Allocating resources in education is important. Based on the recent PISA test score results, students in China on average score higher than students in the U.S. Carefully design an experiment to provide policy recommendations on how to improve students’ performance in the U.S. Clearly state what questions you are trying to answer, and how your control and treatment group will help you answer those questions.

The following is market information:

If you have $250,000 and use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

Use the following data to work Problems 1 to 4:

The following events have occurred in the history of the United States:

• A deep recession hits the world economy.
• The world oil price rises sharply.
• U.S. businesses expect future profits to fall

Explain the separate effects of each event on U.S. real GDP and the price level, starting from a position of long-run equilibrium

8. Nominal and real wages have increased over time in the U.S. How fast will your nominal wage increase if you receive an increase each year that is comparable to what has occurred on average since 1929? About how long will it take the purchasing power of your wage to double if your real wage increases at the average rate experienced in the U.S. since 1929?

The following is market information: Current spot rate of pound = $1.23 90-day forward rate of pound = $1.24 3-month deposit rate in U.S. = 1.1% 3-month deposit rate in Great Britain = 1.3% If you have $250,000 and use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that date, Abernethy has the following trial balance:DebitCreditAccounts payable$53,700Accounts receivable$41,000Additional paid-in capital50,000Buildings (net) (4-year remaining life)184,000Cash and short-term investments77,250Common stock250,000Equipment (net) (5-year remaining life)400,000Inventory117,500Land107,500Long-term liabilities (mature 12/31/20)173,000Retained earnings, 1/1/17417,450Supplies16,900Totals$944,150$944,150During 2017, Abernethy reported net income of $98,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $128,250 while declaring and paying dividends of $39,000.Assume that Chapman Company acquired Abernethy’s common stock for $851,300 in cash. As of January 1, 2017, Abernethy’s land had a fair value of $124,200, its buildings were valued at $254,400, and its equipment was appraised at $378,500.

Chapman uses the equity method for this investment.Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that date, Abernethy has the following trial balance:DebitCreditAccounts payable$55,100Accounts receivable$44,700Additional paid-in capital50,000Buildings (net) (4-year remaining life)163,000Cash and short-term investments83,750Common stock250,000Equipment (net) (5-year remaining life)207,500Inventory122,000Land85,500Long-term liabilities (mature 12/31/20)162,500Retained earnings, 1/1/17202,150Supplies13,300Totals$719,750$719,750During 2017, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2018, Abernethy reported net income of $136,750 while declaring and paying dividends of $36,000.Assume that Chapman Company acquired Abernethy’s common stock for $612,390 in cash. Assume that the equipment and long-term liabilities had fair values of $232,000 and $130,860, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select

"No journal entry required" in the first account field.)

South Beach Apparel issued 11,000 shares of $4 par value stock for $20 per share. What is true about the journal entry to record the issuance?

Multiple Choice

• Credit Common Stock $220,000

• Debit Common Stock $44,000

• Credit Additional Paid-In Capital $176,000

• Credit Cash $220,000   

  A company issued 1,900 shares of $3 par value preferred stock for $4 per share. What is true about the journal entry to record the issuance?

  Multiple Choice

• Credit Additional Paid-In Capital $1,900

• Debit Preferred Stock $7,600

• Credit Cash $7,600

• Credit Preferred Stock $7,600

  On February 22, Brett Corporation acquired 200 shares of its $4 par value common stock for $23 each. On March 15, the company resold 64 shares for $27 each. What is true of the entry for reselling the shares?

  Multiple Choice

• Credit Treasury Stock $1,728

• Credit Cash $1,472

• Credit Additional Paid–in Capital $256

• Debit Treasury Stock $1,472

On January 1, 2005, Technocraft, Inc., acquired a patent that was used for manufacturing semiconductor-based electronic circuitry. The patent was originally recorded in Technocraft's ledger at its cost of $1,779,000. Technocraft has been amortizing the patent over an expected economic life of 10 years. Residual value was assumed to be zero. Technocraft sued another company for infringing on its patent. On January 1, 2012, Technocraft spent $180,000 on this suit and won a judgment to recover the $180,000 plus damages of $500,000. The sued company paid the $680,000. 1.Prepare the journal entry to record the award of $680,000 on January 1, 2012. 2. Indicate the entry you would have made had Technocraft lost the suit. (Assume that the patent would be valueless if Technocraft had lost the suit.) 3.What are the financial statement effects of capitalizing or expensing the cost of defending the patent? 4.Prepare the necessary journal entry on December 31, 2011. 5.Prepare the necessary journal entry on January 1, 2012, to record the expenditure of $180,000 to defend the patent.

Tanner-UNF Corporation acquired as a long-term investment $150 million of 4.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $120.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $130.0 million.

Required:
1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet?
4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $100.0 million. Prepare the journal entry to record the sale.