Metlock Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 5 years and requires equal rental payments of $75,477 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $320,000, an estimated useful life of 5 years, and no estimated residual value. The appropriate interest rate is 9%.

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Prepare Metlock’s 2019 and 2020 journal entries, assuming Metlock depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.)

Swifty Company sells 10% bonds having a maturity value of $2,600,000 for $2,503,904. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

A. Swifty Company sells 10% bonds having a maturity value of $2,600,000 for $2,503,904. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

B. Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)

On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis in the warehouse was $575,000. On March 12, 2017, NP received a $740,000 reimbursement from its insurance company. In each of the following cases:

1. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NP’s board of directors decided not to replace the warehouse.
2. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On January 2, 2019, NP paid $745,000 to acquire a warehouse to store its inventory.
3. Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. On February 8, 2020, NP paid $745,000 to acquire a warehouse to store its inventory.

Magruder Company reports pretax accounting income of $5,000,000 for 2019. The 2019 income tax rate is 20%. INCLUDED in accounting income is depreciation expense of $500,000 which was calculated using the straight line method. Magruder’s tax manager indicates that depreciation expense per the tax return will be $2,000,000 because the tax laws allow more accelerated depreciation. Magruder’s pretax accounting income does NOT include $1,000,000 of prepaid rent that a tenant paid to the company in 2019 because the prepayment represents rent due for 2020. The accountant properly recorded this amount as a liability on the balance sheet (Unearned Rent). The tax manager advises that the $1,000,000 must be INCLUDED in taxable income for 2019. Required: 1. Calculate taxable income income and income tax payable for 2019. 2. Prepare the adjusting entry to record income tax expense, deferred income taxes, and income tax payable.

Pearl Industries Ltd., a public company, presents you with the following information:

(a)

Complete the table for the year ended December 31, 2024. The company depreciates all assets for a half year in the year of acquisition and the year of disposal. (Round answers to 0 decimal places, e.g. 5,275.)

On January 1, 2018, Blossom Ltd. purchased equipment for $808,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight-line method. On January 1, 2020, Blossom's management became concerned that the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $580,750, the discounted future net cash flows was $515,100, and the current fair value of the equipment (after costs to sell) was $505,000.

1. Assuming that Blossom is a private Canadian company following ASPE, and uses the cost recovery impairment model. Record the journal entry to record the impairment loss, if any

2. Assuming that Blossom is a public Canadian company, and uses the rational entity impairment model. Record the journal entry to record the impairment loss, if any

Your company received a letter from Mrs. Mirvat Amin in which she complained that the microwave she bought a month ago from your store does not work. In her complaint letter, she asked for either a new microwave or a full refund. Since the microwave has a one-year warranty, your company can meet Mrs. Amin’s request and replace the defective product.

Write an adjustment letter to Mrs. Mirvat Amin in which you inform her about the good news. The letter should be 150-400 words. It should be sent out on April 1, 2020

Mrs. Mirvat Amin’s address is: 546 Zayed Road Dubai, UAE Your company’s letterhead is RAWN Group 647 Emirates Road Dubai, UAE Your name is: Najla Fathi General Sales Manager

Summary:

Mick is a project manager at Zarlink, a multinational manufacturer of semiconductors for a variety of high-technology military, medical and consumer applications. Mick is also a part-time MBA student at his local university. As part of his MBA, Mick has to complete a dissertation on a management topic of his choice. Since Mick had recently been selected to embed a new quality management system called TS 16949 into his manufacturing site at Swindon in the West of England it seemed sensible that he chose to study quality for his dissertation. Mick’s particular fascination was his firm belief that the route to high-quality process in organizations was not through introducing specific techniques but through ensuring that quality was embedded in everything done at Zarlink: part of the lifeblood of the organization. ‘Quality is even about more than people’s attitudes’ said Mick; ‘it’s about their beliefs. Quality must be a way of life and dominate the thoughts of everyone in the organization, irrespective of their job.’ Mick wanted to use his dissertation as a way not only of obtaining his MBA but also of learning how he could be more effective in introducing embedded quality at Swindon.

