Question & Answer

Morlan Corporation is preparing its December 31, 2014, financial statements. Two events that occurred between December 31, 2014, and March 10, 2015, when the statements were issued, are described below. 1. A liability, estimated at $160,000 at December 31, 2014, was settled on February 26, 2015, at $170,000. 2. A flood loss of $80,000 occurred on March 1, 2015. What effect do these subsequent events have on 2014 net income?

What will be the effect of an expansionary fiscal policy on interest rates and national income if there is a perfectly elastic supply of international finance?

For the following application, identify one or more nontraditional machining processes that might be used, and present arguments to support your selection. Assume that either the part geometry or the work material (or both) preclude the use of conventional machining. The application is a matrix of 0.1 mm (0.004 in) diameter holes in a plate of 3.2 mm (0.125 in) thick hardened tool steel. The matrix is rectangular, 75 by 125 mm (3.0 by 5.0 in) with the separation between holes in each direction = 1.6 mm ( 0.0625 in).

Explain why the tax law imposes constructive stock ownership rules on stock redemptions.

In 2024, Zach is single with no dependents.  He is not claimed as a dependent on another’s return.  All of his income is from salary and he does not have any for AGI deductions.  What is his earned income credit in 2024 in the following alternative scenarios? a. Zach is 29 years old and his AGI is $5,000.

1.            How valuable do you think being a certified PMP is?

What are the arguments for giving separate accounting recognition to the conversion feature of debentures?

If two or more firms are charging similar prices, does this imply that collusion is taking place? What evidence would you need to determine the existence of collusion?

What shaped graph would you get from the equations:                      y = –6 + 3x + 2x²                      y = 10 – 4x + x² (If you cannot work out the answer, construct a table like Table A1.9 and then plot the figures on a graph.)

dentify three ways taxpayers can pay their income taxes to the government.

Indicate whether the following items are capitalized or expensed in the current year. (a) Purchase cost of a patent from a competitor. (c) Organizational costs. (b) Research and development costs. (d) Costs incurred internally to create goodwill.

Richardson Company is contemplating the establishment of a share-based compensation plan to provide long-run incentives for its top management. However, members of the compensation committee of the board of directors have voiced some concerns about adopting these plans, based on news accountsrelated to a recent accounting standard in this area. They would like you to conduct some research on this recent standard so they can be better informed about the accounting for these plans. Instructions Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) (a) Identify the authoritative literature that addresses the accounting for share-based payment compensation plans. (b) Briefly discuss the objectives for the accounting for share-based compensation. What is the role of fair value measurement? (c) The Richardson Company board is also considering an employee share-purchase plan, but the Board does not want to record expense related to the plan. What are the IFRS requirements for the accounting for an employee share-purchase plan?

Name the four subsystems in a RAM EDM process.

Within the scope of surface texture, how is roughness distinguished from waviness?

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/ Marks-and-Spencer-Annual-report-and-financial-statements-2012.pdf. Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions. (a) Under M&S’s share-based compensation plan, share options are granted annually to key managers and directors. (1) How many options were granted during 2012 under the plan? (2) How many options were exercisable at 31 March 2012? (3) How many options were exercised in 2012, and what was the average price of those exercised? (4) How many years from the grant date do the options expire? (5) To what accounts are the proceeds from these option exercises credited? (6) What was the number of outstanding options at 31 March 2012, and at what average exercise price? (b) What number of diluted weighted-average shares outstanding was used by M&S in computing earnings per share for 2012 and 2011? What was M&S’s diluted earnings per share in 2012 and 2011? (c) What other share-based compensation plans does M&S have?

Instructions Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc. (a) What employee stock-option compensation plans are offered by Coca-Cola and PepsiCo? (b) How many options are outstanding at year-end 2011 for both Coca-Cola and PepsiCo? (c) How many options were granted by Coca-Cola and PepsiCo to officers and employees during 2011? (d) How many options were exercised during 2011? (e) What was the average exercise price for Coca-Cola and PepsiCo employees during 2011? (f) What are the weighted-average number of shares used by Coca-Cola and PepsiCo in 2011, 2010, and 2009 to compute diluted earnings per share? (g) What was the diluted net income per share for Coca-Cola and PepsiCo for 2011, 2010, and 2009?

What are the three mechanisms of grinding wheel wear?

A slab milling operation is performed on the top surface of a steel rectangular workpiece 12.0 in long by 2.5 in wide. The helical milling cutter, which has a 3.0 in diameter and ten teeth, is set up to overhang the width of the part on both sides. Cutting speed is 125 ft/min, feed is 0.006 in/tooth, and depth of cut = 0.300 in. Determine (a) the actual machining time to make one pass across the surface and (b) the maximum metal removal rate during the cut. (c) If an additional approach distance of 0.5 in is provided at the beginning of the pass (before cutting begins), and an overtravel distance is provided at the end of the pass equal to the cutter radius plus 0.5 in, what is the duration of the feed motion

The significance of financial statement data is not in the amount alone.” Discuss the meaning of this statement.

Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances:

1.       : Why do you think research has found that women receive less harsh feedback than men during performance reviews? How might that affect a woman’s career? Explain.

The accounts below appear in the ledger of Anita Baker Company. Retained Earnings Dr. Cr. Bal. Jan. 1, 2014 Credit Balance $ 42,000 Aug. 15 Dividends (cash) $15,000 27,000 Dec. 31 Net Income for 2014 $40,000 67,000 Equipment Dr. Cr. Bal. Jan. 1, 2014 Debit Balance $140,000 Aug. 3 Purchase of Equipment $62,000 202,000 Sept. 10 Cost of Equipment Constructed 48,000 250,000 Nov. 15 Equipment Sold $56,000 194,000 Accumulated Depreciation— Equipment Dr. Cr. Bal. Jan. 1, 2014 Credit Balance $ 84,000 Apr. 8 Extraordinary Repairs $21,000 63,000 Nov. 15 Accum. Depreciation on Equipment Sold 25,200 37,800 Dec. 31 Depreciation for 2014 $16,800 54,600 Instructions From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.

Using the availability heuristic, explain hindsight bias.

Compare and contrast for and from AGI deductions. Why are for AGI deductions likely more valuable to taxpayers than from AGI deductions?

Differentiate between “loss carryback” and “loss carryforward.” Which can be accounted for with the greater certainty when it arises? Why?