Question & Answer

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 blind-hole in the shape of the letter G in a 50 mm (2.0 in) cube of steel. The overall size of the \"G\" is 25 by 19 mm (1.0 by 0.75 in), the depth of the hole is 3.8 mm (0.15 in), and its width is 3 mm (1/8 in).

A corporation distributes appreciated property to a shareholder. What impact does the distribution have on the corporation’s earnings and profits?

Salazar Inc., a Colorado company, is relocating to a nearby town. It would like to trade its real property for some real property in the new location. While Salazar has found several prospective buyers for its real property and has also located several properties that are acceptable in the new location, it cannot find anyone willing to trade Salazar Inc. for its property in a like-kind exchange. Explain how a third-party intermediary could facilitate Salazar’s like-kind exchange.

Bingaman Resources sold two depreciable §1231 assets during the year. One asset resulted in a large gain (the asset was sold for more than it was purchased) and the other resulted in a small loss. Describe the §1231 netting process for Bingaman.

Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation—Equipment account has a balance of $46,500 at the present time. The company could sell the machine today for $150,000. The company president believes that the company has a “right to this gain.” What does the president mean by this statement? Do you agree?

John and Tara Smith are married and have lived in the same home for over 20 years. John’s uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim’s support by providing him with lodging valued at $5,000 and food valued at $2,200.  a. Are the Smiths able to claim Tim as a dependent?

Compute the unit melting energy for (a) aluminum and (b) steel as the sum of: (1) the heat required to raise the temperature of the metal from room temperature to its melting point, which is the volumetric specific heat multiplied by the temperature rise; and (2) the heat of fusion, so that this value can be compared to the unit melting energy calculated by Eq. (29.2). Use either the SI units orU.S. Customary units. Find the values of the properties needed in these calculations either in this text or in other references. Are the values close enough to validate Eq. (29.2)?

Compare the relative merits of increased road fuel taxes, electronic road pricing and tolls as means of reducing urban traffic congestion.

On October 1, 2014, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $120,000, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Arden’s financial statements are prepared on a calendar-year basis. Instructions Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Arden Farm Equipment Company for the entire term of the note.

1.15     Structural cost drivers (a) With reference to Marino Designs in Self-study problem 2, demonstrate the meaning of the structural cost drivers: scope, technology and experience. (b) Classify Marino Designs’ likely strategy as low cost or product differentiation. Explain.

Will speculators buy or sell Treasury bond futures contracts if they expect interest rates to increase? Explain. (LO2)

Summarise the relative benefits to consumers of (a) privatising a nationalised industry; (b) keeping it in the public sector but introducing competition.

Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2014 (warranty expense is incurred half in 2014 and half in 2015). As a result of product testing, the company estimates that the warranty cost is $390 per machine ($170 parts and $220 labor). Instructions Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts? (a) Under application of the expense warranty accrual method for: (1) Sale of machinery in 2014. (2) Warranty costs incurred in 2014. (3) Warranty expense charged against 2014 revenues. (4) Warranty costs incurred in 2015. (b) Under application of the cash-basis method for: (1) Sale of machinery in 2014. (2) Warranty costs incurred in 2014. (3) Warranty expense charged against 2014 revenues. (4) Warranty costs incurred in 2015. (c) What amount, if any, is disclosed in the balance sheet as a liability for future warranty costs as of December 31, 2014, under each method? (d) Which method best reflects the income in 2014 and 2015 of Alvarado Company? Why?

Pam Erickson Construction Company changed from the completed-contract to the percentage-of completion method of accounting for long-term construction contracts during 2015. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. (Hint: Adjust all tax consequences through the Deferred Tax Liability account.) The appropriate information related to this change is as follows. Pretax Income from: Percentage-of-Completion Completed-Contract Difference 2014 $780,000 $590,000 $190,000 2015 700,000 480,000 220,000 Instructions (a) Assuming that the tax rate is 35%, what is the amount of net income that would be reported in 2015? (b) What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?

