents falls within the interval computed in part 2.

? True False  3. We are 95% confident that the true approval rate of US residents falls within the interval computed in part 2.

? True False  4. If we repeated this study many times, we would expect 95% of future intervals to contain the true approval rating of US residents.

? True False  5. If we repeated this study many times, we would expect the population proportion who approve of marijuana to fall within the interval computed in part 2 95% of the time.

4. A critic points out that this 95% confidence interval is only accurate if the statistic follows a normal distribution, or if the normal model is a good approximation. Is this true for these data?

? Yes No , because  ? there are at least 10 successes and 10 failures in the sample there are at least 20 combined successes and failures in the sample the population has more than 10 successes and 10 failures the sample of 1,259 is not large enough for the central limit theorem to apply .

5. A news piece on this survey's findings states, Majority of Americans think marijuana should be legalized.'' Based on your confidence interval, is this news piece's statement justified?

? Yes No , because  ? the confidence interval includes reasonable values for the parameter that are below 50% we did not conduct a hypothesis test the confidence interval includes reasonable values for the parameter that are above 50% this is an observational study and not an experiment .