(完整版)罗森财政学第七版(英文版)配套习题及答案Chap005

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Chapter 12International Taxation and Transfer PricingDiscussion Questions1.Tax neutrality means that taxes have no (are neutral in their) effect on business decisions. In otherwords, business decisions are driven by economic fundamentals instead of taxes. Such decisions should result in an optimal allocation of resources. However, taxes have the potential to divertthis allocation of resources. Taxes are seldom neutral.Governments often use taxes for social purposes. This is not necessarily bad. For example,countries can use tax breaks to attract business investment, thereby promoting economic growth.Chapter 12 discusses harmful tax competition, a concern of both the OECD and EU. The concern is that some countries (tax havens) use taxes as an unfair competitive tool, depriving othercountries of taxes needed to support their infrastructure and government services. Transactionsare funneled through tax havens merely to avoid taxes; they have no real business purpose.Students should have fun debating whether this is good or bad.2.The types of taxes discussed in the book are:a.Income tax. Tax bases and tax rates vary from country to country. The effective tax rateis what is important, not the nominal rate.b.Withholding tax. These are withholdings on interest, dividend and royalty payments toinvestors.c.Value-added tax. This is a consumption tax popular in Europe and Canada. The tax islevied on each stage of production or distribution based on the incremental value added atthat stage. Companies that pay the tax in their own costs reclaim them later from the taxauthorities. Consumers ultimately bear the cost of this tax.d.Border tax. This is a customs or import duty.e.Transfer tax. This is a tax on the transfer of items between taxpayers.The two most common taxes are the income tax and the border tax.Philosophies of taxation vary with the types of taxes, since ultimately the question is who pays and how much. In the case of income taxes, philosophies vary as to whether income earned outside the country’s borders should be taxed (territorial versus worldwide).3.Tax credits reduce a business entity’s income tax liability dollar for dollar. The purpose of thesecredits in international taxation is to insure that profits earned abroad are not subject to doubletaxation. Accordingly, the country in which a parent company is domiciled will generallyrelinquish taxes on income earned abroad up to the amount of the foreign tax.Tax credits may fall short of their intended results because of how taxable income is definedunder domestic and foreign tax laws. The treatment of expenses is a case in point. Under U.S.law, for example, business expenses attributable to foreign source income must be so allocated in determining the foreign tax credit limitation. Distortions occur when the deduction is not allowed in determining taxable income in the foreign country. The result is usually an overstatement ofthe total amount of taxes paid and excess foreign tax credits recognized. Additional distortionsrelate to national differences in defining income sources and timing differences in the recognition of income and expenses.4.Tax Rate System Advantages DisadvantagesClassical Ease of administration Double taxation of corporateincomeSplit Rate Relief from double taxationprovided at the company level Higher tax rates on undistributed profits reduces the attractiveness of retained earnings as a financing sourceTax Credit Relief from double taxationprovided at the shareholderlevel If tax credit is denied foreign shareholders, investing across national boundaries becomes less attractive5.National differences in tax rates are indeed the least significant determinants of a company’seffective tax burden. The key term here is effective. While statutory tax rates define acompany’s nominal tax burden, this seldom indicates its effective tax burden. Widespreaddifferences in tax administration systems, allowable deductions, rates of depreciation allowances, tax credits, tax treaties, special tax incentives offered by foreign governments, and many indirect taxes (including deficient social overhead services in some low-tax countries) are some factors that affect real tax burdens on MNCs.6.Student responses to this question will naturally vary. Some will argue that multinationaloperations abroad are merely guests of their national hosts. Given the visibility and political sensitivity of their positions, therefore, these firms should fully disclose their earnings picture to local tax authorities and pay whatever taxes are called for. However, others will argue that the competitive position of the multinational corporation will be jeopardized if it does not emulate the tax evasion practices of its local corporate peers. Furthermore, since business ethics are colored by the cultural and social fabric of each individual nation, it is presumptuous for a multinational to impose its domestic mores in an environmental context where they may not be appropriate.7.Transfer pricing is a natural consequence of the decentralization of business organizations.Interactions between units of a decentralized system require the establishment of prices at which goods or services can be transferred among operating divisions. In a purely domestic setting, transfer pricing policy assures (a) a measure of performance that reflects a subunit’s use ofresources and (b) the optimal allocation of enterprise resources.Transfer pricing has assumed a more strategic role in management policy with multinational operations. Many MNCs use transfer prices to (a) reduce or hedge environmental risks, (b)develop favorable tax postures overseas, (c) support the competitive position of selected foreign subsidiaries, and (d) circumvent restrictions on fund movements between national boundaries. 8.(a) Transfer pricing objectives of a multinational company often produce results that directlyconflict with the objectives of a foreign affiliate’s minority shareholders. While the minority shareholders want maximum dividends, transfer prices may be designed to minimize theaffiliate’s income and thus its ability to pay dividends. (b and c) Both domestic and foreign tax authorities are interested in enacting laws and regulations to counteract pricing techniquesdesigned to minimize taxable income. Tax authorities want to claim their fair share of taxes. (d) Managers of foreign affiliates should be concerned because the manipulation of transfer prices destroys the usefulness of subsidiary profits as a measure of their performance. (e) Finally,headquarters managers are vitally concerned with the acceptability of their transfer prices togovernments where they do business. The cost of evoking the wrath of host governments who find transfer prices to be objectionable can far exceed any system-wide benefits that transferprices can achieve. Headquarters should also be concerned if transfer pricing distortsperformance measures because this can cause managers to behave dysfunctionally.9.Considerations that complicate the administration of transfer pricing systems internationallyinclude (but are not limited to) the following:a.Tax considerations -- to minimize its global tax bill, a multinational entity might raise(lower) the transfer prices of goods shipped from affiliates located in low-tax (high-tax)countries.b.Tariff considerations -- to minimize foreign tariffs, a firm can lower (raise) transfer priceson goods shipped to high (low) tariff countries.petitive considerations -- a local affiliate’s competitive position can be improved if itis charged low transfer prices on goods imported from a parent or manufacturing affiliate.d.Foreign inflation -- a parent company may raise transfer prices on goods shipped to anaffiliate located in a highly-inflationary country to minimize local funds subject to thatcountry s inflation.e.Foreign exchange risk -- to minimize foreign exchange risk, a parent may raise transferprices to an affiliate located in a devaluation prone country to move exposed assets to amore stable environment.f.Performance evaluation considerations -- to evaluate the performance of a foreign cost(service) center, a parent company might use transfer pricing to give the affiliate arevenue stream. This would enable the parent to evaluate the affiliate with traditionalprofitability measures.10.Transfer prices are generally based on market price or some variant of cost. Among theadvantages of using market prices are that they (a) encourage the efficient allocation of corporate resources, (b) provide meaningful criteria for performance evaluation, (c) assist in identifying profitable and unprofitable units, and (d) are easy to defend as arm’s-length prices to hostgovernments. Cost-based transfer pricing systems also have many advantages in that they are (a) simple to use, (b) based on readily available data, (c) easy to verify before tax authorities, and (d) easily routinized.The overall competitive and financial position of the MNC is a major consideration ininternational transfer pricing policy. Accordingly, a cost-based transfer pricing system is best from the viewpoint of headquarters management. The flexibility afforded by cost-based transfer prices (i.e., transfer prices can be adjusted by changing the cost base itself or markups on cost) is especially important in helping MNCs to cope with the many environmental risks and constraints which affect their international affairs. However, while cost-based transfer pricing systemspromise greater flexibility, increasing governmental scrutiny of transfer pricing decisions will undoubtedly limit their flexibility.11.An arm’s-length price is one that would have been paid to an unrelated party for the same orsimilar goods under identical or similar circumstances. The United States is not alone inmandating that international transfer prices be based on an arm’s-length price. As the chapter points out, many countries have enacted legislation giving their tax authorities the right toreallocate gross income, deductions, credits or allowances to prevent tax evasion or to moreclearly reflect the proper allocation of income.While the notion of an arm’s-length price provides a conceptual foundation on which to basetransfer prices, it is less than definitive in practical application. Accordingly, application of thearm’s-length principle is far from uniform internationally. Surveys of existing corporate transfer pricing practices reveal a variety of pricing modes often based on professional judgment andapproximation.12.Advance pricing agreements (APAs) are a negotiated agreement between a multinational and ataxing authority on an acceptable transfer pricing methodology. The APA is binding on bothparties for a fixed period of time. The main advantage of an APA is that transfer pricing conflicts can be eliminated or reduced, saving time and money for both the multinational and the taxingauthority. The certainty of transfer pricing treatment makes long-term strategic planning easierfor the multinational. The disadvantage is that the parties are locked in to the agreement, which can be a problem if circumstances change. Of course, time and effort are also needed to achieve the APA.Exercises1.At first blush, Company X promises the better performance as it has a higher pre-tax income.However, a closer examination shows that both companies promise identical after-tax returns. A return on sales of 12.0% yields after-tax earnings of $72 million (12% X $600 million) for both companies. Comparative income statements based on the ratios provided are ($ millions):Company X Company YSales 600600Operating expenses 480528Pre-tax income 12072Income taxes 48-0-Net income7272Thus, it appears that Country X has a 40% income tax rate. Country Y’s indirect taxes are buried in operating expenses. Moral: when comparing company investment performance, focus on after-tax returns.pany X is the better investment because the investor in Country Z is probably not entitled toa foreign tax credit for indirect taxes paid. This is illustrated below.Country X Country YPre-tax earnings $120.00 $72.00Income tax (40%) 48.00 -0-After-tax earnings72.00 72.00Country Z’s investment income:Dividends 36.00 36.00Gross-up forforeigntaxes paid(36/72 x 48 ) 24.00 -0-60.00 36.00Income tax (35%) 21.00 12.60- Foreign taxCredit a(24.00) (-0-)Income tax -0-12.60After-tax return 36.00 23.40a Excess tax credits can be carried back 1 year and forward 10 years.3.There are no taxes paid on these transactions. China and Australia tax corporate income (Exhibit12-2) but the subsidiaries there have no profits. The entire profit is in the Cayman Islandssubsidiary, where there is no corporate income tax.As discussed in the chapter, the Cayman Islands subsidiary would seem to be a brass plate subsidiary with no real work or employment attached to it. Such subsidiaries lack substantialactivities and merely funnel financial transactions through the tax haven country to avoid another country s taxes. The company involved is doing nothing illegal. The issue for the taxingauthorities of Australian and China is whether the company is paying its fair share of theirrespective national taxes. These taxing authorities might tax passive income or adjust the transfer pricing arrangement so that they capture some income tax. These are the implications for thecompany and the taxing authorities involved.4.Subpart F foreign base company income = $4,000,000 x U.S. tax at 35% =- Tax credit for foreign taxes paid($4,000,000 x 17.5%)Net U.S. taxes due $4,000,000 1,400,000 700,000 $ 700,000Students must refer to Exhibit 12-2 for the U.S. tax rate of 35%.5.Value added including tax (4,000 – 2,400) = 1,600 Value added excluding tax (1,600 ÷ 1.175) = 1,362 Value added tax (17.5% x 1,362) = 2386.Classical SystemCorporate income SEK1,500,000- Income tax (28%) 420,000= Net income 1,080,000 Dividend SEK540,000 Income to shareholder SEK540,000- Personal income tax (40%) 216,000=Net income SEK324,000 Total taxes paid:Corporate SEK420,000Individual 216,000Total SEK636,000Country A Country B Country C Country D Royalty paid $20.00Branch earnings $90.00Dividend paid $27.00 $27.00 Foreign withholding tax(10%)2.00 2.70 -0-Net payment to Alubar $18.00‗_‗‗‗‗‗‗‗‗‗‗$24.30‗‗‗‗‗_$27.00‗‗‗‗‗‗U.S. income $20.00 $90.00 $27.00$27.00 Dividend gross-up(27.00/54.00 x 36) ____________ 18.00 -0-Taxable income $20.00 $90.00 $45.00$27.00 U.S. tax (35%) 7.00 31.50 15.75 9.45 Foreign tax creditPaid (2.00) (18.00) (2.70) -0-Deemed paid(27.00/54.00 x 36) __________(18.00)_____ Total (2.00) (18.00) (20.70) -0-U.S taxes — net 5.00 13.50 ( 4.95) 9.45 Foreign taxes 2.00 18.00 20.70 36.00 Total taxes 7.00 31.50 15.75 45.45Low Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,000 $1,700 $1,700 Cost of sales 600 1,000 600 Gross margin 400 700 1,100 Operating expenses 100 100 200Pre-tax income 300 600 900 Income tax (35%) 105210 315Net income $ 195 $ 390 $ 585High Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,200 $1,700 $1,700 Cost of sales 600 1,200 600 Gross margin 600 500 1,100 Operating expenses 100 100 200Pre-tax income 500 400 900 Income tax (35%) 175 140 315Net income $ 325 $ 260 $ 585 As long as corporate tax rates in both countries are the same, an increase in the transfer price charged by the manufacturing affiliate transfers income from Country B to Country A. The pricing action, however, has no effect on consolidated taxes or on consolidated income.Low Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,000 $1,700 $1,700 Cost of sales 600 1,000 600 Gross margin 400 700 1,100 Operating expenses 100 100 200 Pre-tax income 300 600 900 Income tax (30%/40%) 90 240 330 Net income $ 210 $ 360 $ 570High Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,200 $1,700 $1,700 Cost of sales 600 1,200 600 Gross margin 600 500 1,100 Operating expenses 100 100 200 Pre-tax income 500 400 900 Income tax (30%/40%) 150 160 310 Net income $ 350 $ 240 $ 590 Where tax rates differ between countries, an increase in the transfer price charged by themanufacturing affiliate transfers taxable income from the higher tax affiliate to the lower tax affiliate. As a result, consolidated taxes decrease by $20,000 and consolidated net incomerises by $20,000.10. a.There are at least three possible transfer prices based on the facts in this exercise. Thefirst is $120, the uncontrolled selling price in Country A. The second is $100, theminimum declared value legally allowed in Country B. The third is $103.20, based onallowing the affiliate in Country A to earn a reasonable (20%) profit on cost. $103.20 iscalculated as follows:Manufacturing cost Operating expenses Transportation costs Total cost per unit Normal profit (20%) Transfer price$ 60.0010.0016.00$ 86.0017.20$103.20($100,000 ÷ 10,000 units)Consolidated income using the three transfer prices is as follows:$120 Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,200 $1,700 $1,700 Cost of sales 600 1,200 600 Gross margin $ 600 $ 500 $1,100 Operating expenses 100 100 200 Transportation costs 160 -0-160 Import duty (20%)-0-240240 Pre-tax income$ 340$ 160$ 500 Income tax (30%/40%)10264166 Net income $ 238$ 96 $ 334$103.20 Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,032 $1,700 $1,700Cost of sales 600 1,032 600Gross margin $ 432 $ 668 $1,100Operating expenses 100 100 200Transportation costs 160 -0-160Import duty (20%)-0-206206Pre-tax income$ 172$ 362$ 534Income tax (30%/40%)52145197Net income $ 120$ 217 $ 337$100 Transfer Price (000s omitted)Country A Country B Consolidated Sales $1,000 $1,700 $1,700Cost of sales 600 1,000 600Gross margin $ 400 $ 700 $1,100Operating expenses 100 100 200Transportation costs 160 -0-160Import duty (20%)-0-200200Pre-tax income$ 140$ 400$ 540Income tax (30%/40%)42160202Net income $ 98$ 240 $ 338b.The three transfer prices have a minimal impact on consolidated income overall.However, it should be emphasized to students that one cannot just focus on the “bottomline.” The exercise points out the interaction of import duties and income taxes. Eventhough varying the transfer price between $100 and $120 has a negligible impact onconsolidated income, the income taxes paid to the two countries vary quite a bit. Themultinational must contend with income tax authorities of both countries and the customsofficials of Country B. The multinational must be able to justify the transfer price to allof these parties.11.Costs as a % of sales price:Operating expenses14%Profit margin 6%Total 20%TP= {[450 X (100% – 20%) – 1.50] ÷ (100% + 5%)} – 1.00= {[ 360 – 1.50] ÷ 1.05} – 1.00= $340.4312.Total manufacturing cost per unit = SEK 401.00Financing cost a % of total manufacturing cost[(7% x SEK45,000,000) ÷ SEK40,100,000] 7.86% 1.Required margin before adjustments:Required margin 8.00%Financing cost7.86%15.86%ernment subsidy adjustment 5.00%3.Adjusted margin in cash terms[(1.1586 ÷ 1.05) – 1] 10.34% 4.Adjusted margin with 60 day terms{1.1034 x [1 + (.07 x 60/360)]} – 1 = 11.63% Transfer price = (1.1163) x (SEK401.00) = SEK447.64Case 12-1The Shirts Off Their Backs1.We believe that wealthy nations have a moral responsibility to help alleviate poverty in poornations. Tax collections in poor countries are part of the solution to alleviating their poverty.Thus, the question of why wealthy nations should be concerned about seeing that poor onescollect their “fair share” of taxes is a moral one.The Christian Aid report lists three reasons why rich countries should be concerned about “tax justice” and help bring it about:a.Levying taxes is critical in alleviating poverty. As countries develop their economies,they need to use taxation to redistribute wealth and bolster public (government) financesto invest in infrastructure which will, in turn, foster economic development.b.Rich countries also lose income through tax avoidance.c.In a world increasingly affected by terrorism, a system of global finance built on secrecycannot be tolerated. After 9/11, the U.S. government acted swiftly to go after terroristfinancing, much of which involved tax havens. These actions show that it is not beyondthe power of authorities to track money around the world.2.There is no doubt that accountants and accounting firms have played a role in tax avoidanceschemes. Are they behaving ethically or stretching the limits of aggressive tax positions? As the case notes, Andersen facilitated Enron’s massive tax avoidance, setting up a global network of3,500 companies to keep from paying taxes. The case cites a U.S. GAO report that found that 60 percent of U.S. corporations with at least $250 million in assets reported no federal tax liabilityfor any year between 1996 and 2000. In 2003, Ernst & Young reached a $25 million settlement with the IRS over aggressive tax shelters that it marketed. In 2006, KPMG paid a $465 millionsettlement after it admitted selling unlawful tax shelter schemes. The anecdotal evidence, at least, gives accountants and accounting firms a black eye.How culpable they are in perpetuating poverty is an open issue. As discussed next in response to question 3, some would argue that accountants are merely responding to the national andinternational rules and systems. However, this argument ignores the ethical dimensions of their actions. Clearly accountants alone cannot solve the problems raised in the case. Greatertransparency is critical, including open information sharing among national tax authorities.International efforts to pry open secret tax haven countries are also necessary. Hurting the ability of developing countries to collect taxes is perhaps an unintended consequence of accountants’participation in tax avoidance schemes.3.In our view, tax planning is not wrong per se, but a natural behavioral response to tax rules inplace and the enforcement actions of tax administrations systems. One observer writes:[R]ules always affect behavior and not necessarily in the way expected or desired by the rulemaker. It is idle to suppose that behaviors will not be affected. Ensuring that unintendedconsequences are minimized and that the intended consequences are achieved is a difficult art. I see no reason why regulations should not be immune to this.I know that the benefits of living in a civilized and well organized society have to be paid for. Iaccept and do not argue against a duty to pay taxes. It is for the properly appointed government to decide how the necessary money should be raised by taxes and thus what each citizen’s share of the total tax bill should be. I recognize that some would say that citizens have a moral duty to pay their properly appointed share of the total. My problem is that I cannot see any justificationfor a suggestion that citizens should so organize their lives as to maximize (or at least avoidminimizing) the share of taxes that they must each pay.In this light, tax planning is not a crime: it is an inevitable human reaction to a particular set ofrules.At some point most people will have changed their behavior to use the provisions of tax law tosecure a benefit of some kind.1If accountants are playing within the rules, then minimizing taxes through proper planning isessentially benign. However, aggressive strategies that operate under the veil of secrecy stretch the limits of ethical behavior in general and accountants’ code of ethical conduct in particular.4.The first three policy recommendations, taken from the Christian Aid report, involve strongerinternational cooperation on the sharing of information.a.Open up the banking secrecy and confidentiality laws that operate in “uncooperative” taxhavens. As the chapter discusses, the OECD is trying to do this, but further cooperativeinternational government actions are necessary to provide transparency over thelegitimacy of transactions funneled through tax haven countries. The veil of secrecy thatoperates in some tax havens prevents governments from automatically exchanginginformation about cross-border income payments.b.Banks and other financial institutions should be required to disclose to relevantauthorities interest, dividends, royalties, and other income that they pay to citizens andcompanies around the world. As this information is shared across countries, theappropriate tax can then be levied by that country’s tax authority.c.Increase the exchange of information among the world’s tax authorities. In particular,increase cooperation and information sharing between the tax authorities of rich and poornations.d.Provide development aid to improve accounting expertise in poor countries. They needthis expertise to audit transfer pricing practices of multinational corporations.e. A unitary tax system (mentioned in the chapter) whereby the global profits ofmultinationals are divided among countries based on the extent of their activities, isadvocated by some. This would reduce or eliminate the need for complex transferpricing to minimize taxes. Each country could tax its share of global profits at the ratedesired.1 Chris Swinson, “Of Tax Rules and Their Consequences,” Accountancy (October 2005): 26.Case 12-2Muscle Max: Your Very Own Personal TrainerThis case raises a number of issues and should be a good vehicle to acquaint students with the many considerations that impact international transfer prices. One issue concerns host government relations, especially with customs officials. The fact that Muscle Max-Australia is being invoiced at two different prices for identical equipment could lead to Australian charges of "dumping" with regard to imports from Malaysia. Invoicing imported machines from Malaysia at the higher Canton price ([A$675 x 1.26] =A$850) or invoicing imported machines from Canton at the lower Malaysian price (A$675) would obviously involve tradeoffs dealing with taxes, competitive position, etc. Students should be encouraged to discuss the costs and benefits associated with such tradeoffs.Another issue relates to who should set transfer pricing policies. Here, affiliate managers appear to have much discretion in setting their transfer prices. The question is whether and under what circumstances this is superior to more centralized decision-making. Students will probably be divided on this issue. Ultimately, the conclusion of which posture is best will relate to management’s philosophy regarding the purpose of transfer pricing. If the purpose is to maximize system-wide results, e.g., minimize global taxes, a case can be made for centralizing transfer pricing policy. If the purpose is to comply with local requirements (legal or otherwise), decentralization may be better.Closely related to the centralization-decentralization issue is the basis upon which transfer prices should be based. Here, transfer prices are based on a cost-plus method. While this may constitute an arm’s-length price and is suited to a centralized management style, it has its limitations. Higher transfer prices paid for the same merchandise could affect Muscle Max-Australia’s local pricing policies with resulting unfavorable competitive effects. The artificially high transfer prices paid for imports from Canton may minimize system-wide taxes, but they must be balanced against lower resulting profit margins which could reduce the company’s local borrowing capacity. Accordingly, some students will argue that market-based prices are better. This approach appears to be more objective and in keeping with a decentralized profit center orientation. Moreover, market-based transfer prices encourage local managers to keep their local prices competitive, are easier to justify to host governments, and in some sense is a more ethically-based price. Even here, however, students can be expected to disagree as to what constitutes an acceptable market-based transfer price.The effect of transfer pricing policies on performance evaluation measures and, ultimately, management behavior also should be considered. The use of a single transfer price for both tax planning and financial control purposes is subject to debate. While the notion of dual transfer pricing systems is logical – i.e., one set of transfer prices for fiscal planning purposes and another for performance evaluation purposes – practice suggests that many firms are unwilling to use such a system because of the cost and time needed to set up and administer it.。

