Welcome to Toffy TV. It is the match preview. Southampton versus Everton. Tough game down at St Mary's. It's always a tough game down there, isn't it? Southampton are currently on a decent little run, aren't they? They're doing well. A lot of people thought he was struggling this year, especially losing Danny Ings, but they've done particularly well and this is going to be a tough game. They were struggling a little bit, but the last three games have been brilliant. They had to sit at home one-one, one at Tottenham, and obviously they got a point at United last time. So they're on a strong run, definitely. This season was one of them where Ings had gone, and it was can we do with Ares goals and all that, and Hassan Hulters found a different way around it. Obviously he brought Armando Grosjef in from Chelsea on loan and went with him, but Adam Arn is strong in from Blackburn. He scored obviously against Everton on day one. And he's negated, I guess, he's negated Ings' goals. Well, what he's done well is he's not lost many games and he lost seven games in a season. So they are tough to beat, loads of draws, but tough to beat, and it'll be a difficult game because in general it always is a tight match. Everton don't really do very well there. We won a couple of seasons ago there, but in general it's always a tough game there. Yeah, and I suppose they've converted what you would expect to be defeat into draws, and that's what's got them to where they are at the table at the moment and got them away from any sort of potential trouble. And they're building all the time. The manager has done really, really well because he's never really under any pressure and that allows him to build. You know, it's a guy who lost 9-0 at Manchester United last season and goes there this season and gets a good point from him. So he's been allowed to build. That's my annual series on the road. Well, he has, yeah. Oh, actually, really. Yeah, he did. He's been allowed to build and obviously he changes and they've brought in, as you said, younger players and they do well on loans and do well out of bringing young players who might feel they have a pathway elsewhere. So they're doing really, really well. And for Everton this is a really tough game. Obviously coming off the back of the game against Leeds. You know, this is very much like the Newcastle game or this is a tricky game. I know it's a different occasion, of course. It's not going to be, you know, St Mary's isn't as hostile and vicious. And they don't get on 29 points. I'm not sure if I'm on any danger, really. No, but they'll be full of confidence. So as you just said, after those three wins and a couple of really good away results, four points on those two games. A good draw against Manchester City. Very when the FA Cup, be confident in the FA Cup. So they'll be very, very confident and that's, you know, they're organised. Got good players like Walproud. So obviously on set pieces is really, really good. So it's going to be a different kind of challenge and it's going to be interesting to see how we respond and how things change if they change from last week against Leeds. OK, it's week 26 of Ultimate Fan. There is a prize pot of £1,500 this week. Let's get into it. Right, here we go. Who am I going to change from last week? Really difficult this. Really, really difficult. I brought Ramseyam for Villa. He did nothing for me. He did nothing for me. So I'm going to put Romelu Lukaku in there. I think he's back from scoring in the final of the World Club Championships, which Chelsea won. I've got Salaran there. He scored in the Champions League. So I'm going to keep him in there. I think Liverpool have got a couple of games this week. Phil Foden, he scored in the Champions League as well. I might put Marys in for Kevin De Bruyne. I think I want to put Marys in for Kevin De Bruyne. Here we go. Oh, I can't because Marys is a forward. No, no. I wanted to put him in the team. Do I put him in for Romelu Lukaku and have four city players in? Oh, I thought I would do. What do I do? Well, Harry Kane, they're playing Manchester City, but they've got two games this week. Do I put Harry Kane in? Because they've got two games. I'm putting Harry Kane in instead of Romelu Lukaku. But Lukaku, they play Crystal Palace. Is Harry Kane going to score against City? They've got two away games. What do I do? I do put more Liverpool players in. I'm putting Robinson in instead of Concello. Because Liverpool have got two games. I've got three Liverpool players, two Manchester City players and a Tottenham player plus Manchester City is my team. That's what I'm going for this week. I'm playing it smart. You can too by playing it now. If you haven't got it, download the app right now. The link is in the description. Don't forget you can play for free. You get a free pack every week. You can have a silver pack, that's £2.99, or a gold pack £4.99 a month. There's always special offers going on as well with that. So make sure you check that out right now and make sure you're playing Ultimate Fan. Yeah, Evan the Gooderson's a very different proposition. Going away from how we saw that with Newcastle. This won't be quite the same, I don't think, because Newcastle was like a full final for them that night and the crowd helped them and Evan was shocking and they took full advantage of it. And Evan the Gooderson, a no winner in that perilous position, so it's a different pressure for them. They want to keep doing well and building on their results. But I watched a bit of the game on Saturday before I went to Manchester, then at United. There was gaps at the back. They had Romeo playing deep in it, he can't look. You know, he's decent on the ball, he's on the runner, but I thought going forward, it's all down to my next one. Pression, working hard. Anyone doing the job, excuse me. And that's what Everton did on Saturday. Everton pressed and harried and made leads, made mistakes. Excuse me, trog on me, though. And Everton will have to do that again at the weekend. They won't be able to slack off like they did in Newcastle or Southampton will win the game. So Everton won't take this lightly because they shouldn't because Southampton is in great form and it's always a difficult game. Yeah, you mentioned that, you're 29 points. Everton have got games on hand. Seven behind Southampton with two games on hand. So if Everton could get a win, then you're looking at that thing and you know, we could catch you. And I suppose that's the way Franclan Park is going to be looking at things. Win games like this and you're getting closer to teams like this and thinking let's look up rather than down. But I do think this is the kind of game I think again, it's one of those games where you're thinking don't lose the game, just get something out of it and then you go on and see your next, and I know our next home game is Manchester City, so it's not. But it's out of home, isn't it? But it is that case of get something. Let's see what you made of. The team last week, obviously the team got a lot of praise for last weekend that continued through the weekend. Everyone's patting themselves on the back and stuff. Let's see how you can do against a decent team. Not an amazing team, but a decent team. It is that different challenge. It's always tough going down there. You only lost one home game, and that was back in September. I think it's all over to Wolves. They've only won three home games. They've won three to three far and lost one of their nine home games. They haven't been amazing at the same age, but they're all so difficult to beat there. So it's always a tough game. I suppose that's the difference for us this season, isn't it? We've drawn loads of games. We've lost those games, ultimately. That's what it's been. The games we should have drawn, really we should have drawn. We've lost, and if we've drawn four or five games, then you are around that same period, aren't you? To wear Southampton, it makes a hell of a difference. We have lost those games this season. We have lost games that we should have drawn. I think that will be a big thing. If you don't play well, or even if you do play well, make sure you get something out of the game. Make sure there's that fighting spirit. Make sure you're not making the mistakes that we did in other games, where it's set pieces with the sadden. The likes of West Ham are home. The likes of Villa are home. Where a set piece is lost is the game. Where it really should have been a draw. I think that's the thing for us now. We've drawn four games all season. That's been the problem. The 12th defeat, which is one of the worst and one of the worst than our thing has been. For them, it's us. Which is normally what we're like. A third of them is us. For them, it probably should have been us. That's the thing as well. We've lost most of our games by a single goal. We've obviously had a couple where it was Newcastle 3-1 and Liverpool 4-1. Wolves were away. Shouldn't have lost at Wolves. Shouldn't have lost at Palace. Shouldn't have lost at Norwich. Villa, Brighton around. All single goal defeats. That's exactly the same kind of thing. You can always go, wherever you can, but you're absolutely right. Those 12 defeats, three or four of them should have been draws. That would have put everything on. 26, 27 points now. You'd be looking and going with 10 out of the delegation. If we just win every third game, there's nothing to worry about. This is going to be very difficult and these making it very difficult. We've got to match the intensity. If we play with the same kind of intensity, we'll have a good chance, but if we back off and allow them to dictate the play, it might be a newcastle. We'll struggle. It is interesting. There's definitely less pressure there. When we know that, we've been beaten 9-0 twice in a couple of seasons, so we know there's less pressure. That allows the manager to build something or get what he wants across to the manager in the time it takes. They don't spend loads of money, do they? They're very competitive for their outlay.  They're always a competitive difficult team. They had a couple of good seasons with Cumin, where they were sick stuff, where they were really kicking on. Obviously a lot of plays left and money was taken out of the club and whatever, but they're competitive again on the household. Even if I've got to go and compete that way otherwise, we'll come short again and it'll be another one where we're saying, how many of these games can we come away with nothing? Even if you get a point, everyone looking now going, I want to win Saturday. Of course we do, we want the three points and three points would make a huge difference. Even if it's raw, it's what you've got to do. It's how Newcastle have got themselves out of the relegations. I know they've had three wins on the run, but they were in the position because they grained out a few draws to what Norwich did, got a couple of draws and then a couple of wins. Then all of a sudden you're climbing away from it, Leeds have done the same. It looks a lot better if you're not losing every week. That's what Evan would do when we've been losing every single week. You start putting points on the board, especially if it's a win at home in a draw and then you bring them coming back. It's positive, isn't it? You want to stay away from that defeat and look like you're actually building towards something. It's going to be very, very interesting. Do you think there will be any changes this week? I'm just going to ask you this way. I honestly don't know. I don't know what to do because it's too early. We've been breathed comprehensively. We went to Newcastle and obviously we lost two players when we started in line up. We went to Newcastle-Bengoffery and a bit of Michelenko. Michelenko was back this weekend, but John Joe Kenny coming last weekend was outstanding. Again, do we want balance with the left foot or do we want to keep the solidity and the defensive nature that Kenny offers? It's a way for them home, so the manager might leave that alone. But it is too difficult because Delhi come on and was good for 20 minutes. I don't want to make any changes in four minutes.  Damari Grey's the big one. Damari Grey's fit. He's been Everton's best player this season. Does he replace Alex O'Wobee who was outstanding? I'll be saying to O'Wobee, you were brilliant last week, so you deserve another go, or I'll be saying you were superb last week, but this lad's getting in before you. There's no patterns of whether he goes full team all the time, or whether he rewards people. I think he'll keep the same team. You've got Damari Grey on the bench and you've got the ability to bring him on. You've got... I don't know how serious it was last week, but I don't think it was too easy. But again, it's that same thing. We'll leave him on the bench. We've got him then as someone we can bring on. I think you can replicate that performance away from home, and now it won't be the same. But if you can get the plays working hard and understanding that's what you've got to do, maybe it'll just be a little bit less aggressive because you are away from home, but I think you're playing that manner. I've got no issue with leaving Alex O'Wobee in the team, because I think they deserve it.  He'll give you a different option and he also works hard as well. We'll see how it evolves because Damari has to be looking at what I saw on Saturdays, what I want week-in and week-out. They're playing 4-4-2. Is there any real need to change the formation? They're as a team and they're not blessed with superstars. It's a case of working as hard and harder than them and then it's a case of stopping things like giving away cheap set pieces and things like that. So I think what the players did on Saturday definitely for me means that they all deserve to play again unless there is a tactical change and that tactical change doesn't jump out at me right now. So we'll see what he does and as I said it is still really early to start of and we're not really into the thing of understanding fully yet what he's going to do because maybe he doesn't fully yet because he's laying about different players and he's got players out with injuries and stuff so it's still early days so I think he'll stay with the same team. Let's have a little look at day-to-day from the last game out. So there you go, 4-4-2. 