Labour Party Governorship Candidate for Lagos State of Badibor, Rhodes Viva says the state finances are not transparent and are full of shams and fraud. And Delema Modo accuses Tinnable and the APC of plagiarising MK Oabiola's Hope 93 manifesto. This is Plus Politics, I'm Mary Annacolm. The Governorship Candidate of the Labour Party in Lagos State of Badibor, Rhodes Viva on Monday tackled the Lagos State Government for running an opaque financial system. Mr Rhodes Viva said there is no accountability to the people of the state in how tax revenues are being expended. He is expected to face the incumbent Governor Babajire Songolu of the all-progressive Congress and the People's Democratic Party PDP's candidate Olajide Adirion in next year's election. Joining us live to discuss this is Baribor Rhodes Viva, he is the Governorship Candidate of the Labour Party here in Lagos. So good to have you join us in the studio. Always good to be here. Great. It's interesting that all of the Lagos State candidates for all the political parties I've had the opportunity to speak with, keep talking about the issue of finances in Lagos. Yeah. Why is that an issue? Because the government has sort of portrayed itself as one that does development by tax generation, by income generation. And you look at the level of development in Lagos, it's not up to par with the kind of income that they've been generating for over the last 20 plus years. And you actually start to see that there was a time, like in 1966, Lagos was ranked as one of the best cities in the world. Like in the last decade, Lagos is consistently ranked as one of the worst cities to live in the world. So the question is, with all these funds that they are generating, why is it not improving the lives of so many people that are in Lagos State? And I feel that that is why it will always be a topic of conversation. Because while people will say Lagos is working, you find that it's the same of the same. Every year is going and you're spending four hours in traffic. Every year is going and the same roads are being done and last for six months and get washed away. The same flooding is happening in all different communities across Lagos State every rainy season. So the question is, these funds that they are generating, how is it benefiting the lives of the common man in Lagos State? Lagos, for some people will say, is overly populated. There are lots of things happening, mostly Lagos is on top of water. The traffic situation that we're facing is, I mean, I think two days ago we were all stuck in traffic for hours and hours. But when we talk about funding, of course, Lagos State does have a great revenue, you know, that just accrues every single month. Why do you think that these monies are not necessarily used? Because this is what you're saying. You're alleging that these monies are not used for the right things. Why do you think that is? I'm not saying going as far as saying they're not used for the right things. I'm saying that via the Freedom of Information Act, you're supposed to get line-by-line items of how the government is spending money. Lagos State does not do this. Right? No, they don't. And furthermore, when you look at the bulk number that they give you for the implementation of projects, you find that when you do calculations of how much a similar project is done in Kenya or is done in Ghana, it's times three times for the price. When you benchmark it against the World Bank benchmark for what projects should cost in Nigeria, you see they are doing it at times for the price. So the conversation is not they're spending money, what they're spending money on. The conversation is about how much more infrastructure we can have if money is spent judiciously, especially, I'm going back to what you're saying. Lagos State historically houses or is home to 10 percent of the population of Nigeria. The population of Nigeria is projected to increase about 400 million next 30, 40, 50 years. That means that we're looking at the population of about 40 million people, majority of whom will be youth. The scarce resources we have should not only be being used to build Lagos for now, but Lagos for the future. And that is not happening. And that's what the conversation is circling around. We need to ensure that the people are getting maximum quality infrastructure at the best possible price. The government should be taking pride in saying we are delivering this bridge to you at this price. OK. Now, recently, the World Bank rewarded Lagos State government for transparency on the line, the word and accountability in their budgeting. Now, the state got about five point five one billionaire from World Bank. And there's been some, they call it a an SFTA performance for results grant. So they actually did this, I think a year ago or so. So this is the same Lagos State that you're saying is not transparent. Yes. So if, for instance, you're getting funding from the World Bank, this is an institution, this is an international institution where you need to meet several checks and balances and they don't give you the money in full. They give you. This is a reward by the way for transparency. But also they are doing it based on a grant that the World Bank gave them, correct me if I'm wrong. Does this translate to monies that are generated by IGR? Does this translate to funds that are raised by the NALTW every year and we cannot account for what that money is used for? Does this generate, does this translate to monies that are raised and paid to your lodgers and barba lodgers and you don't see the benefits for the people that are actually selling those markets, right? Is this transparency a thing that you're going to use to airbrush the whole of Lagos is management of resources? No. But there is obviously an internal revenue service that's supposed to oversee all of this. And of course there is an accountant general's office, there is an auditor general's office and these are people who are saddled with the responsibility of making sure that you get, according to you, line by line and detail the information as to how these monies are spent. Have you, through the FOI, gotten any information through that? We have not and this goes back to what I'm saying. You look at the train system, the train project that they're trying to do, the insight that we get is that the budget and the plan for this is 1. something billion dollars. The construction company that is doing it is putting at 100 and something million dollars, 200 million dollars. That's almost 10 times the value, right? I mean, what's this controversy? Why is this not adding up? There are several excuses that are made to justify it. You look at the Falomal Bridge, Falomal Ramp, connecting Uzumbat Falomal. You see the price per kilometer is times five. What is being, what is the norm in Kenya, in Ghana, right? And this is a ramp. The conversation now for me is this. I'm not really into tokenism because legal states, there's a lot of politics that happens here. You see, there's a lot of tokenism. I want a situation where the system in itself is transparent and it's accountable to the citizenry and you're getting projects delivered at a cost that shows that you're doing things appropriately and efficiently because our resources are scarce. Even in these funds that we're talking about that legal state has, when you relate it to the number of people that stay in legal state, legal state is still actually quite poor. So the tax net needs to be increased dramatically, but it needs to be increased in a way that people feel there's an incentive to them directly for paying their taxes. So you will not be forcing them to pay. If I'm paying my taxes and I am automatically enrolled into a health insurance scheme or I have access to mixed income housing or I have access to benefits that directly affect me, nobody will force me to pay my taxes. Interesting. Again, I'm probing to ask because there are supposed to be, if the government agencies are not probing and not asking questions, it's not just you who's supposed to, we have CSOs, we have NGOs. In fact, let's stay with the CSOs. These civil society organizations are supposed to be the voice of the people. They're supposed to be the ones who probe. But then I always ask, how free is the FOI and how powerful the tool is it? Because I remember there was a time where governments were being asked to explain their budget. So it gave access to what they've done in their budgets and you know, that just met a brick wall. Exactly. How powerful is the tool called CSOI? I believe that when you enthrone transparency and accountability in a system, it takes a life on its own because automatically there are certain things that can no longer fly, right? And I feel that that is the first step in cleansing the system. Budget is an NGO that does a lot of research and work on transparency and accountability on openness and legal states ranking in that was not impressive. The last couple of times that I looked at their reports, right? And also we should understand that when a system is run for the benefit of a couple of people, members of that system just work to maintain that status quo, right? And that's what we're pushing against. Because at this point now, looking at population increase that's going to happen, if we don't get efficient with the way we manage our resources, with the way that we implement our vision and actually have a vision for the betterment of multiple people's lives, millions of people that live in legal states, we're going to get into a situation where, I mean, on every street in legal states, you have young men that are just standing around, harassing people for money, right? That's only increase. And you're literally watching people that can be productive and adding to the development of a state just waste their lives away. But some people will say that that's the empowerment that the government is giving them. They're working as, whether you like it or not directly for the government, where did those monies go? Again, videos have surfaced online and people saying, oh, they're being overly taxed. They're saying, oh, we're asking them to contribute money for this campaign or that campaign now. Those are allegations. And then of course, some market shop owners are said to not be able to open their shops because they didn't show up for this or that. But then this is something that happens across the country where you have multiple people show up to take the same tax, but under a different nomenclature. So really, how does the Labour Party intend to put an end to this if it does emerge? Yes, so for me, like I said, taxation must directly benefit you. It should not be a question of, we are paying these monies, we don't know where it's going. And the allergy is generating billions from the market every year.  