国际商务第七版答案【篇一：电子商务课后习题答案汇总】=txt>第一节1.阅读教科书第1章和第2章，理解商务和电子商务的概念。

理解电子商务的基本商务模式。

商务：是指以赢利为目的的市场经济主体，通过商品交换获取经济资源的各种经济行为的总称。

电子商务：人们借助现代计算机通信技术，特别是互联网通信技术，所进行的商务活动。

商务模式：一般指企业为取得赢利而采用的基本方法或惯常的运作流程。

电子商务的基本商务模式有两种：一种是企业对企业模式——business to business,b2b 另一种是企业对消费者模式——business to customer, b2c2.请举出几个你比较熟悉的正在从事电子商务的企业。

在网络上访问其电子商务网站，仔细想想，它靠什么赚钱？阿里巴巴：主要是靠商业平台，广告，信息交流，和后台服务。

来赚钱。

他的信息交流有点象百度，你的企业信息如果想在阿里巴巴中更容易得到更多人的关注，那么就要交钱。

后台服务主要是如他的支付宝等服务，需要使用的话也要交钱。

当当网：当当很了解中国传统的图书出版和发行方面的所有环节，所以它尽量到出版社去拿书，而且拿到最低折扣，然后再在网上卖以较合理的折扣。

同时它引进商家，让其在上面卖东西，这其中肯定要收费的嘛。

还有它依靠专业的配送公司，很大程度上节约了成本，更让顾客得到了更加专业的服务。

第二节1.什么是internet? 简单叙述internet的基本工作原理。

internet是由一些使用公用语言互相通信的计算机连接而成的全球网络，即广域网、局域网及单机按照一定的通讯协议组成的国际计算机网络.internet的基本工作原理：简单概括为服务器/客户机模式。