4-4-2? 4-4-2. But here, Adams and Brojie are obviously the threats and obviously you've also got a you've always got to be wary of James more players having you with the set plays but those two up front both scored six goals this season Adams is a warehouse, you know, very strong and powerful Brojie is obviously on loan from Chelsea a player I have everything go for in the summer quick, strong 6-4-3 can travel well with the ball so he's a threat everything is going to have to be wary of that of course what he's done has to he's given time to really understand what the demands are what the formation is what the structure is of the team what you have to do is to see a rhythm and he's built through that they have you mentioned the before the young players and they've lived a mentor with them from Chelsea and now he's started on the bench at the weekend because Walker Peters was playing but he brought them on and it's all of that and it's like recycling that even him, people like Carl Walker Peters who's gone there from space and done all that so we know that it is going to be it's so vast for everything but it's about time you went and ground out they've been terrible away from one away when all season I don't know if it was that bright not too far away from Southampton so hopefully we can make it to the weekend it's like a danger man and there is Armand O Brogé 20 appearances this season started 12 games got six goals no assist at the moment and he's averaging one and a half shots per game was only 20 years of age growing with confidence all the time he's had a long spell of Vitesse and scored 10 goals and 30 for them so one and three for them only a young lad not 21 but don't think so so really good play we'll have to be on our toes with him at the weekend but it's a game everything can get something out of there's no doubt about that but it's all about attitude with us we've not really been about ability all season I think the squad has enough ability in that squad to be more tired of the league but attitude wise it's being poor whether it was because of the manager whether it was just because they were losing games and confidence was low but the last few weeks playing three games against three family leagues and we've beaten through with them so we've shown we can do it it's can we do it away from home comfortably can we now we failed last week at Newcastle like you said slightly different at Southampton the intensity might not quite be there but it'll be there on the pitch can't have it and match it that's the key for me and if they can they'll get it I think for me as well one of the big parts of the game is going to be the set pieces foreign against I think don't be giving away stupid fars round the box in the Premier League at the moment it's not the best it's on the edge of the box it's like a penalty too on the other side for us as well we've improved massively on set pieces last few weeks Paul Clemens looks like he's the little simple things good deliveries from Anthony Gordon players being in the right areas and players understanding where the deliveries are going to be and that's a massive part of it so it could be a deciding factor in the scheme I want more of it because that's an important way to score goals and let's see more of it they've had a full week on the training pitch his first one full week he's still got players missing important players but you go with what you've got and with Donny van der Baig playing the way he did last week and again another full week of training for him Deli stands to get a better idea of who's going to play where and all the rest of it and we've seen the last week even on the ball we were much better because we kept the ball we didn't give it away cheaply and I think again that's another important thing if you keep the ball better you're not making as many mistakes just more chance of winning games with football will the evidence actually against shots against was 0.26 which was the best in the Premier League of the weekend so not allowing teams to get shots away we proved that Leeds had the only two proper efforts the ad worth worth from 25 yards don't let those efforts fall to war proud war proud so Mary scored one a few years ago didn't he from about 25 yards at St Mary's in a game where you know Llych-a-Din scored no goal as well so don't give him that kind of room because he's a threat, he's dangerous so get out, press them, work hard stay organised and try and get something from the game and if they can then that's great if you continue the upwards upwards trajectory absolutely no facts this week now I mean I've got them now I'm not trying the first one but looking for consecutive Premier League wins for the first time since September following a 3-0 win over Leeds last time trophies have won just once away from home this season picking up two points from their last 27 on the road Southampton were at a clean sheet in 13 games no shriar, they scored few at Premier League first half goals than Everton this season though three of their eight such strikes have come in the two league games on the flank lampad Evans with Charleston scored five goals in his last six Premier League games against Southampton netting in each of his last four games against them in the competition with six and Andrew Cole with five have ever scored in more consecutive games against Southampton Everton's Delhi has been directly involved in nine Premier League goals against Southampton five goals and four assists more than he has against any other opponent in the competition Southampton's Shea Adams has scored in his last two Premier League games netting Saint Twin at Tottenham and their equaliser against Manchester United only once before has he scored Premier League games so there you go mixed back really and always it's just it's very very difficult isn't it there you go another three o'clock kickoff on Saturday as well this is a rarity so there you go let us know your thoughts in the comments on this one are you looking forward to it it is always a difficult game we've got to be fair we've got battered that season down there that first defeat of the season last year but we've got battered up in the first half particularly in the enders we hit the bar there me and then after that so make sure to give this video a like subscribe if you haven't already make sure if you haven't already download the ultimate fan app the link is in the description and join us over on Patreon as well the link is in the description for that and it's on the screen right now so


Today's video is going to be a little bit different kind of video today. I just wanted to chat with you guys about a topic that I've been thinking about for some time now and that is to-do programs. I often review quote productivity tools on the YouTube channel here and a lot of the productivity tools I sometimes take a look at and share with you guys are to-do applications. So these are these applications where you can create, you know, your to-do list and you know schedule events, you're calendar out for the next day, week, month, year, whatever it happens to be and a lot of people assume that these to-do programs help increase productivity. So a lot of people are all about to-do applications. Every time I review something like VimWiki, Org Mode and Emacs, Joplin, you know tools like that, people are excited about those. I get actually a lot of views when I cover programs like that and then I always in these videos, you know, after showing you guys these tools tell you I don't actually use these tools or at least I don't use those tools for to-do applications. I don't use them as an event scheduler and the reason I don't use, you know, to-do applications, you know, in a traditional sense is because I don't think to-do apps increase your productivity. I think that is a myth. I think to-do applications hinder your productivity, honestly. I think they're going to decrease your productivity because when you start using these to-do applications, really, I think you waste more time doing all this scheduling and listing things that you need to get done rather than actually just getting something done. One of the common questions I get from viewers of my YouTube channel is how do I come up with the ideas for all the shows that I do? You know, I think a lot of people assume that I have hundreds of videos that I plan to make and I've got it in some to-do application somewhere where I've got everything listed out, scheduled out, where I know exactly what I'm going to do every day for the next six months. I don't. I don't use to-do lists. I've never used to-do lists because I don't like doing that sort of thing. That is way too rigid where I list out every single thing I'm going to do every hour of every day of every week because that becomes just a soul-draining mental exercise where, well, today I have to do this particular task. I don't feel like doing it, but because I scheduled it, because it's in my to-do application, I have to do that task today. No, but that just takes all the fun out of your work. Work should be fun no matter what it is that you're doing as far as work or play if in, you know, some of these to-do lists, maybe you're scheduling things, just life tasks. But, you know, you never want to take all the fun out of something and when you have such a rigid schedule, really, it just becomes just mentally taxing because it becomes a chore.  And I refuse to do that.  I never plan anything way out in advance like this video here. I decided I was going to make this video. It's been rolling around in my head for a while, but I didn't have it on the calendar that today was the day to make this video. No, I sat down at this computer and, you know, turned on the camera and the microphone and I decided that's the topic I'm doing today because that's what was in my heart, in my head. It's what I felt like I needed to talk about, what I would enjoy talking to you guys about today.  And honestly, most of the time you're not. You may have gotten more things done that day had you not been using your to-do list, but because you did that one thing, you wrote down on your to-do list and you got to check that one thing off. It gives you, again, this false sense that you really made more progress that day than what you did. The limited experience I have with to-do lists and scheduling things, you know, in work and in life is to-do lists make you feel guilty because you're never going to achieve everything you put on that to-do list. You're never going to cross off everything at that specific time. It never works out that way. And when you fail, what does it do? It makes you feel bad. It makes you feel guilty.   And now that you're starting to fail at completing the list, it makes it that much more unenjoyable and it just starts sucking the very life out of you. Some other reasons I personally don't like the to-do list. I don't think to-do lists are efficient. I don't think that is an efficient use of your time to sit down and start planning out everything that you're going to do for the next day or week or whatever. You're spending time on that list rather than actually doing something productive. I also don't think that lists actually make you organized, you know, in the long term. I think in some ways lists actually make you more unorganized. I think in your attempt to organize every aspect of the job, in a lot of ways it makes you completely disorganized because you're trying to stick to this schedule no matter what. Even when it doesn't make sense to stick to that schedule. I think lists a lot of times have people prioritize the wrong things at the wrong time. But for me personally why I don't like to do applications and to-do lists, you know, I like being spontaneous. You know, kind of like what I was talking about with how I do my videos such as this video today. I like doing things when I want to do them. I like being spontaneous. I like exploring things. You know, when I feel like it's the right time to explore those things. I don't want to be chained to that schedule that I set. I think that the biggest falsehood of the people that use these kinds of to-do lists is really a to-do list is pointless past the very first item. I mean, if you're going to set a to-do list, it really should include one item, whatever it is you're working on right now. Going beyond what you're working on right now is, again, I think just a complete waste of time.  In my head, I know after I finish this video today, I've got some other stuff I need to do, some stuff around the house. I already got ideas in my head for what maybe I want to do on the channel. Tomorrow I don't need to write all that stuff down. There's no point in even getting that far into that stuff until I finish the task at hand, which is this video. So my advice to you guys is to ditch all these productivity applications, especially the to-do lists and the scheduling applications. Quit using those. Those are causing you more problems. They're mentally draining. I think they affect your happiness. I think they in the long run affect your health.  The one task at hand, if you want to go beyond one task, no more than three tasks. Think about the one to three tasks that you need to get done that day, nothing else. By focusing on the short-term stuff instead of planning things out weeks and months in advance, you're much more likely to actually achieve the goals that you're setting. I think in the long run, you'll be a much happier person. I think your work will actually become more enjoyable, again, not being a slave to that scheduling application. Before I go, I want to thank a few special people. I want to thank Michael, Gabe, Heplo, Nate, Corbinian, Mitchell, Intra, Puk, Arch5530, Chris, Chuck, DJ, Nani, Dylan, George, Omri, Paul, Sean, Tobias, and Willie. These guys, they are my highest-tiered patrons over on Patreon. Without these guys, this episode you just watched wouldn't have been possible. The show is also brought to you by each and every one of these ladies and gentlemen. These are all my supporters on Patreon because this channel is supported by you guys, the community. If you'd like to support my work, you'll find Distro2 over on Patreon. Alright guys, peace.


