For the Module 2 Assignment, please answer the following questions:
1) Discuss the circular flow of income in four sector economy.
2) Discuss the expenditure method of measuring national income.
3) What is the difference between GDP and GNP? Is one a better measure of income/output than the other? Why?
4) Explain what happens to consumption, investment, and the interest rate when the government increases taxes.
Specifications
Your assignment should be submitted in a Word document and follow proper APA formatting. Proper APA formatting includes a title page, in-text citations, and a formal reference page. You can view more information and examples of sample papers in APA formatting at https://owl.english.purdue.edu/owl/resource/560/01/ (Links to an external site.).
This assignment should be a minimum of four pages in length
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Problem Set with questions designed to measure mastery of the content of the module. Each Problem Set has two (2) documents: Problem Set (questions) and Excel Template. Excel is the industry standard for finance work and is required to complete and submit each Problem Set. The provided Excel Template may be used or you may create an original spreadsheet. If you choose to use the Excel template provided, download it for better usability. Every question should have its own tab. Show all your formulas as this allows the instructor to better assess how to help you and award partial credit as deems appropriate.
Week 1 – Introductions, Financial Statements, and Ratios
This problem set uses Alaska Air Group, Inc. as the basis for ALL questions. To start, go to the airline’s investor relations page and get its latest annual report (10-K).
1. Using the firm’s selected financial data:
a. Make a table showing the income statement (in million $). Note that any expenses that do not have their own specific line listed should be grouped under “All other expenses”. The net income lines must tie using formulas.
b. Use the table created to create a common size income statement (as a % of operating revenues for that year).
c. Show year-on-year (YoY, in %) growth
d. What happened to the profit margins?
e. What are the actual tax rates?
2. Using the operating stats, what is the YoY growth rate for: a. Yield?
b. Operating expense per available seat mile (CASM)? c. Revenue passenger miles (RPMs)?
d. Fuel price ($/gallon)?
e. Considering the above, what factors, other than the pandemic, do you think are
3. Using the firm’s balance sheets, show:
a. Balance sheets as shown (in million $); show only net property & equipment lines.
b. Common size balance sheets.
c. Are there any outliers in the balance sheets that you think merit mentioning?
d. For these years, what is the net working capital position? Current ratio? Quick ratio? Total debt ratio? Return on assets (ROA)? Return on equity (ROE)? What is the latest p/e ratio (use Yahoo Finance)?
4. Using the Statement of Cash Flows, which items stand out to you and why?
a. What are the top three markets by share? b. What happened to passenger yields?
c. What happened to costs per ASM?
d. What do you think this means for the bottom line? e. What are the top three city pairs?
Week 2 – Discounted Cash Flow Valuations and Net Present Value
Remember that when you use the perpetuity formula, the formula automatically present values the perpetuity one period, so if you use the perpetuity formula in year 15, the result is as of the beginning of year 15!
1. You are offered three annuities (these make equal payments over a specific period). Using an annual 5.5% discount rate, calculate each annuity’s price:
#
Price ($)
Payments ($/month)
Life (years)
1
?
195
6
2
?
200 (growing @ 1%/year)
5
3
?
135 (growing @ 2.5%/year)
Forever
2. You purchase a new machine for your firm. It costs $84,000 and will expand your cash flow by $13,500/year in year 1 growing by 2.5% per year after that. The system will work for 30 years before you have to replace it. What are the NPV (at a 5.5% discount rate) and IRR?
The vendor offers you another machine costing $99,000 and lasting 35 years, with the same yearly cash flow and growth rate. What are the NPV and the IRR for it? Should you get it?
a. Use July 1, 2011, to calculate the future value of the $5.9M owed on July 1, 2000.
b. Use July 1, 2011, to calculate the present value of the 25 yearly payments of
$1,193,248.20. The first payment is made on July 1, 2011
c. Should Bobby take it? Why?