Imagine I'm paying my taxes. In fact, the law man wants to close down the market despite all the monies being paid to them because apparently they are not disposing of their waste properly when they should be managing the disposal of the waste in that system. So you see a system where money is just being extracted and extracted and there's no direct incentive for it. It's almost like a shakedown. And that's what we're working against. And when you talk about... What would you do differently? So for me, there must be, as long as you're a tax-paying member of Legal City, belong to the commonwealth of Legos. And that's in my manifesto. And it's on my vision for Legos, the situation where there are direct benefits for that. So the tax net is automatically expanded because for instance, and bringing back this conversation about transparency and accountability is not just in financing. If you're having multi-income housing development that's supposed to get to the vulnerable in society and the community, you have situations where that is being built and it's sold before it gets to the market. There must be a transparent way where it's published. These are the number of affordable units or multi-income units that we've built. This is the way to transparently get allocated one of it and it's published. It's a lottery system. You get it, it's free, not that it's free. You get it fairly. You don't need to know people to have it. And that's the kind of system that we're trying to enthrone in Legos State. Let's talk about some of the things that you have as part of your mandate. She talks about the fact that you're going to embark on an empowerment of young people and all the social engagement programs to take their attention from thuggery and crime. I've heard people say empowerment. I've seen all kinds of things under the empowerment name. What sort of empowerment are we talking about? So just to be clear. Because I've seen people give much of life and all kinds of things. What kind of empowerment are we talking about? That's not what I'm interested in. I won't even use the word empowerment. I'll talk, it's investment in human capacity. That's what we're doing across all 20 local governments and looking at basing it based on the comparative advantage of that local government where you are domiciled. For instance, if you are doing a program like this in a pair of Badagui or Kodru, you're looking at an aquaculture system. How can young people get involved in this industry? How can that value chain be extended? Badagui has one of the worst rates of cyber crime in legal state. I'm not sure if you know this. A lot of young people on the laptops all day. If we have a center where you can train and learn how to code, right? You know, I'm sure you probably know about in demand jobs now. It's not even based on what is available in Nigeria. You train now to code in Python. You come getting paid $1,000, $2,000 every month. You're literally lifting people out of poverty. And you don't have to say they have to go to university to get an undergrad before they can learn to code. Now it's about giving people skill that is in demand right now, right? And these are things that we're going to push all across the state. And even in our education system, need a situation where a lot of people drop out in a certain year, but you want to equip them with enough skills to be able to survive, especially in the places where they are domiciled. And that's the kind of thing that I'm talking about. So you know, empowerment is truly building the capacity of people. I smile when politicians, presumably, know what young people want, but have you sat with them? Have you asked them what they want? Because just as you said, that what they want and needs vary from one location to another. So assuming that all they need is this and that, is that not presumptuous on your part? No, it's not presumptuous. You know, when I contested for Senate in 2019, I traversed 115 words, meant to so many young people, youth leaders in each of these words, right? And there's dialogue. Now, you see, there's a norm and a mindset that has been created that makes it okay for young people, even people that are not working for the NURTW or last park as they are called down or whatever they remodel themselves to be, that just hang on the corner, they're parking your car and they want something off you.  It has been normalized and they are backed by the state, right? So, and you see it's when it read it's over here during the N cells where BRT bosses came with people to the front of the government house in Machats, right? So the political party, the ruling party in Lagos, it has normalized and has backed this type of thing. So first as a party, we work to deliver. We are not going to work or to use people to suppress votes. So already that job description is off the table. Then secondly, there's an engagement, right? I'm not, I don't believe in making policy for people. You make policy with people. And that's why I said, you look at the comparative advantage in each local government. I'll give you an example of Badagri, right? If you can show somebody that legally, you can generate $8,000, $2,000 every month from lending out goods.  And it's a dialogue, it's a conversation because these norms have been existing for over 20 years. You're not going to change it in a month or two months. You're going to directly link with them and make sure that the barrier to entry of any of these things is at its lowest point possible, right? And that's how government will allow for these, for very successful uptake of policy. If you just sit down and allow, sir, and you are making policy for people, it will fail. And that's why you see, that's why I said a lot of tokenism in this government, right? You see, a policy, for instance, digital education, they will talk about it and it'll be something that they will talk about for like two months, but when it's time to continue or to expand it, you see it's just left behind, right? Because it's just about the look of it. It's not about the deepening of that thing, of that type of innovation into society. A lot of politicians also make promises. You know, talk is cheap. People say, oh, I will do this, I will do that. And then when it comes down to the doing, it seems a lot more, for example, the government of the day promised us to put an end to the unemployment and the under-employment that we're experiencing to fight corruption, to deal with insecurity. As we speak, I'm not necessarily sure if that has been done. It has not been done. So again, knowing that the bottlenecks and the bureaucracies that exist within the Nigerian system, of course, some people say it takes one man, but then some others will say it takes a village. How do you intend to make sure that all of these things come to fruition? Without, because again, you see, this has been a system that has been built over the years. It's been one party, it's been one party that's been in power. How do you intend to, you know, make that U-turn? Yes, and I like how you highlighted promises that were made before. And that's why the party has been making all promises cancelled party. The idea for me is this. Whatever we're trying to achieve, right, has been well thought out and is, I'll give you an example. As part of my campaign, because I believe so much in innovation, I have done monthly health insurance for about 50,000 people, right? Now, that sounds big, but it costs 500 Nair. And these people get access to treatment to the value of 5,000 Nair. Now that might sound small, but micro health insurance completely starts to social engineer change.  And this system uses innovation to partner with the pharmacies around where you are resident. Now, I am not in government. I've done this. I did this for two reasons. One, to show a different type of politic, right? That's not just about what you eat now now, but a new normal. And true to test this system to see how innovation can work in healthcare, right? So this is stuff I'm already doing. Now, for me, this government, Labour Party, the Obidachi Movement, Goddible Revival, is a depart from regular politics. We are redefining politics. Our main agenda is to grow and nurture a whole new voter demographic to come into the system, right? So for me, we're not making promises just for the sake of it, just talking about it. No, I'm an architect. I believe in urban renewal. I believe that urban renewal is tied into how you live, how it's tied into the roles that you're doing. It's tied into efficiency of how you manage your resources. And this is what I intend to do because on the long run, everybody will benefit, Nigeria will benefit if Lagos is working. People talk about notoriety in terms of these kinds of offices, especially if you're running for the number one office in the state. Going up against a party again that has been in power for so many years. And of course, you also have under position where you came from that has also been contending with the sitting party. And now you seem to have engaged now in the three horse races. What are your chances? I think my chances are brilliant, actually brilliant. Yeah, when I ran in 2019, I got a good understanding of the numbers. You see, when you talk about the greatness of or the dominance of APC in Lagos State, and you realize that less than 16% of people turn out in elections. And in that 16%, only 10% actually go to the APC. That is with all the local government structure. That's with all the wealth and money that they have at their disposal. That's with all the suppression and intimidation that they do to people. Then you realize that there is a silent majority that has not yet been inspired to participate in this process. And why I say my chances are brilliant right now is because that silent majority are the ones powering this movement in Labour Party. They are mobilizing to be mobilized. We had a rally on October 1st. As a leader of the party in the state, I can assure you that we did not give anybody money. They printed their t-shirts themselves. They came out themselves. They've realized that they cannot leave politics to just the politicians. They are getting involved. They are moving things forward. And that is the future. That is the only way we can enter servant leadership in government.  That it's not sustainable. This so-called movement that you have, which you seem to be tapping for, might lose its steam. Again, I like to ask this question to every politician, any politician who shows up. Political parties have the onus of virtual education. Yes. Some sort of civic education. But that does not necessarily happen. They live for INEC and, of course, an NOA that's almost non-existent. What is the Labour Party doing, apart from the sensation, the obedeity phenomenon? What are you doing as a party to educate more and more leg motions? So the majority, the main thing that we're doing is teaching people how to vote. It might seem like it's him, but there are so many people that want to vote for you, but they don't know your party logo. They don't know the process. And this is what we're doing. We're doing outreach in every different local government. We're taking big banners, showing people examples of how you're going to vote, sensitizing them on the importance of participating in elections. But what I'm trying to say is this. Normally, because in lots, you find that most politicians don't really have much to offer. So they determine the play, right? But you find the situation where in Nigeria today, there's a departure from the norm. And those people are highly already educated, right? They are highly educated, not in terms of going to school, but in terms of knowing what they want, in terms of understanding that they need a new Nigeria and this is the pathway to get there, right? And it's extremely refreshing. I've been in politics for some time and what we are doing is nurturing, nurturing and growing that energy, right? Channeling it down to the polling units. That's our job. People said that Nigerians would just, legal shans and Nigerians would just forget what happened in the end hours. But people were still out on October 20th, right? They thought people would just forget and move on with things. They still had to come and be fine tear gas on them. This is a new generation. This is a digital age generation. This is a generation that has access to information at their fingertips. It's like nothing that Nigeria has ever seen. Can this momentum be sustained? And you know what is even more important than it being sustained? Because I'm certain it will be sustained. It's the new Nigeria that will be formed afterwards. In Nigeria where the citizenry holds their leaders accountable. Because those citizens put them in. Seventh leadership is doing where this country is going to move forward. The longer we have loads running over us because they have the money. They have the network. They have the boys. They will never be accountable to the people. And we need leaders that will be accountable to people with intelligence and empathy. Because that's doing Nigeria and move forward. Oh well. Badibwa Viva Rhodes is the governorship candidate of the Labour Party here in Lagos. Always a pleasure to have you in this studio. Thank you very much. Thank you so much for coming. We'll take a quick break. And when we return, we'll be talking about the APC's manifesto. We'll be having a guest in the studio. Of course, to break it down for us. Stay tuned. We'll be right back.