Income tax 2023-2024. Dispositions of business property, tax software example. Get ready and some coffee because we need extreme concentration when doing income tax preparation 2023-2024. Here we are. First, a word from our sponsor. Yeah, actually we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us.  Like our crunching numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunching numbers with us, will make you thin, fit, and healthy or anything. However, it does seem like it worked for her, just saying. So yeah, subscribe, hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. Or in our forum, 1040 Example Problems using Listert tax software. You don't need tax software to follow along, but if you have access to software, it's a great tool to run scenarios with. You can also get access to forms, schedules, instructions at the IRS website, iris.gov, iris.gov. Starting at our standard starting point, taxpayer Adam Taxman, just trying to avoid a dang Taxman, living in Beverly Hills 90210, single file or no dependence. We're starting this time with the Schedule C sole proprietor business, which ultimately rolls into line number eight, additional income from Schedule One. The Schedule One over here is the additional income and adjustments to income. Part number one, line number three, is where we have business income or loss from the Schedule C. If we then go to the Schedule C called the profit or loss from business, we have an income statement format to the Schedule Business Income currently at 120,000 in this example problem minus the expenses or business deductions, 20,000. So far, that gets us in essence to our net business income, the 100,000, which is what is pulling into the Schedule One and then into the form 1040 line number eight. We also note that we're gonna have to deal with self-employment taxes with our Schedule C. So that's on the Schedule SE, where we take the bottom line and then apply the Social Security and Medicare, basically employee E and employer portion to it, get into the tax of 14229. So if I go to my form 1040 page number two, we now have the federal income tax plus the other tax, which is going to be the self-employment tax coming from Schedule Two. So that came from the Schedule Additional Taxes, part number two, self-employment tax. There's the 14129 that's coming from the Schedule SE. Also, if we go to the Schedule SE, we get to have half of that tax deductible that's gonna be 7065. You would think that would go on the Schedule C, but no, because that would make a circle reference. Therefore, instead, it goes to the Schedule One, page number two, where we have part two, adjustments to income, line 15, deductible part of self-employment tax. There's the 7065, which ultimately goes to the form 1040 as an adjustment to income or above the line deduction. That gives us the 100000 minus the 7065 gives us the adjusted gross income, 92935. Standard deduction, we're gonna say, is for the single filer, the 13850. We also have the system calculating for us to qualified business income deduction from form 8995, 15817, subtotal 29667 to get finally to the taxable income, the 63268, and then page two calculating both the federal income tax, 9228, and the Social Security and Medicare, the self-employment taxes, for a total tax of 23357. So that is our starting point. So now, of course, our focus is over here on the Schedule C, and we noted that when we first start the Schedule C, we might choose or we need to choose an accounting method, typically a cash or a cruel method or possibly some other method, some combination of the two methods. Noting cash method is typically easier to do. However, certain types of businesses force us to do a cruel things, in which case the code sometimes might force us to go away from a cash-based method, the most common example of that being inventory. Because if we track inventory, we can't just expense it when we buy it, but rather put it on the books as an asset, which is an accrual thing to do, as opposed to a cash-based thing to do, and then we would expense it as we consume it in the form of cost of goods sold. So that's one of the deviations if we deal with accounts receivable or accounts payable, more likely accounts receivable for small businesses, then we might have to do the accrual thing and that case as well, because we're basically tracking our income on an accrual basis. So you see we have the 120,000 income minus the expenses. Now, the two things that we might have to say capitalize, and when I say capitalize in this sense, I'm saying instead of expensing it possibly when we pay for it, we put it on the books as an asset and therefore have to do an accrual thing. One is gonna be inventory and two is gonna be depreciable assets like property, plant, and equipment. So let's first just take a quick look at the inventory. So if I go to page number two, you see we have a cost of goods sold calculation. Note what we do not have here, we don't have a balance sheet, but certain things have balance sheet items on them. So when I do a cost of goods sold calculation, it's gonna include the beginning inventory, we're assuming at the beginning of the year and ending inventory in the calculation and those two accounts are basically balance sheet accounts or inventory is a balance sheet account. And when we deal with depreciation, although we don't have a balance sheet, we do have a depreciation schedule which is tracking the balance sheet accounts of the fixed assets and the accumulated depreciation. So let's imagine that we have to deal with this cost of goods sold. If you have cost of goods sold, then you might be using some kind of software to help you to do your books so that you can get the income statement to help you populate into the schedule C. So if you were to do that, you might already have a number for cost of goods sold because it's on your income statement. So you might be able to actually fill out this part of the form and say, I could just plug cost of goods sold in right here. What you don't have possibly is the cost of goods sold calculation because that calculation for taxes is on a periodic system for the entire year basically. So in other words, you might need to back into that number. You might be in this problem saying, I know what this number should be, but I need to then back into the beginning or this calculation so I can put this page number two because I have to deal with inventory. So let's just imagine, you know, that was the situation. Let's imagine that this inventory was, was let's say 30,000 of inventory for the cost of goods sold. Well, if I was to jump to that data input and I'm gonna go, let's go to that data input, it won't let me jump there. If I go to my income statement, schedule C, I have the cost of goods sold calculation. Now, if I didn't have any beginning inventory, I could start by saying, hey, look, I'm just gonna put the number in that I know it should be 30,000, let's say, and then I'm gonna go back on over here and there's the 30,000 and that will allow me to tie out my ending balance to what I had on my worksheet. But the page two doesn't really make sense because you don't have any beginning number and ending number. So that's gonna kind of confuse the IRS, right? They're gonna say, hey, there should be an issue. What should the beginning number be? It should be the same number as it was last year for the ending number. So in other words, if I go back to this software again, you might say, hey, look, the beginning number, if I rolled this forward, is gonna be same as the ending number last year. So it might already be populated. Let's say it was 5,000 that was already in here. Well, then if I put 30,000 in place, it's gonna calculate 35,000 and that's gonna make it so I can't even reconcile because now it's at 35,000 and I want it to be at 30,000.  So I'm gonna say, I'm gonna make this work so I can get my net income correct and then I'll go fix page two. How could I do that? Well, I don't wanna adjust the beginning balance number there. I'm just gonna put the same ending number so that if I started and stopped at the same point, then the 30,000 is what is gonna populate here. And so now I can say, okay, that number is correct and I can get to my bottom line net income and then I could go to page two and say, okay, can I need to fix this schedule to be in alignment with this cost to good sold calculation that the IRS wants to have so they can kind of give a double verification of the beginning and ending balances of inventory on a periodic system, even though my software might be using like a perpetual inventory system. So then I'm left with this problem. Now, if I go back on over here, just a quick look at this, what's this cost to good sold calculation? It goes like this, beginning inventory, this is the short form plus purchases and that's gonna give us the cost of goods available for sale. That's what we could have sold during the year, less, let's say minus ending inventory. I'm probably spelling this wrong. Oh man, it doesn't like that I had an equal sign there. Get over it, man. This is gonna be plus and this is gonna be equals the cost of goods sold or COGS. So if I say the beginning, if I know the beginning inventory, then what I don't know is this 5,000, is this purchases, I actually do know the cost to good sold. So because that was calculated in my software possibly on a perpetual method. So I know the 30,000, right? And then the ending inventory, I should know the ending inventory because my software would also give me that on the balance sheet. It wouldn't be on the income statement, but that's something I should be able to look on the balance sheet and pick that up. So let's say that it was 6,000 and what, wait, hold on, I don't know the cost of goods available for sale. I know the cost to good sold, which was, I said 30,000 and this is just a subtotal, which is gonna be this plus the purchases. So we can do this calculation and try to back into this number.  