2.有了ip地址，为什么还要用域名？ip地址和域名之间有什么对应关系？因为ip地址难记忆。

为此，人们规定，可为每个接入internet的主机起一个字符型的名字，代表该主机，这种字符型的名字就是域名。

ip地址和域名之间的对应关系：主机域名须与其ip相对应，但一主机可有多个域名。

罗森财政学第七版（英文版）Chap009CHAPTER 9 – Social Insurance I:Social Security and Unemployment InsuranceMultiple-Choice Questions1. A pay-as-you-go system meansa) you pay for your dinner as you go to the table to eat.b) current working citizens pay for current retired citizens.c) there is no need for taxes since current workers pay for current retirees.d) retirees are paid from accounts that have accumulated with interest over theirworking lives.e) all of the above.2. Asymmetric information generally impliesa) information between parties is not equal.b) all parties are fully informed.c) information is costless.d) information is too costly to transmit.e) a and c.3. A fully funded plan requiresa) you to pay for your dinner as you go to the table to eat.b) current working citizens to pay for current retired citizens.c) no taxes since current workers pay for current retirees.d) retirees to be paid from accounts that have accumulated with interest over theirworking lives.e) all of the above.4. An actuarially fair return meansa) returns on investments are indexed to the stock market.b) returns on investments have to be positive.c) benefits received, on average, would be equal to the premiums paid.d) premiums for insurance are generally paid by the government.e) none of the above.5. When workers save less during their working lives due to the fact that they have beenpaying Social Security taxes, this is known asa) the Social Security effect.b) the wealth substitution effect.c) the bequest effect.d) the life cycle hypothesis.6. The Social Security earnings testa) applies only to workers between 65 and 69 years of age.b) was redesigned in the 1980s to include foreign workers.c) has a tax rate of no more than 16.9 percent.d) does all of the above.7. Social Security pension benefits area) subject to income taxes for those with certain income levels.b) nontaxable for all retirees.c) subject to state, but not federal, income taxes.d) subject to capital gains taxes.e) all of the above.8. The Social Security Administration has which program(s) to administer?a) disability paymentsb) health benefitsc) pensionsd) survivors' benefitse) all of the above9. The percentage of unemployed Americans that actually collects unemployment insurancebenefits isa) 9 percent.b) 18 percent.c) 25 percent.d) 33 percent.10. An earnings test as it relates to Social Security impliesa) benefits are reduced by some predetermined amount for those who have notreached normal retirement age.b) the amount of money earned during the working life of an individual determinesthe amount of benefits received.c) family earnings determine the amount of benefits received.d) all of the above.11. Social security taxes are projected to fall short of benefits starting ina) 2005.b) 2010.c) 2016.d) 2020.e) 2030.12. Social insurance can be justified on the grounds ofa) adverse selection.b) decision-making costs.c) income distribution.d) paternalism.e) all of the above.13. The retirement effect isa) when people retire later than they normally would have due to Social Security.b) when people decide not to retire at all because of problems with Social Security.c) when people retire earlier than they normally would have due to Social Security.d) when people save less for their retirement due to Social Security.e) none of the above.14. The gross replacement rate isa) the proportion of pretax earnings replaced by unemployment insurance.b) a rate of employment in key sectors of the economy.c) the percentage of each paycheck that is removed for unemployment insurance.d) the rate that tax receipts are used to cover tax expenditures.e) none of the above.15. A current worker may save more towards retirement so that he or she will have more toleave his or her children later. This altruistic motive is known as thea) altruism effect.b) bequest effect.c) income effect.d) savings effect.Discussion Questions1. Suppose in the market for labor that the labor supply curveis perfectly inelastic. Thiswould mean that the supply curve is vertical. Furthermore, suppose that demand is normal and downward sloping. Your textbook has explained that unemployment taxes are paid entirely by the employer (demanders). Who actually pays the tax in the scenario described above?2. Suppose that a fresh college grad gets a new job initially paying $20,000 a year. Theemployee gets a 3 percent raise annually. After 5 years of working, the employee quits and never works again. How much will this worker have earned over her brief working career? How much will she have paid in Social Security and Medicare taxes if the tax rate is 7.45 percent?3. Suppose that the ratio of retirees to working citizens is currently 1 to 5, meaning thatthere are 5 working people for every retiree. Suppose that in thirty years the ratio will change to 1 to 2. If benefits remain the same, what will happen to the tax rate assuming retirees are provided benefits in a pay-as-you-go system? How much would benefits decrease if the tax rate remained the same?4. A worker within the middle-income class is preparing to retire. In the year before heretired, his gross monthly earnings are $2,000. His Social Security benefits will be $1,200 per month. Before he retired, his income was subject to a tax of 25 percent. Find his before-tax and after-tax replacement rates.True/False/Uncertain Questions1. Having unemployment insurance available makes people work less.2. The percentage of retired older workers has decreaseddramatically since the introductionof Social Security.3. Social Security benefits have played an important role in the improved economic statusof the elderly over time.4. Unemployment taxes are collected from both employees and employers.5. A pay-as-you-go system of financing Social Security is not as good as a fully fundedsystem.6. A worker can begin receiving benefits as early as age 62.7. Social Security is used to redistribute income.8. Average indexed monthly earnings are derived from the worker’s earnings history anddetermine the primary insurance amount (PIA).9. Having a Social Security program makes people less inclined to save for their ownretirement.10. The gross replacement rate is typically 95% of pretax earnings.Essay Questions1. Work disincentives in the system of Social Security have seen the number of persons inthe program increase dramatically. What incentives could be put in place to reverse, or at least slow, this trend?2. Why should firms in industries with higher levels of turnover be required to pay more inunemployment insurance payments?3. Do you feel that when you retire there will still be Social Security? If so, do you feel thatbenefits will be at present levels or tax rates will have increased? Finally, has this discussion changed your plans regarding your own personal savings for your retirement?Answers to CHAPTER 9 - Social Insurance I:Social Security and Unemployment InsuranceAnswers to Multiple-Choice Questions1. b2. a3. d4. c5. b6. a7. a8. e9. d10. a11. c12. e13. c14. a15. bAnswers to Discussion Questions1. The suppliers of labor (employees) would be totally responsible for the paying the tax,despite the fact that the tax was levied on employers.2. The worker will have earned a total of approximately $106,182. She will have paidapproximately $7,910.59 in taxes.3. Initially, a worker paid for 20 percent of a retiree’s benefits. In the future, the sameworker would be responsible for paying for half of a current retiree’s benefits. If benefits remained the same, then each worker’s tax burden would increase by approximately30 percent of the cost of benefits. If tax rates remained the same, then benefits wouldneed to fall by approximately 60 percent.4. His before-tax replacement rate would be 1,200/2,000 = 0.6. His after-tax replacementrate would be 1,200/1,500 = 0.8.Answers to True/False/Uncertain Questions1. U2. F3. T4. F5. U6. T7. T8. T9. U10. FAnswers to Essay Questions1. Increasing the retirement age would see fewer people in the program. Other solutionsinclude removing the survivor’s benefits and introducing a more stringent wealth threshold that says that those persons with a certain wealth are not allowed to receive benefits.2. The employees in these industries are more likely to need unemployment benefits in thefuture.3. This is a personal question but, as recently as August 2004,the current chairman of theFederal Reserve, Alan Greenspan, has warned that benefits will need to be reduced for future recipients or that there will need to be increases in taxes. Many working adults today are changing their saving patterns because of this outlook.。

第21章　彻底的税制改革：对消费和财富课征的税种一、概念题1．增值税[武汉大学2005]答：增值税是对从事商品生产、经营的企业和个人，在产制、批发、零售的每一个周转环节，以产品销售和营业服务所取得的增值额，按统一或差别税率课征的一种税。

所谓增值额，是指企业或个人在生产经营过程中新创造的那部分价值。

即相当于商品销售收入额或劳务收入额扣除生产资料消耗或经营中的物质消耗后的余额。

也就是商品价值总额c+v+m中，由劳动者新创造的价值v+m部分。

增值税是按增值额征税，它与按产品销售收入全额征税的产品税相比，具有许多优点，主要表现在：（1）增值税可以避免重复征税和税负不平的问题，有利于专业化协作生产的发展。

