Question & Answer

Go through the above arguments and give a reply to the criticisms made of government intervention.

Will organisational efforts towards sustainability result in reduced organisational profits?

Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Howie takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) Alternatively, the lottery offers Howie a payout of 20 equal payments of $36,000 with the first payment occurring when Howie turns in the winning ticket. Howie will be taxed on each of these payments at a rate of 25%. Instructions Assuming Howie can earn an 8% rate of return (compounded annually) on any money invested during this period, which pay-out option should he choose?

Like mutual funds, commercial banks and stock-owned savings institutions sell shares, but the proceeds received by mutual funds are used in a different way. Explain. (LO1)

What are some of the mechanisms by which the alloying elements other than carbon strengthen steel?

Should the Fed have the power to provide assistance to firms, such as Bear Stearns, that are not commercial banks? (LO5)

Toro Co. has equipment with a carrying amount of $700,000. The value-in-use of the equipment is $705,000, and its fair value less costs of disposal is $590,000. The equipment is expected to be used in operations in the future. What amount (if any) should Toro report as an impairment to its equipment?

Assume TDW Corporation’s (calendar-year-end) has 2024 taxable income of $950,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024:

According to the injection molding video, name the four types of mold design most common in industry.

Recall from Chapter 13 that Hincapie Co. (a specialty bike-accessory manufacturer) is expecting growth in sales of some products targeted to the low-price market. Hincapie is contemplating a preferred stock issue to help finance this expansion in operations. The company is leaning toward participating preferred stock because ownership will not be diluted, but the investors will get an extra dividend if the company does well. The company management wants to be certain that its reporting of this transaction is transparent to its current shareholders and wants you to research the disclosure requirements related to its capital structure. Instructions If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses. (a) Identify the authoritative literature that addresses disclosure of information about capital structure. (b) Find definitions of the following: (1) Securities. (2) Participation rights. (3) Preferred stock. (c) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.

A cup-drawing operation is performed in which the inside diameter = 80 mm and the height = 50 mm. The stock thickness = 3.0 mm, and the starting blank diameter = 150 mm. Punch and die radii = 4 mm. Tensile strength = 400 MPa and yield strength = 180 MPa for this sheet metal. Determine (a) drawing ratio, (b) reduction, (c) drawing force, and (d) blankholder force.

The following comments were made at an Annual Conference of the Financial Executives Institute (FEI). There is an irreversible movement toward the harmonization of financial reporting throughout the world. The international capital markets require an end to: 1. The confusion caused by international companies announcing different results depending on the set of accounting standards applied. 2. Companies in some countries obtaining unfair commercial advantages from the use of particular national accounting standards. 3. The complications in negotiating commercial arrangements for international joint ventures caused by different accounting requirements. 4. The inefficiency of international companies having to understand and use a myriad of different accounting standards depending on the countries in which they operate and the countries in which they raise capital and debt. Executive talent is wasted on keeping up to date with numerous sets of accounting standards and the never-ending changes to them. 5. The inefficiency of investment managers, bankers, and financial analysts as they seek to compare financial reporting drawn up in accordance with different sets of accounting standards. Instructions (a) What is the International Accounting Standards Board? (b) What stakeholders might benefit from the use of International Accounting Standards? (c) What do you believe are some of the major obstacles to convergence?

Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?

An RSW operation is used to make a series of spot welds between two pieces of aluminum, each 2.0 mm thick. The unit melting energy for aluminum = 2.90 J/mm3. Welding current = 6,000 amps, and time duration = 0.15 sec. Assume that the resistance = 75 micro-ohms. The resulting weld nugget measures 5.0 mm in diameter by 2.5 mm thick. How much of the total energy generated is used to form the weld nugget?

What is a machine tool?

Stereolithography is to be used to build the part in Figure 33.1 in the text. Dimensions of the part are: height = 125 mm, outside diameter = 75 mm, inside diameter = 65 mm, handle diameter = 12 mm, handle distance from cup = 70 mm measured from center (axis) of cup to center of handle. The handle bars connecting the cup and handle at the top and bottom of the part have a rectangular cross section and are 10 mm thick and 12 mm wide. The thickness at the base of the cup is 10 mm. The laser beam diameter = 0.25 mm, and the beam can be moved across the surface of the photopolymer at = 500 mm/s. Layer thickness = 0.20 mm. Compute an estimate of the time required to build the part, if 10 s are lost each layer to lower the height of the platform that holds the part. Neglect post-curing time.

Cullen Construction Company, which began operations in 2014, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015. For tax purposes, the company employs the completedcontract method and will continue this approach in the future. The appropriate information related to this change is as follows. Pretax Income Percentage-of-Completion Completed-Contract Difference 2014 $880,000 $590,000 $290,000 2015 900,000 480,000 420,000 Instructions (a) Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2015? (b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?

What is meant by the concept of ‘learning by exporting’?

Would it be desirable to have total equality in an economy, so that everyone receives the same share of resources?

What is the difference between powder injection molding and metal injection molding?

Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at January 1, 2014. Shin also had a net actuarial loss of $465,000 in accumulated OCI at January 1, 2014. The average remaining service period of Shin’s employees is 7.5 years. Compute Shin’s minimum amortization of the actuarial loss.

Does the consumer in the importing country gain or lose from dumping?

Discuss why an incentive package might include individual, divisional and        corporate-level performance targets.

Would the world benefit from the general imposition of controls on the movement of international finance?

What are some of the functions of the ingredients that are added to glass in addition to silica? Name at least three.