Norther Leasing Corp. has the following standards for one unit of product:

The predetermined OH rates were developed using a practical capacity of 6,000 units per year. Production is assumed to occur evenly throughout the year.

During May 2010, the company produced 525 units. Actual data for May 2010 are as follows:

Direct material purchased: 45,000 pounds X $5.92 per pound

Direct material used: 43,020 pounds (all from May’s purchases)

Total labor cost: $24,955 for 1,550 hour

Variable overhead incurred: $43,750 for 800 hours of machine time

Fixed overhead incurred: $22,800 for 800 hours of machine time

Required: Calculate the following:

a) Variable overhead Cost

b) Variable overhead expenditure variance

c) Variable efficiency variances

d) Fixed overhead cost

e) Fixed overhead expenditure

f) Fixed volume variances

Real Gross Domestic Product (Real GDP), inflation rate and unemployment are important indicators in measuring the economic performance of a country. In this assignment, you are required to choose a country and explain its economic performance.

1. First, you will have to find and compile the data of Real GDP, unemployment rate and inflation rate from 1980 to 2010 for the chosen country.
2. Based on the data from question (a), draw a table to show the data for the three variables. Draw also a line graph for Real GDP and the second line graph that shows the unemployment rate and inflation rate (both variables in the same second line graph).
3. Explain the country's macroeconomic experience of economic growth rate (based on Real GDP data), unemployment and inflation between 1980 and 2010. Your explanation can also include policies implemented by the government and/or central bank of the country to increase economic growth rate and to remedy unemployment and inflation, if any, or any other relevant information for the three variables.

Additional information:

• Each group must consist of 3-4 members.
• All data are available in http://databank.worldbank.org/. e.g
  • Real GDP = Gross Domestic Product (Constant price USD)
  • Inflation rate = % Changes in Consumer Price Index (CPI)
  • Unemployment rate = % of Unemployment (Total labour force)

On May 5, 2009, Lloyd purchased a machine for $84,000. The estimated life of the machine was 10 years,

with an estimated residual value of $10,000. The service life in terms of “output” is estimated at 8,000 hours

of operation. SHOW ALL WORKING

1. Refer to the above data. Assume Lloyd uses straight-line depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is: a. $7,400. b $8,400. c $3,700.d Some other amount.

2. Refer to the data above. Assume Lloyd uses 200%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2010 (the second year of ownership) is:

a $8,400.b $13,120. c $15,120. d Some other amount.

3 Refer to the data above. Assume Lloyd uses 150%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is:

a $8,400. b $6,300. c $12,600. d Some other amount.

4 Refer to the data above. Assume Lloyd uses the units-of-output method and that the machine was in operation for 1,000 hours in 2009 and 1,800 hours in 2010. The book value of the machine at December 31,2010 is:

a $48,100. b $58,100. c $25,900. d Some other amount

Answer the following questions using the annual report of Colgate in Appendix A. Required: a. For 2009, 2010, and 2011 identify Colgate’s (1) tax payment/obligation if it paid the statutory tax rate, (2) tax provision made in the books, and (3) the actual tax payment/obligation. Broadly quantify how Colgate’s statutory tax payment differs from its actual tax payment. Also explain why these differences occur. b. What is Colgate’s effective tax rate for each of the three years? Why is it different from its statutory tax rate? Explain at least one of these differences in detail. c. What is Colgate’s tax provision? Why is it different from its tax obligation/payment? d. You are in the process of forecasting Colgate’s income for the next year. What tax rate would you apply to your forecast and why? (Come up with a rate if possible.) e. Examine Colgate’s deferred tax assets and liabilities. Explain why they arise in general. Provide a detailed explanation of how at least two of the deferred assets/liabilities arise and “guess” at the approximate duration over which these assets/liabilities are expected to reverse. f. Examine the “movement” in the deferred tax assets/liabilities between 2011 and 2010 and explain the major changes.

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

1. By January 2014 the US population had grown to 317.3 million and the US Federal Debt was a reported $17.3 trillion. Calculate the January 2014 Federal Debt per capita and use the calculation in a meaningful sentence.

