Question & Answer

This year, Sooner Corporation reports a deficit in current E&P of ($300,000).  Its accumulated E&P at the beginning of the year was $200,000. Sooner distributed $400,000 to its sole shareholder, Boomer, on June 30 of this year. Boomer’s tax basis in his Sooner stock before the distribution is $75,000.

What factors determine the effectiveness of discretionary fiscal policy?

Discuss the evolution of fintech. (LO1)

Suppose you asked your favorite AI query tool the following question: “Who Cares about taxes and why?”  The AI tool provided the following response:

Arnold and Lilly recently had a discussion about whether a sales tax is a proportional tax or a regressive tax.  Arnold argued that a sales tax is regressive.  Lilly countered that the sales tax is a flat tax.  Who was correct?

Describe the role of the designated market maker on the New York Stock Exchange. (LO5)

For a firm to be able to implement a strategy of price discrimination it must be able to prevent re-sale amongst its customers. What factors would tend to make it more difficult for a consumer to resell a good?

A milling operation is performed on an NC machining center. Total travel distance = 300 mm in a direction parallel to one of the axes of the worktable. Cutting speed = 1.25 m/s and chip load = 0.05 mm. The end milling cutter has four teeth and its diameter = 20.0 mm. The axis uses a DC servomotor whose output shaft is coupled to a leadscrew with pitch = 6.0 mm. The feedback sensing device connected to the leadscrew is an optical encoder that emits 250 pulses per revolution. Determine (a) feed rate and time to complete the cut, and (b) rotational speed of the motor and the pulse rate of the encoder at the feed rate indicated.

1. Will the shape of the long-run AS curve here depend on just how the ‘long’ run is defined? 2. If a shift in the aggregate demand curve from AD to AD1 in Figure 20.17 causes a movement from point a to point d in the long run, would a shift in aggregate demand from AD1 to AD cause a movement from point d back to point a in the long run?

1.              : What does it mean to be "true to yourself"? Is being true to yourself more important than achieving personal career success in a male-dominated company? Is it okay to enable the continuation of an "unhealthy" work environment for women? Why do you think the way you do about this?

What does heat of fusion mean in casting?

Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $20,000 of tax).  If Congress increases the income tax rate such that Song’s average tax rate increases from 20 percent to 25 percent, how much more income tax will she pay assuming that the income effect is descriptive?  What effect will this tax rate change have on the tax base and tax collected?

Based on your forecast of interest rates, would you recommend that investors purchase bonds today? Explain. (LO1, LO2)

What is a best-efforts agreement? (LO1)

Jake is a retired jockey who takes monthly trips to Las Vegas to gamble on horse races.  Jake also trains race horses part time at his Louisville ranch.  So far this year, Jake has won almost $47,500 during his trips to Las Vegas while spending $27,250 on travel expenses and incurring $62,400 of gambling losses.  Jake also received $60,000 in revenue from his training activities and he incurred $72,000 of associated costs.  Explain how Jake’s gambling winnings and related costs will be treated for tax purposes.  Describe the factors that will influence how Jake’s ranch expenses are treated for tax purposes.

How are a bank’s balance sheet decisions regulated? (LO2)

Why might market-orientated supply-side policies have undesirable side effects on aggregate demand?

What is an intermediate phase in the context of alloys?

What will happen to the demand for capital services and the equilibrium rental if the price of some other factor, say labour, changes? Assume that wage rates fall. Trace through the effects on a three-section diagram like that of Figure 10.13. (Clue: a fall in wages will have two significant effects: it will reduce costs and hence the price of the product, so that more will be sold; and it will make labour cheaper relative to capital. How will these two things affect the demand for capital?)

Arnold and Lilly have recently had a heated discussion about whether a sales tax is a proportional tax or a regressive tax.  Arnoldargues that a sales tax is regressive.  Lillycounters that the sales tax is a flat tax.  Who is correct?

