Question & Answer

In what ways might the views of different politicians on what constitutes a ‘good’ tax system conflict?

What is the constructive receipt doctrine? What types of taxpayers does this doctrine generally affect? For what tax planning strategy is the constructive receipt doctrine a potential limitation?

Emily and Tony are recently married college students.Can Emily qualify as her parents’ dependent? Explain.

Consider current conditions that could affect interest rates, including inflation (including oil prices), the economy, the budget deficit, and the Fed’s monetary policy. t Based on the prevailing conditions, do you think the values of mortgages that are sold in the secondary market will increase or decrease during this semester? Offer some logic to support your answer. Which factor do you think will have the biggest impact on the values of existing mortgages? (LO4)

What is the difference between deep drawing and bar drawing?

What is a flow-through entity, and what effect does this designation have on how business entities and their owners are taxed?

What amounts are included in gross income for the following taxpayers? Explain your answers.

During a tensile test in which the starting gage length = 125.0 mm and the cross-sectional area = 62.5 mm2 , the following force and gage length data are collected (1) 17,793 N at 125.23 mm, (2) 23,042 N at 131.25 mm, (3) 27,579 N at 140.05 mm, (4) 28, 913 N at 147.01 mm, (5) 27,578 N at 153.00 mm, and (6) 20,462 N at 160.10 mm. The maximum load is 28,913 N and the final data point occurred immediately prior to failure. (a) Plot the engineering stress strain curve. Determine (b) yield strength, (c) modulus of elasticity, and (d) tensile strength.

Tevez Company experienced an actuarial loss of $750 in its defined benefit plan in 2014. For 2014, Tevez’s revenues are $125,000, and expenses (excluding pension expense of $14,000, which does not include the actuarial loss) are $85,000. Prepare Tevez’s statement of comprehensive income for 2014.

Assume that you maintain bonds and money market securities in your portfolio, and you suddenly believe that long-term interest rates will rise substantially tomorrow (even though the market does not share the same view), while short-term interest rates will remain the same. a. How would you rebalance your portfolio between bonds and money market securities?  b. If other market participants suddenly recognize that long-term interest rates will rise tomorrow and they respond in the same manner as you do, explain how the demand for these securities (bonds and money market securities), the supply of these securities for sale, and the prices and yields of these securities will be affected. c. Assume that the yield curve is flat today. Explain how the slope of the yield curve will change tomorrow in response to the market activity. (LO2)

1.    How might the social value of low versus high power distance influence how you would lead and motivate employees? What about the value of low versus high performance orientation?

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

An orthogonal machining operation removes metal at 1.8 in3 /min. The cutting force in the process = 300 lb. The work material has a thermal diffusivity = 0.18 in2 /sec and a volumetric specific heat = 124 in-lb/in3 -F. If the feed f = to = 0.010 in and width of cut = 0.100 in, use the Cook formula to compute the cutting temperature in the operation given that ambient temperature = 70°F.

What are some of the important welding defects?

George and Wanda received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Wanda). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Wanda include in their gross income under the following independent situations?

An L-shaped part is to be bent in a V-bending operation on a press brake from a flat blank 4.0 in by 1.5 in that is 5/32 in thick. The bend of 90° is to be made in the middle of the 4-in length. (a) Determine the dimensions of the two equal sides that will result after the bend, if the bend radius = 3/16 in. For convenience, these sides should be measured to the beginning of the bend radius. (b) Also, determine the length of the part's neutral axis after the bend. (c) Where should the machine operator set the stop on the press brake relative to the starting length of the part?

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)

1.       During times of significant organizational change, such as downsizing or a pandemic, the grapevine becomes more active as anxious employees share organizational news and rumors. As a manager, what communication strategies would you employ during a time of uncertainty in the workplace? What are the advantages and disadvantages of gossip during a time of uncertainty?

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%

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)

with corporate headquarters in Pittsburgh, Pennsylvania, is one of the largest producers, transporters, distributors, and marketers of natural gas in North America. Periodically, the company experiences a decrease in the value of its gas- and oil-producing properties,and a special charge to income was recorded in order to reduce the carrying value of those assets. Assume the following information. In 2013, CNG estimated the cash inflows from its oil- and gasproducing properties to be $375,000 per year. During 2014, the write-downs described above caused the estimate to be decreased to $275,000 per year. Production costs (cash outflows) associated with all these properties were estimated to be $125,000 per year in 2013, but this amount was revised to $155,000 per year in 2014. Instructions (Assume that all cash flows occur at the end of the year.) (a) Calculate the present value of net cash flows for 2013–2015 (three years), using the 2013 estimates and a 10% discount factor. (b) Calculate the present value of net cash flows for 2014–2016 (three years), using the 2014 estimates and a 10% discount factor. (c) Compare the results using the two estimates. Is information on future cash flows from oil- and gasproducing properties useful, considering that the estimates must be revised each year? Explain.

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)

How will the composition of aggregate demand at point c\" and a\" in Figure 21.12(c) differ?

What are the three basic steps in the glassworking sequence?

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?