Mick started off his research by searching the quality literature. There was no shortage of this. But soon Mick realized that he was concerned with that branch of the quality literature that dealt with the ‘soft’ issues of organizational culture change. He became rather disenchanted with much of the literature because it was largely prescriptive. ‘I was dubious about a lot of what the gurus were saying,’ said Mick. ‘They seemed to be saying that if you get your employees to believe this and do that then everything will be fine. I was skeptical of this because I knew through my MBA studies that the success of certain techniques is usually contingent upon the individual circumstances of the organization.’ Nonetheless Mick became attracted to the idea that embedding certain core values in the organization was a good way of achieving quality goals. The problem was that he did not know which core values were appropriate for his site. Therefore his research question became: ‘What are the core values that need to be adopted in Zarlink, Swindon, if embedded quality is to become a success?’

More specifically, Mick’s research objectives were:

to identify general constructs that constitute ‘embedding quality’ within an organization;

to compare these beliefs with those espoused by a sample from the senior Zarlink Management team;

to establish the behaviors and attitudes of the current workforce towards the quality management system at the Zarlink foundry, Swindon;

to propose a framework of core values to facilitate the embedding of quality into Zarlink, Swindon.

Having used the literature to refine his research question and objectives Mick then turned his attention to collecting primary data within Zarlink. Initially he thought of using a positivist approach based on a questionnaire using qualitative data, but discussions with Philippa, his tutor, convinced him that there were other ways of collecting data. Mick began to think more deeply about his research strategy, and thought that the advantage of triangulating his data by using multi-method would convince not only his examiners that his data were valid but also the managers at Zarlink who he was hoping would give him the go-ahead to introduce his ideas.

Mick’s first research objective had been met by his coverage of the literature. This had been useful in concentrating his mind on embedded quality, but it only took him a limited way. The second and third objectives would lead to a much more meaningful management dissertation.

The second objective involved conducting interviews with key managers in order to ‘test’ the ideas that Mick had developed about core values as a result of the literature review. The managerial sample he chose comprised managers from other Zarlink sites in the world who had an excellent reputation for embedding quality. At the same time Mick thought it important to include those managers who were concerned with implementing quality at Swindon. Mick conducted six interviews across three sites: one in Canada and one in southern England in addition to the third in Swindon. In each site he interviewed the foundry director and the quality manager. These were the key managers concerned with quality. The non-Swindon managers were interviewed by telephone, and the Swindon managers were interviewed face to face by Mick. He hoped this phase of data collection would give him a very clear idea of Zarlink’s view of quality.

In order to meet the third objective he decided to collect data in two ways. The first was to conduct what he called a ‘gap analysis. The purpose of this was to establish the current behaviors concerned with quality – that is, what people actually did in their working lives. This would tell Mick what was being done well and what was being done badly, or not at all, and therefore identify what needed to be done to embed quality. In order to do this Mick designed an audit form based on a purpose-made audit that had been used before in similar organizations. This was administered in all departments of Zarlink, Swindon. Ten of Mick’s colleagues were responsible for carrying out the audit. This involved Mick in training them in its use in order to achieve reliability. Mick was opportunistic in the second way he collected data in respect of the third objective. He was fortunate that a general employee attitude survey was imminent. He decided to insert a subsection in this survey that consisted of questions to establish employees’ attitudes to quality. This went to each of the 130 employees at Swindon.

Mick was confident that his research strategy would yield rich, valid and reliable data on management beliefs and employee attitudes and practice, which would enable him to propose a framework of core values to facilitate the embedding of quality into Zarlink, Swindon. This would enable him to make a valuable contribution to the well-being of Zarlink and pass his MBA!

Discussing the case and incorporating answers to the questions below. It is important to address each of the questions presented. Respond to these questions in an essay format using APA style of writing, and use at least 5 peer-reviewed references.