4. You are looking to lease a car. The dealer offers you the following: Car price = $35,000
Monthly lease payments = $499
Down payment = $3,000
Lease term = 36 months
Purchase price at end of lease = $18,000
What is the implicit interest rate on the lease?
5. The Airbus A220 has the following R&D costs (all negative cash flows):
€400M (year 1)
€300M (year 2)
€200M (year 3)
€100M (year 4)
Each plane will be sold for €48M – 15% down and the rest due on delivery one year later. The cost to produce each plane is €38M – these costs are recognized on delivery. The Sales and Marketing Department says that you will sell 30 planes (year 5) and sale will grow by 5 planes per year before they plateau at 60 planes. The last sale is made in year 16, when the A220 is replaced by a new model.
What are the NPV (as of the beginning of year 1) and the IRR of the plane using a 9% discount rate?
Week 3 – Risk Analysis, Real Options, and Capital Budgeting
1. Real Options
A. JTMAirlinesislookingatbuyingmoregatesattheirhomeairport.JTM’sdiscountrateis 5.5% and the risk free rate is 2.0%. What is the NPV of the gate purchases if it bought them today? Use the data in the Excel template provided.
B. After you run the numbers for part A, you remember back to the concept of real options, which means that JTM can make investment decisions as time passes:
1. Present valuing the purchase price of the gates (that is, the years 1 and 2 Capital Expenditures) separately using the risk-free rate. Once JTM decides to go ahead with the purchase, there is no risk to that expenditure.
2. Present valuing the Net Cash Flow excluding those purchase prices. This calculation will include Cap. Ex. for years 3-15 as they are part of the normal operation of the gates and are unrelated to the purchase price.
3. Use the Black-Scholes Option Pricing formula to come up with option’s price assuming a 2-year maturity and a 15% price volatility for gate prices.
4. Compare the price of the call option with the NPV in the No Real Options scenario. Is the option worth it?
2. Decision Tree
JTM really liked your work on the option pricing of the gates, so they ask you to look at their 3- phase expansion at their home airport. The three phases are:
A. Uponpurchaseofthenewgates,startamarketingprogramtopromoteJTM’sroutesto the East Coast, West Coast, and the Caribbean. If all goes well and the market is receptive, they will go on to phase 2.
B. Phase2hasJTMinvestinnewroutestothedestinationslisted.Ifatanytime,JTM finds that this is not going to work, they will pull the plug on everything.
C. Phase3hasJTMstartthenewroutestothedestinationslisted.Ifthingsdon’tgowell on any of the three destinations, they will pull the plug on everything.
After much work with other departments, you generate enough data to calculate the NPV of the 3-phase expansion. Before you have a chance to save all your work, there is a power spike and you lose part of your work. You have to complete it for a presentation. Please use the Excel template provided to complete this.
Week 4 – Interest Rates and Bond Valuation
1. What is the annual yield of a 6-year, 6.4% semi-annual coupon-paying bond priced today at $1,190? Par is $1,000.
2. What is the annual yield of a 9-year, 4.1% annual coupon-paying bond priced today at $1,088? Par is $1,000.
3. Show the cash flows and prices for the following four bonds, each with a par value of $1,000 and paying interest semi-annually:
#
Coupon Rate
Years to Maturity
Market Yield
A
6.4%
8
4.5
B
3.7%
9
4.4
C
3.8%
9
4.6
D
0.0%
5
4.3
Which of the four bonds would you prefer to hold and why? (Answer in the box provided.)
4. Considerasemi-annualbondwithanannualcoupon=6.33%,maturity=10 years, par value = $1,000, and a market price today = $1,063:
a. Whatisitsyieldtomaturity(YTM)?
b. Supposethebondcanbecalledat$950attheendofyear8,whatis
itsyield to call?
5. You have two bonds with the following characteristics:
Characteristics
Bond A
Bond B
Coupon
4.4%
5.5%
Years to Maturity
7.5
5
Par Value
$1000
$1000
Price
$902.00
$911.00
a. Whatarethebonddurations?
b. Ifratesriseto4.5%,whatarethenewpricesforeachbond?