增值税把按生产经营环节征税的普遍性，与按增值额征税的合理性有机地结合起来，从而有效地解决了原来产品税按全值征税而带来的重复征税问题。

使生产同一产品，全能厂与协作厂税负相同，从而给企业扩大协作生产创造了条件。

（2）增值税适应于各种生产组织结构的变化，从而有利于保证财政收入的稳定。

增值税是个中性的税种，它不会因为生产组织方式的不同而导致税负的变化。

即不会因生产从全能厂改为专业化协作而加重企业的税收负担，也不会因生产经营由分散经营的众多小企业联合为大企业而减少税收收入。

从流通方面看，增值税的税负，不受商品流转环节多与少变化的影响，始终保持平衡，增值税的这一特点能够保证财政收入的稳定性和优化企业生产组织结构。

（3）增值税有利于扩大对外贸易往来。

由于增值税在生产流通中不存在重复征税问题，出口产品在国内征收的税款，就等于按该产品最后销价计算的税额，从而便于出口退税。

其实在许多实行增值税的国家，由于规定必须在销售发票上注明已征的增值税额，所以连上面所说的计算也无需进行，只要按发票上注明的数额退税给出口单位即可。

显然，增值税对于扩大出口贸易必然起到强有力的刺激作用。

这是按流转额全额征税所无法比拟的。

2．增值税零税率[上海财经大学2007研]答：增值税零税率是指对企业主免征增值税并且允许抵扣进项税额。

Chapter 6Foreign Currency TranslationDiscussion Questions Solutions1.Foreign currency translation is the process of restating a foreign account balance from onecurrency to another. Foreign currency conversion is the process of physically exchanging onecurrency for another.2.In the foreign exchange spot market, currencies bought and sold must be delivered immediately,normally within 2 business days. Thus a Singaporean tourist buying U.S. dollars at the airportbefore boarding a plane for New York would hand over Singapore dollars and immediatelyreceive the equivalent amount in U.S. dollars. The forward market handles agreements toexchange a fixed amount of one currency for another on an agreed date in the future. Forexample, a French manufacturer exporting goods invoiced in euros to a Japanese importer on 60- day credit terms would buy a forward contract to sell yen for euros 2 months in the future.Transactions in the swap market involve the simultaneous purchase (or sale) of one currency in the spot market and the sale (or purchase) of the same currency in the forward market. Thus, a Canadian investor wishing to take advantage of higher interest rates on 6-month Treasury bills in the United States would buy U.S. dollars with Canadian dollars in the spot market and invest in the United States. To guard against a fall in the value of the U.S. dollar before maturity (when the U.S. dollar proceeds are converted back to Canadian dollars), the Canadian investor would simultaneously enter into a forward contract to sell U.S. dollars for Canadian dollars 6 months in the future at today s forward exchange rate.3.The question refers to alternative exchange rates that are used to translate foreign financialstatements. The current rate is the exchange rate at the financial statement date. It issometimes called the year-end or closing rate. The historical rate is the exchange rate at the time of the underlying transaction. The average rate is the average of various exchange rates during a fiscal period. Since the average rate normally is used to translate income statement items, it isoften weighted to reflect any seasonal changes in the volume of transactions during the period.Translation gains and losses do not occur if exchange rates do not change. However, if exchange rates change, the use of current and average rates causes translation gains and losses.These do not occur when the historical rate is used because the same (constant) rate is used each period.4. In this example, the Mexican Affiliate s Canadian dollar loan is denominated in Canadian dollars.However, because the Mexican affiliate’s functional currency is U.S. dollars, the peso equivalent of the Canadian dollar borrowing would be remeasured in U.S. dollars prior to consolidation. If the Mexican affiliate’s functional currency were the peso, the Canadian dollar loan would beremeasured in pesos before being translated to U.S. dollars.5. A transaction gain or loss occurs when a foreign currency transaction, e.g., a foreign currencyborrowing, is settled at a different exchange rate than that which prevailed when the transaction was originally incurred. In this case there is an exchange of one currency for another. Atranslation gain or loss, on the other hand, is simply the result of a restatement process. There isno physical exchange of currencies involved.6. It is not possible to combine, add, or subtract accounting measurements expressed in differentcurrencies; thus, it is necessary to translate those accounts that are measured or denominated in a foreign currency into a single reporting currency. Foreign currency translation can involverestatement or remeasurement. In restatement, the local (functional) currency is kept as the unit of measure; that is, the translation process multiplies the financial results and relationships in the local currency accounts by a constant, the current rate. In contrast, remeasurement translateslocal currency results as if the underlying transactions had taken place in the reporting(functional) currency of the parent company; for example, it changes the unit of measure of aforeign subsidiary from its local (foreign) currency to the U.S. dollar.7. Major advantages and limitations of each of the major translation methods follow.Current Rate MethodAdvantages:a. Retains the initial relationships in the foreign currency statements.b. Simple to apply.Limitations:a. Violates the basic purpose of consolidation, which is to present the results of a parent and its subsidiaries as if they were a single entity.b. Inconsistent with historical cost.c. Presumes that all local assets and liabilities are subject to exchange risk.d. While stockholders equity adjustments shield an MNC s bottom line from translation gains and losses, such adjustments could distort certain financial ratios and be confusing.Current-noncurrent MethodAdvantages:a. Distortions in translated gross margins are reduced as inventories and translated at the current rate.b. Reported earnings are shielded from the distorting effects of currency fluctuations as excess translation gains are deferred and used to offset future translation losses.Limitations:a. Uses balance sheet classification as basis for translation.b. Assumes all current assets are exposed to exchange risk regardless of their form.c. Assumes long-term debt is sheltered from exchange rate risk.Monetary-nonmonetary MethodAdvantages:a. Reflects changes in domestic currency equivalent of long-term debt on a timely basis. Limitations:a. Assumes that only monetary assets and liabilities are subject to exchange rate risk.b. Exchange rate changes distort profit margins as sales transacted at current prices are matched against cost of sales measured at historical prices.c. Uses balance sheet classification as basis for translation.d. Nonmonetary items stated at current market values are translated at historical rates.Temporal MethodAdvantages:a. Theoretically valid: compatible with any accounting measurement method.b. Has the effect of translating foreign subsidiaries operations as if they were originally transacted in the home currency, which is desirable for foreign operations that are extensions of the parent’s activities. Limitation:a. A company increases its earnings volatility by recognizing translation gains and losses currently.In arguing for one translation method over another, your students should eventually realize that, in the present state of the art, there is probably no one translation method that is appropriate for all circumstances in which translations occur and for all purposes thattranslation serves. It is probably more fruitful to have students identify circumstances in which they think one translation method is more appropriate than another.8.The current rate method is appropriate when the foreign entity being consolidated is largelyindependent of the parent company. Conditions which would justify this methodology is when the foreign affiliate tends to generate and expend cash flows in the local currency, sells a product locally so that its selling price is largely insulated from exchange rate changes, incurs expenses locally, finances its self locally and does not have very many transactions with the parentcompany. In contrast, the temporal method seems appropriate in those instances when theforeign affiliate’s operations are integrally related to the parent company. Conditions whichwould justify use of the temporal method are when the foreign affiliate transacts business in the parent currency and remits such cash flows to the parent company, sells a product largely in the parent country and whose selling price is sensitive to exchange rate changes, sources its factorinputs from the parent company, receives most of its financing from the parent and has a largetwo way flow of transactions with it.9.The history of foreign currency translation in the United States suggests that the development ofaccounting principles does not depend on theoretical considerations so much as on political, institutional, and economic influences that affect accounting standard setting. It may be morerealistic to recognize that theoretically sound solutions are impossible as long as policyprescriptions are evaluated on practical grounds. Without specific choice criteria derived from investor decision models, it is fruitless to argue the conceptual merits of competing accounting treatments. It is far more productive to admit that foreign currency translation choices are simply arbitrary.Readers of consolidated financial statements should know that the foreign currency translation method used is one of several alternatives, and this should be disclosed. This approach is more open and reduces the chance that readers will draw misleading inferences.10.Foreign inflation, in particular, the differential rate of inflation between the country in which asubsidiary is located and the country of its parent determines foreign exchange rates. Theserates, in turn, are used to translate foreign currency balances to parent currency.11.In the United Kingdom, financial statements of affiliates domiciled in hyperinflationaryenvironments must first be adjusted to current price levels and then translated using the current rate; in the United States, the temporal method would be employed. The second part of thisquestion is designed to get students from abroad to find out what companies in their homecountries are doing and thereby be in a position to share their new found knowledge with theirclassmates. They need simply get on the internet and read the footnotes of a major multinational company in their home country.12.Under FAS No. 52, the parent currency is designated as the functional currency for an affiliate,whose operations are considered to be an integral part of the parent company’s operations.Accordingly, anything that affects consolidated earnings, including foreign currency translation gains and losses, is relevant to parent company shareholders and is included in reported earnings.In contrast, when a foreign affiliate s operations are independent of the parent s, the localcurrency is designated as its functional currency. Since the focus is on the affiliate s localperformance, translation gains and losses that arise solely from consolidation are irrelevant and, therefore, are not included in consolidated income.Exercises Solutions1.¥250,000,000 X .008557 = $2,139,250.¥250,000,000 ÷ ¥116.86 = $2, 139,312The difference is due to rounding.2.Since £1 = US$1.9590 and €1 = US$1.3256, £1 = US$1.9590/US$1.3256 = €1.4778.Alternatively, €1 = US$1.3256/US$1.9590 = £.6767.3.Single Transaction Perspective:4/1 Purchases (¥32,500,000/¥116.91) $277,992Cash $27,800A/P(¥32,500,000 - ¥3,250,000)/¥116.91 250,192(Credit purchase)7/1 Purchases[(¥29,250,000/¥116.91) – (¥29,250,000/¥115.47) 3,120A/P 3,120(To record increase in purchases due to yen appreciation)7/1 Interest expense(¥29,250,000 X .08 X 3/12)/¥115.47 5,066A/P(¥29,250,000/¥115.47) 253,312Cash 258,378(To record settlement)Two Transactions Perspective:4/1 Purchases $277,992Cash $27,800A/P 250,1927/1 Transaction loss 3,120A/P 3,1207/1 Interest expense 5,066A/P 253,312Cash 258,3784. a. MXN 1,750,000/MXN10.3 = C$169,903.b. The Canadian dollar equivalent of the Mexican inventory account would not change if the functional currencywas the Canadian dollar as the temporal method translates inventory, a nonmonetary asset, at the exchange rate that preserves its original measurement basis. Since inventory is being carried at its net realizable value, it would be translated at the current rate. Had inventory been carried at historical cosuld have been translated at the historical rate or MXN3,750,000/MXN9.3 = C$403,226.5. Baht is the functional currency:B 2,500,000/20 years = B 125,000B 125,000/B37 = 3,378B 5,000,000/20 years = B 250,000B 250,000/B37 = 6,757U.S. dollar is the functional currency:B 2,500,000/20 years = B 125,000B 125,000/B40 = 3,125B 5,000,000/20 years = B 250,000B 250,000/B38 = 6,579Total depreciation $ 9,7046. If the euro is the German subsidiary’s functional currency, its accounts would be t ranslated into Australian dollarsusing the current rate method. In this case the translation gain of AUD4,545,455 would appear in consolidated equity.Thus the only item affecting current income would be the transaction loss(loss on an unsettled transaction) ofAUD1,514,515 on the euro borrowing.If the Australian dollar is deemed to be the functional currency, then the transaction loss andtranslation gain would both appear in reported earnings as follows:AUD(1,514,515) transaction lossAUD4,545,455 translation gainAUD3,030,940 net foreign exchange gain7.U.S. Dollar U.S. Dollar U.S. DollarBefore CNY After CNY After CNYAppreciation Appreciation DepreciationCNY Balance Sheet ($.12=CNY1) ($.15 = CNY1) ($0.09 = CNY1)Assets Amount Current Monetary Current