Question & Answer

: Explain how factors such as creating an open communication climate, the choice of communication channels, candor, questions, and nonverbal communications influence the quality of communication.

List some rate-sensitive assets and some rate-insensitive assets of banks. (LO3)

Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for every 10 shares of stock they already own. Madison owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year.

What are the two types of losses that can become evident in accounting for long-term contracts? What is the nature of each type of loss? How is each type accounted for?

Demonstrate with a supply and demand curve diagram the incidence of a subsidy when demand is price elastic and supply is price inelastic.

Give two examples of price discrimination. What category of price discrimination are they? In what ways do the consumers gain or lose? What information would you need to be certain in your answer?

In 12 samples of size n = 7, the average value of the sample means is x = 6.860 cm for the dimension of interest, and the mean of the ranges of the samples is R = 0.027 cm. Determine (a) lower and upper control limits for the x chart and (b) lower and upper control limits for the R chart. (c) What is your best estimate of the standard deviation of the process?

Using the Internet, find a comparison of income tax rates across states.  What state currently has the highest income tax rate?  In considering individual tax burdens across states, what other taxes should you consider?

Assume Tamar uses the IRS method of allocating expenses to rental use of the property.

Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under protection of the U.S. bankruptcy court. As a “debtor in possession,” he has negotiated the following revised loan agreement with United Bank. Perkins Inc.’s $600,000, 12%, 10-year note was refinanced with a $600,000, 5%, 10-year note. Instructions (a) What is the accounting nature of this transaction? (b) Prepare the journal entry to record this refinancing: (1) On the books of Perkins Inc. (2) On the books of United Bank. (c) Discuss whether generally accepted accounting principles provide the proper information useful to managers and investors in this situation.

Mission statement, strategy, balanced scorecard implementation Squeezers Juice and Tea Company manufactures organic juices and chai teas that are sold at whole foods stores. Several of its products have been featured in movies because the company’s products are popular with celebrities. The owners and employees value organic products and innovative combinations of juices and teas with outstanding taste. Several employees have found sources of unusual ingredients from organic farmers around the world. The ingredients are more expensive than those used by other juice manufacturers. Although Squeezers cannot set unrealistically high prices, it focuses on high quality. Demand for the company’s products is stable, even though it sets the highest prices for juices in its market. Recently, the costs of several unusual ingredients increased because of weather conditions. The owner is concerned that increasing prices any more could reduce demand. She has taken a business workshop and learned about the balanced scorecard. She wants to incorporate a balanced scorecard at Squeezers.   Required (a)     Draft a potential mission statement for Squeezers. Explain how you decided what should be included in the statement and how it should be worded. (b)     Explain the company’s business strategy and core competencies. (c)     Identify several performance objectives for each of the four perspectives. (d)     Select two performance objectives for each of the four perspectives, and identify a potential performance measure for each. Explain your choices. (e)     Describe possible methods to collect the data needed for each of the performance measures in part (d). For example, what existing information might be available? What new record-keeping might be required? Would the company need to develop surveys?

Explain five management competencies and the trend toward bosslessness in today’s world.

What determines whether someone is considered a tax return preparer?

Why are S corporations less favorable than C corporations and entities taxed as partnerships in terms of owner-related limitations?

1. What does this analysis assume about the price elasticity of demand for the new entrant (a) above PL; (b) below PL? 2. Can you think of any limitations with the limit price model?

For what reasons may governments want other governments to stick to tough climate or emissions targets and yet be not willing to so so themselves?

Identify three situations in which accounting measures are based on present values. Do these present value applications involve single sums or annuities, or both single sums and annuities? Explain.

On January 1, 2014, Harrington Company has the following defined benefit pension plan balances. Projected benefi t obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2015, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2014 2015 Service cost $150,000 $180,000 Prior service cost amortization –0– 90,000 Contributions (funding) to the plan 240,000 285,000 Benefi ts paid 200,000 280,000 Actual return on plan assets 252,000 260,000 Expected rate of return on assets 6% 8% Instructions (a) Prepare a pension worksheet for the pension plan for 2014 and 2015. (b) For 2015, prepare the journal entry to record pension-related amounts.

Define cellular manufacturing.

Describe the circumstances in which an individual taxpayer with a net §1231 gain will have different portions of the gain taxed at different rates.

1.    : Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. As a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Samantha Cordelia, an intermediate accounting student, is having difficulty amortizing bond premiums and discounts using the effective-interest method. Furthermore, she cannot understand why GAAP requires that this method be used instead of the straight-line method. She has come to you with the following problem, looking for help. On June 30, 2014, Hobart Company issued $2,000,000 face value of 11%, 20-year bonds at $2,171,600, a yield of 10%. Hobart Company uses the effective-interest method to amortize bond premiums or discounts. The bonds pay semiannual interest on June 30 and December 31. Prepare an amortization schedule for four periods. Instructions Using the data above for illustrative purposes, write a short memo (1–1.5 pages double-spaced) to Samantha, explaining what the effective-interest method is, why it is preferable, and how it is computed. (Do not forget to include an amortization schedule, referring to it whenever necessary.)

1.    In a study asking what people wanted from leaders versus followers, people ranked maturity number 8 for followers but number 15 for leaders. What might account for people wanting a higher maturity level from followers?

What types of losses may potentially be characterized as passive losses?

How do the properties of thermosetting polymers differ from those of thermoplastics?