So if I put these same numbers in here, I have the five, I don't know what this is, that's gonna be X and then ending inventory is the six and I actually know the cost of goods sold. So the cost of goods sold is this. So then the question is what is gonna be the purchases in order to figure that out? And if I write this out algebraically, we would have 5,000 plus X minus 6,000 is gonna equal the 30,000. And then of course we can solve for X and that's gonna be, let me see what's that gonna be? That's gonna be, this is gonna be equal to 30,000 and then I would subtract this from both sides. So minus 5,000 and then add this to both sides plus 6,000. So this should be 31,000. We're gonna say let's double check that. So it would be 5,000, 31,000 and then 6,000. That means this would be equal to the beginning balance plus purchases minus ending inventory gets us to the 30,000. So then I can go back in here and say, okay, let me fix this cost of goods sold to tie out to my worksheet cost to goods sold is gonna be the beginning balance of 5,000 but the purchases need to be, we're gonna say 31,000, 31,000 because the ending inventory is 6,000. And if I go back on over, so now I come up with the same 30,000 and now my beginning balance is correct and hopefully I have the right breakout between these two items. So that's just logistically what you might need to do from a data input standpoint on inventory because like I say, this is basically on a periodic inventory system and the IRS is trying to tie into last year's ending inventory to begin the beginning balance pulling in a balance sheet account and having a proper categorization or calculation of ending inventory which means you actually might have to back in because you might be using a perpetual inventory system. Now, if you have a job cost system, then you have work in process and so on and it's a little bit more complex because you have to deal with materials and labor and whatnot as part of your cost of goods sold but a similar concept might apply because you'll be doing that calculation hopefully in your software and then you have to basically put it in a format here that is appropriate for the cost of goods sold calculation which you might do actually after you do the data input for the tax for the first page because I'm just gonna try to get this number to be correct first just from a data input standpoint to get my net income correct and then I'm gonna note that I'm gonna shore that number up in the supporting schedule making sure that it still results in the same ending number that's on the income statement. Okay, so that's one thing that we might have to capitalize in a little bit of logistics related to it. If I purchase something that's a large thing I can't just expense it but have to put it on the books as an asset and then depreciate it which will talk a lot more about depreciation in the future right now we just wanna take a look at the sales side of things. So for example, let's say we bought like equipment I'm gonna go over here and say that we bought to do and we're gonna say it's depreciable stuff. And I'm just gonna call it five year property for now. We'll get into how long you have to depreciate it and so on later. It's going to the schedule C and it's gonna be business one. The category I'm gonna call it is going to be then I'm gonna put it into machinery. We're gonna say let's start putting it as if we bought it in the current year, 2023. So I'm gonna say 060623 and let's say we bought it for $10,000 and I'm not gonna put anything in for the 179. The method we're gonna say is five years makers for office equipment rental and so on and let's just see how that populates. We're gonna go to the forms and you can see in here we've got the depreciation now populating at 8,400 even though I put it on the books at 10,000. If I go to my depreciation schedules now we've basically capitalized it because we put it on the books as an asset and then expensed it. If I look at the regular depreciation which is a little bit smaller schedule we've got the 10,000 that it was put on the books for. Note that it took this special depreciation which we'll talk more about later. This is a deviation from normal accounting practices and so in other words normally what happens is you're putting it on the books as an asset so that you can expense it over the useful life which is an accrual concept. But then the IRS code is keeps on trying to say hey look we would like to have special depreciation because it's popular to do that number one because people like that, right? That's gonna, and two they're saying the argument is that it stimulates the economy if you can deduct more in the current year. So they actually defeat their own purpose of putting on the books as an asset by basically allowing almost all of it to be depreciated right in the current year. So that's the general idea. We'll get into those different depreciation methods makers depreciation, types of depreciation assets, property, plant and equipment, how it should be categorized and whatnot in a future presentation in more detail. For now we wanna think about what would happen if we disposed of some property that is already on the books. Now just a couple other things to note since we're here on the depreciation, one is that you would never wanna put the depreciation on the books for just a five year property because I can't identify that property to what's actually physically in the business which isn't so much of a problem when I first put it on the books but imagine what happens when I dispose of this property now, I can't dispose of it because I don't know which property I disposed of or I can dispose of it but I can't take it off of the schedule because I can't identify it. So it becomes a problem down the road. We also have to be careful about grouping depreciable items into one group. So if I bought like 10 computers, if I put them all on the books as 10 computers, then again that'll be fine for the current year but if I dispose of one or two computers in the future, how am I gonna take one or two computers off the books off the depreciation schedule when they're on there in one line item, right? So what we wanna do is break out each piece of equipment, physical piece in our depreciation schedule so that in the future when we dispose of them it will be easy for us to select the item that's being disposed of and account for it. It's already hard enough to deal with dispositions of property without the added problem of not being able to identify the property on the worksheet because of these because we didn't put it on there clearly. We would also like to have our categories here on the depreciation schedule to be supporting the same category structure on the software such as like a QuickBooks for example and that will once again make it easier for us to enter the depreciation adjustments into the software. Just a couple things to keep in mind. Okay, so now let's put this piece of equipment on the books from a prior year and then we'll imagine that we're selling it. So I'm gonna go back to our books here and I'm just gonna say that this was purchased sometime in the past. So let's say it was purchased in 2000, let's say, and we're gonna say the cost is still 10,000. Same method, but I'm just gonna then allocate the prior depreciation, the prior year depreciation will be, I'm just gonna say 6,000, right? So now this was on the books from the last year. This also becomes very important to use the same accounting software because the depreciation schedules are gonna complicate things. And if you pick up a new client getting the depreciation schedules is important so that you can basically enter that into the system, you probably wanna make sure that you enter it into the prior software to try to match up the depreciation perfectly and then perform it forward to the current year to try to get the roll over as best you can situated. Any case, this is the 10,000, this is the depreciation prior year depreciation we're imagining is 6,000. So the current depreciation, we're using basically a double declining method for the maker's method, we'll talk more about that later, but that would be the current year depreciation. So still on the current year schedule C, we would now have depreciation that's being allocated for something purchased in the past because we're trying to allocate it to the time period that it was consumed. Now we're gonna imagine that we sell that piece of property in the current time period. So what if we sold it? So let's say we sold it for $8,000. So $8,000, that's gonna be our sales price that we sold the equipment in let's say 06, 1524, and so there we have it. So now if I go back to the software, we're gonna say if I go to my depreciation schedule and we go to the regular depreciation, it's on the books here for the 10,000. And then in 2024, hold on, I sold it in 2024. We need to sell it in 2023. That's the tax year that we're on. We sold it in 2023. So now it's off of the 2024 depreciation schedule is gone. And if I go to 2023 depreciation schedule, here's the date acquired and here's the date sold. You can see there's been an adjustment to the current year depreciation because we sold it basically in the middle of the year. We'll get into those calculations a little bit more later. For now we wanna go to this schedule 47, 97. And so if I go to page two, we have basically our calculation. So we've got the gross profit, the cost or other basis, and then the depreciation, here's the adjusted basis and the total gain. And then we have the allocation section 1245 gain and so on. So let me try to just give a little bit of a summary on this. So let's say we bought it for $10,000. We said that the depreciation, if I go back on over here, we could say let's go to my depreciation schedule, pay the regular was prior years, was 6,000. In the prior years, 6,000 and the current year, we depreciated 576. So 576, so the total depreciation is gonna be those two. So that means the book value is gonna be this minus this. That's in essence, the book value. We sold it for, what did we say, 8,000? So that means we have a gain of 8,000 minus the book value of the 4,576, which in essence is pulling over here to page two, which they're calling a 1245 property. Now this gets into the issue of, well, where should that gain go? Because you'd think if I go over to the schedule C, you see that we have this deduction here, but we don't have that gain up top in income. It's not being put on the schedule C. Where is it going instead? If we go to the schedule one, we see it right here, line number four, other gains or losses. So now we have this coming from form 4797, which is gonna be part of this, going to the 74,000 here, which is pulling into the form 1040. There's the 74,000. Now the point of this is that if I go to page number two, you're gonna say, hey, what about my tax calculation because we sold property, should it be calculated at different rates? And you can see here that we don't have that more complicated calculation breaking out something other than just the ordinary income rates. In other words, it looks like it got taxed at ordinary income rates. And you might say, well, why isn't it taxed? It's taxed at capital gains rates. And here's where kind of the issue comes in. If I go back on over here, you could see the argument would be, if it's a long-term sale, it should be at capital gains rates. But you could see what happened is basically the only reason I sold it out of the gain is because I over depreciated it. And possibly I over depreciated it because the tax code is giving us these accelerated depreciations.  