Week 5 – Valuing an Airline for Acquisition
JTM Airlines, a privately held firm, is looking to buy additional gates at its home airport for $1,500,000. It has money in the bank, but that money may not be spent as it is used to pay salaries, suppliers, and equipment. It asked its bank for a loan, but the bank refused unless the project had a return higher than JTM’s weighed average cost of capital. Separately, PAN Airways’s CEO approached JTM’s CEO to sell the airline. As a result of all this, JTM has contracted you to:
1. Calculate JTM’s weighed average cost of capital (WACC) based on two airlines trading in the capital markets – PDM and GAL. Since JTM does not trade, it has no beta, so you need to use these two firms as proxies. JTM’s CFO kindly gave you the necessary information on PDM and GAL for you to do this.
2. Aside from the purchase price, the gates will require a working capital infusion of $1,500,000 at purchase. JTM estimates the gates will generate cash flows of $295,500 in year 1, inflating at 4%/year over the next 12 years. After that, the gates will revert back to the airport operator. Half the working capital is recovered at the end. Calculate the NPV and IRR of the gates.
3. You were given PAN’s 2020 income statement (IS) and balance sheet (BS), along with forecasts of the revenue growth. Forecast the IS and BS for the next 5 years.
4. The price discussed by the two CEOs is $6.5M. You must value PAN Airways using free cash flows to see if this price is fair or not.
Week 6 – Multiples and Transactions, Dividend Discount Model
1. JTM Airlines is looking to buy Jaguar Airlines. Your boss, the CFO, wants a quick and dirty valuation of Jaguar. You choose to look at past transactions in the airline industry to get some numbers and put them in an Excel spreadsheet. For Jaguar, you find out the firm’s key financial values and put them in the spreadsheet. To remind yourself that they are inputs, you should color them red.
Using EPS, Book Value (BV), Sales, EBITDA, Premium and Synergy over stock price,what should be Jaguar’s prices per share?
2. Yourbossispilingontheworkandhasaskedyoutovaluethreemore potential acquisitions. They are of Northern, Eastern and Central, fixed base operators serving areas where JTM is looking to expand (the names give away the regions of the country). You don’t have cash flow data for these firms as they are privately held, but you talked to the owners and they gave you dividend information for the firms, which you entered into your spreadsheet. You remember back to your corporate finance class that you can use the Dividend Discount Model (DDM) to come up with a quick and dirty valuation.
You know that JTM’s WACC is 6.8% and will use this as the applicable discount rate.
Using the DDM Model, what are the values per share of each of these three firms?
Week 7 – Long Term Debt
1. A firm issues a $10 million debt obligation that pays 7.3% per year over four years. How much will it have to pay in four years?
2. Suppose that a life insurance company has guaranteed a payment of $14 million to a pension fund 4.5 years from now. If the life insurance company receives a premium of $10.4 million from the pension fund and can invest the entire premium for 4.5 years at an annual interest rate of 6.25%, will it have sufficient funds from this investment to meet the $14 million obligation?
3. A. A firm is borrowing $5,000,000 from its bank at an annual interest rate of 5.7% for the first six years and 7.2% for four years after that. How much will it pay at the end?
B. Suppose the firm in 3A can take another bank’s quote of $5,000,000 for 10 years at an annual rate of 6.1% compounded semiannually. How much would it pay at maturity? Is this investment alternative more attractive than the one in 3A?
4. Suppose a firm issues a $10 million debenture maturing in 8 years and with an annual rate of 7%. Interest is paid annually at the end of the year. How much will the firm have paid out in total as of year 8, when it pays the interest plus principal?
5. A firm’s head of HR knows that the following pension payments must be made in years 1- 4. The head of HR needs to go to management to request a lump sum that will satisfy this liability stream. Assuming the lump sum can be invested today at an interest rate of 4.7%, how much must be invested today to satisfy this liability stream?
