Question & Answer

A heat source can transfer 3500 J/sec to a metal part surface. The heated area is circular, and the heat intensity decreases as the radius increases, as follows: 70% of the heat is concentrated in a circular area that is 3.75 mm in diameter. Is the resulting power density enough to melt metal?

Explain how a mortgage company’s degree of exposure to interest rate risk differs from other financial institutions. (LO4)

Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2014. The increase in the prior year’s income before taxes is $1,200,000. The tax rate is 40%. Prepare Shannon’s 2014 journal entry to record the change in accounting principle.

Illini Corporation reported taxable income of $500,000 from operations for this year. In addition, the company distributed an automobile to its sole shareholder, Yuki. The auto’s fair market value was $30,000 and its tax basis to Illini was $0. The auto’s E&P tax basis was $15,000. Illini had accumulated E&P of $1,500,000 at the beginning of the year.

Simms Company has significant amounts of trade accounts receivable. Simms uses the allowance method to estimate bad debts instead of the direct write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected. Instructions (a) What are the deficiencies of the direct write-off method? (b) What are the two basic allowance methods used to estimate bad debts, and what is the theoretical justification for each? (c) How should Simms account for the collection of the specific accounts previously written off as uncollectible?

Viscosity is an important property of a polymer melt in plastics shaping processes. Upon what parameters does viscosity depend?

What is the indirect effect of a change in accounting policy? Briefly describe the approach to reporting the indirect effects of a change in accounting policy under IFRS.

Theory If a downward-sloping yield curve is mainly attributed to segmented markets theory, what does that suggest about the demand for and supply of funds in the short-term and long-term maturity markets? (LO3)

Other than corporations, are there other legal business entities that offer liability protection? Are any of them taxed as flow-through entities? Explain.

A 12-station transfer line was designed to operate with an ideal production rate = 50 parts/hour. However, the line does not achieve this rate, since the line efficiency = 0.60. It costs $75/hour to operate the line, exclusive of materials. The line operates 4000 hours per year. A computer monitoring system has been proposed that will cost $25,000 (installed) and will reduce downtime on the line by 25%. If the value added per unit produced = $4.00, will the computer system pay for itself within one year of operation? Use expected increase in revenues resulting from the computer system as the criterion. Ignore material costs in your calculations.

A sand core used to form the internal surfaces of a steel casting experiences a buoyancy force of 23 kg. The volume of the mold cavity forming the outside surface of the casting = 5000 cm3 . What is the weight of the final casting? Ignore considerations of shrinkage

Compare and contrast for and from AGI deductions.Why are for AGI deductions likely more valuable to taxpayers than from AGI deductions?

Assume a horizontal yield curve exists. How do you think the yield curve would be affected if foreign investors in short-term securities and long-term securities suddenly anticipate that the value of the dollar will strengthen? (You may find it helpful to refer to the discussion of the yield curve in Chapter 3.) (LO2, LO3)

Under what circumstances will a liquidating corporation be allowed to recognize a loss in a non-pro rata distribution?

1.       : Do you agree with the idea that people have innate biases and will automatically discriminate if left to their own devices? Discuss.

If a true centrifugal casting operation were to be performed in a space station circling the Earth, how would weightlessness affect the process?

How is a process operating in statistical control distinguished from one that is not?

What is meant by the term “qualitative characteristics of accounting information”?

What is the difference between a tax deduction and a tax credit?Is one more beneficial than the other?Explain.

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marks-and- Spencer-Annual-report-and-financial-statements-2012.pdf. Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions. (a) What is the company’s main line of business? (b) In what countries does the company operate? (c) What is the address of the company’s corporate headquarters? (d) What is the company’s reporting currency?

Assume that the US economy expands. What will determine the size of the multiplier effect on other countries?

At the end of the current year, Joshua Co. has a defined benefit obligation of $335,000 and pension plan assets with a fair value of $345,000. The amount of the vested benefits for the plan is $225,000. Joshua has a liability gain of $8,300 (beginning accumulated OCI is zero). What amount and account(s) related to its pension plan will be reported on the company’s statement of financial position?

What types of federal income-based taxes, other than the regular income tax, might taxpayers be required to pay?In general terms, what is the tax base for each of these other taxes on income?

A composite has a matrix of polyester with Kevlar-29 fibers. The volume fractions of polyester and Kevlar are 60% and 40%, respectively. The Kevlar fibers have a modulus of elasticity of 60 GPa in the longitudinal direction and 3 GPa in the transverse direction. The polyester matrix has a modulus of elasticity of 5.6 GPa in both directions. (a) Determine the modulus of elasticity for the composite in the longitudinal direction. (b) Determine the modulus of elasticity in the transverse direction

Gordeeva Corporation began selling goods on the installment basis on January 1, 2014. During 2014, Gordeeva had installment sales of $150,000; cash collections of $54,000; cost of installment sales of $102,000. Prepare the company’s entries to record installment sales, cash collected, cost of installment sales, deferral of gross profit, and gross profit recognized, using the installment-sales method.