Description: Did you hear the the Canadian government has given $50 million to MasterCard, a company that made $16 billion last year? The government response seems to be that this $50 million will create jobs and help the middle class. Of course, this new government has appointed a cabinet post for a minister of the middle class. When first asked what the definition of the middle class was, the new minister, Mona Fortier, seemed to indicate it had something to do with affording to pay for your children to play hockey.
Date: February 2, 2020
1) Do you have your own definition of the middle class? How does it match up with that of your classmates?
2) What’s your opinion of this type of assistance to a company like MasterCard?
3) Government assistance to business is often provided by a so-called forgivable loan. How should a government account for these forgivable loans? (See page 533 of Wiley’s Advanced Accounting for an answer.)