Question & Answer

What are some of the limitations of a mixed model line compared to a batch model line?

1.              : How would you characterize Baker’s leadership style? What approach do you think is correct for this situation? Why?

Louis files as a single taxpayer.  In April of this year he received a $900 refund of state income taxes that he paid last year.  How much of the refund, if any, must Louis include in gross income under the following independent scenarios?  Assume the standard deduction last year was $6,300. a.       Last year Louis claimed itemized deductions of $6,550.  Louis’s itemized deductions included state income taxes paid of $1,750. b.       Last year Louis had itemized deductions of $4,800 and he chose to claim the standard deduction.  Louis’s itemized deductions included state income taxes paid of $1,750. c.       Last year Louis claimed itemized deductions of $7,740.  Louis’s itemized deductions included state income taxes paid of $2,750.

Is a shareholder allowed to increase their basis in S corporation stock by their share of the corporation’s liabilities, as partners are able to increase the basis of their ownership interest by their share of partnership liabilities?  Explain.

] In constructing a keyword search, what should the keyword search include?

Can the margin of safety ever be negative? Explain your answer.

Why might it be argued that a redistribution of consumption, while not involving a Pareto improvement, could still be desirable?

a.       Because Nikki’s 28.57% discount ($14,000 – $10,000/$14,000) is less than Shine Company’s gross profit percentage, the bargain purchase from her employer does not result in taxable income. b.     Nikki will recognize $25 of taxable income from the discounted services provided by Shine Company.  Discounts more than 20% for services are taxable. Thus, Nikki’s taxable discount is $25 ($125 Discount received – (20% x $500)=$25).

Rode Inc. incurred a net operating loss of $500,000 in 2014. Combined income for 2012 and 2013 was $350,000. The tax rate for all years is 40%. Rode elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward. Rode expects to return to profitability in 2015.

In a turning operation on aluminum, cutting speed = 900 ft/min, feed = 0.020 in/rev, and depth of cut = 0.250 in. What horsepower is required of the drive motor, if the lathe has a mechanical efficiency = 87%? Use Table 21.2 to obtain the appropriate unit horsepower value.

What is the indirect effect of a change in accounting principle? Briefly describe the reporting of the indirect effects of a change in accounting principle.

Compare the relative merits of (a) quotas on output, (b) limits to the amount of land used for a particular product and (c) farmers being required to take land out of food production.

Are organized stock exchanges used to place newly issued stock? Explain. (LO5)

Why might the Fed have difficulty in controlling the economy in the manner desired? Be specific. (LO2; LO3)

1.       : How does relational coordination differ from teams and task forces? Explain your answer.

Which factors might be considered by financial market participants who are assessing whether an increase in money supply growth will affect inflation? (LO5)

Describe a passive monetary policy. (LO2; LO3)

Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and adjusted tax bases.     FMV    Adjusted Tax Basis Inventory$    20,000$        10,000 Building    150,000        100,000 Land    250,000        300,000 Total$  420,000$      410,000

The Taurin Partnership (calendar-year-end entity) has the following assets as of December 31 of the current year: Tax Basis FMV Cash $ 45,000 $ 45,000 Accounts receivable 15,000 30,000 Inventory 81,000 120,000    Totals $ 141,000 $ 195,000 On December 31, Taurin distributes $15,000 of cash, $10,000 (FMV) of accounts receivable, and $40,000 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma’s basis in her partnership interest immediately prior to the distribution is $40,000. a. What are the amount and character of Emma’s recognized gain or loss on the distribution? b. What is Emma’s basis in the distributed assets? c. If Emma’s basis before the distribution was $55,000 rather than $40,000, what is Emma’s recognized gain or loss and what is her basis in the distributed assets?

Sustainable management practices In an Environmental Victoria audit, it was found that Australian supermarkets could save $41.6 million annually if ‘green bags’ were universally adopted. This audit was conducted at Leo’s Fine Foods in Kew, Victoria. It was conducted as a timed experiment; that is, clocking a checkout operator on the time taken to fill reusable green or single-use plastic shopping bags. The results are highlighted in the table below.         The results show that there was little difference in transaction times for single-use bags compared with reusable bags.  As a result of this experiment, Henty strongly suggests governments introduce a levy on single-use plastic bags to encourage further use of green bags.38   Required (a)     If you were designing/conducting this experimental process, what are some of the concerns might you have for results being considered representative of the true situation being investigated? (b)     What other sustainable management practices might supermarkets employ to decrease waste?             (LO4 and 5)

The inventory of 3T Company on December 31, 2014, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit 110 600 $ 90 $100 111 1,000 60 52 112 500 80 76 113 200 170 180 120 400 205 208 121a 1,600 16 14 122 300 240 235 aPart No. 121 is obsolete and has a realizable value of $0.20 each as scrap. Instructions (a) Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market method, applying this method directly to each item. (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.

Discuss the different types of budget variances that can be calculated.

What is the rationale for requiring partners to defer most gains and all losses when they contribute property to a partnership?

What are the advantages of a three-plate mold over a two-plate mold in injection molding?