Question & Answer

Which cutting speed is always lower for a given machining operation, cutting speed for minimum cost or cutting speed for maximum production rate? Why?

Oxford Corporation began operations in 2014 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 2014 and years thereafter is 30%. In its December 31, 2014, balance sheet, what amount of deferred tax liability should be reported?

An 92% aluminum-8% copper alloy casting is made in a sand mold using a sand core that weighs 20 kg. Determine the buoyancy force in Newtons tending to lift the core during pouring. Sand density = 1.6

Briefly describe the types of information concerning financial position, income, and cash flows that might be provided (a) within the main body of the financial statements, (b) in the notes to the financial statements, or (c) as supplementary information.

Indicate how unrealized holding gains and losses should be reported for investments classified as trading and held for-collection.

What is an important precondition for the success of an adhesive bonding operation?

Assume that countries in the eurozone decide to pursue a deflationary fiscal policy. What effect is this likely to have on the UK economy?

An extrusion operation is used to produce a parison whose mean diameter = 27 mm. The inside and outside diameters of the die that produced the parison are 18 mm and 22 mm, respectively. If the minimum wall thickness of the blow-molded container is to be 0.40 mm, what is the maximum possible diameter of the blow mold?

Suppose you asked your favorite AI query tool “Under the timing strategy, does it make sense for a person to accelerate income recognition when tax rates are increasing?” and the AI tool responded as follows:

Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/14 12/31/15 12/31/16 Amortized cost $491,150 $519,442 $550,000 Fair value $497,000 $509,000 $550,000 Instructions (a) Indicate whether the bonds were purchased at a discount or at a premium. (b) Prepare the adjusting entry to record the bonds at fair value at December 31, 2014. The Fair Value Adjustment account has a debit balance of $1,000 prior to adjustment. (c) Prepare the adjusting entry to record the bonds at fair value at December 31, 2015.

Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master plumber.  Adam and Tom are concerned about the payroll taxes they will have to pay.  Assume they form an S corporation, and each earns a salary of $80,000 from the corporation; in addition, they expect their share of business profits to be $60,000 each.  How much Social Security tax and Medicare tax (or self-employment tax) will Adam, Tom, and their corporation have to pay on their salary and profits?

Define batch production and describe why it is often used for medium-quantity production products.

The behavior of nanoscale structures is different from macroscale and even microscale structures due to two factors mentioned in the text. What are those two factors?

Boilermaker Inc. reported taxable income of $500,000 this year and paid federal income taxes of $105,000. Not included in the company’s computation of taxable income is tax-exempt income of $20,000, disallowed meals and entertainment expenses of $30,000, and disallowed expenses related to the tax-exempt income of $1,000.  Boilermaker deducted depreciation of $100,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $60,000.  Compute Boilermaker’s current E&P.

Crane Corporation has the following accounts included in its December 31, 2014, trial balance: Equity Investments (trading) $21,000; Goodwill $150,000; Prepaid Insurance $12,000; Patents $220,000; Franchises $130,000. Prepare the intangible assets section of the balance sheet.

The controller for Lafayette Inc. recently commented, “If I have to disclose our segments individually, the only people who will gain are our competitors and the only people that will lose are our present stockholders.” Evaluate this comment.

MACRS depreciation requires the use of a recovery period, method, and convention to depreciate tangible personal property assets. Briefly explain why each is important to the calculation.

Perlman Land Development, Inc. purchased land for $70,000 and spent $30,000 developing it. It then sold the land for $160,000. Sheehan Manufacturing purchased land for a future plant site for $100,000. Due to a change in plans, Sheehan later sold the land for $160,000. Should these two companies report the land sales, both at gains of $60,000, in a similar manner?

If a corporation has been an S corporation since inception, describe how its operating distributions to its shareholders are taxed to the shareholders.

Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8 years, with the first withdrawal to take place 5 years from today. If the fund earns 8% interest, how much must Amy invest today?

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2024, she sells the following long-term assets used in her business:

A resistance spot-welding operation is performed on two pieces of 0.040 in thick sheet steel (low carbon). The unit melting energy for steel = 150 Btu/in3. Process parameters are: current = 9500 A and time duration = 0.17 sec. This results in a weld nugget of diameter = 0.19 in and thickness = 0.060 in. Assume the resistance = 100 micro-ohms. Determine (a) the average power density in the interface area defined by the weld nugget, and (b) the proportion of energy generated that went into formation of the weld nugget.

Why can’t large, publicly traded corporations be treated as S corporations?

It is desired to compare the cycle times required to grind a particular workpiece using traditional surface grinding and using creep feed grinding. The workpiece is 200 mm long, 30 mm wide, and 75 mm thick. To make a fair comparison, the grinding wheel in both cases is 250 mm in diameter, 35 mm in width, and rotates at 1500 rev/min. It is desired to remove 25 mm of material from the surface. When traditional grinding is used, the infeed is set at 0.025 mm, and the wheel traverses twice (forward and back) across the work surface during each pass before resetting the infeed. There is no crossfeed since the wheel width is greater than the work width. Each pass is made at a workspeed of 12 m/min, but the wheel overshoots the part on both sides. With acceleration and deceleration, the wheel is engaged in the work for 50% of the time on each pass. When creep feed grinding is used, the depth is increased by 1000 and the forward feed is decreased by 1000. How long will it take to complete the grinding operation (a) with traditional grinding and (b) with creep feed grinding?