Question & Answer

} Suppose you asked your favorite AI query tool the following question: “Are athletic scholarships that require student participation in a specific sport taxable for federal income tax purposes?”  The AI tool provided the following response:

A DC servomotor drives the x-axis of a NC milling machine table. The motor is coupled to the table lead screw using a 4:1 gear reduction (4 turns of the motor for each turn of the lead screw). The leadscrew pitch = 6.25 mm. An optical encoder is connected to the lead screw. The optical encoder emits 500 pulses per revolution. To execute a certain programmed instruction, the table must move from point (x = 87.5 mm, y = 35.0) to point (x = 25.0 mm, y = 180.0 mm) in a straight-line trajectory at a feed rate = 200 mm/min. Determine (a) the control resolution of the system for the x-axis only, (b) the corresponding rotational speed of the motor, and (c) frequency of the pulse train emitted by the optical encoder at the desired feed rate.

What does it mean to “flip” shares? Why would investors want to flip shares? (LO3)

What are some of the applications of PVD?

Newton is a one-third owner of ProRite Partnership. Newton has decided to sell his interest in the business to Dunja for $50,000 cash plus the assumption of his share of ProRite’s liabilities. Assume Newton’s inside and outside basis in ProRite are equal. ProRite shows the following balance sheet as of the sale date: Assets: Tax Basis FMV Cash $ 80,000 $ 80,000 Receivables 25,000 25,000 Inventory 40,000 85,000 Land 30,000 20,000    Totals $ 175,000 $ 210,000 Liabilities and capital: Liabilities $ 60,000 Capital- Newton 38,333 - Barbara 38,334 - Liz 38,333    Totals $ 175,000 What are the amount and character of Newton’s recognized gain or loss?

For the following application, identify one or more nontraditional machining processes that might be used, and present arguments to support your selection. Assume that either the part geometry or the work material (or both) preclude the use of conventional machining. The application is a matrix of 0.1 mm (0.004 in) diameter holes in a plate of 3.2 mm (0.125 in) thick hardened tool steel. The matrix is rectangular, 75 by 125 mm (3.0 by 5.0 in) with the separation between holes in each direction = 1.6 mm ( 0.0625 in).

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2014, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach.

Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. a. How much of Nareh’s loss is limited by her tax basis? b. How much of Nareh’s loss is limited by her at-risk amount? c. How much of Nareh’s loss is limited by the passive activity loss rules? Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. a. How much of Nareh’s loss is limited by her tax basis? b. How much of Nareh’s loss is limited by her at-risk amount? c. How much of Nareh’s loss is limited by the passive activity loss rules?

The financial statements of ConAgra Foods, Inc.’s 2012 annual report disclose the following information. (in millions) May 27, 2012 May 29, 2011 May 30, 2010 Inventories $1,870 $1,803 $1,598 Fiscal Year 2012 2011 Net sales $13,263 $12,303 Cost of goods sold 10,436 9,390 Net income 474 818 Instructions Compute ConAgra’s (a) inventory turnover and (b) the average days to sell inventory for 2012 and 2011.

The following stress and strain values were measured in the plastic region during a tensile test carried out on a new experimental metal: (1) true stress = 43,608 lb/in2 and true strain = 0.27 in/in, and (2) true stress = 52,048 lb/in2 and true strain = 0.85 in/in. Based on these data points, determine the strength coefficient and strain-hardening exponent.

Pat Delaney Company leases an automobile with a fair value of $8,725 from John Simon Motors, Inc., on the following terms: 1. Noncancelable term of 50 months. 2. Rental of $200 per month (at end of each month). (The present value at 1% per month is $7,840.) 3. Estimated residual value after 50 months is $1,180. (The present value at 1% per month is $715.) Delaney Company guarantees the residual value of $1,180. 4. Estimated economic life of the automobile is 60 months. 5. Delaney Company’s incremental borrowing rate is 12% a year (1% a month). Simon’s implicit rate is unknown. Instructions (a) What is the nature of this lease to Delaney Company? (b) What is the present value of the minimum lease payments? (c) Record the lease on Delaney Company’s books at the date of inception. (d) Record the first month’s depreciation on Delaney Company’s books (assume straight-line). (e) Record the first month’s lease payment.

Five friends, Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Janet (86 percent owner), and Tito (10.5 percent owner) are shareholders in Jackson 5 Inc. (an S corporation).  As employees of the company, each receives health insurance ($10,000 per year benefit), dental insurance ($2,000 per year benefit), and free access to a workout facility located at company headquarters ($500 per year benefit).  What are the tax consequences of these benefits for each shareholder and for Jackson 5 Inc.?

How might uncertainty propagate the impact of shocks, such as the COVID-19 pandemic, on the macroeconomy?

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.

A resistance seam-welding operation is performed on two pieces of 2.5-mm-thick austenitic stainless steel to fabricate a container. The weld current in the operation is 10,000 amps, the weld duration = 0.3 sec, and the resistance at the interface is 75 micro-ohms. Continuous motion welding is used, with 200-mm-diameter electrode wheels. The individual weld nuggets formed in this RSEW operation have diameter = 6 mm and thickness = 3 mm (assume the weld nuggets are disc-shaped). These weld nuggets must be contiguous to form a sealed seam. The power unit driving the process requires an off-time between spot welds of 1.0 s. Given these conditions, determine (a) the unit melting energy of stainless steel using the methods of the previous chapter, (b) the proportion of energy generated that goes into the formation of each weld nugget, and (c) the rotational speed of the electrode wheels

If the negotiated wage rate were somewhere between W1 and W2, what would happen to employment?

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 is the power required in a cutting operation related to the cutting force?

The strength coefficient = 550 MPa and strain-hardening exponent = 0.22 for a certain metal. During a forming operation, the final true strain that the metal experiences = 0.85. Determine the flow stress at this strain and the average flow stress that the metal experienced during the operation

Generally accepted accounting principles usually require the use of accrual accounting to “fairly present” income. If the cash receipts and disbursements method of accounting will “clearly reflect” taxable income, why does this method not usually also “fairly present” income?

Define pressure gas welding.

How would Figure 3.3 change if the government were able to sell the surplus food on the world market?

Tim is a plumber who joined a barter club. This year Tim exchanges plumbing services for a new roof. The roof is properly valued at $2,500, but Tim would have billed only $2,200 for the plumbing services. What amount of income should Tim recognize on the exchange of his services for a roof? Would your answer change if Tim would have normally billed $3,000 for his services?

Assembly of a product requires that a component part be ordered and stocked. Demand for the product is constant throughout the year at 7800 units annually. The cost to place an order is $95. The cost of the part is $56 and the holding cost rate is 22%. When units are ordered, they take two weeks to arrive. Determine (a) the economic order quantity and (b) the reorder point. (c) The parts are prepackaged in multiples of 100. It saves the supplier unpacking and repackaging time if they can ship in multiples of 100. The supplier has offered to reduce the price by $1 per unit if even multiples of 100 are purchased. How much would be saved (if anything) by taking this offer?

Identifiable assets for the seven industry segments of Foley Corporation are: Penley $500 Cheng $200 Konami 550 Takuhi 150 KSC 250 Molina 475 Red Moon 400 Based only on the identifiable assets test, which industry segments are reportable?