Question & Answer

1.      Match each primary value chain activity with its definition. a.       Marketing and sales activities b.      Service activities c.       Operations d.      Outbound logistics   e.       Inbound logistics

Explain how pension plans provide tax benefits. (LO3)

Why is the relationship between interest rates and bond prices important to financial institutions? (LO1)

How do IPOs perform over the long run? (LO3)

How would one measure the angle of repose for a given amount of metallic powder?

Why are second mortgages offered by some home sellers? (LO2)

Describe, in general terms, why Congress implemented the AMT.

Mortgage lenders with fixed-rate mortgages should benefit when interest rates decline, yet research has shown that this favorable impact is dampened. By what? (LO3)

Emily and Toni are recently married college students. Can Emily qualify as her parents’ dependent? Explain.

Would a cut in benefits affect the Wo curve? If so, with what effect?

How would a financial institution with a large bond portfolio be affected by falling interest rates? Would it be affected by a greater extent than a financial institution with a greater concentration of bonds (and fewer short-term securities)? Explain. (LO1)

Assume that there are 200 consumers in the market. Of these, 100 have schedules like Kate’s and 100 have schedules like Simon’s. What would be the total market demand schedule for potatoes now?                                Price(pence per kg) Total market demand(kg)             20             40             60             80           100                 4400                 2600                 1400                   800                   600 1. How much would be demanded at a price of 30p per kilogram? 2. Assuming that demand does not change from month to month, plot the annual market demand for potatoes.

As a certified public accountant, you have been contacted by Joe Davison, CEO of Sports-Pro Athletics, Inc., a manufacturer of a variety of athletic equipment. He has asked you how to account for the following changes. 1. Sports-Pro appropriately changed its depreciation method for its machinery from the doubledeclining- balance method to the units-of-production method effective January 1, 2014. 2. Effective January 1, 2014, Sports-Pro appropriately changed the salvage values used in computing depreciation for its office equipment. 3. On December 31, 2014, Sports-Pro appropriately changed the specific subsidiaries constituting the group of companies for which consolidated financial statements are presented. Instructions Write a 1–1.5 page letter to Joe Davison explaining how each of the above changes should be presented in the December 31, 2014, financial statements.

How is a business activity distinguished from an investment activity?  Why is this distinction important for the purpose of calculating federal income taxes?

What are some of the methods used to cure adhesives?

Explain why Congress allows self-employed taxpayers to deduct the employer portion of their self-employment tax.

Explain why Congress allows taxpayers to deduct interest forfeited as a penalty on the premature withdrawal from a certificate of deposit.

: Explain the processes of team cohesiveness, team norms, and the general stages of team development.

Describe the type of medical expenditures that qualify for the medical expense deduction.  Does the cost of meals consumed while hospitalized qualify for the deduction?  Do over-the-counter drugs and medicines qualify for the deduction?

What types of taxes qualify to be deducted as itemized deductions?  Would a vehicle registration fee qualify as a deductible tax?

Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000; net markdowns were $7,000; and sales revenue was $147,000. Compute ending inventory at cost using the conventional retail method.

How might clustering effects be incorporated into endogenous growth theories?

Balanced scorecard measures for financial perspective Following is financial information for last period about Curry House, a regional company with a number of fast-food stores:                                                                 Required Describe and calculate several measures that could be used for the financial perspective.

Explain the argument that the deductions for charitable contributions and home mortgage interest represent indirect subsidies for these activities.

Describe the conditions in which a donation of property to a charity will result in a charitable contribution deduction of fair market value and when it will result in a deduction of the tax basis of the property.