In wilds beyond, they speak your name with reverence and regret. For none could tame our savage souls, yet you the challenge met. Under palest watch you taught we changed, base instincts were redeemed, a world you gave to bug and beast as they had never dreamed." Elegy of Hollow Nest from Monoman the Teacher. Okay. So I haven't seen that because I skipped it to test the mod. But something's afoot. I wonder, if we're bugs, does that make those tiny fireflies even bugger bugs, like smaller bugs? There we go. Yeah. Here we are. Woo! So, I tested the mod and I have a yellow cloak because that was the easiest thing to do in a short amount of time as a recolor. So I have a yellow cloak. I do plan on doing a full, total, like, respriting of the sheet, but that's gonna take a while. Higher beings, these words are for you alone. The great strength marks you among us. Focus your soul and you shall achieve feats of which others can only dream. Collect soul by striking your enemies. Once enough soul is collected, hold B to focus soul and heal. Okay. Alright.  I don't know why I'm hitting these things, it just feels good. Higher beings, these words are for you alone. Beyond this point, you enter the land of king and creator. Step across this threshold and obey your hour laws. Bear witness to the last and only civilization, the eternal kingdom, Alonest. Okay. Yeah, this is some of the scenery that I saw, that I drew the preview with. It's so pretty. Dirt mouth, the fading town. Hello. Oh, they're traveling. They're traveling. I'm afraid there's only me left to offer welcome. Our towns fall in quiet, you see. The other residents, they've all disappeared, headed down that well one by one into the caverns below. Used to be there was a great kingdom beneath our town. It's long fell to ruin, yet it still draws folks into its depths. Wealth, glory, enlightenment. That darkness seems to promise all things. I'm sure you too seek your dreams down there. Well, watch out. It's a sticky air that fills the place. Creatures turn mad and travelers are robbed of their memories. Perhaps dreams aren't such great things after all. Many used to come hoping the kingdom would fulfill their desires. Alonest, it was once called supposedly the greatest kingdom there ever was, full of treasure and secrets. Hmm.  Everything fades eventually, I suppose. Feeling tired? That bench may be iron, but I assure you it's quite comfortable. There's no place to collect your thoughts before heading below. Plus, I enjoy the company. Not that you seem the talkative sort. Yeah. Okay, so I guess this is our bonfire. I guess this is the well. I didn't see what else. Hold on. Let me see what else. Eh. Eh. Well, I guess I'm down here now. So it seems like focus or soul is a renewable resource and it's not actually items I collect. Oh, the temple of the black egg. Hello there. How delightful to meet another trap on these forgotten roads. No short one, but you have a strong look about you. I'm quarreled. I have something of an obsession with uncharted places. This ancient kingdom holds many fascinating mysteries and one of the most intriguing of them is standing right before us. Oh, that was in the opening cutscene. A great stone egg lying in the corpse of an ancient kingdom and this egg, is it one? It certainly gives off a unique air. Can it be opened? There are strange marks all over it. I do so love a mystery and who knows what other marvels lie even deeper below us. For so long I've felt drawn here, so many tales full of wonders and horrors, no longer could I resist. I just had to see it for myself. And what a time I chose to arrive.  The creatures are riled up and the earth rumbles. The air is thick. I wonder what could have brought this all about. To preserve this ruin, the old nail alone just won't be enough. Though that's no problem, one only has to look around. Plenty have come before us and most have met their grisly end. Many more equipped than you and I. I'm sure they wouldn't mind where a fellow explorer to relieve them of their tools. It's a kindness really that Ed should be burned in with such things. I like that sentiment. Did you pass the town above? Not really.  I suppose that's why they've all headed down here who could resist such possibilities. True marvel. I've never been here. That's for sure. Hello. You are not friendly. Why are you right? Why are you? Just exploring and no, I was planning on just sitting here. Oh, hello. Sir? I'd like to help. Oh, he's missing his grubs. I see. Okay. Gonna bring all his grubs back. What is down here? But more falling. Hello. Hello there. Come down to explore these beautiful old ruins. Don't mind me. I have a fondness for exploring myself. Getting lost and finding your way again is a pleasure like no other. We're exquisitely lucky you and I. I'm a cartographer by trade, and I'm working on mapping this area right now. Would you like to buy a copy of my work so far? Oh, yeah, that's hella cheap. Yeah, dude. Thank you. A map can be a useful thing, but it alone won't show you where you are. If you're not the head for directions, I suggest purchasing a compass from my wife, Iselda. She's just now opening our new map shop in Dirtmouth, selling all sorts of useful things to wanderers like yourself. She'll even sell some of my old maps from time to time. I'll pop back to see her whenever I finish mapping an area. She's always so excited to see me. Okay. Okay, sweet. Okay. Okay, we can swim. Always nice. Oh, it restores soul. That's so nice. Aw, this game's really pretty. Ooh, door with an open slot. Okay. God, I really like the design of this. Wow, this looks so nice. I really like this, like, gothic Victorian style the game has going for it. It is so good. I hear you. I'm looking for you, buddy. Yeah, there it is. Found ya. Oh, this is where the knight thing is. Probably not. No, this doesn't look like knight material.  Yeah, you look more like the thing on the map. Oh, okay. There's contact damage. That's good to know. Oh, get cheeky. Here we are. Show your face. Yes, yes. Yes, I know you're upset. I know you're upset. Oh, goodbye, sir. Got him. First try. Falsehood city crest. You are not as cute as you once were. Wow, okay. What is that? Ooh, that quill cannot be updated. I don't like that. That sounds ominous. Look at that. Hello. Ooh. Come to buy a map, have you? It's really my husband you should be dealing with. But what a surprise. He's headed down below. He'll pop back occasionally to deliver new maps for the store. But I do wish he'd spend a little more time up here. I've not much interest in retail myself. Now, let's see what's here for me to sell. Oh, that quill. Okay. You'll need this if you want to update your map with new areas as you explore. Yeah, let's get it. Hello. Oh. Oh, thank you. God, they're so... Have you ever seen anything more adorable? God, the sounds, the design. So cute. Ghosts. I see. This is Pac-Man's lair. I guess I can't go here yet. Ghosts is closed. Aw, man. It's my favorite ride. Ghosts. Oh. Oh. Hello. Ah! What are you off?  Esme, how much deeper do we have to go? What? Who are you? I see this old village. What a strange dream. To have led me down here. If you hadn't found me, I don't think I would have ever awoken. I'm sly. Usually I live in an uneventful life up in the dirt mouth. The air in these ruins don't agree with me. So I'd best be getting back. If you were to turn above, come and see me. I'll probably have the friendliest face left there. And I can thank you properly for your good deed. Huh. You're exploring then. Very brave. Very brave. Plenty of courageous wonders have been lost to the hunger of these old caverns. You have your nail though. I can tell just by looking at you, that you know how to wield it. Mmm. Mmm. Nail. Nail you know how to use. Night of Hollow you are. Help you I will. Mmm. Mmm. Disgusting these things are. Mmm. A long skywalker must travel to untouched lands. And find grub you will later.  Find, find the snack. Mmm. Not very good you are. Getting hit by ads. Let's pay the toll. There are no plans to have a highlights on the YouTube channel. Ooh. Hello. Whoa. Greetings little one. It has been an age since I last heard the ringing of a station bell. It echoed down the stag ways and called me to you. I've grown stiff and tired over these many years. And I've forgotten much. But the sound of the bell will always call me back. These stag ways stretch to the depths of Holonust. If you want to travel them, hail me from the platform. I will take you where you need to go. Oh, I like this. Mmm. Okay. Fast travel. Yeah, let's go back to dirt mouth for now. See what's up. Whoa. Animated scene. Hello elderbug.  Our shop keeps coming home. Just wandered back in. I'd hope for grand tales of his time below. But he seems to remember almost nothing. Maybe it was all too much for him. If you're interested in his wares, watch out. He drives a hard bargain that one. No competition. That's the problem. It's bad for the market. Not that he's complaining. I never thought I'd see such a thing. The stag station reopened. That building lay silent since before even my time. Oh, I've heard the tales of the glorious lines. A web of tunnels running all through the kingdom. Not that I'll ever travel them, mind you. I'm quite content where I am. All right, buddy. Let's go. Molic. Ow. That's a lot. Oh, how did I not get hit by that? That's rough. That's really rough.    Ow, ow, ow, ow. Oh, man. All right, first death. Who knows what he's talking about? You look spooky. Okay. Oh, I didn't have enough soul. Oh, I was holding the soul button. All right. Well. All right, chat. I give in. Help me out. Help me out, chat. Where do I go? This is the point where I would probably look up a guide. The room to the left of the boss. Oh, I thought I already went in there. Okay. I guess I didn't. I have explored a lot. So who is that creeping out of the darkness? Smire looking grim, a strange empty face and a wicked looking weapon. Something important is drawing you down to Hollow Ness's corpse. But I won't ask what. Perhaps you're the reason you found me is because you may need my help. Say no more, friend. I'll just give you a gift.   I died at the end. Vengeful spirit. Tap B to unleash the spirit. Okay. Hello. Oh. You woken at last. I apologize. Perhaps I should have warned you about the power of that spell. I was watching over you as you slept. It's not creepy at all. I mean, how did you get here? I had to carry you. Let's not worry about that, but it seems to have slipped away myself. Now we're awake. I was wondering whether you could do me a favor. Not as repayment for my gift, of course. Simply because we're friends now. You see, a horrid great beast has made its home in the heart of this temple. Such disrespect. I would be grateful if you were to venture deeper in and slay it for me. It's hardly a creature, but with your new power, you're more than a match for it. It's a hearty creature. Sorry. Joseph can't really read right now. Good luck with this small favor, my friend. Oh. Whoa. Hadouken. Hello. Oh, so it's done then. You slain the beast. The poor thing must have been terrified at you. It used to be quite docile, but the rancid air in these caverns filled it with some ancient rage. Still, you did what had to be done. You have my gratitude, of course. We both know you wouldn't have made it without the spell of mine. Oh. And look, the gate between us has opened. I'm sure you're eager to move on. Farewell and have faith. Whatever you're seeking, it will find you. Oh-ho-ho-ho. Why do you hesitate? You'll get nothing more from me, I'm afraid. Though I do admire your persistence. Oh. Aw. Ow. I thought that was a friend. Okay. God, why do they have to make the enemy so cute? Aw, I wish these things were friendly.  