2. From class we learned that in 2010 the federal debt (in millions) was $13,561,623 and the population of the U.S. was 309 million. Use these values to compute the federal debt per capita in 2010.

3. In 1980, a Domino’s large pizza cost $4.99. What would be the cost of that pizza in 1995 dollars?

4. In 1986, a certain model of car cost $13,000. What would be the cost of that car in 2012 dollars? How does this compare to the actual cost of a typical new car in 2012?

5. According to a NY Times article on December 13, 2009, the average selling price of a 32” LCD TV was $600. What would be the cost of that same TV in 2015 dollars?

6. In 2009, the price of a package of crayons was $2.80. If it was the year 1988, what would the price be?

7. Use the chart below to answer: Using the starting value of $112 in 1995, which year was a better price when considering inflation? 2000, 2007 or 2011? (Assume that 1995 is a fair value for the goods and services.)

Question 1

For the past five years, Mr. Brooks has been employed as a financial analyst by a large Canadian public firm located in Winnipeg. During 2020, his basic gross salary amounts to $63,000. In addition, he was awarded an $11,000 bonus based on the performance of his division. Of the total bonus, $6,500 was paid in 2020 and the remainder is to be paid on January 15, 2021.

During 2020, Mr. Brooks’ employer withheld the following amounts from his gross wages:

Federal Income Tax                                                                                             $3,000

Employment Insurance Premiums 856

Canada Pension Plan Contributions 2,898

Registered Pension Plan Contributions 2,800

Donations to the United way (charity) 480

Union Dues 240

Payments for Personal Use of Company Car 1,000

Other Information:

1. Due to an airplane accident while flying back from Thunder Bay on business, Mr. Brooks was seriously injured and confined to a hospital for two full months during 2020. As his employer provides complete group disability insurance coverage, he received a total of $4,200 in payments during this period. All of the premiums for this insurance plan are paid by the employer. The plan provides periodic benefits that compensate for lost employment income.
2. Mr. Brooks is provided with a car that the company leases at a rate of $678 per month, including both GST and PST. The company pays for all of the operating costs of the car, and these amounted to $3,500 during 2020. Mr. Brooks drove the car a total of 35,000 kilometres during 2020, 30,000 kilometres of which were carefully documented as employment-related travel. While he was in the hospital (see Item 1), his employer required that the care be returned to company premises, so it was not available to him.
3. On January 15, 2019, Mr. Brooks received options to buy 200 shares of his employer’s common stock at a price of $23 per share. At this time, the shares were trading at $20 per share. Mr. Brooks exercised these options on July 6, 2020, when the shares were trading at $28 per share. He does not plan to sell the shares for at least a year.
4. In order to assist Mr. Brooks in acquiring a new personal residence in Winnipeg, his employer granted him a five year, interest free loan of $125,000. The loan qualifies as a home relocation loan. The loan was granted on October 1, 2020, and, at that point in time, the prescribed interest rate set by the CRA is 2%.
5. Other disbursements made by Mr. Brooks include the following:

Advanced financial accounting course tuition fees                                      $1,200

Music history course tuition fees                                                                       600

Fees paid to financial planner                                                                           300

Payment of premiums on life insurance                                                            642

Mr. Brooks’ employer reimbursed him for the tuition for the accounting course, but not for any of these other expenses.

Required:

Calculate Mr. Brooks’ net employment income for the taxation year ending December 31, 2020.

LePage Manufacturing Ltd. agrees to lease equipment to Labonté Ltée. on July 15, 2020. LePage follows ASPE and Labonté is a public company following IFRS 16. The following information relates to the lease agreement.

1. The lease term is seven years, with no renewal option, and the equipment has an estimated economic life of nine years.

2. The equipment’s cost is $420,000 and the asset’s fair value on July 15, 2020, is $560,000.

3. At the end of the lease term, a payment to LePage, the lessor, in the amount of $80,000 is expected to be payable by Labonté, the lessee, under a residual value guarantee. Labonté depreciates all of its equipment on a straight-line basis.

