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AA Auto Parts Company has a corporate tax rate of Need more help! AA Auto Parts Company has a corporate tax rate of 34 percent and depreciation of $19,180. Compute its depreciation tax shield.   Students also viewed these Organizational Behavior questions Company has a corporate WACC of 10%. You propose investing in a Company has a corporate WACC of 10%. You propose investing in a new project that has very little risk with an internal rate of return (IRR) of 8%. Your boss asks,“ How can the project possibly have a positive NPV if its IRR is less than our WACC?” What is your answer? Following the 1986 Tax Act, the corporate tax rate of 34% was Following the 1986 Tax Act, the corporate tax rate of 34% was set above the personal tax rate of…… a corporation and a partnership producing the same goods and services in light of these required before tax rates of return? The maximum corporate tax rate of 35% is the same as the The maximum corporate tax rate of 35% is the same as the maximum rate applicable to individuals (except for certain high-income taxpayers). Consequently, for any additional taxable income, the corporate tax liability will be the same as the individual tax liability. Do you agree? Why or why not? The corporate tax rate of 21% is lower than the top brackets The corporate tax rate of 21% is lower than the top brackets for individuals. Consequently, C corporations will always owe less tax than most individual business owners. Do you agree? Why or why not? Depreciation as a Tax Shield The term tax shield refers to the Depreciation as a Tax Shield The term tax shield refers to the amount of income tax saved by deducting depreciation for income tax purposes. Assume that Rummy Company is considering the purchase of an asset as of January 1, 2010. The cost of the asset with a five-year life and zero residual value… The Trotter Trust has the receipts and expenditures listed below for the The Trotter Trust has the receipts and expenditures listed below for the current year. Assume the Uniform Act governs an item’s classification as principal or income. The trustee’s fee is charged one-half to principal and one-half to income. What is the trust’s net accounting income and the maximum amount it can distribute? Assume the trust instrument precludes distributing principal currently. Dividends …………………………………. $15,000 Interest on tax-exempt bonds ……………… 7,000 Loss on sale of capital asset ………………. (9,000) Rental income from land ………………….. 6,000 Property taxes on rental property …………. 1,000 Trustee’s fee ………………………………. 1,800 What is meant by the concurrent execution of database transactions in a What is meant by the concurrent execution of database transactions in a multiuser system? Discuss why concurrency control is needed, and give informal examples. David Chen was seriously injured in a snowboarding accident that broke both David Chen was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included five days of hospitalization at $900 a day, $6,200 in surgical fees, $4,300 in physician’s fees (including time in the hospital and eight follow-up office visits), $520… QUESTION FOUR You are given an economy with three sectors only, namely; QUESTION FOUR You are given an economy with three sectors only, namely; Service (S), industry (I)…… (A)…. unit of the second good requires 3 hours of labour time, and one unit of the third good requires 2 unit of labour time, approximately how many hours of labour time are needed to meet the… Mountain Bancorporation (Mountain Bancorp) was a holding company headquartered in Kentucky. The Mountain Bancorporation (Mountain Bancorp) was a holding company headquartered in Kentucky. The company had assets of just under $ 1 billion. During the heady days of the early 2000s, inflation was moderate, the economy was growing, and banks were making large real estate loans. As the economy improved, competition among banks for all types of loans intensified, with commercial loans considered to be the most desirable of all. One specific commercial loan is the focus of this case study. During this time, a new resort named Sky High was being developed near a major recreation area. This resort was aimed at upscale clients from New York and New Jersey, and it included all the appropriate amenities. The total cost of the development was about $ 12 million. Mountain Bancorp competed for this loan but lost it to another banking company. A few years after the project was completed, one of Mountain Bancorp’s directors, who also served as legal counsel for Sky High, suggested that the resort might be interested in refinancing with Mountain Bancorp. The lenders began to analyze Sky High’s financial statements and perform other diligence work. In the middle of this process, Sky High’s management unexpectedly informed Mountain Bancorp that the loan must be completed within two weeks or the resort would stay with its present bank. The bank officers responsible for authorizing this loan were Terry Randall and Paul Tyre. Randall was the senior lender for Mountain Bancorp’s largest bank. He was a 45- year- old college graduate with 20 years of lending experience. Tyre was the president of Mountain Bancorp’s largest bank. He was a 43- year- old high school graduate with 18 years of banking experience. The loan presented several problems for Mountain Bancorp. First, the amount of the loan was $ 12 million, which was $ 9 million above Mountain Bancorp’s legal lending limit. This meant that $ 9 million of the loan needed to be shared with a larger banking organization. The organization that Mountain Bancorp normally used for such sharing arrangements was a large regional bank (Correspondent National). Correspondent National’s lenders also had to perform financial analysis and other due diligence for the loan, which would take longer than two weeks to complete. Another problem was created by the abbreviated loan processing period. When it came time to disburse the $ 12 million, the required financial analysis had not been completed. Moreover, there was only an informal commitment from Correspondent National to participate in the sharing agreement. Even so, Mountain Bancorp’s lenders proceeded to close the loan, confident that Correspondent National would eventually under-write the $ 9 million. Correspondent National eventually accepted the $ 9 million portion of the loan, but with one important caveat. The bank required that the loan participation agreement include a recourse clause that allowed Correspondent National to return the loan to Mountain Bancorp at Correspondent’s discretion. The significance of this recourse clause was that, for legal and regulatory purposes, the entire $ 12 million remained as Mountain Bancorp’s credit risk. Thus, a third problem was created— the loan was now in violation of state and federal laws and regulations. Mountain Bancorp’s lenders never informed its board of this recourse provision, and subsequent audits by regulatory examiners, internal auditors, and external auditors never discovered it. The lending- limit violation went undetected until the real estate market crashed. When this happened, Correspondent National experienced significant loan losses. To reduce the risk of further charge- offs, Correspondent returned the Sky High loan to Mountain Bancorp in accordance with the recourse agreement. This required that Mountain Bancorp send $ 9 million to Correspondent National and that Mountain Bancorp rebook the amount. To get the $ 9 million on the books of Mountain Bancorp, its lenders divided the loan into three loans in the amount of $ 3 million, each with a different name. This made it appear that each sub-loan was under the bank’s legal lending limit. The transaction was not reported to Mountain Bancorp’s loan committee or its board, as required by loan policy. When the economy entered a recession, Sky High could no longer make payments on the $ 12 million loan. In response, Mountain Bancorp’s lenders waived principal payments and capitalized interest, without informing the loan committee or the board. This action was predicated on the belief that the economy would eventually recover, allowing Sky High to resume its full loan payments. However, the situation worsened, and Sky High went into bankruptcy. At this time, it was discovered that Mountain Bancorp held the entire $ 12 million risk related to this loan. This was the final problem to beset Mountain Bancorp’s lenders. Because of the bankruptcy, a real estate appraisal valued the property at about $ 3 million, which led to a $ 9 million charge- off that significantly reduced the bank’s capital position. In fact, had Mountain Bancorp not been acquired by another banking organization, it would likely have failed. As a result, jobs were lost, shareholder value was destroyed, and lives were ruined. These events were discovered by a fraud investigator hired by the bank’s board of directors. Following a three- month investigation, the investigator prepared a comprehensive report detailing his findings. This report was used by the local prosecuting attorney to bring charges against several of Mountain Bancorp’s officers, including Randall and Tyre. In their defense, Randall and Tyre argued that they approved the loan because they were under pressure from the board to obtain Sky High as a customer. They further asserted that they were blindsided by Correspondent National’s requirement for a recourse agreement and failed to inform the board or the loan committee about it because the funds had already disbursed. Based on the facts presented in this case, respond to the following questions: 1. Is this a white- collar crime? Explain. 2. Do Randall and Tyre fit the profile of a typical fraudster? Explain. 3. Are the three elements of the fraud triangle present in this case? If so, identify and discuss each. 4. Assuming the role of the fraud investigator, how would you plan your investigation? What evidence would you gather, and how would you analyze it? 5. How might the prosecution attempt to establish fraudulent intent on the part of Randall and Tyre? 6. Can the calculus of fraud be used to explain the actions of Randall and Tyre? 7. Is there an indication that Randall and Tyre used the neutralization techniques described in this chapter? 8. Assuming the role of the defense attorney for Randall or Tyre, what arguments might you present to combat the prosecution’s allegation of fraudulent intent? 9. Speculate as to the outcome of the criminal proceeding. Do you think Randall and Tyre were convicted of a crime? As a juror, what evidence would you find the most compelling? Find one additional article about research ethics, and summarize your readings in Find one additional article about research ethics, and summarize your readings in a paragraph. The Article cannot be online. Must be a reputable source. a. What are some of the challenges marketers must consider when designing a. What are some of the challenges marketers must consider when designing their pricing strategies? b. Should different pricing approaches be utilized in different countries? c. How can a company such as Pfizer balance the costs associated with communicating the benefits of their products with… A consumer advocacy agency, Equitable Ernest, is interested in providing a service A consumer advocacy agency, Equitable Ernest, is interested in providing a service in which an individual can estimate their own credit score (a continuous measure used by banks, insurance companies, and other businesses when granting loans, quoting premiums, and issuing credit). The file… The Giles Agency offers a 12% trade discount when providing advertising services The Giles Agency offers a 12% trade discount when providing advertising services of $1,000 or more to its customers. Audrey’s Antiques decides to purchase advertising services of $3,500 (not including the trade discount), while Michael’s Motors purchases only $700 of advertising. Both services… Interpreting regression results, matching time periods, ethics Jayne Barbour is working as Interpreting regression results, matching time periods, ethics Jayne Barbour is working as a summer intern at Mode, a trendy store specializing in clothing for twenty-some-things. Jayne has been working closely with her cousin, Gail Hubbard, who plans promotions for Mode. The store has only been in… Nick Santiago purchased a used for $35,000. Before the tractor could be Nick Santiago purchased a used for $35,000. Before the tractor could be used, it required new tires, which costs $2,200, and an overhaul, which cost $2,800. Its first tank of fuel cost $150. The tractor is expected to last six years and have a residual value of $4,000. Determine the cost and… Norge Company is an 80%-owned subsidiary of Victor Corporation. The separate income Norge Company is an 80%-owned subsidiary of Victor Corporation. The separate income statements of…… … by Norge Company and treated as other income by Victor Corporation.Prepare the consolidated income statement for 2012, including the distribution of the consolidated net income to the… Morris Supply Company had the following transactions in 2010. 1. Acquired $50,000 Morris Supply Company had the following transactions in 2010. 1. Acquired $50,000 cash from the…… a… investing activity (IA), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. b. Prepare an income statement, statement of changes in…