Consider;

Problem 1

Venus Company revealed the following chronological transactions:

Purchased 80,000 shares, par P10, at P30 per share as long-term investment.

Received a share dividend of one share for every four owned.

Received additional shares due to 3 for 1 share split.

Received cash dividend of P5 per share.

Received share rights to purchase on share at P30 for every three rights held. On this date, the share right has a market value of P3.

Sold 200,000 rights at P7 each.

Exercised the 60,000 rights.

The remaining rights expired.

Sold 100,000 shares at P10 each.

Required:

Prepare necessary journal entries.

Compute the balance of Investment in Shares account

Problem 2

Chain Company had the following transactions:

2019

Aug. 1 Purchased 1,000 shares of Moon Company for P100,000

Oct. 1 Purchased 8,000 shares of Moon Company for P560,000

2020

July 1 Purchased 6,000 shares of Star Company for P480,000

Aug. 1 Sold 5,000 shares of Star Company for P500,000.

2021

Feb. 1 Received 50,000 share dividend.

Nov. 1 Received share rights to purchase one new share at P60 for every 5 rights tendered. On this date, the right is quotes at P10.

Dec. 1 Sold all share rights P15 per right.

Required: Prepare journal entries to record the transactions using average and FIFO. Assume that the share rights are accounted for separately.

Problem 3

Omega Company acquired 20,000 shares of Zion Company on January 1, 2019 at P150 per share. Zion Company had 80,000 shares outstanding with a carrying amount of P8,000,000. The difference between the carrying amount and fair value of Zion Company on January 1, 2019 is attributable to building .

Zion Company recorded earnings of P3,600,000 and P3,900,000 for 2019 and 2020, respectively, and a per-share dividend of P16 in 2019 and P20 in 2020. Omega Company has a 10-year straight line depreciation policy for building.

Required:

Compute for the percentage of ownership.

Compute the investment income for 2019.

Compute for the investment income for 2020.

Compute for the dividend income for 2019 and 2020.

Compute for the caring amount of Investment in Associates at the end of 2020.

Problem 4

On January 1, Forest Company acquired 30% interest in an investee at a cost of P3,200,000. The equity of the investee on the date of acquisition was P6,000,000, consisting of P4,000,000 share capital and P2,000,000 retained earnings.

All the identifiable assets and liabilities of the investee were recorded at fair value except for an equipment with a fair value of P3,000,000 greater than carrying amount. The remaining useful life of the equipment is 5 years.

On July 1, 2019, the investee sold and equipment for P900,000 to Forest Company. The carrying amount of the equipment is P500,000 at the time of sale. Forest Company applies a 10% straight line depreciation.

On December 31, 2019, Forest Company had inventory costing P2,000,000 on hand which had been purchased from the investee. A profit of P600,000 had been made on the sale.

During the current year, the investee reported net income of P4,000,000 and paid dividend of P1,500,000.

The equity of the investee on December 31, 2019 showed the following:

Share capital 4,000,000

Retained earnings 3,500,000

Retained earning appropriated 1,000,000

Revaluation surplus 3,000,000

The revaluation surplus arose from a revaluation of land made on December 31, 2019. The retained earnings appropriated arose from a transfer of unappropriated retained earnings to retained earnings appropriated for contingencies.

Required:

Determine the goodwill arising from the acquisition.

Determine the investment income from the current year.

Prepare journal entries for the current year.

Determine the carrying amount of the Investment in Associate at the end of 2019.

Question 1 (1 point) "A decline in tax rates and other incentives will spur individuals and firms to increase productivity" is typically referred to as 1) demand-side economics. O 2) Keynesian economics. ( 3) Ricardian equivalence. ( 4) supply-side economics.bank. 21- Explain the binding situation and draw the Fed Rule and AD curve associated with binding situation. 22- Suppose that the economy is experiencing stagflation. What is the policy you recommend to the central bank. Elaborate your answer. 23- Explain briefly the main idea of the supply side economics. Draw the Laffer curve and explain the main idea of the Laffer curve. Considering the experience of Reagan administration, what is your evaluation of supply side economics? auld takeProblem 4: Information Flow Management Suppose that you are the Strategic Manager of a social media company and currently trying to figure out the maximum amount of data that can be transferred from two data centers (node 1 and node 3) to the marketing data center (node 7). The network below represents the communication links that you can use and other nodes represent the data transit points. The numbers next to each arc represent the capacity of the link in terms of terabits/minute. [10] [10] [9] [9] [25] [12] [11] [11] 2 [13] [20] [15] [10] Mathematically formulate a network optimization model to determine the maximum amount of data that can be sent from nodes 1 and 3 to node 7 per minute. To do so, first state what type of network optimization model you will formulate and then mathematically formulate.Question 14 Suppose that real GDP equals $100 billion while full employment real GDP equals Not yet answered $140 billion. To close this gap, the government should increase its spending by Marked out of 1.00 P Flag question Select one: O a. $5 billion if the MPC is 0.8. O b. $4 billion if the MPC is 0.8. O c. $2 billion if the MPC is 0.9. O d. $4 billion if the MPC is 0.9. Question 15 Which of the following statements is correct regarding automatic stabilisers Not yet answered Select one: Marked out of 1.00 a. As economic activity rises government spending automatically falls and so too do tax receipts. Flag question O b. As economic activity declines government spending automatically rises and tax receipts automatically fall O C. As economic activity rises spending by government tends to rise automatically and so too do taxes O d. As economic activity falls tax collections automatically decline as does Government spending