MonetaryNoncurrent Nonmonetary Noncurrent NonmonetaryCash NT5,000 $600 $ 750 $ 750 $ 450 $ 450Accts. Receivable 14,000 1,680 2,100 2,100 1,260 1,260Inventories(cost=24,000) 22,000 2,640 3,300 2,640 1,980 2,640Fixed assets, net 39,000 4,680 4,680 4,680 4,680 4,680Total CNY 80,000 $9,600 $10,830 $10,170 $8,370 $9,030Liabilities & Owners EquityAccts. Payable CNY21,000 $2,520 $ 3,150 $ 3,150 $1,890 $1,890Long-term debt 27,000 3,240 3,240 4,050 3,240 2,430Stockholders equity 32,000 3,840 4,440 2,970 3,240 4,710Total CNY 80,000 $9,600 $10,830 $10,170 $8,370 $9,030Accounting exposure CNY20,000 (29,000) 20,000 (29,000)Translation gain (loss) US$ 600 (870) (600) 8708.U.S. Dollar U.S. Dollar U.S. DollarBefore CNY After CNY After CNYAppreciation Appreciation DepreciationCNY Balance Sheet ($.12=CNY1) ($.15 = CNY1) ($.09 = CNY1)Assets Amount Temporal Current Temporal CurrentCash CNY5,000 $ 600 $ 750 $ 750 $ 450 $ 450Accts. Receivable 14,000 1,680 2,100 2,100 1,260 1,260Inventories(cost=24,000) 22,000 2,640 3,300 3,300 1,980 1,980Fixed assets, net 39,000 3,600 3,600 5,850 3,600 3,510Total CNY 80,000 $8,520 $9,750 $12,000 $11,700 $7,200Liabilities & Owners EquityAccts. Payable CNY21,000 $2,520 $3,150 $3,150 $1,890 $1,890Long-term debt 27,000 3,240 4,050 4,050 2,430 2,430Stockholders equity 32,000 2,760 2,550 4,800 7,380 2,880Total NT$ 80,000 $8,520 $9,750 $12,000 $11,700 $7,200Accounting exposure NT$ (7,000) 32,000 (7,000) 32,000Translation gain (loss) US$ (210) 960 210 (960)c. Students will quickly discover that each translation method has its advantages and disadvantages. After some discussion, the question of translation objectives will arise. Currency translation objectives are based on how foreign operations are viewed. If foreign operations are considered extensions of the parent, a case can be made for a historical rate method: current-noncurrent, monetary-nonmonetary, or temporal. If foreign operations are viewed from a local company perspective, a case can be made for the current rate method. Given the complexity of multinational business activities, one could argue that a single translation method will not serve all purposes for which translations are done. As long as the objectives of foreign currency translation differ among specific reporting entities, a practical solution is to insist on full disclosure of the translation procedures used so that users have a basis for reconciling any differences that exist.9.Company A (Country A)(Reporting Currency = Apeso)Beginning of Year End of YearAssets: Exchange Rate Translated Exchange Rate TranslatedApeso 100 Apeso 100 Apeso 100Bol 100 Apeso 1 = Bol 1.25 Apeso 80 Apeso 1 = Bol 2 Apeso 50Apeso 180 Apeso 150Translation loss = A$ 30Company B (Country B)(Reporting Currency = Bol)Beginning of Year End of YearAssets: Exchange Rate Translated Exchange Rate TranslatedApeso 100 Apeso 1 = Bol 1.25 Bol 125 Apeso 1 = Bol 2 Bol 200Bol 100 Bol 100 Bol 100Bol 225 Bol 300Translation gain = Bol 75b. This exercise demonstrates the effect of the reporting currency on foreign currency translation results when the current rate method is used. Both companies are in seemingly identical situations, yet one reports a translation loss while the other reports a translation gain. One company reports shrinking assets while the other reports increasing assets. Nothing has actually happened but an exchange rate change. Also, despite a stronger Apeso, Company A reports a loss. Conversely, the Bol weakened, yet Company B reports a gain. It appears that a strengthening currency is not always good news, nor is a weakening currency always bad news.If the intention is to repatriate the funds invested in the foreign country (Country B from Company A’s perspective, Country A from Company B’s perspective), the scenario makes sense. After all, CompanyA will be repatriating fewer Apesos than originally invested and CompanyB will be repatriating moreB ol’s than originally invested. Fluctuating exchange rates have changed each company s command over a foreign currency. Assuming the company intends to repatriate the currency, it makes sense toinclude the respective gain or loss in income for the current year. On the other hand it can be argued that the gain or loss should be excluded from income if the company intends to keep the foreign assets invested permanently..10.Translation RateLocal Currency is Dollar isFunctional Currency Functional CurrencyCash Current CurrentMarketable securities (cost)Current Historical aAccounts receivable Current CurrentInventory (market) Current CurrentEquipment Current HistoricalAccumulated depreciation Current HistoricalPrepaid expenses Current HistoricalGoodwill Current HistoricalAccounts payable Current CurrentDue to parent (denominated in dollars) Current CurrentBonds payable Current CurrentIncome taxes payable Current CurrentDeferred income taxes Current CurrentCommon stock Historical HistoricalPremium on common stock Historical HistoricalRetained Earnings Balancing Residual Balancing ResidualSales Average AveragePurchases Average AverageCost of Sales Average HistoricalGeneral and administrative expenses Average AverageSelling expenses Average HistoricalDepreciation Average HistoricalAmortization of goodwill Average HistoricalIncome tax expense Average AverageInter-company interest expense Average Average__________________________________________________________________________________________________________________________a Fixed income securities intended to be held to maturity.11. a. Before riyal depreciation:Cash SAR 60,000,000 ÷ SAR3.75 = $ 16,000,000Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷ SAR3.75 = 200,000,000Total $248,000,000After riyal depreciation:Cash SAR 60,000,000 ÷ SAR4.125 = $ 14,545,455Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷ SAR3.75 = 200,000,000Total $246,545,455Translation loss $(1,454,455)b.The translation loss has no effect on MSC’s cash flows as it is the result of a restatement process.c.On a pre-tax basis, an analyst would back out the translation gain from reported earnings and add it to consolidatedequity. However, in addition inventory and fixed assets would be translated at the current rate, as opposed to thehistorical rate, and the resulting translation loss would also be taken to consolidated equity. This would result in a different earnings number as well as asset measures.Before riyal depreciation:Cash SAR 60,000,000 ÷ SAR3.75 = $ 16,000,000Inventory 120,000,000 ÷ SAR3.75 = 32,000,000Fixed Assets 750,000,000 ÷ SAR3.75 = 200,000,000Total $248,000,000After riyal depreciation:Cash SAR 60,000,000 ÷ SAR4.125 = $ 14,545,455Inventory 120,000,000 ÷ SAR4.125 = 29,090,909Fixed Assets 750,000,000 ÷ SAR4.125 = 181,818,182Total $225,454,546Translation adjustnment reflected in equity $(22,545,454)Students could also be probed and asked how the adjusted numbers would impact certain ratios such as ROA or ROE, Debt to Equity, and asset turnover.12. a. The currency effects in the first and third paragraphs have an impact on Alcan’s cash flows. IN the firstparagraph, echange rate changes affect Alcan’s future revenues and costs and directly affect cash receipts andpayments. The third paragraph involves settling foreign currency transactions at a different echange rate than when the transaction were entered into.b.Alcan appears to be employing the monetary-nonmonetary method.c. Many analysts back out translation gains and losses from reported earnings as these are largely non-cash itemsthat simply result from a restatement process. This would especially be the case if Alcan were being compared to a company employing the current rate method. Disregarding translation gains and losses would have the following effect on reported earnings:20X5 20X4 20X3With translation G/L $129m $258m $64mTranslation G/L (86) (153) (326)Without Translation G/L $215m $411m $390mThe impact on the pattern of earnings would change significantly. The year to year changes in earnings both before and after abstracting from currency translation effects are:20X5/20X3 20X5/20X4 20X4/20X3With translation G/L 102% -50% 303%Without Translation G/L 45% -48% 5%Case 6-1 Regents CorporationThe nature of Regents’s operation is such that choice of an appropriate functional currency is ultimately a judgement call. Students can argue for either currency and should be evaluated on the strength of their analysis. A major lesson of this case is that the functional currency choice is important since the currency designation dictates which translation method, (current or temporal) is ultimately used. The financial statement effects can be very different. Thus it is important for a reader of financial statements to understand how the differing measurement options affect the balance sheet and income statement and be prepared to adjust from one framework to the other, even if only crudely.TEMPORAL METHOD(U.S. DOLLAR IS THE FUNCTIONAL CURRENCY)Balance Sheet Accounts, 12/31/X7 Foreign Currency Exchange Rate Dollar EquivalentCash £ 1,060 1.80 $ 1,908Accounts receivable 2,890 1.90 5,491Inventory 3,040 1.78 5,411Fixed assets 4,400 1.70 7,480 Accumulated depreciation (420) 1.70 (714)Patent ----- -----Total £10,970 $19,576Accounts payable £ 1,610 1.80 $ 2,898Due to parent 1,800 1.80 3,240Long-term debt 4,500 1.80 8,100Deferred taxes 80 1.80 144Common stock 1,500 1.70 2,550Retained earnings 1,480 residual 2,644£10,970 $19,576Income Statement, 12/31/X8 Foreign Currency Exchange Rate Dollar Equivalent Sales £ 16,700 1.86 $ 31,062Cost of sales a (11,300) (20,706)General and administrative (1,600) 1.86 (2,976) Depreciation (280) 1.70 (476)(20) 1.82 (36)Interest (480) 1.86 (893) Transaction gain 125 1.86 233Aggregate translation adjustment b (368)Taxes:Current (670) 1.86 (1,246 )Deferred (40) 1.86 (74)Net income £ 2,435 $ 4,520Retained earnings, 12/31X7 1,480 2,644Dividends (300) 1.86 (558)Retained earnings, 12/31X8 £ 3,615 $ 6,606a Beginning inventory £ 3,040 1.78 $ 5,411 Purchases 11,690 1.86 21,743Ending inventory 3,430 1.88 6,448 Cost of Sales £ 11,300 $20,706b Aggregate translation adjustment:1. Monetary assets, 12/31/X7 £ 3,950Monetary liabilities, 12/31/X7 7,990(£ 4,040) x (1.90 - 1.80) = ($404)2. Change in negative exposure:12/31/X7 (£ 4,040)12/31/X8 (2,565 )£ 1,475Composition of decrease:Sources of monetary items:Net income £2,435Depreciation 300 £2,735Uses of monetary items:Inventory increase £(390)Addition to fixed assets (500)Purchase of patent (70)Dividends (300 ) (1,260 )£1,4753. Sources of monetary items x difference in year-end rate and rate used to translate income statement =£2,345 x (1.90 - 1.86) = $94300 x (1.90 – 1.86) = 12 $1094. Uses of monetary items x difference in year-end rate and rate used to translate those items =£(390) x (1.90 – 1.86) = $(15)(300) x (1.90 - 1.86) = (12)(500) x (1.90 - 1.82) = (40)(70) x (1.90 - 1.82) = (6 ) (73)Aggregate translation adjustment = ($404)109(73 )($368)Balance Sheet, 12/31/X8 Foreign Currency Exchange Rate Dollar EquivalentCash £ 1,150 1.90 $2,185 Accounts receivable 3,100 1.90 5,890 Inventory 3,430 1.88 6,448Fixed assets a 4,900 8,390 Accumulated depreciation b (720) (1,226)Patent 70 1.82 127Total £11,930 $21,814 Accounts payable £ 1,385 1.90 $ 2,632Due to parent 1,310 1.90 2,489Long-term debt 4,000 1.90 7,600 Deferred taxes 120 1.90 228 Common stock 1,500 1.70 2,550 Retained earnings 3,615 6,309Total £11,930 $21,814___________________________________________________________________________a Original assets £ 4,400 1.70 $ 7,480New assets 500 1.82 910$ 8,390b Original assets £ 700 1.70New assets 20 1.82 36$ 1,226 CURRENT RATE METHOD(LOCAL CURRENCY IS THE FUNCTIONAL CURRENCY)Balance Sheet Accounts, 12/31/X7 Foreign Currency Exchange Rate Dollar Equivalent Cash £ 1,060 1.80 $ 1,908 Accounts receivable 2,890 1.80 5,202 Inventory 3,040 1.80 5,472Fixed assets 4,400 1.80 7,920 Accumulated depreciation (420) 1.80 (756)Patent --- ---Total £10,970 $19,746Accounts payable £ 1,610 1.80 $ 2,898Due to parent 1,800 1.80 3,240Long-term debt 4,500 1.80 8,100Deferred taxes 80 1.80 144Common stock 1,500 1.70 2,550Retained earnings 1,480 2,355 Cumulative translation adjustment --- 459(given)Total £ 10,970 $19,746Income Statement, 12/31/X8 Foreign Currency Exchange Rate Dollar Equivalent Sales £16,700 1.86 $31,062Cost of sales (11,300) 1.86 (21,018)General and administrative (1,600) 1.86 (2,976) Depreciation (300) 1.86 (558)Interest (480) 1.86 (893) Transaction gain 125 1.86 232Taxes:Current (670) 1.86 (1,246)Deferred (40) 1.86 (74)Net income £ 2,435 $ 4,529Retained earnings, 12/31X7 1,480 2,355Dividends (300) 1.86 (558)Retained earnings, 12/31X8 £ 3,615 $ 6,326Balance Sheet, 12/31/X8 Foreign Currency Exchange Rate Dollar EquivalentCash £ 1,150 1.90 $ 2,185Accounts receivable 3,100 1.90 5,890Inventory 3,430 1.90 6,517Fixed assets 4,900 1.90 9,310Accumulated depreciation (720) 1.90 (1,368)Patent 70 1.90 133Total £ 11,930 $22,667Accounts payable £ 1,385 1.90 $ 2,632Due to parent 1,310 1.90 2,489Long-term debt 4,000 1.90 7,600Deferred taxes 120 1.90 228Common stock 1,500 1.70 2,550Retained earnings 3,615 6,326Cumulative translation adj. ----- 842aTotal £11,930 $22,667a Cumulative translation adjustment:1. Net exposed assets, 12/31/X7, x change in current rate = £2.980 x (1.90 - 1.80) = $2982. Change in net assets x difference between year-end and average rate = £2.135 x (1.90 - 1.86) = 853. Cumulative translation adjustment 12/31/X7 4594. Cumulative translation adjustment, 12/31/X8 $842。

