Question & Answer

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $28,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $10,000 cash. Matt receives $3,000 cash and a parcel of land with a $7,000 fair market value and a $4,000 basis to the partnership. Matcoy has no debt or hot assets. a. What is Coy’s recognized gain or loss? What is the character of any gain or loss? b. What is Coy’s ending basis in his partnership interest? c. What is Matt’s recognized gain or loss? What is the character of any gain or loss? d. What is Matt’s basis in the distributed property? e. What is Matt’s ending basis in his partnership interest?

Irene is saving for a new car she hopes to purchase either four or six years from now.  Irene invests $10,000 in a growth stock that does not pay dividends and expects a 6 percent annual before-tax return (the investment is tax deferred).When she cashes in the investment after either four or six years, she expects the applicable marginal tax rate on long-term capital gains to be 25 percent.  a.       What will be the value of this investment four and six years from now? b.      When Irene sells the investment, how much cash will she have after taxes to purchase the new car (four and six years from now)?

1.       : What is the difference between ethnocentrism and unconscious bias? Might the two concepts also appear to be the same within some people? Explain.

What volume (cm3) and weight (g) of zinc will be deposited onto a cathodic workpart if 10 amps of current are applied for one hour?

Myers Company provides you with the following condensed balance sheet information. Assets Liabilities and Stockholders’ Equity Current assets $ 40,000 Current and long-term liabilities $100,000 Equity investments (trading) 60,000 Stockholders’ equity Equipment (net) 250,000 Common stock ($5 par) $ 20,000 Intangibles 60,000 Paid-in capital in excess of par 110,000 Total assets $410,000 Retained earnings 180,000 310,000 Total liabilities and stockholders’ equity $410,000 Instructions For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.) (a) Myers declares and pays a $0.50 per share cash dividend. (b) Myers declares and issues a 10% stock dividend when the market price of the stock is $14 per share. (c) Myers declares and issues a 30% stock dividend when the market price of the stock is $15 per share. (d) Myers declares and distributes a property dividend. Myers gives one share of its equity investment (ABC stock) for every two shares of Myers Company stock held. Myers owns 10,000 shares of ABC. ABC is selling for $10 per share on the date the property dividend is declared. (e) Myers declares a 2-for-1 stock split and issues new shares.

A pin made of alloy steel is press-fitted into a hole machined in the base of a large machine. The hole has a diameter of 2.497 in. The pin has a diameter of 2.500 in. The base of the machine is 4 ft x 8 ft. The base and pin have a modulus of elasticity of 30 x 106 lb/in2, a yield strength of 85,000 lb/in2, and a tensile strength of 120,000 lb/in2. Determine (a) the radial pressure between the pin and the base and (b) the maximum effective stress in the interface

Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August. 1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1. 2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the bill would be approximately $600. 3. On August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%. 4. A telephone bill in the amount of $117 covering August charges is unpaid at August 31. Instructions Prepare the adjusting journal entries as of August 31, 2014, suggested by the information above.

1.       Consider the example of drug arrests made by patrol officers described in Section 16-4C, “Expectancy Theory.” How did the “effort leads to performance” expectancy and the “performance leads to outcomes” expectancy lead to high performance? Be specific. How do you think “valence” was involved? Explain.

Wynn Company offers a set of building blocks to customers who send in 3 UPC codes from Wynn cereal, along with 50¢. The block sets cost Wynn $1.10 each to purchase and 60¢ each to mail to customers. During 2014, Wynn sold 1,200,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2014, 120,000 UPC codes were redeemed. Prepare Wynn’s December 31, 2014, adjusting entry.

If market interest rates are expected to decline over time, will a savings institution with rate-sensitive liabilities and a large amount of fixed-rate mortgages perform best by (a) using an interest rate swap, (b) selling financial futures, or (c) remaining unhedged? Explain. (LO4)

For the steel ring of preceding Problem 11.10(b), determine the volume of molten metal that must be poured into the mold, given that the liquid shrinkage is 0.5%, solidification shrinkage = 3%, and solid contraction after freezing = 7.2%

Leon Wight, a newly hired loan analyst, is examining the current liabilities of a corporate loan applicant. He observes that unearned revenues have declined in the current year compared to the prior year. Is this a positive indicator about the client’s liquidity? Explain.