Week 8 – Short Term Debt
1. You are in a team compiling a report to send to your firm’s bank. You are supposed to take the firm’s last three months and provide the following for each month:
Days receivable Days inventory Operating cycle Days payable Cash cycle
You have all the financials in the spreadsheet so all you need to do is make the calculations.
2. ABC Maintenance Service
A. ABC FBO sells maintenance services to various private jet operators.
For these, it demands payment within 30 days. It is considering changing this policy to 0.66%/7, net 30. What is the implicit annual rate in the new policy? Use a notional purchase of $10,000.
B. ABC’smaintenanceservicebusinessgrossessome $22M per year before discounts and its average days receivable is 30. If 15% of its clients opt to follow the new policy, what will be the change in receivables? If ABC’s WACC is 7.0%, what are the projected savings of the new policy? If its gross margin is 22%, by how much will gross dollar revenues have to rise to offset the loss from discounts? In percent?
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For the Module 2 Assignment, please answer the following questions:
1) Discuss the circular flow of income in four sector economy.
2) Discuss the expenditure method of measuring national income.
3) What is the difference between GDP and GNP? Is one a better measure of income/output than the other? Why?
4) Explain what happens to consumption, investment, and the interest rate when the government increases taxes.
Specifications
Your assignment should be submitted in a Word document and follow proper APA formatting. Proper APA formatting includes a title page, in-text citations, and a formal reference page. You can view more information and examples of sample papers in APA formatting at https://owl.english.purdue.edu/owl/resource/560/01/ (Links to an external site.).
This assignment should be a minimum of four pages in length.
Timely Delivery– primewritersbay.com believes in beating the deadlines that our customers have imposed because we understand how important it is.
Customer satisfaction- Customer satisfaction. We have an outstanding customer care team that is always ready and willing to listen to you, collect your instructions and make sure that your custom writing needs are satisfied
Writing services provided by experts- Looking for expert essay writers, thesis and dissertation writers, personal statement writers, or writers to provide any other kind of custom writing service?
Enjoy Please Note-You have come to the most reliable academic writing site that will sort all assignments that that you could be having. We write essays, research papers, term papers, research proposals. Discuss the circular flow of income in four sector economy.
Customer satisfaction- Customer satisfaction. We have an outstanding customer care team that is always ready and willing to listen to you, collect your instructions and make sure that your custom writing needs are satisfied
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Enjoy Please Note-You have come to the most reliable academic writing site that will sort all assignments that that you could be having. We write essays, research papers, term papers, research proposals. The “average” income in the United States can be given by the mean or the median.
Assessment -Project Report: respond to the following questions in your brief project report. Refer to the course assessment document and the handout that I posted on the VLE (i.e., Guidelines for Assessment 2) for the format of your report and page and typeface restrictions. Several studies have been conducted in the literature about cross-national income elasticities of demand. Please answer the following questions using both applicable economic concepts from our class and empirical evidence from the literature:
1) Briefly define income elasticity of demand.
2) What can we conclude from the empirical evidence about the income elasticities of demand for health care services across countries?
3) Do you believe better health care is available in the United Arab Emirates than in other developed nations? What indicators would you use to support your answer?
Please make sure to review the following two resources on APA style of citations before you submit your Assessment 2-Project Report assignment. I hope you will find them helpful.
Focus on income elasticity of demand in UAE’shealthcare
The rise of individual incomes and countries’ GDPs has seen individuals, organizations and countries spend more on healthcare (World Health Organization, 2014);a tendency of income elasticity of demand. What is causing this tendency and is healthcare an inferior, normal or luxurious product? Is thisincome elasticity of demand the same within a country and across countries? How does this tendency in the United Arab Emirates (UAE) compare to the rest of the world, especially developed countries?
This essay investigates the above questions, giving recommendations on the way forward for healthcare expenditure in UAE.