Assume that bond market participants suddenly expect the Fed to substantially increase the money supply. (LO2) a. Assuming no threat of inflation, how would this expectation affect bond prices? b. Assuming that inflation may result, how would bond prices be affected? c. Given your answers to (a) and (b), explain why expectations of the Fed’s increase in the money supply may sometimes cause bond market participants to disagree about how bond prices will be affected.

There are 17 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, and each 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 21.1 Which of the following manufacturing processes are classified as material removal processes (two correct answers): (a) casting, (b) drawing, (c) extrusion, (d) forging, (e) grinding, (f) machining, (g) molding, (h) pressworking, and (i) spinning? 21.2 A lathe is used to perform which one of the following manufacturing operations: (a) broaching, (b) drilling, (c) lapping, (d) milling, or (e) turning? 21.3 With which one of the following geometric forms is the drilling operation most closely associated: (a) external cylinder, (b) flat plane, (c) round hole, (d) screw threads, or (e) sphere? 21.4 If the cutting conditions in a turning operation are cutting speed = 300 ft/min, feed = 0.010 in/rev, and depth of cut = 0.100 inch, which one of the following is the material removal rate: (a) 0.025 in3 /min, (b) 0.3 in3 /min, (c) 3.0 in3 /min, or (d) 3.6 in3 /min? 21.5 A roughing operation generally involves which one of the following combinations of cutting conditions: (a) high v, f, and d; (b) high v, low f and d; (c) low v, high f and d; or (d) low v, f, and d, where v = cutting speed, f = feed, and d = depth? 21.6 Which of the following are characteristics of the orthogonal cutting model (three best answers): (a) a circular cutting edge is used, (b) a multiple-cutting-edge tool is used, (c) a single-point tool is used, (d) only two dimensions play an active role in the analysis, (e) the cutting edge is parallel to the direction of cutting speed, (f) the cutting edge is perpendicular to the direction of cutting speed, and (g) the two elements of tool geometry are rake and relief angle? 21.7 The chip thickness ratio is which one of the following: (a) tc/to, (b) to/tc, (c) f/d, or (d) to/w, where tc = chip thickness after the cut, to = chip thickness before the cut, f = feed, d = depth, and w = width of cut? 21.8 Which one of the four types of chip would be expected in a turning operation conducted at low cutting speed on a brittle work material: (a) continuous, (b) continuous with built-up edge, (c) discontinuous, or (d) serrated? 21.9 According to the Merchant equation, an increase in rake angle would have which of the following results, all other factors remaining the same (two best answers): (a) decrease in friction angle, (b) decrease in power requirements, (c) decrease in shear plane angle, (d) increase in cutting temperature, and (e) increase in shear plane angle? 21.10 In using the orthogonal cutting model to approximate a turning operation, the chip thickness before the cut to corresponds to which one of the following cutting conditions in turning: (a) depth of cut d, (b) feed f, or (c) speed v? 21.11 Which one of the following metals would usually have the lowest unit horsepower in a machining operation: (a) aluminum, (b) brass, (c) cast iron, or (d) steel? 21.12 For which one of the following values of chip thickness before the cut to would you expect the specific energy in machining to be the greatest: (a) 0.010 inch, (b) 0.025 inch, (c) 0.12 mm, or (d) 0.50 mm? 21.13 Which of the following cutting conditions has the strongest effect on cutting temperature: (a) feed or (b) speed?

Despite being a publicly traded company only since 1987, Northland Cranberries of Wisconsin Rapids, Wisconsin, is one of the world’s largest cranberry growers. During its short life as a publicly traded corporation, it has engaged in an aggressive growth strategy. As a consequence, the company has taken on significant amounts of both short-term and long-term debt. The following information is taken from recent annual reports of the company.   Instructions (a) Evaluate the company’s liquidity by calculating and analyzing working capital and the current ratio. (b) The discussion of the company’s liquidity, shown below, was provided by the company in the Management Discussion and Analysis section of the company’s annual report. Comment on whether you agree with management’s statements, and what might be done to remedy the situation.

At the end of the current year, Pociek Co. has prior service cost of $9,150,000. Where should the prior service cost be reported on the balance sheet?

Explain how the CAMELS ratings are used. (LO4)