Little bush beetle. Get out of here, mosquito. Okay. Ah. Okay. Mechanics. Come on. Hey, you. Come on. Hey, hey, hey, hey. Ah-ha! Oh-ho-ho-ho. Oh-ho-ho-ho. Hey, what's up, dude? Isn't this a contrast from the crossroads? Such a humid, lively place. The roads twist and turn in the most wondrous ways. Wonderful ways, sorry. I've done my best to chart the area ahead, but I must admit some of the area's inhabitants provide quite a nuisance. Yeah, I'll buy it. Oh, by the way, I haven't introduced myself, have I? Yes, I should apologize for that. When you spend a lot of time by yourself with just your own thoughts, you forget the niceties of conversation. My name is Cornifer. I've always loved exploring the world. Why?  But that's why as soon as I could, I moved to the dirt mouth with my wife. A huge, unending kingdom to explore right on our doorstep. Who could resist? Anyway, I'll let you return to your travels. With a little luck, we'll meet again. Be safe and farewell. I ran into another traveler as I made my way down here. I tried to call out to her as she dashed past, but she barely even glanced in my direction. I'm not an appreciator of maps like you and I, obviously. Oh, friendo! Hey, go back to your day. Oh, hello, goodbye. Who is she? Oh! Hey, hey, what are you doing? Hey, let him go. Get out of here. That's not cool. Phew! Wow, I'm really bad at that. Twenty minutes later. Bang, yeah! Get blasted at point blank. Hello, sir. He is alive. Hey, just what do you think you're doing? You dare to come between me and my prey? Is it the habit of yours to scurry around getting in the way of causing bother? No, this cur. I am Zoth, the mighty, a knight of great renown. Cross me it again, and you'll find out why they call my weapon life ender. All right. What are you still bothering me for? I am a knight. I'm not interested in your childish games. I need my rest. Be gone, lest I draw my nail. Oh, hello. Oh. Ah, I see. Can I get out, please? Okay. Come no closer, ghost. I've seen you creeping through the underground, stalking me. This old kingdom, a terrible thing awakens. I can smell it in the air. I know what you are. I know what you're trying to do. I can't allow it. What? What? Hornet. Okay. Ow, ow, ow, ow, ow. Ow. Ow, ow, ow, ow. Ow. Ow. Okay, I was not prepared for that. Yeah, Geode, you're going to... Guess you're ready cause I'm getting for you. I'm going to be so excited. Got you feeling cause I feel the muscle. Yeah, you don't want to know. Come along, get it on. Gonna get my car, gonna see me. Gonna drive along till I get you. You made it done, man. You don't like it. I'm gonna race for you. Gotta go down. Guess, guess, guess. I can do it this time. Pew. Okay, so she does that. Shaw. Shaw is a stab. You're too tall. I like her needle.  Shaw is stab. Nope, never mind. Ow, touching her hurts. Oh, I just want to heal. Ah, this music. This piano is so good. Don't stab. Goodbye. Just got some 3D maneuver gear. Mothwing cloak. I triggered a dash forward. Ah, that's what we needed. Dash, dash. Oh, what'd I do? Would it seek to break the seals? They cannot be undone. They must be undone. Let us sleep, little shadow. Return to your darkness. Allow us our peace. Who said that? Oh boy. Hmm, I see. And don't seem to speak and are killing everything around us. Hello? Ah, bench. Nice. Oh, it's Quirrell. Hello there. Seems we both tread far from the path. I hardly believe those dusty old highways led to such a lush and lively place. This building suggests some form of worship, though its idol has clearly been long forgotten. Doubles equally well for a moment's respite. I saw a strange fellow out there. He seemed quite taken by the lake. I'd planned to offer greetings, though. I figured I'd first tender my nail on chance our meeting goes poorly. Your nail looks a fine instrument, but it's showing signs of wear. And wager up there, it would take you far. Down here, however.  Allowness is perfect for vigilant explorers like us. So tense and thrilling. In this place you're either alert or you're dead. Oh, hello, Zo. You there. Why are you skulking around in the shadows? Yes, your eyes do not deceive you. I am Zoth the Mighty, a knight of great renown. Tremble before me. While you were hiding here in your dinghy little village, I ventured into the dark pit below. Below us and slew a great beast. It had sharp mandibles and atrocious manors. Yes, a glory to me, but I don't have time for the antulation. I must rest and prepare my next journey down below. Bad man. The daft old fellow over there. He keeps talking absolute drivel. Seems to think the very air is deadly down in the caverns. Perhaps he should consider not breathing. That is a death joke. He keeps talking about dreams, too. Dreams offer those two people to truly live.  The air is foul and the townsfolk have beady eyes. I'll be heading back down soon as possible. While you were busy in this rinky-dinks town, I studied the blade. Oh. Really? Oi! Hello? Welcome, small intruder. I've been sound asleep in here for some time. Some time? Ah, yes, yes.  It's no matter, I suppose. I might even be able to help you. I am Gigi. If you have found your way into my chamber, you must need my help.  We don't deal with those regrets. Hope starts to drain us. Do you have regrets of your own, little one? Let me peer into you for a moment. Ah, you don't have to have any lingering regrets. How lucky for you. You don't need services of one such as I. One thing that I think cannot be appreciated enough is the sound design in this game is great. Like, all the sound effects are super satisfying in the music. Everything. The enemy sounds. I love it all. Like, the sound of the shell, like, like, clink. It sounds so good. I didn't fight the thing on the right. I'm gonna go to the thing on the right. That was a while back. So, let's see what that's going on with that. I like this procedural music, by the way. Like, it plays a certain amount of the track, a certain amount of instruments, depending on where you are on the map. We're gonna fight this thing. Whatever it is. Let's put up this. It's not a fight, unless it is. The hunter. Tiny squim. You approach fearless. Are you a hunter like me? Do you feel the urge inside to stalk, kill, to understand? Then take it, my journal. It will aid you. At first the text may seem difficult to discern, but a learned hunter will come to understand its words. Enter the depths of this land and slay its beasts. Prove yourself worthy to bear the mark of hunter. Oh, bless you. Okay, well, I guess this wasn't a fight. A menu that navigates a journal. Defeat enemies to add new entries to the journal and decipher the hunter's notes. Oh. Neat. It's a Pokedex. Moss creep. Aw. That's very cool. I like this. Skill protector of hollowness to ruin the wielder, wields a needle and thread. I like the design of all these characters. It's really fun.  Aw. I was scared of him at the beginning. Who's the best waifu so far? There's only two that I can tell. I don't know. People seem to say Zote. I don't know much about Zote other than he thinks himself very great, which, you know, good thing. Self-confidence is important. There is Frendo. Operation save Frendo. All right. Mission failed. We'll get him next time. Where am I? Okay, creature from the dark. Beastie of the deceased. Yes. Frendo. Fendo. Almost botched it, almost completely ruined it. Fendo. Yay. This place looks gorgeous though. Ow. Okay, I'm just gonna, not gonna hit those. That's what I'll do. Seems like a smart idea.  Think about that? Ah, God. Oh my, oh my. Run away. Oh my God. Queen's station. Oh, Querel. Isn't this something? I'd not expect to discover so huge a stag station after that foggy descent. The bugs of Holonest must have been an impressive lot, moving such grand structures so far into these wilds. Seems the dangerous creatures about having it made their way in here. It's the perfect place for a quick rest. Can you imagine this place in its time? Hordes of bugs travelling about the kingdom. Stag bells ringing, the station bustling with activity of life. Now only our like even know it exists. That's a special thing, I suppose, to cherish these sites even in their decay. Is it that just faintly? I can still hear the echo of the bells. Yeah, a little bit. Wee. I didn't mention how great this sound design is. I don't like you. Ah, I really don't like you. Jesus. What? I love that guy. I love the sound of all of these enemies. Hello? Hello? The tiny steps of a tiny creature. You've got the look of an adventurer, so at a much in common. Searching for dangerous places, I? Well, you're on the right track. A long-necked critter warned me of a tribe deep down. Warrior sort, so she says, I'm itching for some serious combat. Keep sharp, my adventurer's red. Say live, and let's meet again on the road ahead. Aw, I like them. You mantis claw. Press A. Oh, sliding against the wall. Yay! We got the wall jump. Yeah! Woo!  Ah, that's cool. Because sometimes it kind of bugs me when video games where it's like, it doesn't send you far enough. Like, you have a wall jump in a video game, and then you keep holding the button towards the wall a little bit too long so you don't gain all the distance you need. That's that. I appreciate this. And that's how you get back up. Ah, the level design. It's smart. It's very smart. Ooh, that guy looks like the false knight. The large knight statue. There's a socket on its chest. Insert the city crest. Why not? That is where I found it from the false knight. I'm sure that's a good sign. Oh, girl. Hey, what's up, man? That guy is before us, my friend.  One that holds the answers to many a mystery. I too have felt the pull of this place, and now I sit before it, I find myself hesitant to descend. Is it fear, I wonder, or something else that holds me back? A city looks to be built on an enormous cavern, and the rain pours down from cracks in the stone above. There must be a lot of water up there somewhere, I suppose. The decay blue stays strong this long. It should hold for us. Before I leave this kingdom, I'd like to see where all that water comes from.  If you look down from here through the rain, you can just make out those twisted sentries. The husks still stuck in endless patrol. I'd be courses around them, my short friend. Their training will not have been forgotten. The city presents them formidable foes. Isn't this a wonderful spot to rest? I so love the sound of the rain upon glass. I like Whirl. This seems really cool. Ooh, these are needles! I hear blacksmith! Upgrade time? Upgrade time? Ooh. Hey, oh, look at this beard! Hmm, then does who? Have you brought me another nail to be own? Leave it on the ground and return later. You're just still breathing. Ah, run, Joe Stinger. Oh, I thought you were someone else. After a nailsman, are you? It's Nailsmith. Ah, Nailsmith. Ah, I like that. Well, you found one. Not much for talk. But if it's a nail that needs to repair, then you've gone to the right bug. Your own nail's quite a sorry state. It's obviously not one of mine. Still, anything can be refined with enough effort and skill. Even that broken blade. If you like, I can reforge your nail. It'll make the blade far more deadly.   I like him. As you wish. I'll get to work then. Nice. Ah, that's so cool. Garadel, Akari. There we go. The reforging is complete. I've owned your nail's edge. You'll find it much stronger than it used to be. Head up there and test its strength against your foes. Hmm, then does who? You're still here? Is there something else you want?  I can forge it into your nail to make it stronger still. Pretty be careful. Wouldn't want my work squandered. Oh my god, one shot. Mosquitos. Nice. Oh, is it lore time? Again, we meet little ghosts. I'm normally quite perceptive. You are underestimated, though I've since guessed the truth. You've seen beyond this kingdom's bounds. Yours is resilience, born of two voids. It's no surprise that you've managed to reach the heart of this world. In so doing, you shall know the sacrifice that keeps it standing. Hakanasagamas. If knowing the truth, you still attempt a roar in Hollow's nest's perpetuation. Seek the grave and ash. And the mark it would grant to one like you. So mysterious. Hollow Knight. So that's the Hollow Knight. In the black vault far above, through its sacrifice, Hollow nest lasts eternal. It's just pots. Just pots. Oh, hello, hello, hello.  