Question & Answer

The accounting records of Shinault Inc. show the following data for 2014 (its first year of operations). 1. Life insurance expense on officers was $9,000. 2. Equipment was acquired in early January for $300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Shinault used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $4,000. 4. Product warranties were estimated to be $50,000 in 2014. Actual repair and labor costs related to the warranties in 2014 were $10,000. The remainder is estimated to be paid evenly in 2015 and 2016. 5. Gross profit on an accrual basis was $100,000. For tax purposes, $75,000 was recorded on the installment- sales method. 6. Fines incurred for pollution violations were $4,200. 7. Pretax financial income was $750,000. The tax rate is 30%. Instructions (a) Prepare a schedule starting with pretax financial income in 2014 and ending with taxable income in 2014. (b) Prepare the journal entry for 2014 to record income taxes payable, income tax expense, and deferred  income taxes.

What is a terminal block?

Name the three basic tire constructions and briefly identify the differences in their construction

Briefly describe the injection molding process.

In the current year, LeSean (age 51 and single) has earned income of $3,000. He also has $30,000 of unearned (capital gain) income. a. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution LeSean can make for the current year? b. If he does participate in an employer-sponsored plan, what is the maximum deductible IRA contribution LeSean can make for the current year? c. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution LeSean can make for the current year if he has earned income of $10,000?

What are the basic factors that affect surface finish in machining?

Barry Porter and Winnie Weeks are considering making an S election on March 1, 2024, for their C corporation, Omniocular. However, first they want to consider the implications of the following information: • Winnie is a U.S. citizen and resident. • Barry is a citizen of the United Kingdom but a resident of the United States. • Barry and Winnie each own 50 percent of the voting power in Omniocular.  However, Barry’s stock provides him with a claim on 60 percent of the Omniocular assets in liquidation. • Omniocular was formed under Arizona state law, but it plans on eventually conducting some business in Mexico.   a) Is Omniocular eligible to elect S corporation status?  If so, when is the election effective?

In recent years, many banks have been relying more heavily on noninterest income as a proportion of their total income. Write a short essay explaining whether banks that rely more heavily on noninterest income will have better or worse performance than banks that rely more heavily on traditional sources of income (such as loans)?

What are two subclasses of assembly processes? Provide an example process for each subclass

You are evaluating Woodlawn Racetrack for a potential loan. An examination of the notes to the financial statements indicates restricted cash at year-end amounts to $100,000. Explain how you would use this information in evaluating Woodlawn’s liquidity.

1.    Jeff Immelt, CEO of GE, tweeted for the first time in September 2012, prompting this response: “@JeffImmelt how come my grandfather got on twitter before you?” Do you think managers should use Twitter and other social media? Can you be an effective manager today without using new media? Why?

Given the data in Problem 13.14, except that the flight angle of the extruder screw is a variable instead of a constant 17.7°. Use a spreadsheet calculator to determine the value of the flight angle that maximizes the volumetric flow rate Qx. Explore values of flight angle between 10° and 20°. Determine the optimum value to the nearest tenth of a degree.

Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Basis Fair Market Value Cash $ 60 $ 60 Land 60 180 Inventory 72 60 $192 $300 Mary $ 96 $150 Scott 96 150 $192 $300

Broussard Company reported net income of $3.5 million in 2014. Depreciation for the year was $520,000; accounts receivable increased $500,000; and accounts payable increased $300,000. Compute net cash flow from operating activities using the indirect method.

1.            If you were a student interested in pursuing a career in project management how important do you think being a CAPM would be?

A torsion test specimen has a radius = 25 mm, wall thickness = 3 mm, and gage length = 50 mm. In testing, a torque of 900 N-m results in an angular deflection = 0.3°. Determine (a) the shear stress, (b) shear strain, and (c) shear modulus, assuming the specimen had not yet yielded. (d) If failure of the specimen occurs at a torque = 1200 N-m and a corresponding angular deflection = 10°, what is the shear strength of the metal?

Kasten Inc. provides paid vacations to its employees. At December 31, 2014, 30 employees have each earned 2 weeks of vacation time. The employees’ average salary is $500 per week. Prepare Kasten’s December 31, 2014, adjusting entry.

What is the difference between the traditional ceramics and the new ceramics?

1. What would be the ‘first-best’ solution to the problem of an infant industry not being able to compete with imports? 2. Protection to allow the exploitation of monopoly/monopsony power can be seen as a ‘first-best’ policy for the country concerned. Similarly, the use of tariffs to counteract externalities directly involved in the trade process (e.g. the environmental costs of an oil tanker disaster) could be seen to be a first-best policy. Explain why.

The present level of a country’s exports is £12 billion; investment is £2 billion; government expenditure is £4 billion; total consumer spending (not Cd) is £36 billion; imports are £12 billion and expenditure taxes are £2 billion. The economy is currently in equilibrium. It is estimated that an income of £50 billion is necessary to generate full employment. The mps is 0.1, the mpt is 0.05 and the mpm is 0.1 (a)  Is there an inflationary or deflationary gap in this situation? (b)  What is the size of the gap? (Don’t confuse this with the difference between Ye and YF.) (c)  What would be the appropriate government policies to close this gap?

What are the common book-tax differences relating to accounting for capital gains and losses?  Do these differences create favorable or unfavorable book-to-tax adjustments?

Virginia Corporation is a calendar-year corporation.  At the beginning of 2024, its election to be taxed as an S corporation became effective.  Virginia Corp.’s balance sheet at the end of 2023 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Adjusted basis FMV Cash $20,000 $20,000 Accounts receivable 40,000 40,000 Inventory 90,000 200,000 Land 150,000 175,000   Totals $300,000 $435,000   In 2024, Virginia Corp. reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia’s built-in gains tax in each of the following alternative scenarios?

Describe when economic performance occurs for the following expenses: a)Workers’ compensation  b) Rebates and refunds c) Insurance, warranties, and service contracts provided to the business d) Taxes

In an orthogonal cutting operation, the rake angle = -5°, chip thickness before the cut = 0.2 mm and width of cut = 4.0 mm. The chip ratio = 0.4. Determine (a) the chip thickness after the cut, (b) shear angle, (c) friction angle, (d) coefficient of friction, and (e) shear strain.

On July 1, 2014, Wheeler Company purchased $4,000,000 of Duggen Company’s 8% bonds, due on July 1, 2021. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,500,000 to yield 10%. Determine the amount of interest revenue Wheeler should report on its income statement for the year ended December 31, 2014.