Read each case and specify which standard was violated
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Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
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A: a)
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Q: Hardev
A: I gave you an answer.
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Read each case and specify which standard was violated
Ademi is a partner in the firm of FF, a small firm offering investment advisory services. She assures a prospective client who has just inherited US$1 million that “we can perform all the financial and investment services you need.” FF is well equipped to provide investment advice but, in fact, cannot provide asset allocation assistance or a full array of financial and investment services.
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- Sarah and Gabe are considering the following transactions and have asked you to explain the impact of the transactions on their Statement of Financial Position: Purchase a baseball card collection from Gabe’s uncle for $5,000 cash. Gabe feels the cards are worth more than $5,000. There has never been an official appraisal of the collection. Secure a home-equity loan of $25,000 to have on hand for various projects and possibly to take a family vacation abroad. Trade the pick-up for an SUV at a cost of $40,000. They will use their pick-up truck as a trade-in as a down payment, the current value is estimated at $7,000, and borrow the balance at a projected rate of 5%. Also, they anticipate their respective 401(k) accounts increasing in value by 15% this year and have asked if this will have any impact on their financial statements. please explain properly thnkuDominic Martinez has invested in something that acts like a mutual fund and that derives income from interest on loans to real estate owners. He knows there are federal laws that require this type of investment to refrain from engaging in speculative, short-term holding of real estate to sell for quick profits. What type of investment has Dominic made? a. Hybrid REIT b. Equity REIT c. Participation certificate d. Limited partnership e. Mortgage REITAlyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. What is your present annual net income? Can you avail of a loan of P 500,000? P 450,000 Yes Land Bank @ 17% P 450,000 What bank and what is the interest rate? With the new equipment, how much additional income will it generate? In how many year are you going to pay the loan? How much are you willing to pay Dindin as salary or profit? 5 years P 160,000 You drafted the following informatic and filed it up: Net income with the new equipment Less (Minus) interest charge on loan liability Net income after the interest charge Less (Minus) share of Dindin in the profits Share of Alyssa in the net income Net income the business is currently…
- Assume that you recently graduated with a degree in finance and have just reported to work as an investment adviser at the brokerage firm of Smyth Barry & Co. Your first assignment is to explain the nature of the U.S. financial markets to Michelle Varga, a professional tennis player who recently came to the United States from Mexico. Varga is a highly ranked tennis player who expects to invest substantial amounts of money through Smyth Barry. She is very bright; therefore, she would like to understand in general terms what will happen to her money. After your consultation with Michelle, she asks to discuss these two scenarios with you: a. While in the waiting room of your office, she overheard an analyst on a financial TV network say that a particular medical research company just received FDA approval for one of its products. On the basis of this “hot” information, Michelle wants to buy many shares of that company’s stock. Assuming the stock market is highly efficient, what…You are a financial advisor working with a client named John. John is a 35-year-old professional earning a gross monthly income of $7,000. He has recently received a significant raise and is determined to make the most of his newfound financial stability. However, John has a complex financial situation, with various financial goals, expenses, and debt obligations. He seeks your advice on how to optimize his financial situation, achieve his goals, and make wise investment decisions. John's Financial Goals and Information: Retirement: John aims to retire at the age of 60 and wants to maintain a comfortable retirement income of $60,000 per year (adjusted for inflation). Emergency Fund: John wants to establish an emergency fund that covers at least six months of his living expenses. Debt Management: John has outstanding student loans totaling $50,000 with an interest rate of 6% and a remaining term of 10 years. Homeownership: John plans to buy a house within the next five years. He…How do I do a general journal entry on this scenario: Seeing that the business is getting some traction, but could benefit for more capital, Scoot Blout invests another $30,000 of his personal money into the business.
- Wizardry Corporation's purpose clause in its charter states, "To operate a home-cleaning service business." After a few years of successful operation, Wizardry is offered the challenge of landscaping a neighboring business. If Wizardry accepts the offer, it would be violating its charter under: O a. the estoppel theory. O b. the de facto doctrine. O c. the de jure doctrine. O d. the ultra vires doctrine.1. Abdullah bin Ahmad has entered into a Mudarabah contract with Bank Amanah Berhad in which he provides monetary capital of $500,000 to be managed and invested by the Bank. The Bank provides Al-Mudharabah Moqayadah investment account facility to Abdullah whereby the Bank will invest in a specific project as agreed by the client. For this project there are two other investors, Hashim and Ibrahim who have invested $500,000 and $200,000 respectively. The profit sharing between four of them is 5:5:2:2 for Abdullah, Hashim, Ibrahim, and the Bank respectively. The Bank has entered into another Mudarabah contract (ReMudaraba) with Al Majd Development Berhad to undertake manufacturing project and they agreed on the profit sharing ratio of 70:30 (Bank: Al Majd). You are required to determine the profit or loss to be shared at the end of the contract by the five parties involved above if: i. Profit $550,000 ; or ii. Loss $350,000. 2. Bank Ahsan Berhad contributed $2,000,000 for a five-year…Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry.A-Design invested $100,000 in aproduction machine, which has auseful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Assuming an interest rate of 5% per year over a period of 5 years on the money put in the bank, calculate the simple interest and the compound interest earned by A-Design at the end of the fifth year?
- Gibson Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Gibson Delivery recently acquired approximately $7.0 million of cash capital from its owners, and its president, George Hay, is trying to identify the most profitable way to invest these funds. Todd Payne, the company's operations manager, believes that the money should be used to expand the fleet of city vans at a cost of $820,000. He argues that more vans would enable the company to expand its services into new markets, thereby increasing the revenue base. More specifically, he expects cash inflows to increase by $260,000 per year. The additional vans are expected to have an average useful life of four years and a combined salvage value of $101,000. Operating the vans will require additional working…VishnuFlyers plc operates public transport services in major cities in the United Kingdom (UK). The company uses the accounting rate of return (ARR) and payback methods to support investment decision making. You are a Senior Finance Manager at Flyers plc.The company intends to bid for new five-year contracts to operate bus services in either Edinburgh, UK, or Newcastle upon Tyne, UK. Both contracts require the successful bidder to pay a franchise fee to secure the contract and to invest in a new fleet of buses. Sufficient funding is available to finance only one of these options. Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5)…
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