Okay, surprise boss fight time. Surprise mini boss. Ooh.  Soul twister. Arcane knowledge to twist souls into vicious spells. Soul jerks, apparently. I'm not ready for what's about to happen here. Hello, mini boss. Yeah, that's my own fault, really. I deserve that. Oh, man, I'm so far back. Gamer license for vote. Boomer license acquired. No, I don't want to be a boomer. Hey, finally. Goodness, I've been looking for you forever. Isn't this a change from those twisted normal natural caverns? The ring does cast something of a sadness upon it all, but the architecture is simply splendid. Yeah, I don't say. Charting such a different space is quite the challenge. The one I eagerly, I've eagerly undertaken. Perhaps you care to purchase a copy of my achievement so far. Yep. Thank you for making it so cheap. We've both come far to reach this grand place. While I'm about these buildings, I must remember to collect a trinket or two for yourself. Oh, so. Oi, watch where you're going, you soggy vagabond. I don't want you splashing me. I've had a miserable time trying to get dry. I am Zotho mighty, a knight of great renown. And if I decide that if I'm going to stay dry, then that's what's going to happen. Curse this wretched city. Water and monsters constantly fall from above. After this plastic kingdom fell to ruin. And, dude, have you seen them? The gods who still patrol the city, even after dying. Hmm, being overly devoted to one's duties is no virtue. Uh, what about yours? You can have a little bit of positivity right now, man. Okay, boomer. It does look like a boomer. Okay. Oh, my gosh. I love it. Let's go down into something. Oh, boy. Close one. I don't like that. This has got to be a boss. All right. Boss time. Hello. Hmm, large thing in the background. Soul master.  Oh, you faked me out. Yeah, I'm not going to be able to do this first try. Oh, my goodness. Oh, he faked you out. Oh, that's rough. Okay, that makes a shock wave. Shock wave, Joe. Shock wave. Remember the shock wave. Bad timing. Man, wizards. Always teleporting around. Getting real close, boy.  Chill out, bro. Chill out, chill out, chill out. Wee, wee, wee, wee, wee, wee. That's a lot of dead grubs around us. Woo, woo, woo, woo, woo, woo.  Get out of here. Woo, woo, woo. Yeah? All right, cool. Oh, boy. Desolate dive. That's the thing that I needed. I'm holding down to strike the earth with a burst of power. Spell with deplete soul. Strike the earth. All right. Woo, cool. All right, there we are. Hoo wee. I'm thoroughly enjoying this game.


When fans booed England players taking the knee last weekend, a new front was opened in Britain's interminable culture wars. But while culture wars often involve tabloids and Tory ministers taking aim at anonymous students, this time the right had picked a stronger opponent and they might come to regret it. England manager Gareth Southgate on Tuesday released a really brilliant statement defending the right of his players to protest, the right of his players to take symbolic actions such as taking the knee at the beginning of matches. Our players are role models and beyond the confines of the pitch we must recognise the impact they can have on society. We must give them the confidence to stand up for their teammates and the things that matter to them as people. I have never believed that we should just stick to football. I know my voice carries weight not because of who I am but because of the position that I hold. At home I'm below the kids and the dogs in the pecking order but publicly I am the England men's football team manager. I have a responsibility to the wider community to use my voice and so do the players. It's their duty to continue to interact with the public on matters such as equality, inclusivity and racial injustice while using the power of their voices to help put debates on the table, raise awareness and educate. And that statement, I mean we've talked about Garas Afgate earlier this week as well. His defence of his players is really spot on. It's exactly right. And this claim that they have the right to speak out about their political opinions and social issues I think is really, really important because there will be lots of people saying, I'll just get on with the football. Why should they have a loud voice in politics and social issues? They should just get on with the football and let other people do politics. Now the problem with that argument is that footballers, they're very, very wealthy. They're going to be in probably the richest 1%, well they're definitely going to be in the richest, probably 0.1% of people in this country at the moment. But what's important about football is they are one of the few industries which is dominated by people from working class backgrounds and where there is really strong representation from people from ethnic minorities. And so that is why I think they have been coming out with much more progressive positions than people in other industries. You should only believe someone when they say footballers shouldn't have a voice. If they also say Tim Martin, owner of Weatherspoon, shouldn't have a voice. Or if they say Piers Morgan, he's just a private school educated TV star, why should he have political opinions? If people only think that people in these industries which are dominated by posh white men should have opinions, then you should be somewhat suspicious of the ends they are trying to pursue. And that's why Garas Afgate's defence of footballers speaking out on the issues they care about I think is super, super important. Now another big part of this piece and what I think was probably equally important was Garas Afgate talking about patriotism. This is key because he is the manager of the England team. So he has actually a big role in shaping what patriotism means. So he says, for me personally my sense of identity and values is closely tied to my family and particularly my granddad. He was a fierce patriot and a proud military man who served during World War II. The idea of representing Queen and country has always been important to me. We do pageantry so well in Britain and growing up things like the Queen's silver jubilee and royal weddings had an impact on me. Because of my granddad I've always had an affinity for the military and service in the name of your country. Though the consequence of my failure in representing England will never be as high as his. My granddad's values are installed in me from a young age and I couldn't help but think of him when I lined up to sing the national anthem before my first international camps. Now here he's basically saying look my vision of England what pride means to me is one that is quite traditional. It's one that is in line with many of the older generations of this country. It's one which is quite likely to be endorsed by the Daily Mail for example. He's saying look this is my patriotism it's not particularly subversive. But what he does say which is incredibly important is that this doesn't have to be everyone's vision of patriotism and this vision of the country should never be rammed down anyone's fruits right. So on that he says for many of that younger generation your notion of Englishness is quite different from my own. I understand that too. I understand that on this island we have a desire to protect our values and traditions as we should but that shouldn't come at the expense of introspection and progress. So he's saying look all you people that say you know taking the knee at the beginning of a football match that's anti-English you're disrespecting our traditions that's ridiculous. I share a lot of the traditions you're talking about in the voice of Gareth Southgate. I share lots of the ideas of the nation that you have but I also understand we have to be incredibly accepting of other notions of what the nation should stand for. Very very persuasive argument and finally from the essay I want to show you and what I think is probably most notable what really stands out is how Southgate is willing to take a stand and face down bigoted fans who harass his players. So he says there why would you tag someone in on a conversation that is abusive? Why would you choose to insult somebody for something as ridiculous as the color of their skin? Why? Unfortunately for those people that engage in that kind of behavior I have some bad news you're on the losing side it's clear to me that we are heading for a much more tolerant and understanding society and I know our lads will be a big part of that. It might not feel like it at times but it's true. The awareness around inequality and the discussions on race have gone to a different level in the last 12 months alone. I am confident that young kids of today will grow up baffled by old attitudes and ways of thinking. We are I think really really lucky to have someone as thoughtful of this who is manager of England because I think it must mean a lot to those players that they have a football manager who is expressing this very very thoughtful defense of them taking a knee at the start of matches and who actually seems quite committed actually to England being a force for the generation of a new progressive identity in Britain. England I suppose as he's manager of England. The comparison is in the US the treatment of players like Colin Kaepernick for doing a similar gesture before their games how they have been treated by owners of the NFL. I really commend him for showing up for his players and not being cowed by reactionary dogma. That was a risk. It's not necessarily what his base might want to hear. He's showing courage where many of our politicians and journalists are really failing in this discussion. I think someone really needs to write something on why football is becoming at this particular moment. I know it historically has been at many times but at this particular moment it's becoming this key space of oppositional political sense making from the super league to Marcus Rashford to the dynamics that are playing out here. I think it's very interesting. I'm definitely not the one to write it that someone should. But I want to bring it back to that conversation again that language of how the language of snowflakes is just such projection. They call snowflakes for wanting to talk about racism or wanting to change the root causes of racism yet they're losing their minds because football is taking a knee. It's hardly a radical example of anti-racist direct action. It's literally just the gesture of stop racism in the most vague and unthreatening terms. But also there is this whole dynamic and I think it's why that compromise that has historically over the past decade or two has assuaged a lot of anti-racist mobilization. It's that compromise of representation as a replacement for radical change. I think it's breaking apart. It's losing cache with the younger generations. That's because of this dynamic that many of us have now seen that when you accept representation as a replacement for structural change what you're actually giving into is this idea of shut up and play. You're in the inner circle whether it's a football team, whether it's in an organization, in an institution, in a political party.  We don't want to hear what you have to say especially when it challenges us or it involves transforming or changing things in any way. It's the same in these elite universities. These elite universities will happily use students of color to pat themselves on the back for diversity but then they'll punish those same students for actually bringing anti-racist perspectives into the university.   