Question & Answer

6 Explain differences in social values and communication challenges across country cultures.

What determines whether someone is considered a tax return preparer?

Kumar Inc. uses a perpetual inventory system. At January 1, 2014, inventory was $214,000 at both cost and market value. At December 31, 2014, the inventory was $286,000 at cost and $265,000 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method.

Assume that the Fed’s primary goal is to reduce inflation. How can it implement monetary policy to achieve this goal? What is a possible adverse effect of such action by the Fed (even if it achieves this goal)? (LO3)

A special ceramic specimen is tested in a bend test. Its width = 0.50 in and thickness = 0.25 in. The length of the specimen between supports = 2.0 in. Determine the transverse rupture strength if failure occurs at a load = 1700 lb

Distinguish between product costs and period costs as they relate to inventory

] Bethany incurred $20,000 in research and experimental costs for developing a specialized product during July 2024. Bethany went through a lot of trouble and spent $10,000 in legal fees to receive a patent for the product in August 2026. Bethany expects the patent to have a remaining useful life of 10 years. a. What amount of research and experimental expenses for 2024, 2025, and 2026 may Bethany deduct? b. How much patent amortization expense would Bethany deduct 2026?

Identify today’s international trade alliances and discuss how they affect international companies.

In 2014, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2014.

As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $1,200 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis’s first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $192,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2014) in business. (1) Collections from customers $188,000 (2) Merchandise purchased 360,000 (3) Ending merchandise inventory 90,000 (4) Goods are marked to sell at 40% above cost. Instructions Assuming all sales were made on account, compute the ending accounts receivable balance that should appear in the ledger, noting any apparent shortage. Then, draft a memo dated October 3, 2014, to Mark Price, the branch manager, explaining the facts in this situation. Remember that this problem is serious, and you do not want to make hasty accusations.

What are the primary advantages of having a Codificationof generally accepted accounting principles?

Rory and Nicholi, single taxpayers, each annually receives Social Security benefits of $15,000. Rory’s taxable income from sources other than Social Security exceeds $200,000. In contrast, the Social Security benefits are Nicholi’s only source of income. What percentage of the Social Security benefits must Rory include in his gross income? What percentage of Social Security benefits is Nicholi required to include in his gross income?

Of what significance are primary deficits or surpluses for the dynamics of a government’s debt-to-GDP ratio?

Presented below and on page 740 are three independent situations. 1. Hairston Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Hairston’s past experience indicates that only 80% of thestamps sold to licensees will be redeemed. Hairston’s liability for stamp redemptions was $13,000,000 at December 31, 2013. Additional information for 2014 is as follows. Stamp service revenue from stamps sold to licensees $9,500,000 Cost of redemptions (stamps sold prior to 1/1/14) 6,000,000 If all the stamps sold in 2014 were presented for redemption in 2015, the redemption cost would be $5,200,000. What amount should Hairston report as a liability for stamp redemptions at December 31, 2014? 2. In packages of its products, Burnitz Inc. includes coupons that may be presented at retail stores to obtain discounts on other Burnitz products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Burnitz honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Burnitz estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Burnitz during 2014 is as follows. Consumer expiration date 12/31/14 Total face amount of coupons issued $800,000 Total payments to retailers as of 12/31/14 330,000 What amount should Burnitz report as a liability for unredeemed coupons at December 31, 2014? 3. Roland Company sold 700,000 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.00, entitles the customer to a baking pan. Roland pays $6.00 per pan and $0.50 for handling and shipping. Roland estimates that 70% of the coupons will be redeemed, even though only 250,000 coupons had been processed during 2014. What amount should Roland report as a liability for unredeemed coupons at December 31, 2014?

Explain the utilitarian, individualism, moral rights, justice, and practical approaches for making ethical decisions.

Identify various factors that shape a manager’s ethical decision making, including levels of moral development.

Explain how margin requirements can affect the potential return and risk from investing in a stock. What is the maintenance margin? (LO1)

Jimmy has fallen on hard times recently. Last year he borrowed $250,000 and added an additional $50,000 of his own funds to purchase $300,000 of undeveloped real estate. This year the value of the real estate dropped dramatically and Jimmy’s lender agreed to reduce the loan amount to $230,000. For each of the following independent situations, indicate the amount Jimmy must include in gross income and explain your answer:

Shawn receives stock in an S corporation when it is formed in a tax-deferred transaction by contributing land with a tax basis of $50,000 and encumbered by a $20,000 mortgage. What is Shawn’s initial basis in his S corporation stock?

(Threshold Concept 11) 1. Why might consumers not always make efficient consumption decisions? (Threshold Concept 11) 2. Explain the meaning of social efficiency using the concept of Pareto optimality.

On December 31, 2013, the inventory of Powhattan Company amounts to $800,000. During 2014, the company decides to use the dollar-value LIFO method of costing inventories. On December 31, 2014, the inventory is $1,053,000 at December 31, 2014, prices. Using the December 31, 2013, price level of 100 and the December 31, 2014, price level of 108, compute the inventory value at December 31, 2014, under the dollar-value LIFO method.

Explain how CVP analysis can be used to make decisions about increases in advertising costs.

What is a chaplet?

Calculate the MRS moving up the curve in Figure 6.5 between each of the points: e–d, d–c, c–b and b–a. Does the MRS diminish moving in this direction?

How does austenite differ from ferrite?