On March 1, 2021, Mattie Company received an order to sell a machine to a customer in England at a price of 200,000 British pounds. The machine was shipped and payment was received on March 1, 2022. On March 1, 2021, Mattie purchased a put option giving it the right to sell 200,000 British pounds on March 1, 2022 at a price of $380,000. Mattie properly designates the option as a fair hedge of the pound firm commitment. The option cost $2,000 and had a fair value of $2,200 on December 31, 2021. The following spot exchange rates apply:   Date Spot Rate March 1, 2021 $ 1.90   December 31, 2021 $ 1.89   March 1, 2022 $ 1.84     Mattie’s incremental borrowing rate is 12%, and the present value factor for two months at a 12% annual rate is 0.9803.What was the net increase or decrease in cash flow from having purchased the foreign currency option to hedge this exposure to foreign exchange risk?                         A)    $0                        B)    $10,000 increase.            C)    $10,000 decrease.            D)    $20,000 increase.            E)    $20,000 decrease.

When a company applies the partial equity method in accounting for its investment in a subsidiary and the subsidiary’s equipment has a fair value greater than its book value, what consolidation worksheet entry is made to convert to full-accrual totals in a year subsequent to the initial acquisition of the subsidiary?       A) Retained earnings   Investment in subsidiary B) Investment in subsidiary   Retained earnings C) Investment in subsidiary   Equity in subsidiary’s income D) Investment in subsidiary   Additional paid-in capital E) Retained earnings   Additional paid-in capital                           A)    A above.             B)    B above.            C)    C above.            D)    D above.            E)    E above.           

Schrute Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles). On December 31, 2021, this receivable for §200,000 was correctly included in Schrute’s balance sheet at $167,000. When the receivable was collected on February 15, 2022, the U.S. dollar equivalent was $181,000. In Schrute’s 2022 consolidated income statement, how much should have been reported as a foreign exchange gain?

Clark Co., a U.S. corporation, sold inventory on December 1, 2021, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:             Dec. 1 Spot rate: $ 1.831   Dec. 31 Spot rate: $ 1.976   Jan. 30 Spot rate: $ 1.768     For what amount should Sales be credited on December 1?                         A)    $18,310.              B)    $19,760.            C)    $23,712.            D)    $21,972.            E)    $21,216.

Clark Co., a U.S. corporation, sold inventory on December 1, 2021, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:             Dec. 1 Spot rate: $ 1.831   Dec. 31 Spot rate: $ 1.976   Jan. 30 Spot rate: $ 1.768     What amount of foreign exchange gain or loss should be recorded on January 30?                         A)    $2,496 gain.                    B)    $2,496 loss.            C)    $0.            D)    $1,740 loss.            E)    $1,740 gain.

Some people point to the US current account deficit. But most people do not understand. You have been asked to develop an essay explaining IF current account deficits are bad. In your answer, be sure you FULLY explain:  what the current account captures, what it means to have a current account deficit and what is likely causing it, the current account’s role in the balance of payments, how the accounts connect to trade, AND the connection between the current account and the capital account…how and why are they related. Make sure that you actually ANSWER the question that was asked. Expected length is 1-1.25 pages, single spaced, with good content. Be thorough and detailed, illustrating an understanding of these concepts.  You will be judged on the depth, accuracy, and persuasiveness of your explanation.  *This is a bit open-ended and you need to put some structure in place. **Expected length is about 1-1.25 pages (equivalent), single-spaced, where large headers, etc. do not contribute to length. I don’t think you can do a good job with an essay that is much shorter.  ***Note that a few sentences is not sufficient to answer this question and will not earn you an acceptable score. ****Be detailed and be thorough. *****Content is the most important contributor to your grade. But writing quality counts too. I do not expect perfection from a timed essay. But I do expect that your work is proofread and major grammar errors and spelling errors are addressed.  SPEND A FEW MINUTES EDITING YOUR WORK BEFORE SUBMITTING.  

A 67-year-old lawyer comes to your clinic for an annual examination. He denies any history of eye trauma. He denies any visual changes. You inspect his eyes and find a triangular thickening of the bulbar conjunctiva across the outer surface of the cornea. He has a normal pupillary reaction to light and accommodation. Based on this description, what is the most likely diagnosis?

According to GAAP regarding amortization of goodwill, which of the following statements is true?

A company has been using the equity method to account for its investment. The company sells shares and does not continue to have significant influence. Which of the following statements is true?

On January 4, 2021, Mason Co. purchased 40,000 shares (40%) of the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above