Question & Answer

An integrated circuit used in a memory module contains 224 memory circuits. Sixteen of these integrated circuits are packaged onto a board to provide a 256 Mbyte memory module. Use Rent's rule, Eq. (34.11), with C = 6.0 and m = 0.12 to determine the approximate number of input/output pins required in each of the integrated circuits.

1.    : As a manager, how would you use symbols to build an adaptability culture that encourages teamwork and risk taking? What kinds of symbols could you use to promote the values of an involvement culture?

What strategies will help a business maximize its current depreciation deductions (including §179)? Why might a taxpayer choose not to maximize its current depreciation deductions?

1.    : Why do you think so little attention is given to followership compared to leadership in organizations? Discuss how the role of an effective follower is similar to the role of a leader.

1. Assume that demand for a product is inelastic. Will consumer expenditure go on increasing as price rises? Would there be any limit? 2. Can you think of any examples of goods which have a totally inelastic demand (a) at all prices; (b) over a particular price range?

What is a reversing mill in rolling?

Name and sketch the five joint types.

All else being equal, should taxpayers prefer to exclude income or defer it?Why?

What is the difference between peripheral milling and face milling?

Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay’s Bank and has the following data related to the carrying and fair value for these notes. Carrying Value Fair Value December 31, 2014 $54,000 $54,000 December 31, 2015 44,000 42,500 December 31, 2016 36,000 38,000 Instructions (a) Prepare the journal entry at December 31 (Fallen’s year-end) for 2014, 2015, and 2016, to record the fair value option for these notes. (b) At what amount will the note be reported on Fallen’s 2015 balance sheet? (c) What is the effect of recording the fair value option on these notes on Fallen’s 2016 income? (d) Assuming that general market interest rates have been stable over the period, does the fair value data for the notes indicate that Fallen’s creditworthiness has improved or declined in 2016? Explain.

Kimberly is divorced and the custodial parent of a 3-year-old girl named Bailey. Kimberly and Bailey live with Kimberly’s parents, who pay all the costs of maintaining the household (such as mortgage, property taxes, and food). Kimberly pays forBailey’s clothing, entertainment, and healthinsurance costs.These costs comprised only a small part of the total costs of maintaining the household.Kimberly does not qualify as her parents’ dependent. a. Determine the appropriate filing status for Kimberly.

Jeremy (unmarried) earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremey qualifies to file as head of household and has $25,000 in itemized deductions.

Danner Inc. has a $395,000 capital loss carryover that will expire at the end of the current tax year if it is not used. Also, Danner Inc. has been a general partner in the Talisman Partnership for three years and plans to end its involvement with the partnership by receiving a liquidating distribution. Initially, all parties agreed that Danner Inc.’s liquidating distribution would include $50,000 in cash and land with a fair market value of $400,000 (tax basis of $120,000). Immediately before the distribution, Danner’s basis in its partnership interest is $150,000, which includes its $100,000 share of partnership debt.  Talisman Partnership does not hold any hot assets. a. What are the amount and character of any gain or loss to Danner Inc.? b. What is Danner Inc.’s basis in the land? c. Can you suggest a course of action that would help Danner Inc. avoid the expiration of its capital loss carryover?

Describe the difference between up milling and down milling?

What is the relationship of the asset turnover to the return on assets?

Consider the prevailing conditions for inflation (including oil prices), the economy, the budget deficit, and the Fed’s monetary policy that could affect interest rates. Based on these conditions, do you think interest rates will likely increase or decrease during this semester? Offer some logic to support your answer. Which factor do you think will have the greatest impact on interest rates? (LO2)

What would happen to price and quantity if the demand curve shifted to the left? Draw a diagram to illustrate your answer.

In Problem 3.3, determine the strength coefficient and the strain-hardening exponent in the flow curve equation. Be sure not to use data after the point at which necking occurred.

Identify at least two situations in which application of different accounting methods or accounting estimates results in difficulties in comparing companies.

How did Basel III change capital and liquidity requirements for banks? (LO3)

Juan Diego began the year with a tax basis in his partnership interest of $50,000. During the year, he was allocated $20,000 of partnership ordinary business income, $70,000 of §1231 losses, $30,000 of short-term capital losses and received a cash distribution of $50,000. a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint: See Reg. §1.704-1(d)(2) and Rev. Rul. 66-94.] b. If any deductions or losses are limited, what are the carryover amounts, and what is their character? [Hint: See Reg. §1.704-1(d).]

What is a substituted basis as it relates to stock received in exchange for property in a §351 transaction?  What is the purpose of attaching a substituted basis to stock received in a §351 transaction?

Rainmaker Company prepares its financial statements in accordance with IFRS. In 2014, Rainmaker recorded the following revaluation adjustments related to its buildings and land: The company’s building increased in value by $200,000; its land declined by $35,000. How will these revaluation adjustments affect Rainmaker’s balance sheet? Will the reporting differ under GAAP? Explain.

How are gains and losses from extinguishment of a debt classified in the income statement? What disclosures are required of such transactions?

During 2010, George Winston Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2010, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $18,000 related to the patent were incurred as of October 1, 2010. Instructions (a) Prepare all journal entries required in 2010 and 2011 as a result of the transactions above. (b) On June 1, 2012, Winston spent $9,480 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2012. Prepare all journal entries required in 2012 and 2013. (c) In 2014, Winston determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2015. Prepare all journal entries required in 2014 and 2015.