Question & Answer

Oxford Corporation began operations in 2014 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 2014 and years thereafter is 30%. In its December 31, 2014, balance sheet, what amount of deferred tax liability should be reported?

Using the IS/MP framework illustrate how the financial accelerator affects the extent of the rise in output following a positive demand-side shock.

Distinguish between a debt security and an equity security.

Hardly a day goes by without an article appearing on the crises affecting many of our financial institutions in the United States. It is estimated that the savings and loan (S&L) debacle of the 1980s, for example, ended up costing $500 billion ($2,000 for every man, woman, and child in the United States). Some argue that if the S&Ls had been required to report their investments at fair value instead of cost, large losses would have been reported earlier, which would have signaled regulators to close those S&Ls and, therefore, minimize the losses to U.S. taxpayers. Instructions Explain how reported accounting numbers might affect an individual’s perceptions and actions. Cite two examples.

Identify the principal objective in just-in-time production.

Determine whether a taxpayer who is claimed as a dependent on another return is entitled to an addition to the standard deduction for age or blindness. (Hint: Read the calculation of the standard deduction under §63.)

A test specimen in a tensile test has a gage length of 2.0 in and an area = 0.5 in2 . During the test the specimen yields under a load of 32,000 lb. The corresponding gage length = 2.0083 in. This is the 0.2 percent yield point. The maximum load of 60,000 lb is reached at a gage length = 2.60 in. Determine (a) yield strength, (b) modulus of elasticity, and (c) tensile strength. (d) If fracture occurs at a gage length of 2.92 in, determine the percent elongation. (e) If the specimen necked to an area = 0.25 in2 , determine the percent reduction in area.

On January 1, 2014, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of redemption, the unamortized premium was $15,000 and unamortized bond issue costs were $5,250. Prepare the corporation’s journal entry to record the reacquisition of the bonds.

A plastic extrusion process produces round extrudate with a mean diameter = 28.6 mm. The process is in statistical control and the output is normally distributed with standard deviation = 0.53 mm. Determine the process capability.

Describe the ideal mutual fund for investors who wish to generate tax-free income but also maintain a low degree of interest rate risk. (LO2)

What are some of the design recommendations for glass parts?

Explain how breakeven point would be affected under both absorption and variable costing.

Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:

Should the Fed or Congress decide the fate of large financial institutions that are near bankruptcy? (LO2, LO3)

There are 29 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, andeach additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 13.1 The forward movement of polymer melt in an extruder barrel is resisted by drag flow, which is caused by the resistance to flow through the die orifice: (a) true or (b) false? 13.2 Which of the following are sections of a conventional extruder barrel for thermoplastics (three best answers): (a) compression section, (b) die section, (c) feed section, (d) heating section, (e) metering section, and (f) shaping section? 13.3 Which of the following processes are associated with the production of plastic sheet and film (three correct answers): (a) blown-film extrusion process, (b) calendering, (c) chill-roll extrusion, (d) doctor blade method, (e) spinning, (f) thermoforming, and (g) transfer molding? 13.4 The principal components of an injection molding machine are which two of the following: (a) clamping unit, (b) hopper, (c) injection unit, (d) mold, and (e) part ejection unit? 13.5 The parting line in injection molding is which one of the following: (a) the lines formed where polymer melt meets after flowing around a core in the mold, (b) the narrow gate sections where the parts are separated from the runner, (c) where the clamping unit is joined to the injection unit in the molding machine, or (d) where the two mold halves come together? 13.6 The function of the ejection system is which one of the following: (a) move polymer melt into the mold cavity, (b) open the mold halves after the cavity is filled, (c) remove the molded parts from the runner system after molding, or (d) separate the part from the cavity after molding? 13.7 A three-plate mold offers which of the following advantages when compared to a two-plate mold (two best answers): (a) automatic separation of parts from runners, (b) gating is usually at the base of the part to reduce weld lines, (c) sprue does not solidify, and (d) stronger molded parts? 13.8 Which of the following defects or problems is associated with injection molding (three correct answers): (a) bambooing, (b) die swell, (c) drag flow, (d) flash, (e) melt fracture, (f) short shots, or (g) sink marks? 13.9 In rotational molding, centrifugal force is used to force the polymer melt against the surfaces of the mold cavity where solidification occurs: (a) true or (b) false? 13.10 Use of a parison is associated with which one of the following plastic shaping processes: (a) bi-injection molding, (b) blow molding, (c) compression molding, (d) pressure thermoforming, or (e) sandwich molding? 13.11 A thermoforming mold with a convex form is called which one of the following: (a) a die, (b) a negative mold, (c) a positive mold, or (d) a three-plate mold? 13.12 The term encapsulation refers to which one of the following plastics shaping processes: (a) casting, (b) compression molding, (c) extrusion of hollow forms, (d) injection molding in which a metal insert is encased in the molded part, or (e) vacuum thermoforming using a positive mold? 13.13 The two most common polymer foams are which of the following: (a) polyacetal, (b) polyethylene, (c) polystyrene, (d) polyurethane, and (e) polyvinylchloride? 13.14 In which of the following properties do plastic parts often compare favorably with metals (two best answers): (a) impact resistance, (b) resistance to ultraviolet radiation, (c) stiffness, (d) strength, (e) strength-to-weight ratio, and (f) temperature resistance? 13.15 Which of the following processes are generally limited to thermoplastic polymers (two best answers): (a) blow molding, (b) compression molding, (c) reaction injection molding, (d) thermoforming, (e) transfer molding, and (f) wire coating? 13.16 Which of the following processes would be applicable to produce hulls for small boats (three best answers): (a) blow molding, (b) compression molding, (c) injection molding, (d) rotational molding, and (e) vacuum thermoforming?

Explain how ADRs enable U.S. investors to become part owners of foreign companies. (LO7)

Define the term manufacturing system.

Explain the similarities and differences among absorption and variable costing.

Rode Inc. incurred a net operating loss of $500,000 in 2014. Combined income for 2012 and 2013 was $350,000. The tax rate for all years is 40%. Rode elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward.

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) What amounts relative to income taxes does P&G report in its: (1) 2011 income statement? (2) June 30, 2011, balance sheet? (3) 2011 statement of cash flows? (b) P&G’s income taxes in 2009, 2010, and 2011 were computed at what effective tax rates? (See the notes to the financial statements.) (c) How much of P&G’s 2011 total income taxes was current tax expense, and how much was deferred tax expense? (d) What did P&G report as the significant components (the details) of its June 30, 2011, deferred tax assets and liabilities?

Which circumstances might cause a stimulative monetary policy to be ineffective? (LO2)

What effect will the discrimination by the firm have on the wages and employment of black workers in other firms in the area if (a) these other firms discriminate against black workers; (b) they do not discriminate?

What is the GAAP definition of fair value?

Selection of appropriate standard Franklin Industries’ CEO was talking with the CFO about the appropriate standard to use for the new product being launched in the coming year. The CEO argued that standards based on ideal performance would enable profits to be maximised through improved efficiency. The CFO argued, however, that the standard should be based on attainable performance or recent average historical performance.   Required Briefly comment on which standard is best for Franklin Industries to use in developing the standard cost for the new product.

Sustainability disclosures; management accounting tools Search the newspapers/web to find examples of Australian companies disclosing their sustainability practices using management accounting information or tools such as the balanced scorecard. Provide a report on your findings.             (LO 1 and 4)