It's a deeply political act. I think that Gareth Southgate saying whatever my own values are this idea of saying particularly to players of color shut up and play is wrong. We have to make space for voices especially marginalized voices and it's very welcome solidarity from Gareth Southgate. I think that's the power in it. The booing that we're seeing it carries this sense of like we don't really want you here but if you're going to be here then you have to be here on our terms and you have to be grateful for it and sometimes I think that you know and first of all I think that's kind of representative of how a lot of people of color in Britain feel and the country is generally saying to them but you know sometimes I think that people actually need a big dose of what they think they want you know one of all those players of color went on strike you know withdraw their labor have have your all white team who you know don't who whatever who don't bring up these challenging things for you and let's see how that goes you know I often say that like without recognition without recognition of the empire the very English cup of tea is just a cup of milk and hot water and you know he wants to drink that. You could imagine a different manager would have allowed a division to be generated within the England football team between players of color and white players and then you have a situation where you know at the extreme like you're saying you do have players of color who are saying like we're not going to be part of this and what what Gareth Southgate has done very effectively is is say look we are all one team we are acting as one people yes the taking the knee probably means something more to the players of color but every everyone in the whole squad has agreed we will be taking the knee at the start of matches if you've got a problem take it up with all of us as a whole and I think you know that's what's so what's so powerful about what he's done there and it does make me you know even more positive I'm not a massive football fan but I do watch the the international ones and it does I think it it bodes well for Euro 2020 which is taking place in 2021


Hello and welcome to this session. This is Professor Farhad in which we would look at AMT Part 4 of 5. It means I already have three other parts before this. In this session, we're going to work an example simulation because in the first three session, I explained AMT in details. Now it's time to work an example or a CPA simulation. Obviously, this topic is dreaded by students. It's covered on the CPA exam as well as an income tax course. As always, I would like to remind you to connect with me on LinkedIn. If you haven't done so, YouTube is where you would need to subscribe. I have 1,700 plus accounting, auditing, tax, finance, as well as Excel tutorial. If you like my lectures, please like them, share them, put them in playlists. If they benefit you, it means they might benefit other people. Connect with me on Instagram. On my website, farhadlectures.com, this is where you can find additional resources to supplement your accounting education, your CPA exam, your finance courses. Don't shortchange yourself. Your education is important. Passing the exam is a 20, I would say 30, the 40-year investment in your career. Study hard. Get, put it behind you so you can focus on your career, make the money, live the life that you want. So let's take a look at this CPA simulation. Again, I could even give you more exhibits and I'll show you how I can do that. Nathan is married with two children and has an AGI of 405. He has the following AMT adjustments and preferences. So rather than giving you AGI 405, I can give you the tax return and on the line, you have to find out that AGI is 405. Or I can just tell you AGI is 405. A potential itemized deduction are as follow, medical, after the floor, taxes, mortgage interest, and charitable contribution. And the first thing they're asking you in this exhibit, let's go over the problem then we'll do it step by step. They're giving you the itemized deduction. They're giving you depreciation of rental property purchase in August 2018 for 21,000, 210,000, depreciation on real property, on personal property. C, you have a computer, a piece of furniture, they're giving you the date, the cost. They want you to find the maker's life in AMT, maker's depreciation, AMT depreciation, and any adjustments. Also, you have incentive stock option, Nathan exercise options to purchase 3,000 shares at $19 when the market is 26. Prepare a 6251 for the calculation of AMT, assume regular tax of 76,785. Now, if you understand the AMT, this should be an easy, peasy problem. Okay, should be like, okay, bring it on. If this is a one simulation AMT and you understand the AMT, it should be good to go. But if you don't understand the AMT, you're going to be confused and intimidated. So let's go ahead and start to look at this step by step. So simply put, we have to complete a 6251. Calculation for AMT. Now, would they give you an actual form? I'm not really sure. They may not give you the actual 6251, but they might give you some sort of a drop down boxes where you have to kind of compute this in order. So let's first take a look at this itemized deduction. So we need to know what's deducted for regular tax and what's deducted for AMT and what type of adjustments we need to make. Well, remember, the first thing we do when we compute AMT, we have to compute what's called regular taxable income. Regular taxable income. Okay, now we are giving adjusted gross income. Now we have to come up with regular taxable income. So what does that mean? It means we have to take 405 and deduct from 405. You know, remember, itemized deduction are after AGI. They're from AGI. Therefore, we have to deduct those from AGI. So we have to deduct 5,375 for medical. Let me just 5,375 for medical. Taxes, we can only deduct. Remember, tax cuts and jobs act. We can only deduct 10,000 mortgage interest. We can deduct the whole thing, 14,900. In charitable contribution, another deduction of 18,000. So first let's find this individual regular taxable income because that's the first thing you want to know. So let's take a look at it. Let me increase the calculator here, the size of the calculator because that's the first thing you want to do. When you start 62, 51, you start with regular taxable income. So 405, this is adjusted gross income minus 5,375, minus 10,000, minus 14,900, minus 18,000. And that's gonna give us 356,725. And that's gonna be on the first line of the 62, 51 because you start with regular taxable income. Now, if they gave you the schedule, basically, you're gonna say, well, for AMT, this deduction is taken, 53,75, there is no adjustment. Taxes, remember, we only take 10,000 for regular. AMT, you don't take any. You cannot take this, you have to add back. So this is a positive adjustment. So simply put, we're gonna start for 356,725, then we're gonna add to it $10,000 for the taxes. You can take the 14,900 for AMT, no adjustments. You can take the 18,000 adjustment for charitable contribution, no adjustments. So simply put, remember, that taxes is the only adjustment. And remember, the maximum you can take for regular tax is 10,000. Therefore, the maximum you're gonna add back is 10,000. So this is the first thing we do. Now, we're gonna have to deal with the depreciation, but before we deal with the depreciation, I prefer to figure out the incentive stock option, get that out of the way, because for one thing, it's easier, not easier, it's cleaner, it's just have a quick calculation you have to make, it's cleaner, okay? Then we'll work on with the depreciation, but we'll go and work on it on an Excel sheet. I can do it here, but I prefer to do on Excel sheet because I wanna show you the exhibits where the numbers are coming from. So let's take a look at the incentive stock option. So Nathan exercise options to purchase 3,000 shares at 19 when the market value is 26. Well, it's gonna trigger some taxable income for AMT. So what's the difference between 26 and 19? Basically, he can make $7 per share. It's 3,000, not he make, he made, he made, he can make immediately $7 per share, whether he sells them or not, as far as AMT, Nathan will have 21,000 of taxable income as far as AMT. Now for regular tax, nothing happened until eventually Nate sells them, but for AMT, we have another adjustment. Therefore we started with 356, we added 10,000. Now we're gonna add another 21,000. The reason I'm doing this here because once I start to complete 6251, you know where the numbers are coming from. Now we're gonna focus on, we're gonna focus on the depreciation. So to do the depreciation, I'm gonna go to the Excel sheet once again because I wanna show you where all the numbers are coming from. So let's go ahead and do it. Remember, we purchased the real property, rental real property, rental property, rental property, which is commercial, it's not residential, commercial, that's very important for 210. So it's very important to know, it's not residential, it's commercial. Why is that important? Because for commercial, let me explain why. For B, you really have no adjustment. Because for commercial, you depreciate this over 39 years. For AMT, you depreciate this over 40 years. What Congress said, there's only one year difference. Don't worry about this adjustment. So simply put, because it's rental property, which is commercial, we don't have to worry about it. Be careful. If this was residential, remember the residential is 27 and a half years. And when you turn it into 40 years, it makes a difference. So for commercial, basically this is done. Okay, this is done. Again, easy peasy if you understand this concept. Now we're gonna work on the depreciation on the personal property. Let's take a look at this Excel sheet and see what we are given. We are giving two assets purchased in 2015 and we are in 2019. So we have 2015, 16, 17, 18, 19. We have five years. So first, if you want to find out what's the life, what's the life of the asset? What's the life of the asset? The life of the computer, you have to understand it's five years. It might be given to you in an example, or you might have to look it up in the exhibit. But remember, computers is five years. There are certain things you have to memorize. Furniture, the life of a furniture is seven years. The cost of the computer is 2,900. The cost for the furniture is 12,000 given.  