Question & Answer

Suppose you asked your favorite AI learning tool “What basis does a shareholder take in property received in a liquidating distribution?” and the AI tool provided the following response:

Suppose that David has elected to account for inventories and has adopted the last-in, first-out (LIFO) inventory-flow method for his business inventory of widgets (purchase prices below).  WidgetPurchase DateDirect CostOther CostsTotal Cost #1August 15$ 2,100$ 100$ 2,200 #2October 30$ 2,200$ 150$ 2,350 #3November 10$ 2,300$ 100$ 2,400 In late December, David sold one widget, and next year David expects to purchase three more widgets at the following estimated prices: WidgetPurchase DateEstimated Cost #4Early spring$ 2,600 #5Summer$ 2,260 #6Fall$ 2,400 a) What cost of goods sold and ending inventory would David record if he elects to use the LIFO method this year?  b) If David sells two more widgets next year, what will be his cost of goods sold and ending inventory next year under the LIFO method? c) How would you answer (a) and (b) if David had initially selected the first-in, first-out (FIFO) method instead of LIFO? d) Suppose that David initially adopted the LIFO method but wants to apply for a change to FIFO next year. What would be his §481 adjustment for this change, and in what year(s) would he make the adjustment?

An orthogonal cutting operation is performed on a certain metal whose volumetric specific heat = 110 in-lb/in3 -F, and thermal diffusivity = 0.140 in2 /sec. The cutting speed = 350 ft/min, chip thickness before the cut = 0.008 in, and width of cut = 0.100 in. The cutting force is measured at 200 lb. Using Cook's equation, determine the cutting temperature if the ambient temperature = 70°F.

What are the types of situations that result in troubled debt?

In a turning operation on an aluminum alloy workpiece, the feed = 0.020 in/rev, and depth of cut = 0.250 in. The motor horsepower of the lathe is 20 hp and it has a mechanical efficiency = 92%. The unit horsepower value = 0.25 hp/(in3 /min) for this aluminum grade. What is the maximum cutting speed that can be used on this job?

A bearing for the output shaft of a 200 hp motor is to be heated to expand it enough to press on the shaft. At 70°F the bearing has an inside diameter of 4.000 in and an outside diameter of 7.000 in. The shaft has an outside diameter of 4.004 in. The modulus of elasticity for the shaft and bearing is 30 x 106 lb/in2 and the coefficient of thermal expansion is 6.7 x 10-6 in/in per °F. (a) At what temperature will the bearing have 0.005 of clearance to fit over the shaft? (b) After it is assembled and cooled, what is the radial pressure between the bearing and shaft? (c) Determine the maximum effective stress in the bearing.

Residual income; ROI; EVA The following selected data pertain to Garfield Landscaping for last year.       Required (a)           Calculate the residual income. (b)           Calculate the return on investment. (c)           Calculate the economic value added.

There are 14 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 on the quiz is based on the total number of correct answers 29.1 Welding can only be performed on metals that have the same melting point; otherwise, the metal with the lower melting temperature always melts while the other metal remains solid: (a) true, (b) false? 29.2 A fillet weld can be used to join which of the following joint types (three correct answers): (a) butt, (b) corner, (c) edge, (d) lap, and (e) tee? 29.3 A fillet weld has a cross-sectional shape that is approximately which one of the following: (a) rectangular, (b) round, (c) square, or (d) triangular? 29.4 Groove welds are most closely associated with which one of the following joint types: (a) butt, (b) corner, (c) edge, (d) lap, or (e) tee? 29.5 A flange weld is most closely associated with which one of the following joint types: (a) butt, (b) corner, (c) edge, (d) lap, or (e) tee? 29.6 For metallurgical reasons, it is desirable to melt the weld metal with minimum energy input. Which one of the following heat sources is most consistent with this objective: (a) high power, (b) high power density, (c) low power, or (d) low power density? 29.7 The amount of heat required to melt a given volume of metal depends strongly on which of the following properties (three best answers): (a) coefficient of thermal expansion, (b) heat of fusion, (c) melting temperature, (d) modulus of elasticity, (e) specific heat, (f) thermal conductivity, and (g) thermal diffusivity? 29.8 The heat transfer factor in welding is correctly defined by which one of the following descriptions: (a) the proportion of the heat received at the work surface that is used for melting, (b) the proportion of the total heat generated at the source that is received at the work surface, (c) the proportion of the total heat generated at the source that is used for melting, or (d) the proportion of the total heat generated at the source that is used for welding? 29.9 The melting factor in welding is correctly defined by which one of the following descriptions: (a) the proportion of the heat received at the work surface that is used for melting, (b) the proportion of the total heat generated at the source that is received at the work surface, (c) the proportion of the total heat generated at the source that is used for melting, or (d) the proportion of the total heat generated at the source that is used for welding? 29.10 Weld failures always occur in the fusion zone of the weld joint, since this is the part of the joint that has been melted: (a) true, (b) false?

