Throughout most of the 1800s, the United States was a fairly isolationist nation especially in regards to not intervening in European affairs. Contrast the arguments made by leading isolationists and interventionists (expansionists) in the U.S. from the 1890s to the 1960s. Which side made the best argument overall and why? Should the U.S. have intervened in the conflicts it did (i.e. Spanish-American War, PhilippineAmerican War, World War I, World War II, and Vietnam) or not?

A Wall Street Journal (April 8,2014) article noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wages to $10.10 an hour would reduce U.S. employment by 500,000 but lift 900,000 Americans out of poverty." Why might raising the minimum wage reduce employment? How would it raise some people out of poverty? What effect might these estimates have on a normative analysis of the minimum wage?

A researcher was interested in utilities provided by city governments. The researcher randomly selected 20 counties from a list of all counties in the U.S. From each of these counties the researcher then contacted each city government (a total of 192) and found that 12 (6.25%) of them provided electricity to their residents. In this situation the sampling frame is

Select one:

a. the list of all counties in the U.S.

b. the 316 cities.

c. the 20 counties.

d. 6.25%.

1. Financial institutions in the U.S. economy

Suppose Paolo would like to invest $2,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as _____ (equity or debt) finance. Buying a share of TouchTech stock would give Paolo _________ (a claim to partial ownership in/ an IOU, or promise to pay, from) the firm. In the event that TouchTech runs into financial difficulty, _______ (The bondholders/ Paolo and other stockholders) will be paid first.

Suppose Paolo decides to buy 100 shares of TouchTech stock.

Which of the following statements are correct? Check all that apply.

The price of his shares will rise if TouchTech issues additional shares of stock.

The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.

Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Paolo's shares to decline.

Alternatively, Paolo could invest by purchasing bonds issued by the U.S. government.

Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a ____ (lower/higher) interest rate than a municipal bond issued by a state.

Owl Vision Corporation (OVC) is a North Carolina corporation engaged in the manufacture and sale of contact lenses and other optical equipment. The company handles its export sales through sales branches in Belgium and Singapore. The average tax book value of OVC’s assets for the year was $220 million, of which $176 million generated U.S. source income and $44 million generated foreign source income. The average fair market value of OVC’s assets was $264 million, of which $198 million generated U.S. source income and $66 million generated foreign source income. OVC’s total interest expense was $22 million. (Enter your answers in millions.)   a. What amount of the interest expense will be apportioned to foreign source income under the tax book value method? (Round your final answer to 1 decimal place.) b. What amount of the interest expense will be apportioned to foreign source income under the fair market value method? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. If OVC wants to maximize its foreign tax credit limitation, which method produces the better outcome?

Fair market value method

Tax book value method

37/ Madison Corporation purchased 40% of Jay Corporation for $400,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $100,000. At year-end, Jay Corporation reported net income of $500,000. The balance in Madison Corporation's Long-Term Investment-Jay Corporation account as of December 31 should be:

Multiple Choice

$640,000.

$240,000.

$740,000.

$400,000.

$560,000.

38/Segmental Manufacturing owns 30% of Glesson Corp. stock. Glesson pays a total of $51,500 in cash dividends for the period. Segmental's entry to record the dividend transaction would include a:

Multiple Choice

Credit to Cash for $15,450.

Credit to Investment Revenue for $51,500.

Credit to Long-Term Investments for $15,450.

Debit to Cash for $51,500.

Debit to Long-Term Investments for $15,450.

39/ If the exchange rate for Canadian and U.S. dollars is 0.83777 to 1, this implies that 4 Canadian dollars will buy ____ worth of U.S. dollars. (Select the nearest answer.)

Multiple Choice

$0.20944

$0.83777

$1.83777

$3.35108

None of these.

40/ A company had net income of $41,000, net sales of $310,000, and average total assets of $210,000. Its profit margin and total asset turnover were respectively:

Multiple Choice

2.02%; 1.48.

13.23%; 1.48.

13.23%; 0.20.

1.48%; 13.23.

1.48%; 0.20.

La Extended, S.A. sold specialized equipment at a price of $ 900,000 each, with a unit cost of $ 400,000.
On March 1, 2020, it sold 2 pieces of equipment on credit that include a one-year warranty for defects in their components, with the commitment to replace those that present failures. It is estimated that $ 120,000 could be claimed for defects in these components. Both clients took the extended warranty offered and handed in $ 30,000 in cash each to cover an extra year.
On March 25, 2020, one of the customers claimed that the equipment's system was not working properly. La Extended, S.A. replaced the component that had failures, which had a cost of $ 20,000 and discarded the previous one.
On October 20, 2021, the other client claimed equipment failures, so La Extended, S.A. discarded the failed component and replaced it with a new one at a cost of $ 8,000.

a. The record (s) corresponding to the month of March 2020 will increase Net Income by:

b. The record (s) corresponding to the month of March 2020 will increase Net Income by:

On January 1, 2020, ABC Co. paid $800,000 to acquire common shares of XYZ Co., which

represented 30% of XYZ Co.’s shares outstanding. The value of XYZ’s net assets was

$1,850,000 on that date. The excess of the purchase price over ABC’s share of XYZ’s net assets

is attributed to unrecorded intangibles with a 20-year life. XYZ earned net income and

comprehensive income of $400,000 in 2020 and paid dividends of $80,000. The investment in

XYZ had a fair value of $1,025,000 at December 31, 2020. XYZ incurred a net loss and

comprehensive loss of $425,000 in 2021 and paid no dividends. At December 31, 2021, the fair

value of the investment was $720,000 and the recoverable amount was $765,000. Assume that

ABC follows IFRS.

Prepare all the journal entries that ABC is required to make related to the XYZ shares in

2020 and 2021, assuming ABC has no significant influence over XYZ, and uses the FV-NI

model for the investment

Prepare all the journal entries that ABC is required to make related to the XYZ shares in

Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.

May:

1            Returned to the suppliers $80,000 of the opening inventory and received cash.

12          Purchased additional inventory on credit from the supplier for $12,000,000.

18          Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).

19          Paid the suppliers the account from 12 May.

31          The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Required:

1. Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST.

2. Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST.

3. Present the Income Statement extract for Stevens Ltd using the periodic inventory method for the month ended 31 May 2020.

4. Briefly explain two advantages of the perpetual inventory method for Stevens Ltd.