Question & Answer

There are 19 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Eachcorrect answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 5.1 A tolerance is which one of the following: (a) clearance between a shaft and a mating hole, (b) measurement error, (c) total permissible variation from a specified dimension, or (d) variation in manufacturing? 5.2 Which of the following two geometric terms have the same meaning: (a) circularity, (b) concentricity, (c) cylindricity, and (d) roundness? 5.3 A surface plate is most typically made of which one of the following materials: (a) aluminum oxide ceramic, (b) cast iron, (c) granite, (d) hard polymers, or (e) stainless steel? 5.4 An outside micrometer would be appropriate for measuring which of the following (two correct answers): (a) hole depth, (b) hole diameter, (c) part length, (d) shaft diameter, and (e) surface roughness? 5.5 In a GO/NO-GO gage, which one of the following best describes the function of the GO gage: (a) checks limit of maximum tolerance, (b) checks maximum material condition, (c) checks maximum size, (d) checks minimum material condition, or (e) checks minimum size? 5.6 Which of the following are likely to be GO/NO-GO gages (three correct answers): (a) gage blocks, (b) limit gage, (c) master gage, (d) plug gage, and (e) snap gage? 5.7 Surface texture includes which of the following characteristics of a surface (three correct answers): (a) deviations from the nominal surface, (b) feed marks of the tool that produced the surface, (c) hardness variations, (d) oil films, and (e) surface cracks? 5.8 Surface texture is included within the scope of surface integrity: (a) true or (b) false? 5.9 Thermal energy is normally associated with which of the following changes in the altered layer (three best answers): (a) cracks, (b) hardness variations, (c) heat affected zone, (d) plastic deformation, (e) recrystallization, or (f) voids? 5.10 Which one of the following manufacturing processes will likely result in the best surface finish: (a) arc welding, (b) grinding, (c) machining, (d) sand casting, or (e) sawing? 5.11 Which one of the following manufacturing processes will likely result in the worst surface finish: (a) cold rolling, (b) grinding, (c) machining, (d) sand casting, or (e) sawing?

Using IS/LM/BP analysis, trace through the effect of (a) a deflationary fiscal policy and (b) a deflationary monetary policy under (i) a fixed exchange rate; (ii) a free-floating exchange rate.

Why is the price inelasticity of demand for private car transport a problem when formulating a policy for the reduction of traffic congestion? What could be done to change the price elasticity of demand in a desirable direction?

What layer material is produced by thermal oxidation in IC fabrication?

How do money market funds differ from other types of mutual funds in terms of how they use the money invested by shareholders? Which securities do MMFs invest in most often? How can an MMF accommodate shareholders who wish to sell their shares when the amount of proceeds received from selling new shares is less than the amount needed to cover the withdrawals? (LO3)

Monat Company has grown rapidly since its founding in 2004. To instill loyalty in its employees, Monat is contemplating establishment of a defined benefit plan. Monat knows that lenders and potential investors will pay close attention to the impact of the pension plan on the company’s financial statements, particularly any gains or losses that develop in the plan. Monat has asked you to conduct some research on the accounting for gains and losses in a defined benefit plan. Instructions If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses. (a) Briefly describe how pension gains and losses are accounted for. (b) Explain the rationale behind the accounting method described in part (a). (c) What is the related pension asset or liability that will show up on the balance sheet? When will each of these situations occur?

What effect will the following have on the mpc: (a)     the rate of income tax rises; (b)     the economy begins to recover from recession; (c)     people anticipate that the rate of inflation is about to rise; (d)     the government redistributes income from the rich to the poor? In each case sketch what would happen to the consumption function.

0 A riser in the shape of a sphere is to be designed for a sand casting mold. The casting is a rectangular plate, with length = 200 mm, width = 100 mm, and thickness = 18 mm. If the total solidification time of the casting itself is known to be 3.5 min, determine the diameter of the riser so that it will take 25% longer for the riser to solidify

How are tax credits and tax deductions similar?  How are they dissimilar?

