According to the New York Times, Delta Airline’s foray into oil refining in 2012 illustrates some of the reasons that the business was in trouble even before the pandemic. Questions: What was the bold experiment that Delta Air tried? What were the flaws in Delta’s strategy? What is the most immediate concern of the refinery… Read more »
Posts Categorized: Income Taxes
IRS makes it easier to tap your retirement account
With no agreement on a second round of stimulus payments, the IRS made it easier for people to pull money from their retirement plans without a costly penalty. Questions: Who makes up the category of individuals who can tap their retirement plan without penalty, according to the IRS’s new guidance? If an employer allows an… Read more »
Accounting for Coronavirus
According to the Washington Post, some companies are adopting an innovative approach to accounting for the impact the coronavirus pandemic has had on their earnings: they’re leaving it out. Questions: What is Ebitda and why is it so important? How does Ebitdac work? Who’s using it? What is your opinion of this practice? Source: Lindell,… Read more »
Chevron’s Big Merger
Despite the sharp decline for oil and gas, Chevron agreed on Monday to buy Noble Energy for roughly $5 billion. Questions Why might this be such an important move? Why did Noble decide to sell? How many North American oil producers have filed for bankruptcy this year? Source: Krauss, C. (2020). Chevron Deal for Oil… Read more »
COVID-19 Leads to Borrowing Binge
According to the New York Times, during the pandemic,along with the sharpest economic downturn in history, the solution by most companies has been to take on more debt. Questions: Why does this borrowing binge turn conventional wisdom on its head? Does the article make it sound like there will be many defaults to the Fed… Read more »
First Bad News about Chuck E. Cheese, Now Broadway- Oh No!
According to the Washington Post, the shutdown of Broadway’s 41 theaters will continue at least until Jan. 3. Questions: Why is Broadway so important to New York’s economic health? What will happen to ticketholders for shows up to and including January 3? What percent of tickets for commercial productions in 1,000- to 2,000-seat theaters must… Read more »
Does This Situation Seem to be Ethically Correct During a Pandemic?
HCA Healthcare, one of the world’s wealthiest hospital chains, earning more than $7 billion in the past two years and worth $36 billion, paid its chief executive $26 million in 2019. However, as the pandemic spread across America, HCA did not provide adequate protective gear to medical staff, froze wages for nurses, and has… Read more »
Deceptive Practices
Progressive Leasing, which offers rent-to-own programs at major retailers like Best Buy and Lowe’s, has agreed to pay $175 million to settle allegations it misled consumers, the Federal Trade Commission said Monday. Questions: What trade violations did the complaint allege? Why did FTC Commissioner Rebecca Kelly Slaughter say that the settlement did not go far… Read more »
Shake Shack
The fast-food chain, Shake Shack, was among the businesses criticized for accessing emergency funds for small businesses from the U.S. federal government. Questions: What is the stimulus money to be used for? What has been the controversy associated with the funds? Why did the chain decide to return the loan money? Source: Ramzy, A. (2020)…. Read more »
Drowning in Arbitration
According to the New York Times, as companies face a flood of claims, they are employing new strategies to thwart the very process that they have upheld as the optimal way to resolve disputes. Questions: Why are some companies trying to short-circuit the process? How are some companies trying to short-circuit arbitrations? What is FairShake… Read more »