And then if I sell it, then if you allow me to take it, I'm gonna have a gain because you let me over depreciate it in the first year. And then when I sell it, I could sell it at a gain, but the gain would be subject to the lower capital gains rates. So you could see how people would play games with that if you allowed that to happen. In other words, over here, the $8,000 is not, what I sold it for is not higher than the cost of the property, but it is higher than the book value of the property after I wrote off the depreciation. And so I shouldn't, when I wrote off the depreciation, I got ordinary income rates.  That's why this gain is being taxed at ordinary income rates. Now, most property is going to be in that category where it's gonna go down in value. It's not likely I'm gonna buy a forklift for $10,000, use it for two years, and then sell it for more than $10,000. But if it was a building or something like that, that's when that can happen. So let's imagine I sold it then, let's just imagine I did sell it for more than the $10,000. Let's say I sold it for $12,000. So now if I go back on over and say, okay, let's imagine we sold this thing for, let's say $12,000. Da, da, da. So now I'm gonna go back on over and say, okay, on the schedule C, I still have the depreciation. I don't see the income over here. On the depreciation schedule, we of course still have that it is sold. At the same time, we still have our calculation. And then on the form 4797, we see the 2000 gain, if any, from line 32 now being populated, let's go to the 4797 part two. So now we have the 12,000 cost or other basis was 10,000. The depreciation, 6,576 adjusted basis, 3,424. So the gain is now at 8,576. But the 1245 property is at that 6,576. So let me show you that. So if this was our cost, right? So now we still have the book value is at that 3,464. We sold it for the $12,000. That gives us a gain of, a total gain of 8,576. But 2,000 of that gain was over and above the cost. So 2,000 of that gain was over and above the cost. And therefore the difference is this 6,000. So this 6,000 is kind of, you could think of it as recapturing or basically part of the amount that we over depreciated and therefore should be subject to ordinary income. Whereas this 2,000 is over and above the cost and therefore might have more favorable rates, the capital gains rates, which are lower tax rates, which would be better. So then we could say, okay, there's the 2,000 that is breaking out the 8,576 minus the 6,576. It gives us that 2,000. So then if I go back then to the schedule one, you can see what's included here, only the 6,576, not the full 8,576 that is being included and pulled down to the 76,000, which is pulling to the form 1040, which is pulling in here on line number eight. The other amount you can see is right there, the 2,000 is being populated on the Schedule D. Now the Schedule D for most individual income tax preparers is associated with the sale of stocks and bonds oftentimes where you have these capital gains and loss rules where if you have a gain, it might have a more favorable tax. So here's the gain that's being pulled in from form 4797 and that's pulling into the first page of the form 1040. You might say, well, what does it matter if I put it at this 2,000 or included in this 76,000? Why don't I just make this 76,000, 78,000? And the issue is that if I go to page number two, when we actually calculate the tax, you'll see that we have a more complex tax calculation, not just the progressive rates, but now breaking out that 2,000 so we can tax it at the more favorable capital gains rates. So that whole thing gets fairly complicated both from a bookkeeping standpoint, as well as a tax standpoint, especially when you throw in this issue of over depreciation because of 179 and special depreciation, which results in the likelihood of selling things at a gain and then having to deal with the fact that you're gonna have to tax part of it at ordinary income and part of it at the capital gains favorable rate and so on. Now it could be that you sell it at a loss. So if I say my book value over here is the 3,000, let's say we sold it for 2,000 or maybe we just disposed of it, we didn't sell it at all, we just like threw it away, it became worthless. But let's just say we sold it for 2,000. So then if I go back on over, we're gonna say, okay, the depreciation schedule should be in essence the same. And if I go up to the 47.97, now we have the sale, the gross proceeds, here's the depreciation, 6,576, the cost or basis, and we have the loss of 1,424, which we can calculate over here. We have the same book value, but now I sold it for 2,000. So there's our loss now, instead of a gain of 1,424. So if I pull that on over, so it's like, okay, well, if I have a loss, where does that go? Does that go on the schedule C as like an expense? No, it's not going to the schedule C as an expense. If I go to the schedule one, we can see it here in line four. Other gains or losses attached form 47.97, which is netting out against the net income slowed in from the schedule C to the 68,000, which is now being populated on the form 1040. So there's the 68,000. And if I go to page two, you could see that we have the, back to the normal simplified worksheet. In other words, the loss, I got to take basically at ordinary income rates, which is kind of nice if you had a loss. Now again, the likelihood of having a loss is greatly reduced if we were allowed special and 179 depreciation, because we would have written a huge amount off at the point of purchase. Once those things go away, if they ever go away and they go back like to normal, then it might be more likely that we have situations when we sell property that we're at a loss. However, you might often see a loss if they like dispose of property, which hasn't fully been depreciated, right? Now that's the general idea. Now the other thing we touched on in the prior presentations is the idea of an installment sale, but we're running a little long, so I don't wanna go into it in detail right now, but just to note that if you're selling equipment over here, then it's likely that you might be selling things for large dollar amounts, right? And if you sold it for a large dollar amount, you might say, well, I'm gonna sell it, and then you can pay me in the future, which means you're paying, you're receiving it in basically installment payments.  So you might end up setting up basically an installment sale kind of situation that will then allow you to recognize the revenue basically as you get the payments. That's not a really common thing to happen for many businesses, but could happen somewhat commonly. So maybe we'll do a presentation on installment sales in the future just to see how that calculation could be set up.


We're going to recap on what we know, the very basics of cryptography or the assumptions that we're going to make because we're going to need to remember the principles of encryption, hash functions, signatures and so on when we look at HTTPS. These questions or these examples we've seen before when we summarise cryptography, so we'll go through some of them quickly, but just remind ourselves what do we know when we encrypt something? What is assumed? For example, when we encrypt some plain text P1 with a symmetric key cipher where we have a key k shared between two users x and y, then we get some cipher text denoted as C1. So just remember this notation. E is the encrypt function. The encrypt function takes two inputs, a key and a message or a plain text. So I denote the plain text as P1. The encrypt function, remember there are two types of encryption. There's shared secret key or symmetric key encryption and there's public key encryption. How do I know which one's being used? Is this encrypt symmetric or public key encryption? Just given that top equation, how do you know which form of encryption and what do I mean by the e there? The key. What does a key tell you here? Is this symmetric or it's symmetric because the key, the subscript on the key, I say x, y. To indicate this key is shared between user x and y. So to save space or time, I often won't say what type of encryption, e, but I would just make it implicit by the key. And to make it even clearer, when we use public key encryption later, you'll see we use pu and pr to represent the key. So just remember the notation. So for symmetric key encryption, let's say x encrypts P1 and sends the cipher text C1 to y. What happens if user z decrypts c1 with key kxz? What's the outcome? What can we assume or what happens? There's only eight or 10 people in the class, so we'll go around one person each. First one. What happens in this case? Z decrypts d decrypt c1 using key kxz. Does it work, the decryption? Look at what was encrypted, P1 encrypted with which key? It doesn't work, why not? Different key. So this is our assumption. If we decrypt with the wrong key, it will not successfully decrypt. Well, how do we know it doesn't work? We've made assumptions so far that when z does the decryption, they'll get some plain text which will be random. They won't recognize it. So we assume that they can recognize that it didn't work. What if this is the case? Y decrypts cr, second person. Y decrypts cr using key kxy and they get recognizable plain text. What does that mean? What do we know in that case? This is a little bit more complicated. Can anyone help him? What can we assume here? We decrypt some ciphertext cr that maybe the ciphertext I received, someone sent me some ciphertext cr. I decrypt it with kxy and the result I get is recognizable. It makes sense. If that is the case, what do we assume happened? C1 and CR are the same, possibly. Or at least we assume that the correct key has been used. The message came from x. Because it successfully decrypts, how do we know it successfully decrypted? We got some plain text we recognize. Therefore, this ciphertext must have been obtained by encrypting with key kxy. The only other person who has key kxy is x. So y knows this message came from x. So that's some form of authentication we know who it came from. Now maybe it could have been CR and C1 are the same, but not necessarily in that case. And if we get unrecognizable plain text, what do we know? I decrypt some received ciphertext with kxy, thinking it was from x, but it doesn't make sense when I get plain text as output. What's happened? What can we say maybe have happened in this case? We need to use a different key, but I am y. I think this message came from x, so it makes sense to use kxy. So what else can we assume may have happened? Somebody corrupted the message. Maybe user x did send me a message, but someone along the way modified the ciphertext to be CR. Therefore when I decrypt, it doesn't work because it's unrecognizable. However another thing happened, it didn't come from x. It came from z pretending to be x. They say I am x, but they send me a message. They didn't have kxy. They encrypted using kzy. So we know that