Question & Answer

Ida and Clem were married for several years, but in 2018 they finalized their divorce. In the divorce decree, Ida agreed to deed their car to Clem and pay Clem $10,000 per year for twenty years (but not beyond his death). Did these transfers qualify as alimony for tax purposes? Explain.

Assume that ACW Corporation has 2024 taxable income of $1,500,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024 (assume no bonus depreciation):

How does unearned revenue arise? Why can it be classified properly as a current liability? Give several examples of business activities that result in unearned revenues.

Red Hot Chili Peppers Co. had the following activity in its most recent year of operations. (a) Purchase of equipment. (g) Amortization of intangible assets. (b) Redemption of bonds payable. (h) Purchase of treasury stock. (c) Sale of building. (i) Issuance of bonds for land. (d) Depreciation. (j) Payment of dividends. (e) Exchange of equipment for furniture. (k) Increase in interest receivable on notes receivable. (f) Issuance of capital stock. (l) Pension expense exceeds amount funded. Instructions Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant non-cash investing and financing activities. Use the indirect method.

The inspection department in an automobile final assembly plant inspects cars coming off the production line against 55 quality features considered important to customer satisfaction. The department counts the number of defects found per 100 cars, which is the same type of metric used by a national consumer advocate agency. During a one-month period, a total of 16,582 cars rolled off the assembly line. These cars included a total of 6045 defects of the 55 features, which translates to 36.5 defects per 100 cars. In addition, a total of 1955 cars had one or more of the defects during this month. Determine DPMO, DPM, and DUPM in a Six Sigma program for these data and convert each to its corresponding sigma level.

What is the difference in melting characteristics between a pure metal element and an alloy metal?

Presented below is the trial balance of Thompson Corporation at December 31, 2014.   A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2014 is $645,000. Instructions Prepare a single-step income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand shares of common stock were outstanding the entire year.

If a partner’s outside basis is less than the partnership’s inside basis in distributed assets, how does the partner determine their basis of the distributed assets in an operating distribution?

To produce a 10 megabit memory chip, how many I/O pins are predicted by Rent's rule (C = 6.0 and m = 0.12)?

What is meant by the term green compact?

What is accuracy in measurement?

Describe an inventoriable product cost.

Wasserman Corporation issued 10-year bonds on January 1, 2014. Costs associated with the bond issuance were $160,000. Wasserman uses the straight-line method to amortize bond issue costs. Prepare the December 31, 2014, entry to record 2014 bond issue cost amortization.

For what reasons may governments want other governments to stick to tough climate or emissions targets and yet be not willing to so so themselves?

Differentiate between operating activities, investing activities, and financing activities.

Bell, Inc. buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $8,000. Bell will group the CDs into three price categories for resale, as indicated below.1 2 Group No. of CDs Price per CD 1 100 $ 5 2 800 10 3 100 15 Determine the cost per CD for each group, using the relative sales value method.

Why might borrowing rates sometimes rise following a negative demand shock?

What types of financial institutions finance residential mortgages? What type of financial institution finances the majority of commercial mortgages? (LO1)

Jake is a retired jockey who takes monthly trips to Las Vegas to gamble on horse races.  Jake also trains race horses part time at his Louisville ranch.  So far this year, Jake has won almost $47,500 during his trips to Las Vegas while spending $27,250 on travel expenses and incurring $62,400 of gambling losses.  Jake also received $60,000 in revenue from his training activities and he incurred $72,000 of associated costs.  Explain how Jake’s gambling winnings and related costs will be treated for tax purposes.  Describe the factors that will influence how Jake’s ranch expenses are treated for tax purposes.

In 2024, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman.  Elaine files a joint return with her husband.  What is the maximum American opportunity tax credit Elaine can claim for the tuition payment and books in each of the following alternative situations? a.  Elaine’s AGI is $80,000.

Identify some of the important properties of fiber-reinforced plastic composite materials

Would it matter if all prices rose by 20 per cent, but everyone’s income also rose by 20 per cent?

Balanced scorecard indicators Comment on how the inclusion of environmental and social indicators in a balanced scorecard might contribute to an organisation’s profitability.

Using the facts from the previous problem, when should Hank send the bill if he expects his marginal tax rate to be 33 percent next year? 25 percent next year?

Back Bay Insurance Company negotiated a callable swap involving fixed payments in exchange for floating payments. Assume that interest rates decline consistently up until the swap maturity date. Do you think Back Bay might terminate the swap prior to maturity? Explain. (LO2)