Question & Answer

: Define leadership and explain the differences between formal and informal leaders.

Use the information provided in BE12-7. Assume that the fair value of the division is estimated to be $750,000 and the implied goodwill is $350,000. Prepare Waters’ journal entry, if necessary, to record impairment of the goodwill.

Seven years ago, Halle (currently age 41) contributed $4,000 to a Roth IRA account. The current value of the Roth IRA is $9,000. In the current, year Halle withdraws $8,000 of the account balance to use as a down payment on her first home. Assuming Halle is in the 24 percent marginal tax bracket, how much of the $8,000 withdrawal will she retain after taxes to fund her house down payment?

Presented below is an amortization schedule related to Spangler Company’s 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2012, for $108,660. Cash Interest Bond Premium Carrying Amount Date Received Revenue Amortization of Bonds 12/31/12 $108,660 12/31/13 $7,000 $5,433 $1,567 107,093 12/31/14 7,000 5,354 1,646 105,447 12/31/15 7,000 5,272 1,728 103,719 12/31/16 7,000 5,186 1,814 101,905 12/31/17 7,000 5,095 1,905 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Amortized cost $107,093 $105,447 $103,719 $101,905 $100,000 Fair value $106,500 $107,500 $105,650 $103,000 $100,000 Instructions (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2012, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2013. (c) Prepare the journal entry(ies) related to the held-to-maturity bonds for 2015. (d) Prepare the journal entry(ies) to record the purchase of these bonds, assuming they are classified as available-for-sale. (e) Prepare the journal entry(ies) related to the available-for-sale bonds for 2013. (f) Prepare the journal entry(ies) related to the available-for-sale bonds for 2015.

What is wave soldering?

In 2007 China overtook the USA as the world’s largest emitter of CO2. Yet USA per capita emissions are three times that of China. What issues arise from this in the formulation of a global policy to reduce CO2 emissions?

What are the economic arguments for larger ‘systemically important banks’ (SIBs) having an additional capital requirement?

Why are metals better conductors of electricity than ceramics and polymers?

What factors will determine whether a country’s joining a customs union will lead to trade creation or trade diversion?

Name some of the important semiconductor materials.

A two-spindle drill simultaneously drills a ½ in hole and a ¾ in hole through a workpiece that is 1.0 inch thick. Both drills are twist drills with point angles of 118°. Cutting speed for the material is 230 ft/min. The rotational speed of each spindle can be set individually. The feed rate for both holes must be set to the same value because the 2 spindles lower at the same rate. The feed rate is set so the total metal removal rate does not exceed 1.50 in3 /min. Determine (a) the maximum feed rate (in/min) that can be used, (b) the individual feeds (in/rev) that result for each hole, and (c) the time required to drill the holes.

What is the difference between deep drawing and bar drawing?

Define epitaxial deposition.

Identify the important reasons why metals are annealed.

Melissa, Nicole, and Miguel are equal partners in the Opto Partnership (calendar-year-end entity). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Tax BasisFMV Cash $ 18,000 $ 18,000 Accounts receivable -0- 24,000 Stock investment 7,500 12,000 Land 30,000 36,000    Totals $ 55,500 $ 90,000 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $25,000. a. What are the amount and character of any recognized gain or loss to Melissa? b. What is Melissa’s basis in the distributed assets? c. What are the tax implications (amount and character of gain or loss and basis of assets) to Melissa if her outside basis is $11,000 rather than $25,000? d. What are the amount and character of any recognized gain or loss from the distribution

Tim is a plumber who joined a barter club.  This year Tim exchanges plumbing services for a new roof.  The roof is properly valued at $2,500, but Tim would have only billed $2,200 for the plumbing services.  What amount of income should Tim recognize on the exchange of his services for a roof?  Would your answer change if Tim would have normally billed $3,000 for his services?

Can unincorporated legal business entities ever be treated as corporations for tax purposes? Can legal corporations ever be treated as flow-through entities for tax purposes? Explain.

Presented below are three unrelated situations. (a) Dwayne Wade Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $12,000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 10% per year. What amount will the company receive at the time the lease expires? (b) Serena Williams Corporation, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $600,000. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? If not, what will the deficiency be? (c) Under the terms of his salary agreement, president Rex Walters has an option of receiving either an immediate bonus of $40,000, or a deferred bonus of $70,000 payable in 10 years. Ignoring tax considerations and assuming a relevant interest rate of 8%, which form of settlement should Walters accept?

Under what circumstances is it appropriate to record goodwill in the accounts? How should goodwill, properly recorded on the books, be written off in order to conform with generally accepted accounting principles?

Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Partner Outside Basis Adam $ 12,000 Alyssa 12,000 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Distribution Adam Cash     $ 16,000 Alyssa Cash          8,000 Property    8,000 (FMV)  ($6,000 basis to partnership) a. What are the amount and character of Adam’s recognized gain or loss? b. What is Adam’s remaining basis in his partnership interest? c. What are the amount and character of Alyssa’s recognized gain or loss? d. What is Alyssa’s basis in the distributed assets? e. What is Alyssa’s remaining basis in her partnership interest?

Why is it difficult to use fiscal policy to ‘fine tune’ the economy?

What are “liability gains and losses,” and how are they accounted for?

Would a tax on car tyres be a good way of restricting car usage?

Kleckner Company started operations in 2010. Although it has grown steadily, the company reported accumulated operating losses of $450,000 in its first four years in business. In the most recent year (2014), Kleckner appears to have turned the corner and reported modest taxable income of $30,000. In addition to a deferred tax asset related to its net operating loss, Kleckner has recorded a deferred tax asset related to product warranties and a deferred tax liability related to accelerated depreciation. Given its past operating results, Kleckner has established a full valuation allowance for its deferred tax assets. However, given its improved performance, Kleckner management wonders whether the company can now reduce or eliminate the valuation allowance. They would like you to conduct some research on the accounting for its valuation allowance. 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 explain to Kleckner management the importance of future taxable income as it relates to the valuation allowance for deferred tax assets. (b) What are the sources of income that may be relied upon to remove the need for a valuation allowance? (c) What are tax-planning strategies? From the information provided, does it appear that Kleckner could employ a tax-planning strategy to support reducing its valuation allowance?

1. Would it be possible for an economy to function without a central bank? 2. What effect would a substantial increase in the sale of government bonds and Treasury bills have on interest rates?