Question & Answer

Solve Problem 20.19 except that the starting blank size diameter = 175 mm

How does the acid-test ratio differ from the current ratio? How are they similar?

Why are historical and international comparisons of deficit and debt measures best presented as proportions of GDP?

Differentiate between “loss carryback” and “loss carryforward.” Which can be accounted for with the greater certainty when it arises? Why?

What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?

Jim was injured in an accident and his surgeon botched the medical procedure.  Jim recovered $5,000 from the doctors for pain and suffering and $2,000 for emotional distress.  Determine the taxability of these payments and briefly explain to Jim the apparent rationale for including or excluding these payments from gross income.

Presented below is information related to Candlebox Enterprises. J an. 31 Feb. 28 M ar. 31 A pr. 30 Inventory at cost $15,000 $15,100 $17,000 $13,000 Inventory at the lower-of-cost-or-market 14,500 12,600 15,600 12,300 Purchases for the month 20,000 24,000 26,500 Sales revenue for the month 29,000 35,000 40,000 Instructions (a) From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost, the gain or loss due to market fluctuations is to be shown separately, and a valuation account is to be set up for the difference between cost and the lower of cost or market. (b) Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly thereafter.

What are factors to be considered in estimating the useful alife of an intangible asset?

A cup-shaped part is backward extruded from an aluminum slug that is 50 mm in diameter. The final dimensions of the cup are: OD = 50 mm, ID = 40 mm, height = 100 mm, and thickness of base = 5 mm. Determine (a) extrusion ratio, (b) shape factor, and (c) height of starting slug required to achieve the final dimensions. (d) If the metal has flow curve parameters K = 400 MPa and n = 0.25, and the constants in the Johnson extrusion strain equation are: a = 0.8 and b = 1.5, determine the extrusion force.

Hill Corporation is in the leasing business and faces a marginal tax rate of 21 percent. It has leased a building to Whitewater Corporation for several years. Hill bought the building for $150,000 and claimed $20,000 of depreciation deductions against the asset. The lease term is about to expire and Whitewater would like to acquire the building. Hill has been offered two options:

Suppose you asked your favorite AI query tool “How long is the carryover period for NOLs incurred in 2024?” and the AI tool responded as follows:   The carryover period for a net operating loss (NOL) incurred in 2024 would typically be up to 20 years. This means that the corporation or individual with the NOL can carry the loss forward and use it to offset taxable income in future tax years for up to 20 years from the year in which the NOL was generated.   Is the AI answer to the question correct?  Explain.

A 300-mm-long wrench is used to tighten a Metric 20x2.5 bolt. The proof strength of the bolt for the particular alloy is 380 MPa. The torque coefficient is 0.21. Determine the maximum force that can be applied to the end of the wrench so that the bolt does not permanently deform.

What are some of the challenges to the FASB and IASB in developing a converged conceptual framework?

Solve the previous problem only the servomotor is connected to the leadscrew through a gear box whose reduction ratio = 12:1 (12 revolutions of the motor for each revolution of the leadscrew).

Describe the procedure(s) involved in classifying deferred tax amounts on the statement of financial position under IFRS.

A vertical true centrifugal casting process is used to cast brass tubing that is 15.0 in long and whose outside diameter = 8.0 in. If the speed of rotation during solidification is 1000 rev/min, determine the inside diameters at the top and bottom of the tubing if the total weight of the final casting = 75.0 lbs.

Olympia Corporation, of Kittery, Maine, wants to exchange its manufacturing facility for Bangor Company’s warehouse. Both parties agree that that Olympia’s building is worth $100,000 and that Bangor’s building is worth $95,000. Olympia would like the transaction to qualify as a like-kind exchange. What could the parties do to equalize the value exchanged but still allow the exchange to qualify as a like-kind exchange?  How would the necessary change affect the tax consequences of the transaction?

What is the “call” feature of a bond issue? How does the call feature affect the amortization of bond premium or discount?

A tensile test specimen has a starting gage length = 75.0 mm. It is elongated during the test to a length = 110.0 mm before necking occurs. Determine (a) the engineering strain and (b) the true strain. (c) Compute and sum the engineering strains as the specimen elongates from: (1) 75.0 to 80.0 mm, (2) 80.0 to 85.0 mm, (3) 85.0 to 90.0 mm, (4) 90.0 to 95.0 mm, (5) 95.0 to 100.0 mm, (6) 100.0 to 105.0 mm, and (7) 105.0 to 110.0 mm. (d) Is the result closer to the answer to part (a) or part (b)? Does this help to show what is meant by the term true strain?

State the generally accepted accounting principle applicable to balance sheet valuation of each of the following assets. (a) Trade accounts receivable. (b) Land. (c) Inventories. (d) Trading securities (common stock of other companies). (e) Prepaid expenses.

What is a performance obligation, and how is it used to determine when revenue should be recognized?

Zonker Inc. purchases 500 units of an item at an invoice cost of $30,000. What is the cost per unit? If the goods are shipped f.o.b. shipping point and the freight bill was $1,500, what is the cost per unit if Zonker Inc. pays the freight charges? If these items were bought on 2/10, n/30 terms and the invoice and the freight bill were paid within the 10-day period, what would be the cost per unit?

Over what period of time should compensation cost be allocated?

“The financial statements of a company are management’s, not the accountant’s.” Discuss the implications of this statement.

A tensile test is carried out to determine the strength constant C and strain-rate sensitivity exponent m for a certain metal at 1000°F. At a strain rate = 10/sec, the stress is measured at 23,000 lb/in2 ; and at a strain rate = 300/sec, the stress = 45,000 lb/in2 . (a) Determine C and m. (b) If the temperature were 900°F, what changes would you expect in the values of C and m?