Question & Answer

Why might the Fed want to focus its efforts on reducing long-term interest rates rather than short-term interest rates during a weak economy? Explain how it might use a monetary policy focused on influencing long-term interest rates. Why might such a policy also affect short-term interest rates in the same direction? (LO2)

1.      : What social values are present in Guitarras Torres, that seem different from U.S. social values (see Exhibit 4.4 and Exhibit 4.5)? Explain.

Pierre recently received a tax penalty for failing to file a tax return.  He was upset to receive the penalty, but he was comforted by the thought that he will get a tax deduction for paying the penalty.     a.  Use an available tax research service to determine if Pierre is correct.   b.  Write a memo communicating the results of your research.

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

1. How will the length of the short run for the airline depend on the state of the aircraft industry? 2. Up to roughly how long is the short run in the following cases? (a) A firm supplying DJs for clubs and parties. (b) Nuclear power generation. (c) A street food wagon. (d) Superstore Hypermarkets Ltd. In each case specify your assumptions.

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

How is the rubber industry organized?

Following are selected statement of financial position accounts of Sander Bros. Corp. at December 31, 2014 and 2013, and the increases or decreases in each account from 2013 to 2014. Also presented is selected income statement information for the year ended December 31, 2014, and additional information. Increase Selected statement of fi nancial position accounts 2014 2013 (Decrease) Assets Property, plant, and equipment $277,000 $247,000 $30,000 Accumulated depreciation (178,000) (167,000) (11,000) Accounts receivable 34,000 24,000 10,000 Equity and liabilities Share capital—ordinary, $1 par $ 22,000 $ 19,000 $ 3,000 Share premium—ordinary 9,000 3,000 6,000 Retained earnings 104,000 91,000 13,000 Bonds payable 49,000 46,000 3,000 Dividends payable 8,000 5,000 3,000 Selected income statement information for the year ended December 31, 2014 Sales revenue $155,000 Depreciation 38,000 Gain on sale of equipment 14,500 Net income 31,000 Additional information: 1. During 2014, equipment costing $45,000 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2014, $25,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Instructions Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. (a) Payments for purchase of property, plant, and equipment. (b) Proceeds from the sale of equipment. (c) Cash dividends paid. (d) Redemption of bonds payable.

A copper wire of diameter 0.80 mm fails at an engineering stress = 248.2 MPa. Its ductility is measured as 75% reduction of area. Determine the true stress and true strain at failure

What is the difference between open pores and closed pores in a metallic powders?

1.              : Go ahead and close the deal, but come clean later. Explain that the controller had been on an extended leave of absence and because you had been on the job for only a few days, you had not had time to analyze the numbers yourself.

Assume that Timberline Corporation has 2024 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2024:

What are the computational guidelines for determining whether a convertible security is to be reported as part of diluted earnings per share?

How are deferred tax assets and deferred tax liabilities reported on the statement of financial position under IFRS?

SFAC No. 8 identifies the qualitative characteristics that make accounting information useful. Presented below are a number of questions related to these qualitative characteristics and underlying constraint. (a) What is the quality of information that enables users to confirm or correct prior expectations? (b) Identify the pervasive constraint developed in the conceptual framework. (c) The chairman of the SEC at one time noted, “If it becomes accepted or expected that accounting principles are determined or modified in order to secure purposes other than economic measurement, we assume a grave risk that confidence in the credibility of our financial information systemwill be undermined.” Which qualitative characteristic of accounting information should ensure that such a situation will not occur? (Do not use faithful representation.) (d) Muruyama Corp. switches from FIFO to average-cost to FIFO over a 2-year period. Which qualitative characteristic of accounting information is not followed? (e) Assume that the profession permits the savings and loan industry to defer losses on investments it sells because immediate recognition of the loss may have adverse economic consequences on the industry. Which qualitative characteristic of accounting information is not followed? (Do not use relevance or faithful representation.) (f) What are the two fundamental qualities that make accounting information useful for decisionmaking? (g) Watteau Inc. does not issue its first-quarter report until after the second quarter’s results are reported. Which qualitative characteristic of accounting is not followed? (Do not use relevance.) (h) Predictive value is an ingredient of which of the two fundamental qualities that make accounting information useful for decision-making purposes? (i) Duggan, Inc. is the only company in its industry to depreciate its plant assets on a straight-line basis. Which qualitative characteristic of accounting information may not be followed? (j) Roddick Company has attempted to determine the replacement cost of its inventory. Three different appraisers arrive at substantially different amounts for this value. The president, nevertheless, decides to report the middle value for external reporting purposes. Which qualitative characteristic of information is lacking in these data? (Do not use relevance or faithful representation.)

The following account balances were included in the trial balance of Twain Corporation at June 30, 2014. Sales revenue $1,578,500 Depreciation expense (offi ce Sales discounts 31,150 furniture and equipment) $ 7,250 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs Travel expense (salespersons) 28,930 expense (administration) 9,130 Delivery expense 21,400 Offi ce expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement Offi ce supplies used 3,450 due to error—2011 (net of tax) 17,700 Telephone and Internet expense Dividends declared on (administration) 2,820 preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2013. There are 80,000 shares of common stock outstanding. Instructions (a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014. (b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014.

What are the different bases for stock valuation when assets other than cash are received for issued shares of stock?

A 3.5 in diameter through hole is to be cut in a block of pure iron (Valence = 2) by electrochemical machining. The block is 2.0 in thick. To speed the cutting process, the electrode tool will have a center hole of 3.0 in which will produce a center core that can be removed after the tool breaks through. The outside diameter of the electrode is undersized to allow for overcut. The overcut is expected to be 0.005 in on a side. If the efficiency of the ECM operation is 90%, what current will be required to complete the cutting operation in 20 minutes?

Campbell’s tax return was audited because they failed to report on their tax return interest they earned.  What IRS audit selection method identified their tax return?

For what reasons might the long-run aggregate supply curve be (a) vertical; (b) upward sloping; (c) downward sloping?

Describe the order in which different types of tax credits are applied to reduce a taxpayer’s tax liability.

In what sense is it true to say that the Phillips curve is horizontal today?

1.    : One of the benefits of a strategy map is that it clearly communicates goals and how they are linked to everyone in the organization. Does a minimum-wage maintenance worker in a hospital really need to understand any goals beyond keeping the place clean? Discuss.

This year, Janelle received $200,000 in life insurance proceeds. Under the following scenarios, how much of the $200,000 is taxable?

1. Give other examples of each of the four types of externality. 2. Redraw Figure 12.4, only this time assume there is only one producer, which is thus a monopoly. How does the existence of power affect the relationship between the private and the social optimum positions? 3. Redraw Figure 12.4, only this time assume that at low levels of production the good generates no external costs. Only once a certain outcome is reached (Qx) does the production of additional units generate rising external costs.