Background
Income elasticity of demand is a ratio measurement of how the demand for a product is affected by the change in a people’s income, ceteris paribus. The ratio is calculated as the percentage change in demand to the percentage change in income. For example, if the demand for a product increases by 30% because incomes increase by 10% then the income elasticity of demand is 3 (30%/10%), with such a product being viewed as superior or luxurious because it has a positive income elasticity of demand greater than 1. If it is a positive ratio that is less than one, then this would be a necessity product. Notably, most healthcare services throughout the world consistently fall under this category(Folland and Goodman, 2012). If there was no change in demand because of change in income (zero ratio), then that would be a sticky product such as salt. Inferior products have a negative income elasticity of demand with an increase in income leading to a decrease in demand because of people changing to superior or luxurious products.
Income, priceand cross elasticities of demand show the economic performance of an industry or country, predict consumption trends and inform investors. This is because these elasticities are dependent on market segments as determined by prices, incomes and demographics.
Elasticities of demand aremostly evident when increase in household income leads to purchasing new products that match the new income bracket or when increase in prices lead to less demand. In the health industry, this is reflected by people seeking better healthcare services when they get more incomes or decreased demand for healthcare when prices increase(Ternopil State Medical University, undated). However, healthcare provision is subject to diminishing marginal productivity and diminishing marginal utility with each additional unit of healthcare consumption and additional improvement in health lea…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. cross-national income elasticities of demand ……………
Assignment Content Purpose of Assignment This comprehensive case requires students to evaluate a static budget and prepare flexible budgets to meet managerial needs. Students are required to calculate and analyze variances and discuss how variances are critical to managerial decision making.
Resources Green Pastures Static Budget Income Statement Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC) Tutorial help on Excel® and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.
Assignment Steps Scenario: Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made the boarding business extremely competitive. To meet the competition, Green Pastures planned in 2017 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees.
The budget report for 2017 is presented as an attachment. As shown, the static income statement budget for the year is based on an expected 21,900 boarding days at $25 per mare. The variable expenses per mare per day were budgeted: feed $5, veterinary fees $3, blacksmith fees $0.25, and supplies $0.55. All other budgeted expenses were either semifixed or fixed.
During the year, management decided not to replace a worker who quit in March, but it did issue a new advertising brochure and did more entertaining of clients.
Develop a 700-to 1050-word examination of the financial statements and include the following based on the static budget report: What was the primary cause(s) of the loss in net income? Did management do a good, average, or poor job of controlling expenses? Were management’s decisions to stay competitive sound? Prepare a flexible budget report for the year. Based on the flexible budget report: What was the primary cause(s) of the loss in net income? Did management do a good, average, or poor job of controlling expenses? Were management’s decisions to stay competitive sound? What course of action do you recommend for the management of Green Pastures?
Show your work in Microsoft Word or Excel.
Complete calculations/computations using Microsoft Word or Excel.
Read: Green Pastures Static Budget Income Statement
Looking at the static budget report, it was evident that Green Pastures’ net income dropped as a result of a declined in the number of boarding days as well as the boarding fee. Analysis showed that boarding days declined by about 13 % from 21,900 to 19,000 which is a decrease of 2,900 boarding days as shown in the computation below.
The boarding fees also declined by 20 % from $25.00 daily to $20.00 daily as shown in the computation below.
The overall reduction in sale revenue was $167,500 which is about 31 %. The computation of percentage is shown below.
The overall computations of boarding fees on a daily basis of during the two economies (healthy and downturn) are presented below.
Whether the management did a good, average, or poor job of controlling expenses?
Based on the outcome of the computation, one can conclude that the management did a poor job in managing variable expenses. A decline of approximately 13 % of boarding days should have led to reduction of variable expenses with a similar margin. The computation showed that variable expenses only declined by about half of the margin that was expected to decline as shown below.
This is a clear indication that the management did a shoddy job of controlling variable expenses. However, they did a good job in controlling fixed expenses because they were under budget by $4,000 despite the additional expenses that were incurred in entertainment and advertising.
