Question & Answer

Jackie has a corporate client that has recently received a 30 day notice from the IRS with a $100,000 tax assessment.  Her client is considering requesting an appeals conference to contest the assessment.  What factors should Jackie advise her client to consider before requesting an appeals conference?

1.      : Is a 1-5 grading system by principals and master teachers a valuable part of a feedback control system for teachers? Why?

“The federal income tax scores very high on the economy criterion because the current IRS budget is relatively low compared to the costs of a typical collection agency.”  Explain why this statement may be considered wrong.

What is stare decisis, and how does it relate to the Golsen rule?

Conceptually, when taxpayers receive annuity payments, how do they determine the amount of the payment they must include in gross income?

What is a partnership’s ordinary business income (loss), and how is it calculated?

Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? Indicate how this can be done and the correct accounting treatment for such a transaction.

Under what circumstances would business income from an accounting practice qualify for the deduction for qualified business income?

List two purposes of dressing a grinding wheel.

For what reasons might a corporation purchase its own stock?

1.       : How might understanding whether an employee is high or low on grit help a manager better communicate with and motivate the employee?

Provide examples of assets that do not qualify for interest capitalization.

Name and briefly describe the four types of chips that occur in metal cutting

On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities. December 31, 2013 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $20,000 $19,000 $(1,000) Colorado Co. stock 10,000 9,000 (1,000) Buffaloes Co. stock 20,000 20,600 600 Total of portfolio $50,000 $48,600 (1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2014, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. Instructions (a) Prepare the adjusting journal entry needed on December 31, 2013. (b) Prepare the journal entry to record the sale of the Colorado Company stock during 2014. (c) Prepare the adjusting journal entry needed on December 31, 2014.

Expenses, losses, and distributions to owners are all decreases in net assets. What are the distinctions among them?

What are postretirement benefits other than pensions?

How does the expense warranty approach differ from the sales warranty approach?

There are several modern-day variations of forge welding, the original welding process. Name them.

Using the facts in problem 34, if Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?  What is his marginal rate if, instead, he had $40,000 of additional deductions?

What purpose do property and casualty insurance companies serve? Explain how the characteristics of PC insurance and life insurance differ. (LO4)

In periods when home prices declined substantially, some homeowners blamed the Fed. In other periods when home prices increased, homeowners gave credit to the Fed. How can the Fed have such a large impact on home prices? How could news of a substantial increase in the general inflation level affect the Fed’s monetary policy and thereby affect home prices? (LO2; LO3)

How do you think the shape of the yield curve for commercial paper and other money market instruments compares to the yield curve for Treasury securities? Explain your logic. (LO1)

The unit melting energy for a certain sheet metal is 9.5 J/mm3. The thickness of each of the two sheets to be spot welded is 3.5 mm. To achieve required strength, it is desired to form a weld nugget that is 5.5 mm in diameter and 5.0 mm thick. The weld duration will be set at 0.3 sec. If it is assumed that the electrical resistance between the surfaces is 140 micro-ohms, and that only one-third of the electrical energy generated will be used to form the weld nugget (the rest being dissipated), determine the minimum current level required in this operation.

Are variable-rate bonds attractive to investors who expect interest rates to decrease? Explain. Would a firm that needs to borrow funds consider issuing variable-rate bonds if it expects interest rates to decrease in the future? Explain. (LO2)

Explain group plan life insurance. (LO3)