4. The lease agreement requires equal annual rental payments beginning on July 15, 2020.

5. LePage usually sells its equipment to customers who buy the product outright, but Labonté was unable to get acceptable financing for a cash purchase. LePage’s credit investigation on Labonté revealed that the company’s financial situation was deteriorating. Because Labonté had been a good customer many years ago, LePage agreed to enter into this lease agreement, but used a higher-than-usual 15% interest rate in setting the lease payments. Labonté is aware of this rate.

6. LePage is uncertain about what additional costs it might have to incur in connection with this lease during the lease term, although Labonté has agreed to pay all executory costs directly to third parties.

7. LePage incurred legal costs of $2,500 in early July 2020 in finalizing the lease agreement.

Instructions:

a. Discuss the nature of this lease for both the lessee and the lessor.

b. Using (1) time value of money tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the annual rental payment that is required to obtain a return of 15% for LePage.

c. Prepare the journal entries that Labonté would make in 2020 and 2021 related to the lease arrangement, assuming that the company has a December 31 fiscal year end and that it does not use reversing entries. Round amounts to the nearest dollar.

d. From the information you have calculated and recorded, identify all balances related to this lease that would be reported on Labonté’s December 31, 2020 statement of financial position and statement of income, and where each amount would be reported.

e. Prepare the journal entries that LePage would make in 2020 and 2021 related to the lease arrangement, assuming that the company has a December 31 fiscal year end and does not use reversing entries. Round amounts to the nearest dollar.

f. From the information you have calculated and recorded, identify all balances related to this lease that would be reported on LePage’s December 31, 2020 statement of financial position and statement of income, and where each amount would be reported.

g. Comment briefly on the December 31, 2020 reported results in parts (d) and (f) above.

The following transactions are from Sharper Vision Corporation.

1. Purchased inventory on December 10, 2020, with a list price of $6,000, a trade discount of 20%, and with terms 2/10, n/30.
2. Returned $800 of inventory to the supplier on December 15, 2020.
3. Paid $3,200 cash on account on December 19, 2020.
4. Paid the remaining balance on January 5, 2021.

• Perpetual inventory systems
• Periodic inventory systems

a. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the perpetual inventory system and the net method to record purchases. Include any adjusting entry required on December 31, 2020.
Note: Round answers to the nearest dollar.

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As a third year medical, you find yourself the only “doctor” on duty in the Emergency Room (ER) when the residents, having been working for 36 hours, are trying to catch some sleep. A 62 year old male patient has been brought into the ER that is severely dehydrated. Not wanting to disturb the residents, you tried to administer water orally, but the patient vomited. Realizing the emergency and need to hydration, you grab the first sterile fluid available to you, sterile water, and administer 1 liter intravenously (IV).

The questions that follow are to determine the consequences of your actions. Assume that the patient weighs 160 lbs with a hematocrit of 54%. The osmolarity of the patient’s blood before the infusion is 300 mOsm/L.

Predict the direction of change (increase, decrease or not change) you expect the infusion to have on the following parameters:

Based on the patient’s weight, calculate their plasma volume before you administered the IV. Average blood volume in a male is 75 mL per Kg. (show calculations)

Plasma volume (Liters) ____________

Use this number to calculate the osmolality of the patient’s blood after the IV. (show calculations)

Osmolality (mOsm/L)___________

After your treatment, the patient’s condition got much worse so a resident was called. The resident drew blood for routine lab tests, one of which is determining the hematocrit. The lab tech reports the hematocrit is lower than when the patient came in (only 45% down from 54%) and the plasma portion was pink. The resident immediately infused the patient with Lactated Ringers.

Why was the patient’s plasma pink?

If you had given the patient a sterile sucrose solution instead of sterile distilled water, what would the concentration of sucrose would need to be used to prevent the above condition?

The resident, figuring out what you had done, infused the patient with 1 L of 600 mM sucrose solution (600 mOsm/L). Based on the plasma volume and osmolarity after your infusion, predict the following parameters as to whether they will increase, decrease or show no change.

Assuming that none of the 600 mOsm/L sucrose administered was absorbed or excreted, calculate the final plasma osmolality.

Final plasma osmolality ___________