Whether the management’s decisions to stay competitive were sound? The decision taken by the management to stay competitive were sound because as they reduced the boarding days, they took a bold decision………………………………………………………………………………………………
Assessment Details and Submission Guidelines Trimester T3 2019 Unit Code HI6028 Unit Title Taxation Theory, Practice & Law Assessment Type Assignment Assessment Title Individual Assignment Purpose of the assessment (with ULO Mapping) Students are required to follow the instructions by your lecturer to confirm any relevant information. You also need to follow any relevant announcement on Blackboard to confirm the due date and time of the assignment. The individual assignment will assess students on the following learning outcomes: 1. Demonstrate an understanding of the Australian income tax system, the concept of deductions, CGT, general anti-avoidance provisions and income tax administration. (ULO 1). 2. Identify and critically analyse taxation issues. (ULO 2). 3. Interpret the relevant taxation legislations and case law. (ULO 3). 4. Apply taxation principles to real life problems. (ULO 4). Weight This assignment task accounts for 25 % of total marks in this unit. Total Marks This assignment task accounts for 25 marks of total marks in this unit. Word limit Max 2000 words (acceptable to be 10% above or below this word limit). Due Date Refer to the Unit Outline, as Normal & Block Modes have different due dates. Submission Guidelines • All work must be submitted to the Blackboard by the due date along with a completed Assignment Cover Page. • The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. • Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.
Individual Assignment Specifications Purpose: This assignment aims at assessing students on the Learning Outcome (LO) from 1 to 4 as mentioned above. Instructions: Please read carefully to avoid mistakes. · Answer all questions. · This assignment along with a completed Assignment Cover Page is to be submitted on Blackboard by the due date in soft-copy only. · The self-check links are no longer available as a separate link in each unit’s assessment. Students are now limited to attempt any given assignment submission a maximum of three times. After every attempt you will receive a SafeAssign originality report with Blackboard Learning Management System. This will provide detailed information about the matches found between your submitted works and existing sources. · The assignment is to be submitted in accordance with assessment policy stated in the Unit Outline and Student Handbook. · It is the responsibility of the student submitting the work to ensure that the work is in fact his/her own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. · The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. · Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. You also must refer to relevant legislation and/or case law in your answer. Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. · Note: Assessment task is set around the work that you have done in class. You are not expected to go outside the content of the unit but you are expected to explore it.
Assignment Structure should be as the follows: Question 1: ASSESSABLE INCOME Weighting Identification of material facts (issues) regarding Emmi’s assessable income scenario, and the consequences discussed in the assignment question. 1 % Identification and analysis of legal issues / legal question and relevant taxation law in regards to Emmi’s income (e.g. ITAA 1936 and ITAA 1997). 2 % Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Emmi’s case. 2 % Detailed and accurate assessable income conclusion are reached from the discussion. 2 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 2 % Ability to show excellent understanding of the cases and/or section of legislation, its context and application of taxation law. 1 % QUESTION 1 TOTAL MARKS: 10 % QUESTION 2: CAPITAL GAINS TAX (CGT) Weighting Identification of material facts regarding the capital gains tax (CGT) consequences of Liu’s transactions discussed in the assignment question. 1 % Identification and analysis of legal issues / legal question and relevant taxation law. 3 % Thorough yet succinct application of ITAA 1997 to material facts. 5 % Detailed and accurate conclusions are reached from the scenario discussion. 2 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 2 % Students are able to demonstrate understanding of the cases and/or section of legislation, its context and application of taxation law. 2 % QUESTION 2 TOTAL MARKS: 15 % Assignments’ Instructions and Requirements QUESTION 1- (10 MARKS) Emmi studies accounting at Holmes Institute and works part-time in Crown Melbourne restaurant. During the year Emmi has receipts as follows: (a) Tips from customers of $335 cash; (1.5 marks) (b) Income of $25,000 from working in the Crown Melbourne restaurants; (1.5 marks) (c) An expensive perfume worth $250, from a regular customer gifted to Emmi at Christmas time. Emmi does not use the perfume and gave the perfume to her mother; (1.5 marks) (d) A monthly entertainment event paid by the restaurant owner. The owner spends around $380 on the meals that Emmi consumed. Emmi enjoys these events and sees them as a reward for her hard work; (1.5 marks) (e) Emmi received $15,000 as Christmas gift from her father. (1.5 marks) With reference to relevant legislation and case law discuss Emmi’s assessable income for the year.