When a U.S. taxpayer pays income taxes to a foreign government, what options does the taxpayer have when determining how to treat the expenditure on their U.S. individual income tax return?

Can cryptocurrencies become a mainstream asset class similar to stocks and bonds? What characteristics, in your opinion, would draw investors to cryptocurrencies as an asset class? What aspects of them would be unattractive? (LO3)

Assume that you are looking for a job and are offered two. One is more enjoyable, but pays less. How would you make a rational choice between the two jobs?

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2014, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units. Instructions Compute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31. (a) Straight-line method for 2014. (b) Activity method (units of output) for 2014. (c) Activity method (working hours) for 2014. (d) Sum-of-the-years’-digits method for 2016. (e) Double-declining-balance method for 2015.

The Volcker Rule is intended to prevent banks from engaging in proprietary trading. Write a short essay offering your opinion on whether banks should be allowed to engage in proprietary trading.

Explain the circumstances under which an increase in pensions and child benefit would (a) increase national income; (b) leave national income unaffected; (c) decrease national income.

Compare and contrast computing the depreciation deduction for tangible personal property versus computing the depreciation deduction for real property under both the regular tax and alternative tax systems.

{Research} Last year Acme paid Ralph $15,000 to install a new air-conditioning unit at its headquarters building.  The air conditioner did not function properly, and this year Acme requested that Ralph return the payment.  Because Ralph could not repair one critical part in the unit, he refunded the cost of the repair, $5,000, to Acme. a.       Is Ralph required to include the $15,000 payment he received last year in his gross income from last year? b.       What are the tax implications of the repayment if Ralph was in the 35 percent tax bracket when he received the $15,000 payment from Acme, but was in the 28 percent tax bracket when he refunded $5,000 to Acme? c.       How would you answer part b. if Ralph refunded $2,500 to Acme and not $5,000?

List the basic steps in the traditional ceramics processing sequence.

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, and that Gary and Prudence will share the remaining profits or losses in a 45∕55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue $70,000 Gain on sale of land (§1231) $8,000 Cost of goods sold ($38,000) Depreciation - MACRS ($9,000) Employee wages ($14,000) Cash charitable contributions ($3,000) Municipal bond interest $2,000 Other expenses ($2,000)

Define “cost” as applied to the valuation of inventories.

Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda’s marginal income tax rate is 37 percent, and her tax rate on qualified dividends and net capital gains is 20%. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. Assume the income is not eligible for the QBI deduction. Further, when computing your answers, include the self-employment tax (use a 2.9% marginal rate for self-employment income because Amanda has salary in excess of the wage base limit) but not the additional Medicare tax or the net investment income tax.    a. How much cash after taxes would Amanda receive from her investment in the first year if BAL is organized as an LLC? What if BAL is organized as a C corporation?  b. What is the overall tax rate on BAL’s income in the first year if BAL is organized as an LLC or it is organized as a C corporation? c. At a high level, explain the primary factors contributing to differences between entities in cash flow and overall tax rate on business income.

Why would it be difficult for a central bank to predict the precise effect on money supply of open-market operations?

Rider Company negotiates a forward swap, to begin two years from now, in which it will swap fixed payments for floating-rate payments. What will be the effect on Rider if interest rates rise substantially over the next two years? That is, would Rider be better off by using this forward swap than if it had simply waited two years before negotiating the swap? Explain. (LO2)

This year Jorge received a refund of property taxes that he deducted on his tax return last year. Jorge is not sure whether he should include the refund in his gross income. What would you tell him?

Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows:   Transferred           FMV Original       Basis Accumulated Depreciation Warehouse $300,000 $225,000 $45,000 Land50,00050,000 Mortgage on warehouse30,000 Cash20,00020,000   Assets Received          FMV Land $340,000 What are Prater’s realized and recognized gain on the exchange and its basis in the assets it received in the exchange?