Question & Answer

A welding operation on an aluminum alloy makes a groove weld. The cross-sectional area of the weld is 30.0 mm2. The welding velocity is 4.0 mm/sec. The heat transfer factor is 0.92 and the melting factor is 0.48. The melting temperature of the aluminum alloy is 650°C. Determine the rate of heat generation required at the welding source to accomplish this weld.

1. Draw a similar diagram to Figure 24.9, only this time assume that the two goods are good a measured on the vertical axis and good b measured on the horizontal axis. Assume that the country has a comparative advantage in good a. (Note that the world price ratio this time will be shallower than the domestic pre-trade price ratio.) Mark the level of exports of a and imports of b. 2. Is it possible to gain from trade if competition is not perfect?

What is working capital? How does working capital relate to the operating cycle?

What is meant by “prior service cost”? When is prior service cost recognized as pension expense?

The before-tax income for Lonnie Holdiman Co. for 2014 was $101,000 and $77,400 for 2015. However, the accountant noted that the following errors had been made: 1. Sales for 2014 included amounts of $38,200 which had been received in cash during 2014, but for which the related products were delivered in 2015. Title did not pass to the purchaser until 2015. 2. The inventory on December 31, 2014, was understated by $8,640. 3. The bookkeeper in recording interest expense for both 2014 and 2015 on bonds payable made the following entry on an annual basis. Interest Expense 15,000 Cash 15,000 The bonds have a face value of $250,000 and pay a stated interest rate of 6%. They were issued at a discount of $15,000 on January 1, 2014, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2014 and 2015. Repairs in the amount of $8,500 in 2014 and $9,400 in 2015 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges. Instructions Prepare a schedule showing the determination of corrected income before taxes for 2014 and 2015.

There are various types of patterns used in sand casting. What is the difference between a split pattern and a match-plate pattern?

Lee is 30 years old and single. Lee paid all the costs of maintaining his household for the entire year. Determine Lee’s filing status in each of the following alternative situations: a. Lee is Ashton’s uncle. Ashton is 15 years old and has gross income of $6,000. Ashton lived in Lee’s home from April 1 through the end of the year. b. Lee is Ashton’s uncle. Ashton is 20 years old, is not a full-time student, and has gross income of $7,000. Ashton lived in Lee’s home from April 1 through the end of the year. c. Lee is Ashton’s uncle. Ashton is 22 years old and was a full-time student from January through April. Ashton’s gross income was $6,000. Ashton lived in Lee’s home from April 1 through the end of the year. d. Lee is Ashton’s cousin. Ashton is 18 years old, has gross income of $3,000, and is not a full-time student. Ashton lived in Lee’s home from April 1 through the end of the year. e. Lee and Ashton are cousins. Ashton is 18 years old, has gross income of $3,000, and is not a full-time student. Ashton lived in Lee’s home for the entire year.

Agua Linda, Inc., is a calendar-year corporation. What is the original due date for the corporate tax return? What happens if the original due date falls on a Saturday?

What is a bond indenture? What is the function of a trustee with respect to the bond indenture? (LO2)

On January 1, 2014, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate broker’s commission of $36,000, legal fees of $6,000, and title guarantee insurance of $18,000. The closing statement indicated that the land value was $500,000 and the building value was $100,000. Shortly after acquisition, the building was razed at a cost of $54,000. Blair entered into a $3,000,000 fixed-price contract with Slatkin Builders, Inc. on March 1, 2014, for the construction of an office building on land site number 101. The building was completed and occupied on September 30, 2015. Additional construction costs were incurred as follows. Plans, specifi cations, and blueprints $21,000 Architects’ fees for design and supervision 82,000 The building is estimated to have a 40-year life from date of completion and will be depreciated using the 150% declining-balance method. To finance construction costs, Blair borrowed $3,000,000 on March 1, 2014. The loan is payable in 10 annual installments of $300,000 starting on March 1, 2015, plus interest at the rate of 10%. Blair’s weighted-average amounts of accumulated building construction expenditures were as follows. For the period March 1 to December 31, 2014 $1,300,000 For the period January 1 to September 30, 2015 1,900,000 Instructions (a) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of September 30, 2015. (b) Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2015 Show supporting computations in good form.

Carmine was allocated the following items from the Piccolo LLC for last year: Ordinary business loss Nondeductible penalties Tax-exempt interest income Short-term capital gain Cash distributions Rank these items in terms of the order they should be applied to adjust Carmine’s tax basis in Piccolo for the year (some items may be of equal rank).

What do you understand by people’s expectations of inflation becoming ‘anchored’? Why might this be important for actual rates of inflation?

How does increasing discharge current affect metal removal rate and surface finish in electric discharge machining?

What are some of the reasons that the components of income tax expense should be disclosed and a reconciliation between the effective tax rate and the statutory tax rate be provided?

Why may an expansion of the money supply have a relatively small effect on national income? Why may any effect be hard to predict?

One of the major groups that has been involved in the standardsetting process is the American Institute of Certified Public Accountants. Initially, it was the primary organization that established accounting principles in the United States. Subsequently, it relinquished its power to the FASB. Instructions (a) Identify the two committees of the AICPA that established accounting principles prior to the establishment of the FASB. (b) Speculate as to why these two organizations failed. In your answer, identify steps the FASB has taken to avoid failure. (c) What is the present role of the AICPA in the rule-making environment?

Assume that there is a fall in aggregate demand (for goods). Trace through the short-run and long-run effect on employment.

The board of directors of Gifford Corp. declared cash dividends of $260,000 during the current year. If dividends payable was $85,000 at the beginning of the year and $90,000 at the end of the year, how much cash was paid in dividends during the year?

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?

Why should inventories be included in (a) a statement of financial position and (b) the computation of net income?

What is the major distinction (a) between revenues and gains and (b) between expenses and losses?

What is the freeze drying process used to make certain new ceramic powders?

How can information based on past transactions be used to predict future cash flows?

Discuss the appropriate treatment in the income statement for the following items: (a) Loss on discontinued operations. (b) Non-controlling interest allocation.

Why will investment affect both actual (short-term) growth and the long-term growth in potential output? What will be the implications if these two effects differ in magnitude?