Calculate Emmi’s Total Assessable income. (2.5 marks) QUESTION 2 – (15 MARKS) Liu is a 65 years old Australian resident but born in China, Liu is retiring from her business and decides to sell all of her Australian assets and moving home to China. The assets that she is selling include: (a) A house Liu purchased in 1981 for $55,000 and now worth $630,000. This house was Liu’s main residence for the entire period of ownership (03 marks). (b) Liu’s car which cost $37,000 in 2011 and is now worth around $8,000 (03 marks). (c) Liu’s has a small business enterprise, Monte Liu Photography Studio. She started the photography business herself and has found a buyer to take over the business for $125,000. The sale price includes $53,000 for all of the photography equipment, which cost $63,000, and $50,000 for goodwill (03 marks). (d) Liu’s furniture for $4,800. No single furniture item being sold cost more than $2,000 (03 marks). (e) Liu paintings for $28,000. All of her paintings were purchased in second hand shops or markets and no single painting cost more than $500. The one exception was a painting she purchased direct from an artist for $1,000. This painting being sold for $8,000 (03 marks). Advise the capital gains tax (CGT) consequences of the above sales. Your answer should include appropriate legislative references. Assignment Structure should be as the following (students’ responses involves calculations, and students must refer to the relevant legislation and/or cases whenever required according to the questions). Marking criteria Marking criteria Weighting Question 1 Identification of material facts regarding the given FBT scenarios, and the consequences discussed in the assignment question. 1 mark Identification of material facts (issues) regarding Emmi’s assessable income scenario, and the consequences discussed in the assignment question. 2 marks Identification and analysis of legal issues / legal question and relevant taxation law in regards to Emmi’s income (e.g. ITAA 1936 and ITAA 1997). 2 marks Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Emmi’s case. 2 marks Detailed and accurate assessable income conclusion are reached from the discussion. 2 marks Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 1 mark HI6028 Taxation Theory, Practice and Law Individual Assignment T3.2019 4
Ability to show excellent understanding of the cases and/or section of legislation, its context and application of taxation law. 10 MARKS Question 2 Identification of material facts regarding the income and deductions consequences of David’s transactions discussed in the assignment question. 1 mark Identification of material facts regarding the capital gains tax (CGT) consequences of Liu’s transactions discussed in the assignment question. 3 marks Identification and analysis of legal issues / legal question and relevant taxation law. 5 marks Thorough yet succinct application of ITAA 1997 to material facts. 2 marks Detailed and accurate conclusions are reached from the scenario discussion. 2 marks Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 2 marks Students are able to demonstrate understanding of the cases and/or section of legislation, its context and application of taxation law. 15 MARKS Marking Rubric Excellent Very Good Good Satisfactory Unsatisfactory Demonstrated ability to identify issues relating to taxation law : Knowledge and understanding of income tax and CGT. Comprehensive identification of key issues. Frequent links drawn across topics or to extraneous materials. Student property generates questions and problems around a case. Very good identificatio n and discussion of issues. Several links drawn across topics or to extraneous materials. Majority of relevant issues identities and discussed. Some links drawn across topics or to extraneous materials. Some relevant issues overlooked or misunderstood. Few links made drawn across topics or to extraneous materials. Failure to identify and discuss relevant issues. No links made drawn across topics or to extraneous materials. Ability to synthesise material in order to raise issues or construct a persuasive argument. Ability to engage in a reflective discourse: Synthesis analysis and argument. Thorough analysis and synthesis of issues. Persuasively argued throughout, contrary arguments anticipated. Excellent critical evaluation of other metrical and appropriate response. Detailed conclusion is reached from the discussion. Very good analysis, argument well- developed and supported, some critical evaluation of other material and appropriate response. Conclusion is