Lindsey Bunkleman Week 9 Assignment Case Studies (2.1, 2.2, 2.3, 2.4 and 2.5) Case Study 2.1 (pg. 270-271, #1-3) 1. Why do Canada and the United States have the largest bilateral trading relationship in the world? Canada and the US have one of the world’s largest investment relationships. Both countries are open to trade.
At the end of the 5-year lease term, Power Station has the option to buy the equipment at fair market value. If the option is not exercised, Power Station is responsible for de-installation costs ($7 million) and the cost to ship and install the equipment at a new site ($7.3 million). ISSUE: Whether Power Station should lease the turbines through Energy Corporation using a sales-leaseback transaction? At the conclusion of the lease, should Power station exercise the purchase option to buy the equipment? ANALYSIS: The leasing arrangement is considered a sale-leaseback transaction because “it involve[s] the sale of property by the owner and the lease of the property back to the seller (FAS 28, 1976, ¶2).
• additions to net working capital. • cash flow to retained earnings. • cash flow to investors. FIN 571 final exam (Newest) download now FIN 571 Final Exam (Newest) 5. Which one of these is a non-cash item?
Also China is a NIC (newly industrialised country). China has vast reserves of natural resources like coal, oil and natural gas. This is used to help fuel industrial development, meaning more jobs and opportunities so making the place more globalised. China has lots of human resources that make it a “winner”. It has a huge population to support its development.
Referring to the Canadian Energy Research Institute, it has become evident that oil sands have impacted nearly every community within Canada, exponentially increasing the need for new job opportunities and economic growth. Since Alberta has one of the largest oil reserves within Canada, the petroleum industry has impacted “…over 239,000 Albertans”(Canada’s Industry 2012). However, with a closer eye on the impact of oil sands on the economy, it is proven that these oil sands provide jobs outside the country as well. Such as the services, and materials which are used in the construction of oil sands, come from not only across Canada, but also form many other foreign countries. Many components are needed for a process which seems so simple.
Can MegaCorp, Inc. deduct the loss as ordinary and necessary under IRC 162? Short Answer IRC 162 provides the general rule for determining deductibility of trade or business expenses as ordinary and necessary. This is the standard claim for support of deductibility, but there is no provision in this Code section for deducting items that are capital in nature, which is the IRS contention under IRC 263. The statute is silent as to litigation settlements paid as a result of corporate acquisitions. IRC 263 provides the general rule that no deduction shall be allowed for items that are capital in nature.
onics, ventures,," ).” The price quotations did not include important terms other than pricing. Most “significantly, the price quotations do not reference the quantity term—JCI's requirements—that both parties agree was a term of their agreements ("Q.c. onics, ventures,,").” If each quotation were an offer, “the requirements term would be knocked out by UCC 2–207("U.c.c. - article,"). leaving no quantity term.
First, payments on debt interest are tax deductible but payments on equity are not. Second, equity allows shareholders to share the company profits. With that, equity holders now also hold stake in AMSC and share control. Comparatively, debt financiers have little or no impact on control of the company; assuming payments are being made. Profits are also used to pay the debt, however, so how this weighs out as a disadvantage would clearly depends on how well or not
ZZZZ Best Case Summary 1. A review differs from an audit in terms of assurance. An audit has a higher level of assurance than a review. An audit takes a deep look at the internal controls of a company as well as looking for any material misstatements or fraud in the company’s financial statements. An auditor only looks at financial statements during a review without digging deeper to find any material misstatements or potential fraud, there is no review of the company’s internal controls, also the auditor does not look at any files that backup the financial statements they are given.
The variables do not show a clear sign of correlation or relationship as shown within the scatterplot. The points are slapdash or disorganized thus making it evident that there is no relationship between the two variables. Overall one can determine that in comparing certain variables there are some matches that provide some cohesiveness whereas all aren’t completely relative to one another. By being able to take sample data and effectively review and analyse it one was able to record which households of what size is more likely to hold a higher credit limit or even what location. With such information AJ Davis Department Stores can have a better outlook as to how their customers are more or less likely to be and can futuristically categorize them based on such