Tanner-UNF Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $280 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $285 million.

Required:
1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.
3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $260 million. Prepare the journal entries to record the sale.

Tanner-UNF Corporation acquired as a long-term investment $310 million of 6.0% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $280.0 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, 2018, was $290.0 million.

Required:
1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.
3. At what amount will Tanner-UNF report its investment in the December 31, 2018, 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, 2019, for $270.0 million. Prepare the journal entry to record the sale.

Tanner-UNF Corporation acquired as a long-term investment $300 million of 10% bonds, dated July 1, on July 1, 2018. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $364 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, 2018, was $375 million.

Required:

1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.

3. At what amount will Tanner-UNF report its investment in the December 31, 2018, balance sheet?

4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating TannerUNF to sell the investment on January 2, 2019, for $360 million. Prepare the journal entry to record the sale.

Tanner-UNF Corporation acquired as a long-term investment $300 million of 10% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $364 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $375 million.

Required:

1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.

3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating TannerUNF to sell the investment on January 2, 2019, for $360 million. Prepare the journal entries to record the sale.

Focus on Trading Securities

Tanner-UNF Corporation acquired as a long-term investment $240 million of 7% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 9% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management has classified the bonds as available-for-sale investments. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million.

1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018, and interest on December 31, 2018, at the effective (market) rate.
3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, 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, 2019, for $190 million. Prepare the journal entries necessary to record the sale

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
  

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase. (Round weighted average cost per unit to two decimals.)
  

The dollar can't seem to catch a break. The U.S. currency posted its fifth straight quarterly loss in the first three months of the year, puzzling investors who bet it would benefit from corporations repatriating cash in the wake of tax cuts signed into law late last year.

Many investors now believe uncertainty over U.S. policy, the risks of a global trade war and an acceleration in growth abroad mean more declines are in store for the dollar. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was down 2.6% in the first quarter, extending a 12-month loss which now stands at 7.3%. The euro, yen and some emerging-market currencies, meanwhile, are up in 2018.

A drop in the dollar's value over the past year has had broad implications, which would likely intensify if the U.S. currency's decline continues. A weaker dollar helps make U.S. goods more competitive abroad, boosting profits for multinational companies and potentially buoying their stock prices. It also lifts prices for commodities such as oil, copper and gold, which are denominated in the U.S. currency and become more affordable to foreign investors when the dollar falls.

If the dollar falls too rapidly, however, that could shake faith in the U.S. economy and complicate the Federal Reserve's plans to tighten monetary policy. An extended fall also could juice inflation and spark concerns that consumer prices will rise too quickly.

Most recently, investors have been spooked by a trade spat with China, after President Donald Trump threatened to levy tariffs on as much as $60 billion of imports from China, while Beijing announced retaliatory measures. The dollar edged lower on that news, although its losses were counterbalanced by steeper drops in other currencies.

The threat of a trade war "has certainly not had a constructive impact on the dollar," said Christian Lawrence, a senior market strategist at Rabobank. "The market interprets trade wars as potentially bad for the U.S."

Based on the article, please answer following questions:

2pt. What happened to the value of dollar in the past 12 month?

2pt. How does a weaker dollar affect US current account and US MNCs earnings?

2pt. How does a weaker dollar affect major commodities’ price level around the world?

2pt. How do a trade war and weaker dollar affect global investors’ confidence on the US economy, e.g. US inflation, competitiveness and other fundamentals?

8. Outward shifts of the U.S. production possibilities frontier can be caused by

Group of answer choices

human actions such as wars and environmental pollution.

advances in technology and increases in human capital (education).

natural disasters such as earthquakes, hurricane, floods and epidemics.

the discovery and development of new sources of raw materials in Brazil, Canada, or Russia.

increasing the current production of consumption goods and decreasing the current production of capital goods.

1. In Question 8, mutual gain would result if ____ trades away ____ in return for ____.

Group of answer choices

the U.S., one car, 15 computers.

the U.S., five computers, one car.

the U.S., 15 computers, one car.

Canada, one car, 15 computers.

Canada, one computer, 15 cars.

9. Given 100 hours of labor, if the U.S. can produce either 1000 computers or 100 cars and Canada can produce either 800 computers or 40 cars, then

Group of answer choices

the U.S. has a comparative advantage (CA) in both computers and cars.

the U.S. has a CA in computers and should specialize in the production of computers.

the U.S. has a CA in cars and should specialize in the production of cars.

Canada has a CA in cars and should specialize in the production of cars.

Canada has a CA in computers and should specialize in the production of cars.

2. If (i) the price of pepperoni (a pizza topping or input) increases, (ii) pizza is a normal good in consumption, and, (iii) consumer income increases, then the equilibrium quantity of pizza

Group of answer choices

will decrease but the change in the equilibrium price of pizza is indeterminate.

will increase but the change in the equilibrium price of pizza is indeterminate.

may increase, decrease, or not change but equilibrium price of pizza will not change.

may increase, decrease, or not change but the equilibrium price of pizza will increase.

may increase, decrease, or not change but the equilibrium price of pizza will decrease.

32. If the demand for a good is inelastic, then (own) price elasticity coefficient E_d

Group of answer choices

equals 0 and so a 50% increase in price will not change the quantity demanded, Q^d.

is greater than 1 and so a 10% increase in price will decrease Q^d by more than 10%.

is less than 1 and so a 5% decrease in price will increase Q^d by less than 5%.

is less than 1 and so a 15% decrease in price will increase Q^d by more than 15%.

the demand curve is vertical.

42. If Bo Bob’s Burgers sells 200 deluxe burgers at $6 and 800 deluxe burgers at $4, then (using the midpoint formula) the (own) price elasticity of deluxe burger demand, Ed, is

Group of answer choices

0.33.

1.5.

2.67.

3.0.

10.0.

Part 2 - Scenario:

You are the manager of a hospital’s ER unit. Your CEO has heard that people have been criticizing the hospital’s wait time for ER services. Your CEO has asked you to present information on wait times at the ER to the hospital board of trustees and administrators. You requested data from your IT team on the wait times for recent ER visits (that is the data included in the excel sheet). Following the question prompts below, answer each of these questions to prepare a report that communicates your finding to your CEO, interprets the findings, and discussed the implications of the findings.

• Purpose: Identify the purpose of the analysis in this section. What questions do you hope to answer?
• Importance: State and explain the importance of this analysis to the department/organization. How will the findings be used?
• Methodology: State the statistical method used in this section.
• Findings: Copy and Paste all relevant output from Excel into this section (decide which output you think is relevant to include such as tables and charts). State your major findings from the included tables/charts.
• Interpretations/Implications: Discuss what the department/organization needs to do based on the findings.