罗森财政学复习资料（双语版）第一篇：罗森财政学复习资料(双语版)罗森财政学复习资料（双语版）Unified budget: The document which itemizes all the federal government’s expenditures and revenues.统一预算：联邦政府在一种文件中将其支出逐项列出的文件Regulatory budget: an annual statement of the costs imposed on the economy by government regulations 管制预算：政府管制对经济产生的成本Entitlement programs: programs whose expenditures are determined by the number of people who qualify ,rather than preset budget allocations.公民权利性计划：（是指有关社会保障、公共福利计划、农产品价格维持等法律规定受益人和收益数额的政府支出项目）项目的成本不是由固定的美元数额来决定，而是由符合条件的人的数量决定。

Substitution effect :the tendency of an individual to consume more of one good and less of another because of a decrease in the price of the former relative to the latter.替代效应：是指一种商品价格的变化所引起的使消费者调整该种商品与其他商品需求量比例的效应。

Income effect : the effect of a price change the quantity demanded due exclusively to the fact that the consmer’s income has changed 收入效应：收入效应指由商品的价格变动所引起的实际收入水平变动，进而由实际收入水平变动所引起的商品需求量的变动。

第二十一章　彻底的税制改革：对消费和财富课征的税种一、概念题1．现实消费（actual consumption）答：现实消费是相对于潜在消费而言，指消费者在一定收入水平上的实际消费额。

现实消费仅仅是潜在消费的一部分。

拥护以所得为税基的人认为，重要的是消费能力，而不一定是这种能力的运用，因此所得税优于消费税。

但是，反对者则认为根据个人以消费形式从经济体系中“拿走”多少（现实消费）来征税，比根据个人对社会的“贡献”（用所得来衡量）来征税，更为公平，因而所得税相对于消费税更为公平。