Give some examples of commercial products which are laminar composite structures

There are 12 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. 27.1 Which of the following are the usual objectives of heat treatment (three best answers): (a) increase hardness, (b) increase melting temperature, (c) increase recrystallization temperature, (d) reduce brittleness, (e) reduce density, and (f) relieve stresses? 27.2 Of the following quenching media, which one produces the most rapid cooling rate: (a) air, (b) brine, (c) oil, or (d) pure water? 27.3 On which one of the following metals is the treatment called austenitizing be performed: (a) aluminum alloys, (b) brass, (c) copper alloys, or (d) steel? 27.4 The treatment in which the brittleness of martensite is reduced is called which one of the following: (a) aging, (b) annealing, (c) austenitizing, (d) normalizing, (e) quenching, or (f) tempering? 27.5 The Jominy end-quench test is designed to indicate which one of the following: (a) cooling rate, (b) ductility, (c) hardenability, (d) hardness, or (e) strength? 27.6 In precipitation hardening, the hardening and strengthening of the metal occurs in which one of the following steps: (a) aging, (b) quenching, or (c) solution treatment? 27.7 Which one of the following surface-hardening treatments is the most common: (a) boronizing, (b) carbonitriding, (c) carburizing, (d) chromizing, or (e) nitriding? 27.8 Which of the following are selective surface-hardening methods (three correct answers): (a) austenitizing, (b) electron beam heating, (c) fluidized bed furnaces, (d) induction heating, (e) laser beam heating, and (f) vacuum furnaces?

Describe the ways in which the timing strategy has limitations.

Explain how finance companies provide financing through leasing. (LO2)

Job costing; overhead rates The Eastern Seaboard Company uses an estimated rate for allocating factory overhead to job orders based on machine hours for the machining department and on a direct labour cost basis for the finishing department. The company budgeted the following for last year:       During December, the cost record for job 602 shows the following:   Required (a)     What is the estimated overhead allocation rate that should be used in the machining department? In the finishing department? (b)     What is the total overhead allocated to job 602? (c)      Assuming that job 602 consisted of 200 units of product, what is the unit cost for this job? (d)     What factors affect the volume of production in a period? Can we know all of the factors before the period begins? Why? (e)      Explain why the company would use two different overhead allocation bases.

Why have large banks’ noninterest income levels typically been higher than those of smaller banks? (LO2)

In a surface grinding operation performed on hardened plain carbon steel, the grinding wheel has a diameter = 200 mm and width = 25 mm. The wheel rotates at 2400 rev/min, with a depth of cut (infeed) = 0.05 mm/pass and a crossfeed = 3.50 mm. The reciprocating speed of the work is 6 m/min, and the operation is performed dry. Determine (a) length of contact between the wheel and the work and (b) volume rate of metal removed. (c) If there are 64 active grits/cm2 of wheel surface, estimate the number of chips formed per unit time. (d) What is the average volume per chip? (e) If the tangential cutting force on the work = 25 N, compute the specific energy in this operation?

Pechstein Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred

Baker Corporation owned a building located in Kansas. Baker used the building for its business operations. Last year, a tornado hit the property and completely destroyed it. This year, Baker received an insurance settlement. Baker had originally purchased the building for $350,000 and had claimed a total of $100,000 of depreciation deductions against the property. What are Baker’s realized and recognized gain or (loss) on this transaction and what is its basis in the new building in the following alternative scenarios? a. Baker received $450,000 in insurance proceeds and spent $450,000 rebuilding the building during the current year. b. Baker received $450,000 in insurance proceeds and spent $500,000 rebuilding the building during the current year. c. Baker received $450,000 in insurance proceeds and spent $400,000 rebuilding the building during the current year. d. Baker received $450,000 in insurance proceeds and spent $450,000 rebuilding the building during the next three years.

A metal removal rate of 0.01 in3/min is achieved in a certain EDM operation on a pure iron workpart. What metal removal rate would be achieved on nickel in this EDM operation, if the same discharge current were used? The melting temperatures of iron and nickel are 2802°F and 2651°F, respectively.

Alexander Enterprises leases property to Hamilton, Inc. Because Hamilton, Inc. is experiencing financial difficulty, Alexander agrees to receive five rents of $20,000 at the end of each year, with the rents deferred 3 years. What is the present value of the five rents discounted at 12%?