this message didn't come from x. The ciphertext as is was not originally sent by x. It's either been modified along the way or sent by someone else. So we can use encryption for authentication. We've covered this before. What type of encryption? The top equation. What type of encryption in this one? We'll go to the back. Our new entrant. Top equation. What type of encryption has been used here? Symmetric or public? Public key encryption because pu. So e is the encrypt function, but the first parameter I denote is the key. If I use k, I mean symmetric key encryption, pu or pr, public key encryption. Remember the notation. We encrypt with the public key of x, p2, we get c2. If y receives c2, what happens or what do we know? Why you receive c2, what do you know? What can you do? Or maybe what can you not do if you're y? Can y get the plaintext p2? No, why not? y cannot see the plaintext p2 because they cannot decrypt because they don't have the private key of x. So this is our principle of public key encryption. Encrypt with one key in the key pair, pux. You can only successfully decrypt with the other key in the key pair, prx. y cannot decrypt so they cannot see p2 and that's about all in that case. If x receives c2, they can decrypt because they do have prx. So that's our concept of public key encryption. What about here? y receives c3. What can they or can they not do? What do they know? They can decrypt? Why? They can decrypt because they have pux because pux is public. Encrypted with prx, we can decrypt with pux and pux, the public key of x is of course public. Why has that? In other words, the message p3 is not confidential. Anyone can see it. So why can see the message? Because everyone has everyone else's public key. Public means everyone can see it. So what else does y know? So y learns the message p3, that's good for y, what else do they know? What do they know about this message? They know who sent the message, which and who sent it? x sent it because if it successfully decrypts with the public key of x, it must have been encrypted with the private key of x, therefore it must have been sent by x because only x has the private key of x. So y knows the message and it knows it came from x. So this is a form of authentication, similar for z, z knows p3, they can decrypt and they know it comes from x. So remember we use the public key encryption in two different orders. Encrypt with your own private key to sign a message for authentication, encrypt with the destination's public key for confidentiality. We can combine them and we'll not go through this. So all I'm showing here is that we first encrypt or sign with the private key of x and then encrypt with the public key of y. What's the result? It's signed by x, it must have come from x and it can only be decrypted by y. So that's a way to send a signed confidential message to someone. You do two levels of encryption. Yes, y can get p4 because from the outer encryption they can decrypt, they have pry, then they get the inner part and they can verify because they also have pux and therefore they get p4. No one else can get p4 because no one else has pry to do the first step. These are some principles from one of our first topics on cryptography. We'll skip through some, I can leave them on the website if you want to look at the one skip through. Hash functions, we know a couple of principles of hash functions. I take a hash function of message m1 and I get the hash value d1 if I know that the hash of m2 is d2 and I know m1 and m2 are different, what else do I know? d1 and d2 are different. Our assumption is the hash of two different messages, the hash of m1, the hash of m2, the two different messages will produce two different hash values. So we know d1 and d2 are different. That's our assumption for hash functions. In theory they may not be different, but in practice it's very hard to find two messages which do produce the same hash value. So we'll assume that they are different, d1 and d2. Here what do we know, what does this tell us, same m, the messages are the same. If the hash of m1 equals d1 and the hash of m3 equals d3 and the two hash values d1 and d3 are the same, it tells us the messages are the same. It's the reverse of what we saw in the previous one. The hash of two messages which are the same, if the hash values are the same, then the messages are the same. That's all we say here. d1 and d3 are the same, therefore the messages are the same. And we use that also for authentication to make sure things aren't modified. That's one on hashes I think. What do we know here or what do we not know? Z knows d1, but they don't yet know m1. Can they find m1? We assume no. The one-way property of hash functions is that if you have the hash value, you can't go backwards and get the original message. That's the property we require for some security features. If you have the message, you can easily calculate the hash of it, but if you have the hash value, you can't easily get the original message at this property we assume. That's just the easy case. If we know m1, we can easily find d1. And we combine hash functions with public private key cryptography to get digital signatures. And these will come up in certificates, so that's why we're recapping on some of this. We're going to see it when we look at HTTPS. We create a signature by calculating the hash of a message and then encrypting that hash value with our private key. So I sign something, I sign m1 by taking a fingerprint of that message. So I don't take the entire message, I take a hash or a small part of it, a digest sometimes it's called. And then encrypt that hash value with my private key. And we know from before if I encrypt with my private key, others can verify using my public key. So s1 is a signature of the message m1. And the common way that we use signatures, we send the message combined with the signature. We send them both. So x sends the message concatenated with a signature to y. What does y know? Y knows the public key of x, correct? And what else can they learn or observe from this? Note that y receives m1 and s1. From the previous step, we send both the message and the signature. So y knows the message, it's not encrypted at this stage. Y knows the message, they know the signature, they know pux. So what do we learn or what do we assume in this case? Y knows about the message that they receive, what do they know about it? Y knows m1 was sent by x and hasn't been modified as well. Because they receive a message, someone sent us a message, we don't know it's been changed between the source and us getting it. Maybe someone's modified across the network. So y receives a message, m1, and what they do is they verify the signature. They use the public key of x to decrypt and get h, the expected hash of m1. And then they calculate the hash of the message they actually received. If they match, everything's okay. If they don't match, something's gone wrong. Because if the two hash values don't match, it means the messages don't match. So if this signature verifies, y knows that it came from x and it hasn't been modified. So that's an important role of digital signatures. I sign a document from my signature on that document. You know it came from me and I approve that. It's harder to tell if something's being modified, but if you have a printed document, if someone changes or crossed something out, then you don't trust it unless they've signed that crossed out part as well. So in the paper land of signatures. What does z know? They know it comes from x, they know the message, and they know it hasn't been modified. The same as y in that case, there's no difference. So whoever received this signed message, they know the message and they know it hasn't been modified and it came from x. That's the role of a signature. What if the signed message was sent by x, someone in the middle modifies it, z is malicious, they change m1 to m2. So y receives m2 with the original signature. What happens if you receive this? Does it verify or not? No, it doesn't verify, why not? Different. I think you understand. So how would you write it in an exam question, the answer? Think about what you would do to verify. What steps do you take? So all right, I receive m2 and signature s1. I take the hash of m2 and I also decrypt s1 and as a result of decrypting s1 with the public key of x, I get the hash of m1. So now I have the hash of m2, the hash of m1 and since the messages were not the same, the hash values are not the same and it fails the verification. It doesn't pass. So I don't trust it. So remember the steps that you do at the receiver. In this case, hash the received message, decrypt the signature with the public key of the sender, compare the hash values, compare the one calculated and the encrypted one. If they match, verification succeeds. If they don't match, verification fails. So they are some of the main concepts that we've went through in cryptography and we'll see come up again when we look at practical applications of cryptography. One thing we didn't mention, we may see it in a couple of the examples, is message authentication codes. I don't want to spend much time on it, but in the same way that we can use public key encryption and hash functions to authenticate data, we've got also another technique called message authentication codes. And even if you don't know the equations, just remember a MAC or a message authentication code takes as an input some message or plain text and a key and it is used in a similar way to a signature to allow the receiver to authenticate. The message hasn't been modified and it came from a particular person. So even though there are a couple of examples of MACs, I will not go through them because we didn't mention them in the original cryptography lecture, but MACs are also used for authentication and we'll see them come up when we look at HTTPS.


Zakhs Bantwini announces sad news. South African legendary musician, Zakhs Bantwini has announced his retirement from music after 15 years. The star is preparing for it and many of his fans are proud of how far he has come in the industry. Bantwini, who was born Zakiil Madi Da, has been traveling and playing all across the world non-stop for a while now, thanks to the massive success of his record-breaking single Osama and its follow-up, Ai Mali. However, Bantwini is set to close off his music career with the release of a new album titled A Bantu. A media release from his company, independent media group Africa, read, Zakhs Bantwini has confirmed his final studio album, titled A Bantu, set for release in November. Bantwini will be announcing his retirement at a media briefing on Friday at DHL Stadium in Cape Town. This album follows his largely successful multi-platinum selling album Ghetto King that features hits such as Osama, Ai Mali, and Girl in the Mirror. Read the release.


