Question & Answer

What is the difference between a tax deduction and a tax credit? Is one more beneficial than the other? Explain.

Danica Patrick, Inc. includes the following account among its trade receivables.   Instructions Age the balance and specify any items that apparently require particular attention at year-end.

Trey has two dependents, his two daughters, ages 14 and 18, at year-end.  Trey files a joint return with his spouse.  What amount of child tax credit (either as child or a qualifying dependent) will Trey be able to claim in 2024 for his daughters in each of the following alternative situations? a. His AGI is $100,000.

A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?

If business entities taxed as partnerships and S corporations are both flow-through entities for tax purposes, why might an owner prefer one form over the other for tax purposes? List separately the tax factors supporting the decision to operate a business entity as an entity taxed either as a partnership or as an S corporation.

In a turning operation on cast iron, the nose radius on the tool = 1.5 mm, feed = 0.22 mm/rev, and speed = 1.8 m/s. Compute an estimate of the surface roughness for this cut.

Omar is a huge college football fan.  In the past, he has always bought football tickets on the street from ticket scalpers.  This year, he decided to join the university’s ticket program, which requires a $2,000 contribution to the university for the “right” to purchase tickets.  Omar will then pay $400 per season ticket.  Omar understands that the price paid for the season tickets is not tax deductible as a charitable contribution.  However, contributions to a university are typically tax deductible.     a.  Use an available tax service to determine how much, if any, of Omar’s $2,000 contribution for the right to purchase tickets is tax deductible.   b. Write a letter to Omar communicating the results of your research.

What disclosures should be made by lessees and lessors related to future lease payments?

Current setup time on a certain machine is 3.0 hr. Cost of downtime on this machine is estimated at $200/hr. Annual holding cost per part made on the equipment, Ch = $1.00. Annual demand for the part is 15,000 units. Determine (a) EOQ and (b) total inventory costs for this data. Also, determine (c) EOQ and (d) total inventory costs, if the changeover time could be reduced to six minutes.

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

A firm under monopoly or oligopoly that aims to maximise sales revenue will tend to produce more than one that aims to maximise profits. Does this conclusion also apply under (a) perfect competition and (b) monopolistic competition, given that there is freedom of entry?

Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $20,000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny’s marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 12 percent on his investments. Should Manny send his client the bill in December or January?

A 6.0-in wafer has a processable area with a 5.85-in diameter. How many square IC chips can be fabricated within this area, if each chip is 0.50 in on a side? Assume the cut lines (streets) between chips are of negligible width.

Two processes for forming glass fibers are discussed in the text. Name and briefly describe one of them

This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000.  Last year, their total tax liability was $170,000.  They estimate that their tax withholding from their employers will be $175,000.  Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty?  If so, how much?

Why is the Normal statistical table used in a Six Sigma program different from the standard normal tables found in textbooks on probability and statistics?

Name the three most common machining processes.

Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31, Hendricks received annual interest of $2,000, and the fair value of the bonds was $47,400. Prepare Hendricks’ journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

Cross-linking (curing) of thermosetting plastics is accomplished by one of three ways. Name the three ways

Isabella provides 30 percent of the support for her father Hastings, who lives in an apartment by himself and has no gross income. Is it possible for Isabella to claim her father as a dependent? Explain.

An automatic turning process is set up to produce parts with a mean diameter = 6.255 cm. The process is in statistical control and the output is normally distributed with a standard deviation = 0.004 cm. Determine the process capability.

Assume the same information as in IFRS17-12 except that Roosevelt has an active trading strategy for these bonds. The fair value of the bonds at December 31 of each year-end is as follows. 2014 $534,200 2017 $517,000 2015 $515,000 2018 $500,000 2016 $513,000 Instructions (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest received and recognition of fair value for 2014. (c) Prepare the journal entry to record the recognition of fair value for 2015.

Using the facts in problem 38, if Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income?  What is their marginal rate if, instead, they reported an additional $100,000 in deductions?

What are the three major stages in the production of silicon-based integrated circuits?

1.      : Meet with Pate and the employee to try to resolve the current issue, and then start working with Miranda and other senior managers to develop stronger policies regarding sexual harassment and treatment of employees, including clear-cut procedures for handling complaints.