So for makers, we are looking at a five-year asset. So let's go to the makers table. Here's the makers table. The computer is a five-year asset. Let me get my pen and start to draw. So it's maker's five-year asset and we're looking at year five. So this is 2015, 16, 17, 18, 19. So we're gonna take 11.52. So the rate is 11.52. Take the rate times the base. So the maker's depreciation is $334 and eight pens. Let's do the EMT immediately. For the EMT, you have to use a different table. You have to use the 150% double declining. Once again, those are the exhibit that you have to pull and this is gonna be intimidating on the exam day but all what you're doing is just clear your mind. This is depreciation. You know depreciation, slow down, relax and you'll be fine. Again, it's a five-year property. Recovery is five years and we are in year five. Therefore for EMT, you're gonna take 16.66%. So let's go ahead, 16.66%. Take your base times 16.66% and find the difference between makers and EMT. And look, for EMT, you're gonna take more deduction which is good, it's a negative adjustment. So for the asset, for this asset, for the computer, it's a negative adjustment. Let's do the same thing for furniture. The furniture is a seven-year asset. You go to the accelerated table, seven years and you would say, okay, seven years, year five, the rate for makers is 8.93, 8.93. Let me find 8.93 times 12,000, that's 1,071. I have to go to the 150 and seven year and 12.25%, 12.25% and I multiply it by my 12,000. Find the difference. Again, it's a negative adjustment. So basically what we have is we have a negative adjustment of 500 and $547. Now what they could do also on the exam, they could also give you the exhibit for the property. They could give you exhibits for the property, for the rental property to confuse you, but you don't have to do this for this in this situation because it's a commercial property. Just Congress ads, it's too small, just move on, don't worry about it. Now once we have this information, basically what we did is we answered all the questions. All that we have to do now is complete the 6251. So let's go ahead and complete the 6251. Let's take a look at form 6251 and start the form. Again, on line one, you're gonna start with taxable income that we computed early on and it was 356,725. Remember, we took AGI minus the standard deduction. Then we added from schedule A, we added from schedule A $10,000, $10,000 for the taxes that you could not. Then after that, we went to line two I, and this is exercise of incentive stock options. And here, let me increase the size of this a little bit more if I can, okay? For the incentive stock options, incentive stock options I, we added $21,000. Nathan exercised those options. Then for depreciation, depreciation of asset placed in service after 1986, difference between AMT and the regular tax. Remember, this was a negative adjustment, negative 547. So we did all these computation, all what I'm doing is filling out the form. If I net everything out, it will net out to 387178. Now let's complete the form. Nathan is merit filing jointly. Merit filing jointly exemption is 111,700. So 111,700. Are we gonna lose any of this 111,700? And the answer is no, we don't have to trim down the exemption because 387178 is way below the phase out of a million 20,000. Therefore, if Nathan's gonna qualify for the whole exemption, then 387178 minus 111, that's gonna give us 275, which is the taxable income for AMT 275,478. And I'm sure you're starting to notice something unusual here, I hope so. Now we multiply this rather than 26, we multiply this by 28% minus 3896. And that's gonna give us taxes of 73,238. We have no credits, we have no credits. Therefore, our AMT tax is 73,238, and we are giving regular tax was, from the problem 76,785. What does this number came from that was given to you at the end of the simulation? I told you regular tax 76,785. So guess what, we did all this work for nada, for nothing. So we don't have an AMT, why? Because the regular tax is 76,785, AMT is 73. The government doesn't want you to pay less taxes, they want you to pay more taxes. So that's why the software usually tells you whether you qualify or not, because sometimes if you do all this work, often time it's like, okay, I don't qualify for AMT tax. Qualifying for AMT tax, you will think it's better because it's minimum tax, not at all. It's in addition to your regular tax, if it's more than your regular tax. Here, we don't have anything. So we fill out the form, okay, great, that's excellent, that's excellent news. So this is basically, I hope now you understand AMT.  Study hard, good luck, stay safe, especially if you are still living through the coronavirus.


My name is Cheryl Matsuoka, the Executive Director of the Hawaii Restaurant Association and the Hawaii Restaurant Association's Educational Foundation. Mahalo for joining me here on behalf of Hawaii on the Think Tech platform. Today, you're going to get a treat. You're going to be learning all about the misconceptions and commercial lease negotiations from our Hawaii Restaurant Association member, Ziva Law. Welcome to my guest. I'd like to, first of all, mention the theme of this show, which is successful commercial lease negotiations. It really requires understanding of contract terms, seeking advice, allocating times, and the due diligence. And businesses face unique lease issues, especially restaurants. Commercial leases are negotiable, and tenants often have more bargaining powers than they realize to secure favorable leases for their businesses and restaurants. So today, I'd like to introduce my guest. The first is, of course, Shanice. Hey, Shanice, how are you? Hi, Cheryl. Thank you so much for having us here today. You're very welcome. Shanice, please introduce your company, Ziva Law. Yeah, so my name is Shanice Kanimoto Iwamasa. I am a commercial leasing attorney and the owner of Ziva Law. I have a niche law practice where I primarily help small business owners negotiate leases and navigate lease issues. Thank you, Shanice. Welcome to the show. I'd then like to introduce Sue. Sue, could you please introduce yourself? Tell our audience a little bit about yourself and your concept over there in Kahola. Hi. Thank you for having me. My name is Sue Hu. I'm a co-franchise owner of Capri's Sandwich Shop in Hawaii. Well, currently in Las Vegas has the most locations, but overall there are 112 locations in the United States. So it will be our first location in Hawaii. We'll be in Kuo Ono Marketplace near Kahola Mall and we are planning to grant opening on July 31st. Exciting. Congratulations. And please introduce yourself and your concept over there on Waili Avenue. Hi, I'm Jason Chow. I am part owner of the local general store. We are a hybrid butcher and butcher shop and bakery. I am the butcher. My wife is the baker. We hope to open grant opening probably in mid-June. Congratulations. I'm so excited. As I mentioned, you know, that whole Waili Kahola is my stomping ground as I am a Kalani Falcon. I'd also like to have Harley, please introduce yourself, Harley. Hello. Thanks for having me. I am the other half of the local general store.  Welcome. So nice to meet you. Looking forward to your. So, so basically the reason we decided to do this show is I used Ziva Law's services when I had to negotiate a 10-year lease in a local mall and I've negotiated many leases in the past. But this time it was like, you know, we need to really be sure that this is what we understand what we're going into. So we engaged with Shanice and we were so pleased that we did and that's what today show is all about. So Shanice, the first question is, what are some of the common misconceptions about commercial leasing space? Well, that's a very good question, Cheryl. I think one of the very common misconceptions to start off with is that a leasing commercial space is similar to leasing residential space. And while there is a lot of overlap, there's also a lot of significant differences that some people don't realize the full magnitude of. And the main one being that when you rent an apartment, say, most people don't hire an attorney to review your rental contract and you don't really negotiate anything, you just accept whatever they give you. There's a lot of differences there. So with residential leasing, there's usually a comprehensive body of statutory law that governs the residential leasing relationship. And that's going to be in like your landlord tenant code in whatever jurisdiction that you are in. And so that's a consumer protection statute, right? It's helping to protect tenants and landlords too. But that's baked in and that's going to give you some statutory protections. Now with commercial leasing, you don't have that equivalent of a comprehensive statutory law to protect you. So really what you're relying on is the terms that are negotiated into the lease itself. So that's why it's really important for people to understand what they're getting into, that they understand the rights and responsibilities before you sign the lease. The second, yeah, go ahead. Very important, Shanice. And Shanice, how long have you been in commercial, do I say commercial real estate law? Is that what it is? Yeah, I've been practicing here in Hawaii for a little over 18 years now. So I, you know, I started off doing a little bit of litigation, but for the vast majority of my career, I've been focused on commercial real estate. And in the past five years with Ziva law, I really niched down and now I only do commercial leasing. So I love it. I love being able to help small business owners with leasing. I was looking for when we were negotiating our 10 year lease, you know, 10 years is a long time. And so I wanted someone that had the experience and with all the experience that Shanice had, it was a really, really a great, I mean, it went back and forth, right? Shanice is not like, nothing is always the same time, but it was the negotiation back and forth red lining back to the mall and back to us. And so thank you for holding our hand through the process. And Shanice, I know you're not going to be, you're going to be surprised, but this December makes three years. Oh, yeah, time flies. Go on, then you can go ahead and continue. And then I know that you have a question to Harvey. Sure. So the other misconception that's very, you know, common is that leases are what uncle standard, right? So a lot of times the leases themselves can be a little misleading because they're titled standard retail lease or standard restaurant lease. And so people will often tell me, oh, but it's just a standard lease. So what do you have to realize is, you know, there's no real thing such that such a thing as a standard lease because all leases are drafted differently. Now they may have similar topics covered, right? They're just going to talk about rent, operating expenses, insurance, but within those categories, there's often very different clauses and they can vary a lot from lease to lease. So it's important to keep that in mind. And the last misconception is just that leases are not negotiable. So a lot of people will come to me and think that like, can you even negotiate a lease? And I say, yes, you can. Right. So just keeping that in mind when you're starting into a lease negotiation that a lot of these terms are negotiable and especially if you're dealing with an experienced commercial landlord, they're used to negotiating. And all of the bargaining power that you have is before you sign the lease. So you really have to leverage what you have to make sure that the lease can be a good fit for your business and releasing needs as well. So Harley, I know you had mentioned to me the importance of mindset right in negotiating your lease. You want to share a little bit with us about that? Yeah. So this was our experience with signing on to a commercial lease. So all of this was new to us and pretty much all the misconceptions that Shanice just mentioned was everything that we were going through. And so having as a small business, we also like just really didn't have the time to sit and fully understand the lease plus all the legal jargon that we don't know. So it was really nice to have someone explain it to us and really fully understand the bargaining power that we have. Very nice. And the other part of it too is there are common mistakes commercial tenants make when negotiating a lease. Right, Shanice?   Right. Like I'm just going to sign the lease. If something bad happens, something bad happens. Because I negotiate leases on the front end, but I also help on the back end when people have issues, right, they already are in a lease and they have issues with their landlord and they come to me if they come to me early on in the process, a lot of times I'm able to help them resolve those issues peacefully right without having to having it escalate to go to court and whatnot. And a lot of times a lot of the issues come out of leases that were negotiated without they didn't they didn't use an attorney they didn't use professional advisors to help them. So I always recommend that people really don't do it. You know, don't try to do it yourself. Right.  