事实上，公平与否通常取决于价值判断。

2．潜在消费（potential consumption）答：潜在消费指纳税人在没有减少其实际净财富存量的情况下能够消费的最大数量。

潜在消费基于消费者的财富量，衡量了消费者的消费能力。

黑格一西蒙斯标准的所得定义是基于潜在消费水平的，其认为所得是在一定时期内，个人消费能力净增加的货币价值。

这等于在此期间的实际消费额加上财富净增加额。

财富净增加额——储蓄——必须包括在所得中，因为它代表着潜在消费的增加。

3．一般销售税（general sales tax）答：一般销售税是销售税的一种，是对所有商品的购买按同一税率开征的税。

在美国，广泛覆盖各种商品的州销售税常被称为一般销售税。

销售税是指对包括劳务在内的商品购买征税。

销售税又分为一般销售税和特种销售税。

特种销售税对不同的商品实行不同的税率（包括零税率）。

一般销售税采用比例税率，大多为3％～5％，也有税率更低的。

联邦政府不征一般销售税；在约一半的州里，市和县政府征收自己的一般销售税。

4．选择性销售税（selective sales tax）答：选择性销售税，又称货物税或差别商品税是对不同的商品购买按不同的税率课征（其中的有些税率可能是零）的一种销售税。

联邦政府只对机动车燃油、酒精饮料、烟草和几种其他商品征税，但这些税收占联邦收入的比例不到10%。

地方政府对该种税收征收的范围和幅度则较大。

CHAPTER 4 - Public GoodsMultiple-Choice Questions1. Public goods are characterized bya) nonrivalness.b) excludability.c) the sum of the MRSs equaling MRT.d) all of the above.2. Market mechanisms are unlikely to providea) prices.b) nonrival goods efficiently.c) supply and demand.d) none of the above.3. A pure private good isa) nonrival in consumption and subject to exclusion.b) rival in consumption and subject to exclusion.c) rival in consumption and not subject to exclusion.d) all of the above.4. Commodity egalitarianism refers to commodities thata) are important for most consumers.b) are too dangerous for most consumers.c) should be made available to all consumers.d) are good ideas but never produced.e) are produced in bulk.5. Charging individual prices that are based on consumers’ willingness to pay isa) government price supports.b) will pricing.c) second tier pricing.d) price discrimination.6. Equilibrium for public goods is characterized bya) MSB = MSB.b) MRS = MRT.c) MRS = MRS = MRS=…=MRS = MRT.d) MC = MB.e) MRS – MRT = MSB.7. Summing demand curves horizontally sends market ______________ to individuals,while summing vertically sends market ______________ to individuals.a) price; priceb) quantity; quantityc) quantity; priced) price; quantity8. Public goods can bea) provided privately.b) provided publicly.c) subject to free rider problems.d) all of the above.9. A ________ is a person who wants to enjoy the benefits of a public good withoutcontributing his or her marginal benefit to the cost of financing the amount made.a) free riderb) politicianc) price makerd) price optimizer10. Congestible public goodsa) are nonrival in consumption.b) can not be priced in the market.c) are rival in consumption.d) are never provided by the private sector.11. A private good isa) nonrival in consumption.b) subject to free rider problems.c) subject to exclusion.d) not subject to exclusion.e) none of the above.12. When those that do not contribute to the costs of a public good are denied use, this is acase ofa) exclusion.b) being nonrival.c) price discrimination.d) infeasibility.e) all of the above.13. Which of the following is a public good?a) public defenseb) public televisionc) a libraryd) schoolse) all of the above14. Pure private goods are supplied througha) the market.b) government taxes.c) merit pricing.d) none of the above.15. School vouchers area) provided by the government.b) provided by private organizations.c) public funds to be used for private tuition.d) all of the above.Discussion Questions1. Suppose there are two individuals with identical demand curves characterized by theequation Q = (33/2) – (P/2). What is market demand if these demand curves are added horizontally? Vertically?2. Redo problem 10 of Chapter 4 in your textbook. Assume now that the marginal cost ofgetting snow plowed is now $24.3. Use the answer you found when adding market demand curves vertically in Question 1above to find the market equilibrium quantity if the market supply is constant at 10.4. Suppose you are given the following demand curves: Q = 32 – P and Q = 16 – (P/2).Add these two demand curves vertically and find the market demand curve.5. Suppose there is a public good that has market supply characterized by the equation X =(P/3) – (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 –P. Find the equilibrium quantity of the public good that will be supplied.True/False/Uncertain Questions1. The free rider problem causes less than optimal production of a public good.2. Pure private goods are nonrival in consumption.3. Most goods that are nonexcludable are pure public goods.4. Vertical summation of demand curves yield results equivalent to those of horizontalsummation.5. Increasing the quantity of a pure public good can be done at zero cost.6. Demand curves for pure public goods satisfy the law of demand.7. Pure public goods involve positive externalities.8. Increases in spending on education will lead to an increase in student performance.9. Privatization means taking services that are supplied by the government and turning themover to the private sector for provision.10. Private goods are always provided by the private sector.Essay Questions1. You have read that the free rider problem affects equilibrium in a public good context.Explain how this situation can be modeled as a prisoner’s dilemma game.2. Discuss and contrast the advantages and disadvantages of public highways versus tollroads.3. Some economists believe that public schools would improve if they were subjected tocompetition. Discuss the pros and cons of this idea.。

Test Bank to accompany Rosen’s PublicFinance, Seventh Edition Chapter 2CHAPTER 2 - Tools of Positive AnalysisMultiple-Choice Questions1. Positive economicsa) does not depend on market interactions.b) only looks at the best parts of the economy.c) examines how the economy actually works (as opposed to how it should work).d) is very subjective.2. The Law of Demand statesa) that there is an inverse relationship between price and quantity demanded.b) that the judicial branch of government sets demand schedules.c) that laws can have no effect on market economies.d) none of the above.3. The function Y = f(X,Z) meansa) X multiplied by Y equals f.b) X + Y = Z.c) Y is a function of both X and Z.d) none of the above.4. If there is a function and one component is Y3, then there is a ____ in the function.a) square rootb) cubicc) cosined) circlee) all of the above5. Refer to Question 4 above. The equation containing Y3 would bea) linear.b) quadratic.c) a Nash equilibrium.d) inefficient.e) nonlinear.6. Marginal and average taxes area) calculated using the same methodology.b) not used in modern tax analysis.c) not calculated using the same methodology.d) all of the above.77. The slope of a regression line is calculated by dividinga) the intercept by the change in horizontal distance.b) the change in horizontal distance by the change in vertical distance.c) the change in horizontal distance by the intercept term.d) the change in vertical distance by the change in horizontal distance.e) none of the above.8. Unobserved influences on a regression are captured in thea) error term.b) parameters.c) regression line.d) significance term.e) regression coefficient.9. The following can be analyzed using econometrics:a) labor supply.b) market demand.c) tax-setting behavior.d) poverty.e) all of the above.10. Normative economicsa) does not depend on market interactions.b) only looks at the best parts of the economy.c) examines how the economy actually works (as opposed to how it should work).d) embodies value judgments.11. The Latin phrase ceteris paribus meansa) let the buyer beware.b) other things being the same.c) swim at your own risk.d) whatever will be will be.12. The substitution effecta) is when individuals consume more of one good and less of another.b) is associated with changes in relative prices.c) will have no effect if goods are unrelated.d) is all of the above.13. Self-selection bias affects empirical estimation bya) leading to samples that are not representative of the entire population.b) making estimators improved.c) increasing the accuracy of test results.d) doing none of the above.14. When different bundles of commodities give the same level of satisfaction, you area) said to be indifferent between the bundles.b) said to be confused.c) not able to make a decision.d) unhappy with any combination.e) none of the above.15. The marginal rate of substitution isa) the slope of the utility curve.b) the slope of the contract curve.c) the slope of the utility possibilities curve.d) none of the above.Discussion Questions1. Suppose tha t a competitive firm’s marginal cost of producing output q is given byMC=2+2q. Assume that the market price of the firm’s product is $13.a) What level of output will the firm produce?b) What is the firm’s producer surplus?2. Use the following function for elasticity: = -(1/s)(P/X), wheres is the slope of thedemand curve, P is the price, and X is the quantity demanded, tofind elasticity when demand is X d= 22-(1/4)P when the price of good Xis 20.3. Imagine that the demand for concert tickets can be characterized by the equation X d = 7 –P/5. The supply of tickets can be written as X d = -2 + P/5. Find the equilibrium price and quantity of concert tickets.True/False/Uncertain Questions1. Empirical analysis generally deals with theory and little data.2. Economists attempt, with moderate success, to perform controlled experiments makingpolicy analysis helpful.3. Regression coefficients are indicators of the impact of independent variables ondependent variables.4. Primary data sources include information gathered from interviews and experiments.5. Multiple regression analysis typically requires several computers.6. Econometrics is the statistical analysis of economic data.7. Theory is always necessary for empirical research.8. The demand for a good is not affected by the demand for arelated good.9. Equilibrium in the market is where supply is equal to demand.10. A model is a simplified description of some aspect of the economy.Essay Questions1. “S ince the social sciences are not like the natural sciences, experiments are a waste oftime.” Comment on the above statement.2. Discuss the concept in econometrics that states, “garbagein . . . garbage out.”3. It is possible that two different economists can examine the same situation, such asschool funding, and reach entirely different conclusions. Why is this so?。