Question & Answer

How could long-term monetary growth come about if the government persistently ran a public-sector surplus?

] Discuss why Congress has instructed taxpayers to depreciate real property using the mid-month convention as opposed to the half-year convention used for tangible personal property.

Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, Keith has developed the following estimates. Engine Overhaul Probability Estimated Cash Outfl ow Assessment $200 10% 450 30% 600 50% 750 10% Instructions How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 2 years to pay for the overhaul?

What types of business entities does the U.S. tax system recognize?

Give some examples of how governments try to nudge people to help them make better decisions.

In the context of fiber reinforcement, what is a mat?

How would the shifts in the SRAS curve be affected if, in response to rising output levels, firms increased their investment expenditures?

1. To what extent can the following be regarded as common resources? (a) rain forests; (b) children’s playgrounds in public parks; (c) silence in a library; (d) the Internet. 2. Where would you place each of the following in Figure 12.8: (a) an inner city road at 3:00am; (b) an inner city road at 8:00am; (c) a toll motorway at 3:00am; (d) a toll motorway at 8:00am?

1. Assume that there is a growing demand for computer programmers. As a result more people train to become programmers. Does this represent a rightward shift in the supply curve of programmers, or merely the supply curve becoming more elastic in the long run, or both? Explain. 2. Which is likely to be more elastic, the supply of coal miners or the supply of shop assistants? Explain.

Maple Corp. owns several highly valued paintings that are on display in the corporation’s headquarters.  This year, it donated one of the paintings valued at $100,000 (tax basis of $25,000), to a local museum for the museum to display. What is the amount of Maple Corp.’s charitable contribution deduction for the painting (assuming income limitations do not apply)?  What would be Maple’s deduction if the museum sold the painting one month after it received it from Maple? (Assume Maple Corp. had prior knowledge of the museum’s intention to sell the painting after receiving it.)

(Looking at the Maths) 1. Complete the demand schedule in table up to a price of 50. (Looking at the Maths) 2. What is it about equation (2) that makes the demand curve (a) downward sloping; (b) a straight line?

What were the two discoveries of Sir Humphrey Davy that led to the development of modern welding technology?

State Hooke's law

For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (that is, is it realized and recognized for tax purposes?).

Use the information presented in BE5-14 for Martinez Corporation to compute the net cash used (provided) by financing activities.

Under what conditions will a partner recognize gain in a liquidating distribution?

Name some of the reasons for the commercial importance of powder metallurgy technology.

There are 12 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 4.1 Which one of the following metals has the lowest density: (a) aluminum, (b) copper, (c) magnesium, or (d) tin? 4.2 The thermal expansion properties of polymers are generally (a) greater than, (b) less than, or (c) the same as those of metals? 4.3 In the heating of most metal alloys, melting begins at a certain temperature and concludes at a higher temperature. In these cases, which of the following temperatures marks the beginning of melting: (a) liquidus or (b) solidus? 4.4 Which one of the following materials has the highest specific heat: (a) aluminum, (b) concrete, (c) polyethylene, or (d) water? 4.5 Copper is generally considered easy to weld because of its high thermal conductivity: (a) true or (b) false? 4.6 The mass diffusion rate dm/dt across a boundary between two different metals is a function of which of the following variables (four best answers): (a) concentration gradient dc/dx, (b) contact area, (c) density, (d) melting point, (e) thermal expansion, (f) temperature, and (g) time? 4.7 Which of the following pure metals is the best conductor of electricity: (a) aluminum, (b) copper, (c) gold, or (d) silver? 4.8 A superconductor is characterized by which of the following (one best answer): (a) high conductivity, (b) resistivity properties between those of conductors and semiconductors, (c) very low resistivity, or (d) zero resistivity? 4.9 In an electrolytic cell, the anode is the electrode that is (a) positive or (b) negative

Morgan Freeman is investing $16,380 at the end of each year in a fund that earns 10% interest. In how many years will the fund be at $100,000?

Why does an unstable demand for money make it difficult to control the supply of money?

The basic issue in variable and absorption costing could be said to be one of timing rather than amount. Explain.

Palmer Co. is evaluating the appropriate accounting for the following items. 1. Management has decided to switch from the FIFO inventory valuation method to the LIFO inventory valuation method for all inventories. 2. When the year-end physical inventory adjustment was made for the current year, the controller discovered that the prior year’s physical inventory sheets for an entire warehouse were mislaid and excluded from last year’s count. 3. Palmer’s Custom Division manufactures large-scale, custom-designed machinery on a contract basis. Management decided to switch from the completed-contract method to the percentage-ofcompletion method of accounting for long-term contracts. Identify and explain whether each of the above items is a change in accounting principle, a change in estimate, or an error.

What is endogenous about endogenous growth theory?

What are the advantages and disadvantages of using estimated support cost allocation rates?

Explain how EVA differs from residual income.