Bernie Sanders is probably the only politician in the history of American politics who can become embroiled in controversy while doing literally nothing because over the weekend a clip from the Joe Rogan Experience podcast blew up and Bernie Sanders was blamed for this. Why? Well, you'll find out because Joe Rogan is voting for Donald Trump over Joe Biden and since Bernie Sanders once shared Joe Rogan saying nice things about Bernie Sanders Bernie Sanders is the one who we should all be lambasting currently according to Democratic Party loyalists. So this is the clip that is controversial. Issue with the Democratic Party. They've essentially made us all morons. Yeah with this Joe Biden thing. They really have made us all morons. Who do we need? I mean I can't vote for that guy. I can't vote for him. I can't vote for him. I can't vote for Trump. I'd rather vote for Trump than him. I don't think he could handle anything. I mean you're relying entirely on his cabinet.  The pressure of being the president of the United States is something that no one has ever prepared for. Right. The only one who seems to be fine with it is Trump. Oddly enough. I mean he doesn't seem to be aging at all or in any sort of decline. You know Obama like almost immediately started looking older. Yeah. George W. almost immediately I think that this is not a change in Trump. You know it's interesting to me because as I watched this it became apparent to me that Joe Rogan theoretically is the exact type of person who the Democratic Party tells us that they should be winning over someone who is ideologically positioned between the Democratic Party and the Republican Party. Right. You want to win over those voters who kind of opt for Republicans sometimes and Democrats. Other times. It's not about making sure that the left is satisfied and has someone to vote for. It's not about bringing out non voters people like Joe Rogan. That's who the Democratic Party told us we have to be winning over which is why they have to remain so centrist and right wing on a lot of issues. But yet when he says you know what based on this issue of mental fitness I'm going to go with Donald Trump. They blame Bernie Sanders. Why. Because he once elevated Joe Rogan's endorsement. Now people like Joe Rogan like I don't watch the podcast. I'm not a fan of Joe Rogan so I don't necessarily know about him. But what I do know about him is that he's very similar to the average voter. Right. He has some reactionary right wing views when it comes to social issues. But here and there he's relatively progressive when it comes to single player health care for example. So he's kind of ideologically all over the place. But I think he's gettable if you provide him with the correct candidate. And Bernie Sanders was able to win him over because Bernie Sanders has a history of saying the same thing over and over again. But Joe Biden can't win him over. Why. Well it's because of mental fitness because Joe Biden is obviously in cognitive decline.  But Democrats managed to find the one person who voters would see is maybe less competent and prop him up all election and tell us that you know this is the most electable person and you have to vote for him. You have to vote for him if you want to be Donald Trump. And now that voters aren't necessarily falling for that at least what we can tell based on this clip. Now they're blaming everyone but themselves which is really which is interesting. Now I'm not going to go through all of the outrage but I'll just share one tweet from a Democratic Party loyalist that I think really encapsulates the broader sense of outrage we got from the Democratic Party establishment. Bakari Sellers tweeted out Joe Rogan was a great endorsement. I don't understand why we get trounced with black voters. So this is supposed to show how clueless the progressive left is because they're unable to perform with black voters at least in South Carolina even though most black voters haven't voted yet. But I'll admit Bernie Sanders should have theoretically done better. And I don't necessarily know why he didn't do better. We'll have to do an autopsy once this is all over and figure out what he could have done better because clearly he didn't do enough because he didn't win over black voters disproportionately older black voters even though he won over younger black voters. But the point is that we don't know what he did wrong specifically but Bakari Sellers is saying well it's because of people like this propping up Joe Rogan is part of the reason why you know he wasn't able to convince black voters except if you're going to base it off of who you're associated with why would Joe Biden a former segregationist who has been accused credibly so of rape why is he who propped up Michael Bloomberg who's a current racist why like why is that not an issue for the Democratic Party establishment. Bernie Sanders sharing the endorsement the pseudo endorsement of Joe Rogan is a bigger issue to the Democratic Party's team than Joe Biden sharing Mike Bloomberg's endorsement and complimenting Mike Bloomberg who is I think a much more egregious figure than Joe Rogan right by their own standards but yet do you understand that this double standard is never brought up it's because there's a separate set of standards that apply to us that they don't hold themselves to. If I were a Democratic Party operative I would be watching clips like this I'd be trying to soak up all of this commentary and figure out how we can help Joe Biden beat Donald Trump because I mean what they're trying to do is you know put his wife front and center during live streams in order to hide his cognitive decline which is obvious but voters they look they they want good policies but they're not as ideological as everyone else you know they voted based on electability but a lot of people who are like Joe Rogan who will be voting in 2020 making this binary choice between Joe Biden and Donald Trump they're going to base you know their decision on things like a leader leadership you know more abstract qualities like who's mentally fit you know things that are difficult to gauge now mental fitness is certainly something that you can gauge but given the choice between Donald Trump and Joe Biden I think they're both not capable of being leaders now but voters are going to making the going to be making these types of evaluations so rather than lambasting any and everyone who you know supported Bernie Sanders and you know rather than attacking Joe Rogan understand that he's not the problem currently he's not the enemy it's not Bernie Sanders who's the enemy so they're going to try to scapegoat Bernie Sanders and his supporters once Joe Biden fails to win them over if he fails to win them over and loses but you've got to understand the writing has been on the wall now this COVID-19 global pandemic has changed a lot right we don't necessarily know what's going to happen once this pandemic comes and goes and then we move on to a global recession we don't know what's going to happen anything can still happen I'm not going to say that Joe Biden is definitely going to lose but just judging the low level of enthusiasm given how Democrats are already having wandering eyes and Cuomo sexual is trending on Twitter I mean you're just you're in for a rude awakening come November so people in the Democratic Party if they actually care about beating Donald Trump which they should they need to be looking at these types of analyses looking at what people are saying about Joe Biden very clearly there's a lot of issues so I don't know if he's going to be able to overcome that but if he's not then just understand that this is the bed that you made and now you have to lie in it the Democratic Party establishment namely Obama moved heaven and earth to make sure that Joe Biden became the nominee and everyone dropped out and coalesced behind Joe Biden this was after Bernie Sanders had a blow out in Nevada but the establishment made everything change in a matter of what seven to nine days this was unprecedented so they wanted to make this happen and they did they're going to get what they want so now they have to live with the consequences of choosing someone who is completely incompetent and not only that he doesn't bring forward any real policy solutions so you know aside from the fact that he's not going to energize the left you know centrist more moderate types of people like Joe Rogan they're going to see Joe Biden when they're making this choice between Donald Trump and Joe Biden and they're going to realize you know if I'm having to choose between this individual who's clearly in cognitive decline and someone who's already president I'm going to go with what I know it's not just Joe Rogan who's going to be making this decision and the tragedy is that it really would be a disaster if Donald Trump did get another four years because that means four years of the prospect of war with Iran right four more years of worrying about who else he can fill you know if another Supreme Court seat becomes vacant but this is what Democrats did and the problem is that the disaster that they have you know brought upon themselves it's not them who's going to be suffering from that it's going to be normal people who bear the brunt of this of their incompetence so I mean it's just frustrating they never learn they never are willing to be introspective even for a second it's always blame blame blame play the blame blame game and when you're done with that play a little bit longer but it's just they'll never learn and in four more years if you think that them losing to Trump again if that's what happens is going to give them a sudden change of heart it's not they will never change they have to be forced out of power that's the only way we will be able to get change Mike is a total loser so don't hit the subscribe button okay and whatever you do folks do not hit the notification bell either Mike treats me so unfairly


A Crow and County man died on Saturday from injuries resulting from a fallen tree. Crow and County Sheriff Todd Dahl says the Sheriff's Office received a call at 1.30 in the afternoon on July 14th of a medical incident involving an injury from a fallen tree near Kimball Shores Drive, an ideal township in Crow and County. Responders arrived and found an adult male had died from injuries caused by the fallen tree. The name of the man is being withheld pending the notification of his family members. If you enjoyed this segment of Lakeland News, please consider making a tax-deductible contribution to Lakeland PBS.


All right, Cyber Trader is welcome on back here. This Tuesday, May 17th, Post Traders Talk. As always, it's Tuesday, our Post Traders Talk edition here of our afternoon meeting. Great to see all of our students and members alike inside the Cyber Group Room. Great to see all of us back on social media, perhaps, Facebook, Live, or YouTube. We're coming off a little bit of a meeting or press conference from Drone Powell. So Fed Chairman ended up giving some remarks regarding inflation. So to begin, we'll cover that.  And I say similar to what we had maybe a quarter or two ago. Because coming off a previous Fed meeting, I remember the following week on a random Monday, he ended up jumping on and just kind of instilling a little fear, some headlines, just negative headlines towards the market. And we ended up just getting some very short-term sell-off, which ended up shocking a few of us at the time. But ultimately, long story short, the end result of that move by 4 o'clock in the afternoon, and it was pretty much happening during the afternoon meeting back then, was a big push-up, real big slingshot back up within the market. So just for right now, folks, to begin to go over what Powell was talking about just earlier, the headlines read, Fed to Powell says, we know this is a time for the Fed to tightly focus on getting inflation down, which, again, is something that we would assume for them to say. And then otherwise, Fed to Powell says, we need to see clear convincing evidence that inflation is coming down. Says, if we do, it could slow the pace of the hikes. So we ended up getting a very sharp drop-off pretty quickly afterwards. But since, mom, it's been bouncing. And with that, there's been a couple of good trades making some good moves back up, and they were trending up to begin with. So let's go through the watch list right now. We'll go across the percent gainers and losers lists just to see what we could put on our watch list here for the close. Walmart on the screen to begin. So I think they ended up coming out with earnings, but a lot more than just that. I think they ended up cutting quarter to EPS guidance from low to mid-single-digit increase to flat to up slightly, whatever that headline stands for. I know they ended up lowering guidance ultimately. So with that, we ended up seeing a big drop-off right away after the market opened up, and it's just been sinking since. I mentioned to one of our students, Karen, inside the live trading room that big support should be off 130. You'd assume for there to be a pretty big iceberg order currently on the bid there off 130. And that was back maybe a couple of bucks ago at 132. So it's been smooth sailing since. If you're short on this trade, this trend is pretty much a