Question & Answer

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?

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.

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?

What is a trimming operation in the context of impression die forging?

A taxpayer is planning to stay in their second home for the entire month of September but not any other days during the year. They would like the home to fall into the residence-with-significant-rental-use category for tax purposes. What is the maximum number of days they can rent out the home and have it qualify?

1.      : What type of team does the new CIO have? What do you see as the key problem with the team?

What decision approach would you have used if you were Tate? Why?

What does the term size effect mean in metal cutting?

Different types of financial institutions commonly interact. Specifically, they may provide loans to each other and take opposite positions on many different types of financial agreements, whereby one will owe the other based on a specific financial outcome. Explain why these kinds of relationships create concerns about systemic risk. (LO4)

Explain the difference between an ideal standard and a currently          attainable standard.

Why are abrasive processes technologically and commercially important?

Jeremy earned $100,000 in salary and $6,000 in interest income during the year.Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $17,000 in itemized deductions.Neither of his dependents qualifies for the child tax credit. a. Use the 2017tax rate schedules to determine Jeremy’s taxes due.

On February 1, 2014, Hewitt Construction Company obtained a contract to build an athletic stadium. The stadium (for a local high school) was to be built at a total cost of $5,400,000 and was scheduled for completion by September 1, 2016. One clause of the contract stated that Hewitt was to deduct $15,000 from the $6,600,000 billing price for each week that completion was delayed. Completion was delayed 6 weeks, which resulted in a $90,000 penalty. Below are the data pertaining to the construction period. 2014 2015 2016 Costs to date $1,620,000 $3,850,000 $5,500,000 Estimated costs to complete 3,780,000 1,650,000 –0– Progress billings to date 1,200,000 3,300,000 6,510,000 Cash collected to date 1,000,000 2,800,000 6,510,000 Instructions (a) Using the percentage-of-completion method, compute the estimated gross profit recognized in the years 2014–2016. (b) Prepare a partial balance sheet for December 31, 2015, showing the balances in the receivables and inventory accounts.

: Describe how motivation is related to individual needs

: Describe content theories of motivation.

Identify sources of leader power and the tactics that leaders use to influence others.

Sasha owes additional tax imposed in a recent audit.  In addition to the tax, will she be assessed other amounts?  If so, how will these amounts be determined?

: Describe process theories of motivation.

Widjaja Company is accounting for a longterm construction contract using the percentage-of-completion method. It is a 4-year contract that is currently in its second year. The latest estimates of total contract costs indicate that the contract will be completed at a profit to Widjaja Company. Instructions (a) What theoretical justification is there for Widjaja Company’s use of the percentage-of-completion method? (b) How would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financial statements. (c) How would the income recognized in the second year of the 4-year contract be determined using the cost-to-cost method of determining percentage of completion? (d) What would be the effect on earnings per share in the second year of the 4-year contract of using the percentage-of-completion method instead of the completed-contract method? Discuss.

: Explain how the reinforcement perspective can be used to motivate employees.

Describe the implementation process for the balanced scorecard.           (LO4)