The pension fund manager of Utterback (a U.S. firm) purchased German 20-year Treasury bonds instead of U.S. 20-year Treasury bonds. The coupon rate was 2 percentage points lower on the German bonds. Assume that the manager sold the bonds after five years. The yield over the five-year period was substantially more than the yield the manager would have received on the U.S. bonds over the same five-year period. Explain how the German bonds could have generated a higher yield than the U.S. bonds for the manager, even if the exchange rate was stable over this five-year period. (Assume that the price of either bond was initially equal to its respective par value). Be specific. (LO2, LO5)

What is a route sheet?

Assume that breaking news causes bond portfolio managers to suddenly expect much higher economic growth. How might bond prices be affected by this expectation? Explain. Now assume that breaking news causes bond portfolio managers to suddenly anticipate a recession. How might bond prices be affected? Explain. (LO2)

Collecting overhead cost information A family member asked you to review the accounting system used for Hanna’s, a custom stained glass manufacturing business. The owner currently uses a software package to keep track of her bank account, but she does not produce financial statements. The owner seeks your help in setting up a costing system so that financial statements can be produced on a monthly basis.                           Required (a)     What kind of costing system is needed for this setting? (b)     You plan to categorise the banking data for entry into the financial statement records. List the categories you might use for these entries. List only broad categories here [see parts (c), (d), and (e) for more details.] (c)      List several costs that might be included in a fixed overhead category. (d)     List several costs that might be included in a variable overhead category. (e)      List several costs that might be included in direct materials. (f)      Write a memo to the owner discussing the alternative choices for the costing system. Include an explanation of the type of information that would need to be captured to support the costing system.

A sheet-metal bending operation produces bent parts with an included angle = 92.1°. The process is in statistical control and the values of included angle are normally distributed with a standard deviation = 0.23°. The design specification on the angle = 90 ± 2°. (a) Determine the process capability. (b) If the process could be adjusted so that its mean = 90.0°, determine the value of the process capability index.

What distinguishes machining from other manufacturing processes?

Heartland Company’s budgeted sales and budgeted cost of goods sold for the coming year are $144,000,000 and $99,000,000, respectively. Short-term interest rates are expected to average 10%. If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year, compute its expected cost savings for the coming year.

To produce a 10 megabit memory chip, how many I/O pins are predicted by Rent's rule (C = 6.0 and m = 0.12)?

Martinez Corporation engaged in the following cash transactions during 2014. Sale of land and building $191,000 Purchase of treasury stock 40,000 Purchase of land 37,000 Payment of cash dividend 95,000 Purchase of equipment 53,000 Issuance of common stock 147,000 Retirement of bonds 100,000 Compute the net cash provided (used) by investing activities.

Hawkins Corporation has the following balances at December 31, 2014. Projected benefi t obligation $2,600,000 Plan assets at fair value 2,000,000 Accumulated OCI (PSC) 1,100,000 How should these balances be reported on Hawkins’s balance sheet at December 31, 2014?

The y-axis of an x-y positioning table is driven by a stepping motor that is connected to a leadscrew with a 3:1 gear reduction (3 turns of the motor for each turn of the leadscrew). The stepping motor has 72 step angles. The leadscrew has 5 threads per inch and provides an axis range = 30.0 in. There are 16 bits in each binary register used by the controller to store position data for the axis. (a) What is the control resolution of the y-axis? Determine (b) the required rotational speed of the y-axis stepping motor and (c) the corresponding pulse train frequency to drive the table in a straight line from point (x = 20 in, y = 25 in) to point (x = 4.5 in, y = 7.5 in) in exactly 30 sec. Ignore acceleration.

Human occupations have been lost as a result of technological advancements throughout history. Do you believe that the advancements in fintech will have a comparable effect on employment, leading to the replacement of human jobs with intelligent robots and software? (LO1, LO4)

The state of Georgia recently increased its tax on a pack of cigarettes by $2.00.  What type of tax is this?  Why might Georgia choose this type of tax?