4. Problems and Applications Q4 Identify which of the arguments for restricting trade that each of the following rebuttals directs against. Rebuttals The Jobs Argument The National-Security Argument The Infant-Industry Argument The Unfair-Competition Argument The Protection-as-a-Bargaining-Chip Argument (A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. (B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. (C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. (D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living.

Answers

Answer 1
Answer:

Answer:

(A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. - The Unfair-Competition Argument

Some Governments subsidise production for their companies which means that their companies are able to sell goods cheaper than the producers in the countries they export to. This is considered Unfair competition.

B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. - National-Security Argument

Some goods produced by domestic producers need to be protected for national defense purposes and sometimes some of these producers exaggerate the importance of their goods so that the Government can protect them from foreign competition thus enabling them to charge consumers higher prices.

(C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. - The Protection-as-a-Bargaining-Chip Argument

Sometimes a country might threaten to impose restrictions for instance the United States on China which would make things more expensive for Americans and if they do not then it would look like China won the argument which would make the US lose face.

(D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living. - The Jobs Argument

David Ricardo's Comparative Advantage principle believes that free trade will lead to more jobs in the country because the country will be able to properly harness those goods it is better at producing.

Answer 2
Answer:

The given rebuttals address the Unfair-Competition Argument, the National-Security Argument, the Protection-as-a-Bargaining-Chip Argument, and the Jobs Argument in the debate over Restricting trade.

In this question, the student is asked to identify which arguments for restricting trade each of the given rebuttals is directed against. Here are the answers:

  • (A) The gains of the consumers from buying imports at the low price subsidized by foreign governments would exceed the losses of domestic producers. - This rebuttal directly addresses the Unfair-Competition Argument.
  • (B) Companies may exaggerate the degree to which their products are essential to national defense in order to obtain protection from foreign competition at the expense of consumers. - This rebuttal directly addresses the National-Security Argument.
  • (C) The country may be forced into deciding between implementing trade restrictions as threatened, which would make the society as a whole worse off, or backing down on its own threat, which would cause it to lose credibility in foreign affairs. - This rebuttal directly addresses the Protection-as-a-Bargaining-Chip Argument.
  • (D) Opening up to free trade may impose hardship on some workers in the short run, but it also creates jobs in industries in which the country has a comparative advantage and enables the country as a whole to enjoy a higher standard of living. - This rebuttal directly addresses the Jobs Argument.

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Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $300.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $310.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $290.0 million. Prepare the journal entry to record the sale.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Investment in bond Dr, $330 million

       To Cash $300 million

        To Discount on bond investment $30 million

(Being investment in bond is recorded)

2. Cash Dr, $8.25 million ($330 million × 5% × 6 ÷ 12)

Discount on bond investment Dr, $0.75 million

     To Interest revenue $9 million ($300 million × 6% × 6 ÷ 12)

(Being recognition of bond interest and discount is recorded)

3. The computation of investment is shown below:-

Investment = $300 million + $0.75 million

= $300.75 million

4. The journal entry is shown below:-

Cash Dr, $290 million

Discount on bond inventment Dr, $29.25 million

Loss on sale of investment Dr, $10.75 million

          To inventment in bond $330 million

(Being sale of investment is recorded)

Running vertically down the market-product grid, each column represents an opportunity for efficiency in A. A product grouping. B. supplier synergies. C. a market segment. D. research and development

Answers

Answer: (D) Research and development

Explanation:

In the product synergy system, the each column representing about the opportunity for the efficiency in the research and the development.

The product synergy is one of the concept that helps in explain about the holistic view of an organization where the various types of material and also the energy are get exchange from one unit to another.

The research and the development plays an important role in the industry as it helps in introducing the new innovated products and the services in the market and maintaining the organizational productivity and the bottom line.  

 Therefore, Option (D) is correct answer.

Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below.] The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $ 11,200
Accounts Receivable 142,000
Prepaid Rent 5,200
Supplies 26,000
Equipment 320,000
Accumulated Depreciation $ 127,000
Accounts Payable 11,200
Salaries Payable 10,200
Interest Payable 4,200
Notes Payable (due in two years) 32,000
Common Stock 220,000
Retained Earnings 52,000
Service Revenue 420,000
Salaries Expense 320,000
Rent Expense 16,000
Depreciation Expense 32,000
Interest Expense 4,200
Totals 847,800 876,600
Required:
Prepare an income statement for the year ended December 31, 2021.
FIGHTIN' BLUE HENS CORPORATION
Income Statement
For the Year Ended December 31, 2021
Expenses:
Total expenses

Answers

Answer:

Fightin' Blue Hens Corporation

Income Statement

For the year ended December 31, 2021

Service Revenue                                             $420,000

Operating expenses:

  • Salaries Expense $320,000
  • Rent Expense $16,000
  • Depreciation Expense $32,000           ($368,000)

Operating income                                            $52,000

Other revenues and expenses:

  • Interest Expense $4,200                         ($4,200)

Net income before taxes                                 $47,800

*The totals of the trial balance sheet were added incorrectly, they both debit and credit total $876,600.

In the month of November Pharoah Company wrote checks in the amount of $68800. In December, checks in the amount of $94176 were written. In November, $63002 of these checks were presented to the bank for payment, and $80970 in December. What is the amount of outstanding checks at the end of December?

Answers

Answer:

$145,008

Explanation:

Outstanding checks at the end of November = $68,800 + $63,002 = $131,802

Outstanding checks at the end of December = $131,802 + $94,176 - $80,970 =  $145,008

Therefore,  the amount of outstanding checks at the end of December is $145,008.

Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $300. In each town, some people enjoy fireworks more than others.In the town of Bayport, each of the residents values the public good as follows:

Resident Value
(Dollars)
Darnell 70
Eleanor 90
Jacques 150
The total benefit of the fireworks display to the town of Bayport is ($ ).

Therefore, fireworks (would/would not) pass the cost-benefit analysis in the town of Bayport.

The mayor of Bayport proposes to decide by majority rule and, if the fireworks referendum passes, to split the cost equally among all residents.

Who would vote in favor of the fireworks referendum? Check all that apply.

Darnell

Eleanor

Jacques

Answers

Answer:

Thus, option b and c are correct.

Explanation:

Suppose that there are two towns. Each town has three members to put on a fireworks display. The cost of fireworks is $300.

Find the total benefits of the fireworks display to the town of B.

Total benefit = value to Darnell + value to eleanor + value to Jacques

= 70+90+150 =$310

Thus, total benefit of the fireworks display to the town of B is $310.

Since the total benefits to the persons is greater than the total costs, therefore, fireworks would pass the cost- benefits analysis in the town of B.

The mayor of B said to spilt the cost among all the residents. Each of the residents will bear s $100 ($300/3).

Darnell and Eleanor will not vote for this because cost to them is more than the value to them. Remaining Jacques

will vote for this because cost to him is less than the value to him for this.

Thus, Jacques will vote in favor of this.

Thus, option c is correct.

Therefore, vote would not yield the same answer as the cost-benefit analysis.

Find the total benefits of the fireworks display to the town of RH.

Total benefit = value to kyoko + value to Musashi + value to Rina

= 50 +110+ 120 = $280

Thus, total benefit of the fireworks display to the town of RH is $280.

Since the total benefits to the persons is less than the total costs, therefore, fireworks would not pass the cost- benefits analysis in the town of RH.

The mayor of RH said to spilt the cost among all the residents. Each of the residents will bear $100 &$300/3).

Kyoko will not vote for this because cost to them is more than the value to them. Remaining Musashi and Rina will vote for this because cost to him is less than the value to him for this.Thus, Musashi and Rina will vote in favor of this.

Thus, option b and c are correct.

Therefore, vote would not yield the same answer as the cost-benefit analysis.

The following statements are correct about the provision of public goods.

It is hard for the government to decide the appropriate amount of public goods to produce because people have differing preferences regarding such goods. Thus, option b is correct.

Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.

Answers

Answer:

Brodrick Company

Flexible Budget Performance Report for the year ended December 31

                                 Flexible        Actual          Variance

                                 Budget        Budget        

Sales unit                 21,000           26,900          5,900 units F

Sales revenue    $645,600      $595,600     $50,000 U

Variable costs         80,700          114,000        33,300 U

Fixed costs             141,000         133,000          8,000 F

Total costs          $221,700      $247,000      $25,300 U

Profit                  $423,900      $348,600      $75,300 U

Explanation:

a) Data and Calculations:

Flexible Budget for 21,000 units

Sales revenue = $504,000

Variable cost = $63,000

Fixed costs = $141,000

Flexing the budget with 26,900 units:

Sales revenue = $645,600 ($504,000/21,000 * 26,900)

Variable costs = $80,700 ($63,000/21,000 * 26,900)