Question & Answer

Eva received $60,000 in compensation payments from JAZZ Corp. during 2024.  Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp.  JAZZ did not reimburse Eva for any of these expenses.  Eva is single and deducts a standard deduction of $14,600.  Based on these facts, answer the following questions: a. Assume that Eva is considered to be an employee.  What amount of FICA taxes is she required to pay for the year?

1.    Social entrepreneurship is a growing phenomenon. Do you believe that for-profit businesses can have a social mission equal to their profit mission? Should they do so if it means hurting profits?

Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item Item Item Item Item Item D E F G H I Estimated selling price $120 $110 $95 $90 $110 $90 Cost 75 80 80 80 50 36 Replacement cost 120 72 70 30 70 30 Estimated selling expense 30 30 30 25 30 30 Normal profi t 20 20 20 20 20 20 Instructions Using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2014, for each of the inventory items above.

1.       Consider the example of drug arrests made by patrol officers described in Section 16-4C, “Expectancy Theory.” How did the “effort leads to performance” expectancy and the “performance leads to outcomes” expectancy lead to high performance? Be specific. How do you think “valence” was involved? Explain.

Identify some of the important applications of zinc.

Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2014 net income and 2015 net income. 2014 2015 (a) Equipment purchased in 2012 was expensed. (b) Wages payable were not recorded at 12/31/14. (c) Equipment purchased in 2014 was expensed. (d) 2014 ending inventory was overstated. (e) Patent amortization was not recorded in 2015.

For what possible reasons may a country experience a persistently faster rate of economic growth than another?

What are the advantages of FMS technology, compared to conventional batch operations?

Can cryptocurrencies become a mainstream asset class similar to stocks and bonds? What characteristics, in your opinion, would draw investors to cryptocurrencies as an asset class? What aspects of them would be unattractive? (LO3)

Briefly define the three types of mechanized workpart transfer systems used in production lines.

Describe the activity in the secondary T-bill market. How can this degree of activity benefit investors in T-bills? Why might a financial institution sometimes consider T-bills as a potential source of funds? (LO1)

Where in the financial statements is preferred stock normally reported?

Explain why mutual funds are attractive to small investors. How can mutual funds generate returns to their shareholders? (LO1)

Sarazan Company issues a 4-year, 7.5% fixed-rate interest only, nonprepayable $1,000,000 note payable on December 31, 2013. It decides to change the interest rate from a fixed rate to variable rate and enters into a swap agreement with M&S Corp. The swap agreement specifies that Sarazan will receive a fixed rate at 7.5% and pay variable with settlement dates that match the interest payments on the debt. Assume that interest rates have declined during 2014 and that Sarazan received $13,000 as an adjustment to interest expense for the settlement at December 31, 2014. The loss related to the debt (due to interest rate changes) was $48,000. The value of the swap contract increased $48,000. Instructions (a) Prepare the journal entry to record the payment of interest expense on December 31, 2014. (b) Prepare the journal entry to record the receipt of the swap settlement on December 31, 2014. (c) Prepare the journal entry to record the change in the fair value of the swap contract on December 31, 2014. (d) Prepare the journal entry to record the change in the fair value of the debt on December 31, 2014.

Illustrate on an indifference diagram the effects of the following: (a)    A rise in the price of good X (assuming no change in the price of Y). (b)    A fall in the price of good Y (assuming no change in the price of X).

What is a plasticizer?

Why is an overvalued exchange rate likely to encourage the use of capital-intensive technology?

Novotna Inc.’s only temporary difference at the beginning and end of 2013 is caused by a $3 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2014 and 2015. The related deferred tax liability at the beginning of the year is $1,200,000. In the third quarter of 2013, a new tax rate of 34% is enacted into law and is scheduled to become effective for 2015. Taxable income for 2013 is $5,000,000, and taxable income is expected in all future years. Instructions (a) Determine the amount reported as a deferred tax liability at the end of 2013. Indicate proper classification(s). (b) Prepare the journal entry (if any) necessary to adjust the deferred tax liability when the new tax rate is enacted into law. (c) Draft the income tax expense portion of the income statement for 2013. Begin with the line “Income before income taxes.” Assume no permanent differences exist.

Compare disposable and regrindable tooling. The same grade of cemented carbide tooling is available in two forms for turning operations in a certain machine shop: disposable inserts and brazed inserts. The parameters in the Taylor equation for this grade are: n = 0.25 and C = 300 (m/min) under the cutting conditions considered here. For the disposable inserts, price of each insert = $6.00, there are four cutting edges per insert, and the tool change time = 1.0 min (this is an average of the time to index the insert and the time to replace it when all edges have been used). For the brazed insert, the price of the tool = $30.00 and it is estimated that it can be used a total of 15 times before it must be scrapped. The tool change time for the regrindable tooling = 3.0 min. The standard time to grind or regrind the cutting edge is 5.0 min, and the grinder is paid at a rate = $20.00/hr. Machine time on the lathe costs $24.00/hr. The workpart to be used in the comparison is 375 mm long and 62.5 mm in diameter, and it takes 2.0 min to load and unload the work. The feed = 0.30 mm/rev. For the two tooling cases, compare (a) cutting speeds for minimum cost, (b) tool lives, (c) cycle time and cost per unit of production. Which tool would you recommend?

The IRS recently completed an audit of Shea’s tax return and assessed $15,000 additional tax.  Shea requested an appeals conference but was unable to settle the case at the conference.  She is contemplating which trial court to choose to hear her case.  Provide a recommendation based on the following alternative facts.

What are the taxpayer’s standards to avoid the substantial understatement of tax penalty?

incorporating their sole proprietorship.  Using the married-joint tax brackets an]{Planning}Orie and Jane, husband and wife, operate a sole proprietorship.  They expect their taxable income next year to be $300,000, of which $125,000 is attributed to the sole proprietorship.  Orie and Jane are contemplating d the corporate tax brackets, find out how much current tax this strategy could save Orie and Jane.  How much income should be left in the corporation?

1.      Require that Rukman participants reveal their ties to the corporate marketing program right up front before they make a recommendation.

What is an uncertain tax position, and what are the general guidelines for accounting for uncertain tax positions?

{Research} Janice Traylor is single.She has an 18-year-old son named Marty.Marty is Janice’s only child.Marty has lived with Janice his entire life.However, Marty recently joined the Marines and was sent on a special assignment to Australia.During the current year, Marty spent nine months in Australia.Marty was extremely homesick while in Australia, since he had never lived away from home.However, Marty knew this assignment was only temporary, and he couldn’t wait to come home and find his room just the way he left it.Janice has always filed as head of household, and Marty has always been considered a qualifying child (and he continues to meet all the tests with the possible exception of the residence test due to his stay in Australia).However, this year Janice is unsure whether she qualifies as head of household due to Marty’s nine-month absence during the year.Janice has come to you for advice on whether she qualifies for head of household filing status.What do you tell her?