reached from the discussion. Some analysis of issues: argument may be under- developed or unpersuasive. Limited critical evaluation and response to other material. Conclusion is reached but do not supports the analysis. Mainly descriptive with little analysis of issues basic argument is unclear or use undeveloped or not well supported. Limited reference to other material. The response shows some understanding of the case, its context and application of tax law. Insufficient analysis argument is lacking or unsound, failure to use relevant materials, or use of materials may indicate confusion or misunderstanding. No response to other material. No conclusion is given. Writing presentation and referencing Clear and logical organisation; precise and concise writing. Minimal errors in expression, grammar, spelling or punctuation. Very good structure and organisation . Generally well- written. Occasional Generally coherent structure a with occasional deficiencies; reasonably well written. Some flaws in Some defects in structure and organisation; writing may be difficult to follow in parts. Flaws in expression, Structure and organisation incoherent or lacking; poorly written, difficult to follow. Frequent or repeated flaws in expression, HI6028 Taxation Theory, Practice and Law Individual Assignment T3.2019 5
Excellent and complete referencing. minor flaws in expression, expression, grammar, spelling or grammar, spelling or punctuation; a grammar, spelling or punctuation; inadequate citation Grammar and spelling are correct. grammar, spelling or punctuation. Correct and complete referencing. punctuation. number of missing, incomplete or incorrect footnote citations. of sources. Errors in referencing. Referencing omissions
You are to write a report comparing two
different policy approaches to a contemporary social issue.
Examples of policy approaches to consider:
· Harm
minimisation versus abstinence in drug policy
· Compulsory
income management versus spending autonomy for welfare recipients
· Restorative
justice versus incarceration
· Adoption
versus family support programs
· Public
versus private human services delivery
· medical
cannabis prescription versus prohibition
assisted dying versus a ban on euthanasia
Note: choose one from the topics listed above.
Assessment Scaffold
Introduction
Outline the issue you are examining, the key
populations this affects, the different government departments and levels of
government who currently respond to this issue.
Body of Report
For each of the policy
approaches outline:
· A
broad overview of the policy approach, the key theory of government and the
social values or philosophies that underpin it
· The
policy objectives of the approach and key policy documents that reference this
· Some
examples of how this approach has been described and framed in media
discussions
· A
critique of the human rights implications of this policy approach and whether
the policy or elements of the policy could be considered oppressive
· An
assessment of the evidence for the effectiveness of the policy, including
information from formal evaluations if it is available
· In
what circumstances this policy approach could be considered an appropriate
response to an issue
· In
what circumstances could this policy approach could be an inappropriate
response to an issue
Integrating paragraphs and action plan
Consider each policy approach and describe
which approach you broadly consider to be the most helpful in addressing the
key social issue. Discuss how you would advocate for this including how you
would balance the competing claims offered in the other approach. Outline at
least two strategies you could use to advance your claim. Support your position
with reference to human rights legislation and/or the AASW code of ethics.
Conclusion
Write a conclusion that briefly outlines the
key case you have made for the best policy approach to the issue.
Assessment Criteria – Task 3
1. Relevance
of answer to topic
2. Key
issue being examined is outlined including information on population groups and
government departments that address this
3. Assertions
are supported with relevant academic sources, government reports, and other
relevant references
4. Policy
positions are reported and analysed
5. Position
taken is argued for logically and consistently
6. Critical
reflection as to how human rights are addressed in these policy positions and
whether position is oppressive
7. Main
ideas are clearly and logically presented
8. Each
element of the report has been addressed
9. Correct
grammar, spelling and punctuation used throughout