Assume the same information in IFRS16-11, except that Angela Corporation converts its convertible bonds on January 1, 2014. Instructions (a) Compute the carrying value of the bond payable on January 1, 2014. (b) Prepare the journal entry to record the conversion on January 1, 2014. (c) Assume that the bonds were repurchased on January 1, 2014, for $1,940,000 cash instead of being converted. The net present value of the liability component of the convertible bonds on January 1, 2014, is $1,900,000. Prepare the journal entry to record the repurchase on January 1, 2014.

Why are firms likely to experience economies of scale up to a certain size and then diseconomies of scale after some point beyond that?

According to the die casting video, what materials are most common for die-casting dies?

What are the two principal aspects of product quality?

Make the calculations and plot on linearly scaled axes the relationship for unit melting energy as a function of temperature. Use temperatures as follows to construct the plot: 500°F, 1000°F, 1500°F, 2000°F, 2500°F, 3000°F, and 3500°F. On the plot, mark the positions of some of the welding metals in Table 29.2. Use of a spreadsheet program is recommended for the calculations.

According to the blow molding video, what materials are used in blow molding? Name three.

Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2014. 2. Not included in the physical count of inventory is $13,420 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Champy received it on January 3. 4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is $8,540 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. 6. Included in inventory was $10,438 of inventory held by Craig on consignment from Jackel Industries. 7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $10,520, and Kemp received the merchandise on January 5. 8. Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Instructions (a) Determine the proper inventory balance for Craig Company at December 31, 2014. (b) Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed.

Compare and contrast a retail CD and a negotiable CD. (LO2)

Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,000 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue $470,000 Cost of goods sold $410,000 Operating expenses $70,000 Long-term capital gains $2,400 §1231 gains $900 Charitable contributions $300 Municipal bond interest $300 Salary paid as a guaranteed payment to Deanne (not included in expenses) $3,000 a. Compute the adjusted basis of each partner’s interest in the partnership immediately after the formation of the partnership. b. List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income tax returns that include the results of the partnership’s first year of operations. c. Using the information generated in answering parts (a) and (b), prepare Blue Bells’ page 1 and Schedule K to be included with its Form 1065 for its first year of operations along with Schedule K-1 for Deanne. d. What are the partners’ adjusted bases in their partnership interests at the end of the first year of operations?

“A worksheet is a permanent accounting record, and its use is required in the accounting cycle.” Do you agree? Explain.

The state of Georgia recently increased its tax on a pack of cigarettes by $2.00.  What type of tax is this?  Why might Georgia choose this type of tax?

Who issues commercial paper? Which types of financial institutions issue commercial paper? Why do some firms create a department that can directly place commercial paper? Which criteria affect the decision to create such a department? (LO1)

What would happen to the TPP curve if the quantity of the fixed factor used in production were to increase to a new higher fixed level?

Spoilage journal entries Jones Company manufactures custom doors. When job 186 (a batch of 14 custom doors) was being processed in the machining department, one of the wood panels on a door split. This problem occurs periodically and is considered normal spoilage. Direct materials and labour for the door, to the point of spoilage, were $35. In addition, a storm caused a surge in electricity, and a routing machine punctured the wood for job 238. This incident occurred at the beginning of production, so spoilage amounted to only the cost of wood, at $200.   Required (a)     Prepare the journal entries for normal and abnormal spoilage. (b)     Now suppose that the wood from abnormal spoilage can be sold for $25. Record the journal entries for the disposal value. (c)      Jones Company is considering hiring someone to inspect all wood after it arrives at the plant, but prior to production. Discuss the pros and cons of hiring an inspector.

Presented below is the balance sheet of Sameed Brothers Corporation (000s omitted).   Instructions Evaluate the balance sheet presented. State briefly the proper treatment of any item criticized.

Explain how the Fed’s monetary policy may indirectly affect the prices of equity securities. (LO2)

A Six Sigma program uses three measures of defects per million (DPM) to assess the performance of a given process. Name the three measures of DPM.