Question & Answer

{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?

On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions (a) Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases. (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of cash discounts. (b) Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.

Which item has the same value for both the static budget and the flexible budget?

The stockholders’ equity section of Tkachuk Corporation appears below as of December 31, 2014. 8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares $ 4,500,000 Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000 Additional paid-in capital 20,500,000 Retained earnings $134,000,000 Net income 33,000,000 167,000,000 $202,000,000 Net income for 2014 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $360,000 were declared and paid in 2014. Dividends of $1,000,000 were declared and paid to common stockholders in 2014. Instructions Compute earnings per share data as it should appear on the income statement of Tkachuk Corporation.

Describe the economic trade-off faced by the Fed in achieving its economic goals. (LO4)

Bendetta, a high-tax-rate taxpayer, owns several rental properties and would like to shift some income to her daughter, Jenine.  Bendetta instructs her tenants to send their rent checks to Jenine so Jenine can report the rental income.  Will this shift the income from Bendetta to Jenine?  Why or why

1.      : What goal or mission for the Park Hill Museum do you personally prefer? As director, would you try to implement your preferred direction? Explain.

In which of the following industries are exit costs likely to be low: (a) steel production; b) market gardening; (c) nuclear power generation; (d) specialist financial advisory services; (e) production of a new drug; (f) street food; (g) car ferry operators? Do these exit costs depend on how narrowly the industry is defined?

A 1-8 UNC low carbon steel bolt (diameter = 1.0 in, 8 threads/in) is currently planned for a certain application. It is to be preloaded to 75% of its proof strength, which is 33,000 lb/in2 (Table 32.2). However, this bolt is too large for the size of the components involved, and a higher strength but smaller bolt would be preferable. Determine (a) the smallest nominal size of an alloy steel bolt (proof strength = 120,000 lb/in2) that could be used to achieve the same preload from the following standard UNC sizes used by the company: 1/4-20, 5/16-18, 3/8-16, 1/2-13, 5/8-11, or 3/4-10; and (b) compare the torque required to obtain the preload for the original 1-in bolt and the alloy steel bolt selected in part (a) if the torque coefficient in both cases = 0.20.

Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2024 depreciation deduction (ignore §179 expense and bonus depreciation for this problem).

How will competition between growth-maximising firms benefit the consumer?

Use the information provided in BE12-7. Assume that the fair value of the division is estimated to be $750,000 and the implied goodwill is $350,000. Prepare Waters’ journal entry, if necessary, to record impairment of the goodwill.

Explain why financial markets may be less liquid if companies are not forced to provide accurate financial reports. (LO3)

In a controlled experiment, it takes 3700 J to melt the amount of metal that is in a weld bead with a cross-sectional area of 6.0 mm2 that is 150.0 mm long. (a) Using Table 29.2, what is the most likely metal? (b) If the heat transfer factor is 0.85 and the melting factor is 0.55 for a welding process, how much heat must be generated at the welding source to accomplish the weld?

A steel tensile specimen with starting gage length = 2.0 in and cross-sectional area = 0.5 in2 reaches a maximum load of 37,000 lb. Its elongation at this point is 24%. Determine the true stress and true strain at this maximum load.

Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $50,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $60,000 on each stock. If Daniel’s marginal tax rate is 35 percent and he has $120,000 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment

Tempe Corporation is a calendar-year corporation.  At the beginning of 2024, its election to be taxed as an S corporation became effective.  Tempe Corp.’s balance sheet at the end of 2023 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted basis FMV Cash $20,000 $20,000 Accounts receivable 40,000 40,000 Inventory 160,000 200,000 Land 150,000 120,000   Totals $370,000 $380,000 Tempe Corp.’s business income for the year was $40,000 (this would have been its taxable income if it were a C corporation).  During 2024, Tempe Corp. sold all of the inventory it owned at the beginning of the year for $210,000.   a. What is its built-in gains tax in 2024?

Which die-casting machines usually have a higher production rate, cold-chamber or hot-chamber, and why?

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.

1.       Go to the team and tell them what you’ve been asked to do. If they refuse to support you, threaten to reveal the true numbers to the CEO and board members.

Statement of Financial Accounting Concepts No. 5 identifies four characteristics that an item must have before it is recognized in the financial statements. What are these four characteristics?

A metal alloy has been tested in a tensile test with the following results for the flow curve parameters: strength coefficient = 620.5 MPa and strain-hardening exponent = 0.26. The same metal is now tested in a compression test in which the starting height of the specimen = 62.5 mm and its diameter = 25 mm. Assuming that the cross section increases uniformly, determine the load required to compress the specimen to a height of (a) 50 mm and (b) 37.5 mm.

Explain the difference between obtaining funds from a venture capital firm and engaging in an IPO. Explain how the IPO may serve as a means by which the venture capital firm can cash out. (LO1)

Ludwick Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2014. Annual rental payments of $40,000 are to be made at the beginning of each lease year (December 31). The taxes, insurance, and the maintenance costs are the obligation of the lessee. The interest rate used by the lessor in settingthe payment schedule is 9%; Ludwick’s incremental borrowing rate is 10%. Ludwick is unaware of the rate being used by the lessor. At the end of the lease, Ludwick has the option to buy the equipment for $1, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Ludwick uses the straight-line method of depreciation on similar ownedequipment. Instructions (a) Prepare the journal entry or entries, with explanations, that should be recorded on December 31, 2014, by Ludwick. (b) Prepare the journal entry or entries, with explanations, that should be recorded on December 31, 2015, by Ludwick. (Prepare the lease amortization schedule for all five payments.) (c) Prepare the journal entry or entries, with explanations, that should be recorded on December 31, 2016, by Ludwick. (d) What amounts would appear on Ludwick’s December 31, 2016, balance sheet relative to the lease arrangement?

Do investors in high tax brackets or those in low tax brackets benefit more from tax-exempt securities? Why? At a given point in time, which offers a higher before-tax yield: municipal bonds or corporate bonds? Why? Which has the higher after-tax yield? If taxes did not exist, would Treasury bonds offer a higher or lower yield than municipal bonds with the same maturity? Why? (LO1)