Question & Answer

What features or rights may alter the character of preferred stock?

Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. a. Calculate Roquan’s deduction for qualified business income. b. Assume the same facts provided above, except Roquan’s taxable income before the deduction for qualified business income is $300,000.

What are the types of situations that result in troubled debt?

Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a §754 election in place. Alix sells one-half of her interest (25 percent) to Michael Tomei for $30,000 cash. Just before the sale, Alix’s basis in her entire partnership interest is $75,000, including her $30,000 share of the partnership liabilities. Tralix’s assets on the sale date are as follows: Basis Fair Market Value Cash $ 40,000 $ 40,000 Inventory 30,000 90,000 Land held for investment 80,000 50,000    Totals $ 150,000 $ 180,000 a. What are the amount and character of Alix’s recognized gain or loss on the sale? b. What is Alix’s basis in her remaining partnership interest? c. What is Michael’s basis in his partnership interest? d. What is the effect of the sale on the partnership’s basis in the assets?

What are the significant differences in the equipment and operating procedures between injection molding of thermoplastics and injection molding of thermosets?

How are a polymer's properties affected when it takes on a crystalline structure?

Samuels Co. appropriately uses the installment-sales method of accounting. On December 31, 2016, the books show balances as follows. Installment Receivables Deferred Gross Profit Gross Profit on Sales 2014 $12,000 2014 $ 7,000 2014 35% 2015 40,000 2015 26,000 2015 33% 2016 80,000 2016 95,000 2016 32% Instructions (a) Prepare the adjusting entry or entries required on December 31, 2016 to recognize 2016 realized gross profit. (Installment receivables have already been credited for cash receipts during 2016.) (b) Compute the amount of cash collected in 2016 on accounts receivable from each year.

Make the calculations and plot on linearly scaled axes the relationship for unit melting energy as a function of temperature. Use temperatures as follows to construct the plot: 200°C, 400°C, 600°C, 800°C, 1000°C, 1200°C, 1400°C, 1600°C, 1800°C, and 2000°C. On the plot, mark the positions of some of the welding metals in Table 29.2. Use of a spreadsheet program is recommended for the calculations.

Mayaguez Corporation provides its officers with bonuses based on net income. For 2014, the bonuses total $350,000 and are paid on February 15, 2015. Prepare Mayaguez’s December 31, 2014, adjusting entry and the February 15, 2015, entry.

When tensions rise or war erupts in the Middle East, bond prices in many countries tend to decline. What is the link between problems in the Middle East and bond prices? Would you expect bond prices to decline more in Japan or in the United Kingdom as a result of the crisis? (The answer is tied to how interest rates may change in those countries.) Explain. (LO2)

Haruki and Bob have owned and operated SOA as a C corporation for a number of years. When they formed the entity, Haruki and Bob each contributed $100,000 to SOA. Each has a current basis of $100,000 in his SOA ownership interest. Information on SOA’s assets at the end of year 5 is as follows (SOA does not have any liabilities):    Assets FMV Adjusted Basis Built-in Gain Cash $200,000 $200,000 $0 Inventory 80,000 40,000 40,000 Land and building 220,000 170,000 50,000  Total$500,000   At the end of year 5, SOA liquidated and distributed half of the land and building, half of the inventory, and half of the cash remaining after paying taxes (if any) to each owner. Assume that, excluding the effects of the liquidating distribution, SOA’s taxable income for year 5 is $0.  a. What are the amount and character of gain or loss SOA will recognize on the liquidating distribution? b. What are the amount and character of gain or loss Haruki will recognize when he receives the liquidating distribution of cash and property? Recall that his stock basis is $100,000 and he is treated as having sold his stock for the liquidation proceeds.

Define crimping in the context of electrical connections.

What is the difference between fixed automation and programmable automation?

Why are metals better conductors of electricity than ceramics and polymers?

Where in the financial statements is preferred stock normally reported?

If price regulation results in lower profits, will this always imply lower investment? How might a government incentivise innovation in a regulated industry?

How is an industrial robot similar to numerical control?

Suppose you asked your favorite AI query tool the following question: “Do IRS Temporary Regulations have a limited life?”  The AI tool provided the following response: Is the AI response correct? Explain.

Do taxpayers always add back the standard deduction when computing alternative minimum taxable income?  Explain.

The trend line developed using regression analysis provides a more accurate representation of a mixed cost function than the two-point or high-low methods. Explain why.

What is a sonotrode in ultrasonic welding?

Define braze welding.

Summarize the historical struggle between managing the “things of production” and the “humanity of production

How does a casualty loss on a business asset differ when the asset is stolen as opposed to destroyed in a fire?

Use the information for Rick Kleckner Corporation from BE21-3. Assume that at December 31, 2014, Kleckner made an adjusting entry to accrue interest expense of $29,530 on the lease. Prepare Kleckner’s January 1, 2015, journal entry to record the second lease payment of $53,920.