gift to you. You can't really expect the stock to drop off this steadily throughout the entire day, let alone even year across an hour's time. But that trend is honestly a gift. So for right now, definitely we'll put this on our watch list just to start the Walmart trade. It's down over 11% would have found it on the loser side, obviously, but always like to just start the stock on the screen. All right, so let's go right from top to bottom though, otherwise, and we'll see what else we could put on the watch list here. There is one stock I wanna jump to at some point, just to kinda show you what I've been looking at in the last hour, hour and a half, really. The EOSC trade, I did not get my hands on this one from earlier going into the afternoon, right? Ended up making a huge pop and it got halted at one o'clock or shortly after, ended up just grinding on up after and hey, led to a really good opportunity, right? I saw a few of us, I saw Norman go in for like 13, 15 cents, ended up making a pretty big move. You wouldn't have expected that here at this time of the day. So it's easy to leave money on the table for a stock like this. That's where I always say, if the stock had presented itself another opportunity to run, then you try and re-enter. So if you're watching it from there, it ended up running up towards two. It broke above two at first, but it didn't take much longer for it to re-break two, a couple of bars later even, and then from that point ended up making the higher high. So from that point, ended up pulling back here. So for the afternoon, it looks like it's pretty much done, normally a stock like this, unless if it's much closer to the highs, I wouldn't be really as interested in. So if it ends up making a bigger or makes up making a better move up, perhaps heading into the end of this meeting, then I'll give it a second consideration. Or is that the EOSC? All right, so we'll see what else we got. I see a few cheapies here on the gainer's side, like Verb and MTC. So if those are popping, just let me know, but we'll see what else we got. The EGLX, I wish this was making a sharper pop right now. It's been more of a grind on the way up here across the mid-afternoon, getting a lot more volume traded across the last hour, hour and a half. So that's great to see. And hopefully that certainly continues. If that stops, and then this fails to break higher, then this should just plummet. But otherwise, you certainly don't hope for that to happen. And with where it's at right now, you should expect for it to begin to trot up higher, at least, we have a lot of time left. So if it's not right now, maybe it's by 3.15 or even 3.30. So yeah, this EGLX looks pretty interesting here. All right, it's not bad. I didn't see that really up until right now. So that's a good one to add to our list to start. The AUVI trade, this thing's just been a tease. We talked about this earlier inside our Traders Talk workshop. That's the live weekly Q&A that I was mentioning just even from yesterday for all of a sudden social media. We covered this trade from head to toe, but what's surprising here even right now, and just because it's surprising doesn't mean I'm gonna put it on our list, but it is still holding over support off 130. It was testing it really nicely earlier in the morning, which led to a nice bounce, but you would expect with lower highs and retests of support for it to ultimately crash below there in tank. So I'm definitely not ruling that out here from this point. I still feel like that there's a great chance that could happen, but I don't know, kind of interesting that's kind of laying over 130 still. All right, Jumea, ended up popping after the open off of like 6, 6, 10, ended up running up beautifully from that point, then became more of a grinding of a trade here across the late morning, early afternoon, but it made a nice little move, but at this point right now pulled back down a bit. I'll come back to it if I need to. If it makes another pop here, if you let me know, then I'll come back to it, but right now I'll pass. Just gotta catch my spot here for right now because I wanna kind of just skim through.   See, FRGE, this one's a more volatile one, but I wanted to take a quick look. It's not really doing a whole lot here across the afternoon or across the last hour. Ended up running up going into the late morning, but fell flat from there. The Vuzitrade talking about falling flat, I mean ended up running up pretty nicely from the open, but by 10, 30, 11 o'clock, just horizontal. PPSI, little pop back up on this one. Ended up holding support nicely off 350. Another one where you would have expected with lower highs and retests of support for it to end up breaking lower. Again, not rolling that out. If anything, this might be like the second wind type of move that we commonly see. So if you're in this trade off 350, hey, nice trade so far. The VWAPSOF 389 or 387, I should say. So that could be a technical resistance should this make another pump up. But I just don't know how much more we can expect on this one here for right now. Volume really weighing off from the market open. What a break in between. Let's hop on over to the loser's list here. See what we have on this side of the field. Again, kind of littered with cheapies. I could just see like 79 cent stock, 35 cent, 48. Can't short them. You're not really looking for a dead cat balance. Maybe unless if they're down as much as auto, but you tell me, we'll pass. So let's see what else we got here on the loser's side. Market's still shaking around a little bit. It tried to squeak on up the last few minutes there. I don't know why this is a one minute chart. That's producer's error right there. Zoom in on that guy right there. So I ended up just dropping off a little bit and perhaps this could be the beginning of the slingshot. So that's what I was alluding to at the top of this meeting here, just because the market dropped off at first. We saw what happened last time. Markets flew heading into the close after Powell talked. So you're not guaranteeing it, but once you happen to see the beginnings of history, repeating itself, that's where you could anticipate some trades. And with that, I wouldn't expect for there to be a whole lot on the loser's side from this point forward, right? All right, so that about wraps it up from the loser's side. I don't see really much else that interests me like a familiar name or whatnot. There we go, look at the spy. Nice little pushback up over 406 for right now. Now some good trades from the side list here to watch heading into the afternoon. Norman says the EGLX is a tease. Well, I'll tell you what, we got two stocks on our watch list so far. We got EGLX and we got the Walmart trade, which is a short. So EGLX seems like a tease, but it definitely remains on our watch list. Still remains strong in the sense of general direction. The EOSE trade, it looks like it's trying to make another pushback up.  I'd be more interested in this one, if anything, if we kind of looked to follow like any of the stocks from earlier today, unless if there's anything at the highs right now, of course, but it wouldn't hurt us to re-ed the EOSE for right now, but I'm not expecting this to make another pushback up towards 230. If it does, God bless, we'll take it, but level by level first, right? Now, a couple of stocks from the side list here, I wanted to just go over briefly, the Rivian trade, RIVN ended up making just a really nice slingshot off the 2650 price. I ended up jumping in and out of this throughout the late morning, early afternoon. I wish I got in from the open, of course. One of our students, Allison, called us out head on. I mean, it was really within the first five to 10 minutes of the run, she had called it out and ended up pushing up really nicely up towards 2750 and change, but I was watching 2650, 2655-ish area as a big support. A lot of buying came in off that level, heading into the late morning, early afternoon, like I said, so I'm currently in looking for a nice pushup. So I've been kind of hawking this as I've been doing this meeting, of course. You know, hey, it's up over 8%. It's not at the technical's highs of the day, but it's at a major resistance here now off of 27. So I feel pretty confident if we see more buying coming in and especially with the market continuing to squeeze back up, I think that we can get a really nice pushoff 27 here on the Rivian stock. So I'll put this on our list right now. You know my stance whenever I kind of go over trades I've been looking at and in and out of throughout the day, I'm not just gonna put it on the list because I'm in it or was in it. I'm gonna put it on the list because it provides good opportunities. So there have been plenty of stocks I didn't, I don't put on the list, even if I'm in it. So just a good sideless stock that's been pretty volatile of Lee. And how about this? For all the slide inside the trading room, you know how much I love NIO, N-I-O. I'm not in NIO right now. This has been more of a grinder of a trade heading into the late morning, early afternoon. And I was expecting a resistance to be pretty much where it topped off at. Maybe it has one more pushup towards 1680. But NIO is not looking as sharp right now. It's up actually more percentage wise compared to Rivian. But you know my deal on NIO. If this ends up making a sharper move at any point, I'll be the probably the first to call it out. Maybe myself or Michael inside our live trading room has been following it here and there over the last week. Yeah, we'll see. But let's go over some other sideless stocks just to see what else is out there. Like for instance, American Airlines at the highs right now. Again, you know my stance here for stocks near at the highs. I'd rather follow these heading into the close. So UAL is not making as clear of a push backup just yet towards the high of 4683. Savetritt came out with news yesterday, right? So this is actually making a pretty good push. Pretty convenient timing. I didn't check in on save up until right now. So you know I just remembered off the tip of tongue top of my mind here that save had some news heading into the open yesterday. You know why not give this a look given that. And this is making probably the best push of them. So you know what save I'll put on our list the American Airlines trade. It doesn't hurt us to put that on our watch list for right now. All right, not bad folks. Decent list so far. So from RJF he says the GLBE trade. Yeah, I mean, had I missed this, right? So this was probably climbing up a little bit more as we were going down the loser side at least. It's up 16% but it's honestly towards the middle or bottom of this gainer side. So it probably was doing exactly that. I appreciate the shout on this for sure the GLBE trade. Now I thought, oh, I'm actually right. Geez, yeah, I thought and now I'm realizing I'm correct with this. This was like on the losers list, but I thought, I mean time flies, but I thought it was yesterday. It was this morning even it was on the losers list. And then this thing is pushing back up. So that's pretty insane. What a move up here across the entire market open through right now on this GLBE stock can pretty decent Rivian for right now. I would expect resistance on Rivian off 27.25, 27.22, fib level I have set up for right now. All right, folks. I think that just about wraps it up. I may have one more actually. Let's just see. I don't know. APLD, nah. Just popped up on my Benzinga radar this thing. I don't know. It's a body chart throughout the entire day. It's only trading half a million shares right now at this point. No real interest on that just yet. And now we're just looking at crap. All right, so folks, that just about wraps it up for me here. I like what we got though so far on our watch list. We have the GLBE, American Airlines, Save, Rivian, the EOSC, the Walmart, and then the EGLX. So that's about seven stocks to work with. Pretty good. So not too little, not too many as I like to say the shoe just fits. So for all of us social media, Facebook, live on YouTube, I appreciate you sticking with me each and every day, each and every afternoon. I know that Fausto finally got back in for this morning. I should be in for tomorrow and Friday of course as well or tomorrow and the rest of this week. I should send him a day ahead with that. Nonetheless, if you have any other questions, feel more than free to send on over an email at Josh at ctutrading.com. I always like to post my email here at the end of the streams. Any questions that you have on stocks that we've been calling out, anything that we've been talking about during these meetings, even crypto, feel more than free to send over a quick email. If you wanted to join us inside our live trading room, feel more than free to do so as well by going right down to the link on the yellow banner below right on the stream to get yourself started. But for Norman and Leda, Kathleen, Nina, and all of us just live inside the trading room right now, I know that Rich will be on coming up in about 15 minutes. I'll be back on right at 3.30 to wrap things up for the market close. Talk to you soon. Come a cyber group member today. Just click the link below and receive all these amazing products and a world of knowledge for just $9. Do it.