You're, you're the butcher, you're the baker, you're the, you know, that's, that's what you do. That's your craft. And so you shouldn't expect yourself to be an expert in leasing as well. So I encourage my clients to always have surround yourself with a team of professional advisors to help you through the leasing process. Now, who would those advisors be a lot of times in a commercial lease you're going to use a commercial real estate agent or broker. And again, make sure that they are specialized in commercial right versus the residential side because it's very different. There's also a commercial attorney, a real estate attorney or someone who's who's versed in commercial leasing to help you through the lease negotiation contract. And accountant or CPA is a critical piece to advise you on the tax consequences. And then particularly if you're doing a build out right you're going to want to consult with your architect and contractor. I don't think that that comes after, but I always say, hey, you need to bring them on early in the process so that a lot of times the information that we get from them on estimates for costs estimates for time building permits, all of those things can factor into your lease negotiation. And then, you know, other people insurance agent, right? So your insurance agent is going to help ensure that you're going to require, you're going to satisfy all of your insurance requirements under your lease. There are various other consultants that you might need depending on your, you know, property and whatnot but sometimes people will need to consult with a plumbing contractor, mechanical, electrical engineering that kind of thing as well. Very good. Yes, you're right. You might as well have a team behind you because as they say right, that's the best way to do it so that you have all the professionals lined up with you in partnership. So, what professional advisors did you use in your lease negotiations and how did those professional advisors help you? Yes, so, you know, I've been in this restaurant industry for a long time, but this is my first time to open my own business. And I definitely need, you know, the professional advisors to, you know, support and help me with my new restaurant. The professional advisors we used including, you know, my business number one was, you know, the commercial real estate broker who we could trust in finding the perfect location for our concept. And second, you know, we had a great referral for an attorney who was Chinese. She definitely helped us so much with reviewing the, you know, this agreement and they gave the best recommendations to make sure that the this agreement is beneficial and favorable for us in the, you know, the network as well. And we work with, you know, project manager and, you know, general contractor.  So, I'm really grateful for that. Thank you, Sue. So Shanice, how much time, you know, time is money, right. And so if you're a person who's looking to negotiate at least is not giving enough time to the process. It just delays it, right. So what is your suggestion on time. Yeah, so I definitely think that's another big common mistake. Right. So I have so many people calling me like on a Wednesday and saying, Hey, I want to get this lease signed by Friday. Can you help me and I'm like, that's, that's a tight time frame. So I think, you know, going into any lease negotiation, you do have to understand and accept that a lease negotiation is a process that takes some time. You know, there's often multiple parties involved. We have no control over, you know, how long they take to review stuff as well. So you just have to try to, you know, incorporate your professional advisors earlier in the process rather than later again so that you can plan accordingly for that. Very nice. So to Jason and Harley. Now, what was the timing on your lease negotiation? Did it take longer or shorter than you anticipated? It took, it definitely took a lot longer than what we anticipated it to take. But I think what we learned is that, like Shanice said, like, don't try to rush things. And Shanice helped us out a lot on kind of breaking down everything and making sure that things were in our favor. And being able to negotiate with our landlord to kind of make sure that that happened for us. Nice. And Harley, you have any input on that, on the timing? Yeah, like Jason said, it did, it took a lot longer than we expected. But in the end, I think everything worked out so that, you know, we weren't rushing into a lease and just signing because we wanted to move in and get our business working. The timing of being able to look over the lease, which Shanice and then having the landlord agree with us was it worked out perfectly. And I always want to push things so that it's the most efficient. But I had to learn how to step back and be like, okay, we're signing a 10 year lease, maybe we should probably review and take this like long process into our favor. Yeah, that's exactly right. And I had, I used to have a paralegal many years ago, who she's always say, haste makes waste. And I repeat this to my clients, because it's so exciting. It's easy to get caught up in the excitement of opening up your first location. Right. And so everyone wants to just get in as soon as possible. But sometimes you have to slow it down and make sure you're making some, you know, wise decisions you think through things you run numbers sometimes if necessary so that you can make informed decisions for your business. That's right. If you got a case that comes with a dollar sometimes, Shanice, and that's one of them. So really and truly, you know, we know as restaurateurs, yeah, especially, oh my goodness, and he's argue cockles, you know, we've got, you know, the vacuum system underneath the floorboards and water sprinklers over every one of the gas burner so the due diligence of a physical the physical condition of your premise, doing it with enough detail and you have enough time. Do you want to cover that a little bit about being sure that you do do your due diligence on your physical condition of the premise. Yes, absolutely. Like that's one of my biggest messages to tenants out there because I think a lot of people will just walk through one time. They're like, it looks good. I'm ready to sign the lease, you know, but I'm always encouraging people. Did you look at especially the high cost items right so one of the big difference again between residential and commercial leasing is that under most commercial leases. The tenant is responsible for repair maintenance, and in many cases even replacement of any of the improvements in your premises, particularly if it's exclusively serving your premises right. And some of the big ticket cost items there are like HVAC systems right so if you go into a lease space that you're leasing and you don't realize that it's 15 years old and it's, you know, it exceeds the average useful life for that type of equipment and then two years into your lease you have to spend $30,000 to replace your HVAC system you're not going to be happy about that right. So there's things you can do before you sign the lease as due diligence to send in an inspector. You can have an HVAC contractor go in and assess, you know, approximate age, condition, that kind of thing of the major items and make sure that you have what you need. And the benefit of that is if you find things before you sign the lease then you have some room to negotiate with the landlord rather than being caught off guard with a big unexpected cost down the line. That is so valuable. So valuable information, Shanice. Thank you. So to the restaurant tours, the owners, what were some of the challenges you faced when negotiating your restaurant lease?  Yeah. So one of the biggest challenges that we faced, as I mentioned before, was just understanding the terminology throughout the lease and having the time to sit by ourselves and really look through the lease. But by sitting with Shanice, we were able to catch things that we wouldn't have been able to catch if we were to just look over the lease ourselves. I think there was miscalculations on the cam and the breakdown of it. And if Jason and I were just to look over that by ourselves, we would have just been like, yeah, that's great. But Shanice like was very quick to point that out for us. Very nice. And Sue, do you have any?    You need to, you know, save some money for something else.   But, you know, it took time, but overall, you know, it benefit for us.  Very nice. Jason, do you have anything to input before we move on? Yeah, I think, I think the fact that we, we didn't really realize that we could actually negotiate some of the certain, certain things in the lease, like CHAM, like we have no idea how much CHAM is like a reasonable, reasonable ask, and like the going rate of CHAM in a particular place. And I think Shanice helped us understand that, hey, we can save a little bit of money here every month and see if they're able to go down a little bit on CHAM and other certain operating costs too that we would have. That is excellent. Good, good, good, that you've posted that in advance. So now we've got five more minutes. And so I'm going to go ahead and go around and just do any final takeaways or lessons that you learned or any kind of experience that you want to share with our viewers. I'll go ahead and start with Harley, then I'll go to Jason, then I'll go to Sue. Harley, any final takeaways before we close our show? Yeah, I would say don't rush into a space just because you want to like get started right away. You're going to see a lot of options out there and don't be deterred if it doesn't go through or if just any hurdles get in the way. Very nice, Jason. Going off of what Harley said, yeah, take your time and weigh all the options, take everything into consideration. I know that money and costs is a huge thing for a lot of restaurants. So make sure you make your spreadsheets, you make all your calculations and take all of that in consideration in your lease. Nice, nice. Sue, do you have any final takeaways that you want to mention before we close the show? Yes, I'll say, you know, get on accurate construction cost estimate. Keep in mind that there are always on first instance circumstances where you might have to spend double triple money unexpectedly, especially in getting supplies and equipment in Hawaii are huge challenges too. So know what type of business you want and understand the cost that comes with the concept and definitely contact professional advisors who you can trust and they can give you the best support and advice. Nice. Janice, any final words before we close the show? It's been a pleasure to see you again, my friend. We haven't seen each other in so long. Yes, always a pleasure, Cheryl. Your energy is infectious. But thank you for having me on and all of my clients here on it's just it's been a pleasure. I think everything that I would just echo what we've talked about today just, you know, understanding that you wanted to make informed decisions for your business by really understanding what you're getting into with Elise. You can negotiate things. If you work with me, you're always going to know I'm encouraging you to do due diligence to run numbers to just, you know, really understand everything. And then that will serve you well throughout your lease term. That was great. Thank you so much and thank you everyone for being on the show today. Janice, I think we have to do a sequel, because I see here that we didn't touch on a few of the topics that we wanted to touch on, but we ran out of time. So again, my name is Cheryl Matsuoka, the executive director of the Hawaii Resh Fron Association. And I just wanted to mention to everyone that Ziva Law is an HRA member. And if you have, you know, contact her through her website. And if you can't contact her through a website and you can't find her, give me a call, because I definitely have her in my cell phone. Hawaii Resh Fron Association is the organization unifying, representing and supporting Hawaii's restaurant and food service industry. Thank you so much and we'll see you again in two weeks. Thank you.