Question:

1 Which type(s) of research strategy is Mick employing?

2 In what other ways could Mick have used the literature to refine his research question?

3 In what other ways might Mick have achieved his research aim?

Based on the following case study answer two of the questions

a. Dell is a pioneer in stimulating exchanges with customers through social media. With reference to Dell, discuss the differences between e-marketing and traditional marketing activities.

b. As more companies are moving towards green businesses, should Dell adopt a similar strategy to market its products? Justify your answer

Dell Direct and Not-So-Direct Case Study:

When Michael Dell started his Texas-based computer business in 1984, he chose a distribution strategy that was radically different from that of other computer marketers. Instead of selling through wholesalers and retailers, the company dealt directly with customers. This kept costs low and allowed Dell to cater to customers' needs by building each computer to order. Using a direct channel also minimized inventory costs and reduced the risk that parts and products would become obsolete even before customers placed their orders, a constant concern in high-tech industries.

By 1997, Dell's website alone was responsible for $1 million a day in sales. Relying on the strength of its online sales, catalogs, and phone orders, Dell expanded beyond the United States and added new products for four target markets: consumers, large corporations, small businesses, and government agencies. Meanwhile, Apple, Hewlett-Packard, and other competitors were reaching out to many of the same segments with a combination of direct and indirect channels. Apple Stores, for example, proved to be major customer magnets and gave a significant boost to sales of Macintosh computers and other Apple electronics. Hewlett-Packard forged strong ties with value-added resellers (VARs), intermediaries that assemble systems of computers, servers, and other products customized to meet the special needs of business buyers.

Although Dell tested retail distribution on a number of occasions, it never let the experiments go on too long. In the 1990s, it tried selling PCs through a few big U.S. retail chains, but soon discontinued the arrangement because the profit margins weren't as healthy as in the direct channel. Later, it opened a series of branded retail kiosks in major U.S. markets to display its products and answer customers' questions. Unlike stores, however, the kiosks didn't actually sell any-thing: Customers could only place orders for future delivery. Dell ultimately closed the kiosks down. By 2007, with competitors coming on strong, Dell was ready to rethink its worldwide channel strategy. As convenient as online shopping was for many U.S. computer buyers, it was much less popular in many other countries. To gain market share domestically and internationally, Dell would have to follow consumers into stores, malls, and downtown shopping districts. The company began selling a few models through Walmart's U.S. stores, Carphone Warehouse's U.K. stores,. Bic Camera's Japanese stores, and Gome's Chinese stores. In addition, it opened Dell stores in Moscow, Budapest, and other world capitals.
By 2010, sales through retailers had gained enough momentum that Dell sought out other retail deals. In another channel change, it began selling through VAR partners that serve small- and medium-sized businesses and lined up wholesalers to distribute its products in Europe, Latin America, and elsewhere. When Dell introduced a new line of smart-phones, it needed a new channel arrangement to reach buyers. Therefore, it arranged for cell phone carriers such as AT&T to sell the new models to their customers.

As successful as Dell has been in revamping its indirect channels, selling directly to customers remains a top priority. Dell invites orders around the clock through Web pages tailored to the needs of each 'target market. It also maintains an online outlet store to sell 4 discontinued and refurbished products. It mails millions of catalogs and direct-mail pieces every year. And its sales force calls on government officials and big businesses that buy in volume. Dell's website notes, with pride, that the 10 largest U.S. corporations and five largest U.S. commercial banks "run on Dell."

Moreover, the company is a pioneer in stimulating exchanges with customers through social media. Dell has 139,000 fans on Facebook, for example, and regularly posts offers that drive customers to its various websites. It's become a pioneer in selling directly to customers via the micro blog site Twitter. In less than three years, it generated $6.5 million in revenue from sales transactions that originated on Twitter. That may be a tiny sliver of Dell's $53 billion in annual revenue, but it demonstrates the company's flexibility in adapting to shifts in customer behavior and environmental forces, such as technological advances. With market share and profit-margin challenges still facing the company, and global demand just picking up steam after a long, difficult recession, watch for Dell to make more channel adjustments in the coming years.