Question & Answer

How are defined benefit plans different from defined contribution plans? How are they similar?

Dan has AGI of $50,000 and paid the following taxes during this tax year. Calculate how much Dan can deduct for taxes as an itemized deduction this year.

Using the facts from the previous problem, how would your answer change if Manny’s after-tax rate of return were 8 percent?

Which of the following unions find themselves in a weak bargaining position for the above reasons? (a)  The shopworkers’ union (USDAW). (b)  The tube and train drivers’ union (ASLEF). (c)  The farm workers’ union (part of Unite).

J.C. has been a professional gambler for many years.  He loves this line of work and believes the incomis tax-free.  a.  Use an available tax research service to determine whether J.C.’s thinking is correct.  Is the answer to this question found in the Internal Revenue Code?  If not, what type of authority answers this question? b.  Write a short memo communicating the results of your research.

Cordero Corporation has an employee share-purchase plan which permits all full-time employees to purchase 10 ordinary shares on the third anniversary of their employment and an additional 15 shares on each subsequent anniversary date. The purchase price is set at the market price on the date purchased less a 10% discount. How is this discount accounted for by Cordero?

Martinez Corporation engaged in the following cash transactions during 2014. Sale of land and building $191,000 Purchase of treasury stock 40,000 Purchase of land 37,000 Payment of cash dividend 95,000 Purchase of equipment 53,000 Issuance of common stock 147,000 Retirement of bonds 100,000 Compute the net cash provided (used) by investing activities.

Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2014, for $18 each. Prepare Sport Pro’s August 1, 2014, journal entry and the December 31, 2014, annual adjusting entry, assuming the magazines are published and delivered monthly.

What is a buckyball?

Does a taxpayer apply the §1231 look-back rule in a year when the taxpayer recognizes a net §1231 loss?  Explain.

Write a short essay explaining how financial futures might reduce systemic risk and how financial futures might increase systemic risk within financial markets.

Participative strategic planning process and benefits, manager behavior (This problem assumes knowledge from management classes) Quantum Computers produces and sells laptop computers. The entity is currently deciding whether to continue concentrating on the laptop computer market or to expand by entering the highly competitive computer desktop workstation market.   Most of the management staff has been with Quantum for a long time. Michael Mitchem, Quantum’s president, wants his management staff to assist him in Quantum’s strategic planning process. Mitchem has scheduled a three-day offsite meeting for the management staff to join together for the entity’s strategic planning process.   Required (a)     What functional areas should be discussed during the strategic planning process? (b)     Identify at least six factors to be considered in a thorough strategic planning process that will move a company such as Quantum to another level of product development. (c)     Identify at least three benefits that Quantum can derive from a participatory strategic planning process. (d)     Discuss the expected behavior of the managers at Quantum who participate in the three-day offsite strategic planning meeting.

Contrast ceiling and floor limitations, and provide an example of each.

A shielded metal arc-welding operation is performed on steel at a voltage = 30 volts and a current = 225 amps. The heat transfer factor = 0.85 and melting factor = 0.75. The unit melting energy for steel = 10.2 J/mm3. Determine (a) the rate of heat generation at the weld and (b) the volume rate of metal welded.

In the previous problem, suppose an industrial robot cell were installed to replace the welder. The cell consists of the robot (using GMAW instead of SMAW or FCAW), two welding fixtures, and the fitter who loads and unloads the parts. With two fixtures, fitter and robot work simultaneously, the robot welding at one fixture while the fitter unloads and loads at the other. At the end of each work cycle, they switch places. The electrode wire spool must be changed every five workparts, which task requires 5.0 minutes and is accomplished by the fitter. Determine (a) arc time and (b) production rate for this work cell.

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

A solid cube of copper with each side = 1.0 ft is converted into metallic powders of spherical shape by gas atomization. What is the percentage increase in total surface area if the diameter of each particle is 0.004 in (assume that all particles are the same size)?

On July 1 of year 1, Riverside Corp. (RC), a calendar-year taxpayer, acquired the assets of another business in a taxable acquisition. When the purchase price was allocated to the assets purchased, RC determined it had purchased $1,200,000 of goodwill for both book and tax purposes.  At the end of year 1, the auditors for RC determined that the goodwill had not been impaired during the year.  In year 2, however, the auditors concluded that $200,000 of the goodwill had been impaired, and they required RC to write down the goodwill by $200,000 for book purposes.

The certified public accountant is frequently called upon by management for advice regarding methods of computing depreciation. Of comparable importance, although it arises less frequently, is the question of whether the depreciation method should be based on consideration of the assets as units, as a group, or as having a composite life. Instructions (a) Briefly describe the depreciation methods based on treating assets as (1) units and (2) a group or as having a composite life. (b) Present the arguments for and against the use of each of the two methods. (c) Describe how retirements are recorded under each of the two methods.

1.    Netflix has successfully adapted to a number of challenges in its industry. What do you see as some emerging opportunities and threats for the company?

Explain how investors’ preferences for commercial paper change during a recession. How would this reaction affect the difference between commercial paper rates and T-bill rates during recessionary periods? (LO1)

Solve Problem 21.25 except that the feed = 0.0075 in/rev and the work material is stainless steel (Brinell Hardness = 240 HB)

Identify some of the general principles and guidelines that apply specifically to automated assembly.

Explain how legal business entities differ in terms of the liability protection they provide their owners.

Compare the federal income tax to sales taxes using the “certainty” criterion.