Question & Answer

What is the difference between dry pressing and semi-dry pressing of traditional ceramic parts?

Describe some ways in which taxes affect the political process in the United States.

Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,500 per month, has just purchased a new Acura. You decided to test the accuracy of the accounts receivable balance of $82,000 as shown in the ledger. The following information is available for your first year in business. (1) Collections from customers $198,000 (2) Merchandise purchased 320,000 (3) Ending merchandise inventory 90,000 (4) Goods are marked to sell at 40% above cost Instructions Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

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

What is meant by the principal–agent problem? Give two examples of this problem that you have come across in your own experience.

Explain how liabilities of an LLC (taxed as a partnership) or an S corporation affect the amount of tax losses from the entity that limited liability company members and S corporation shareholders may deduct. Do the tax rules favor LLCs or S corporations?

A plate that is 250 mm wide and 25 mm thick is to be reduced in a single pass in a two-high rolling mill to a thickness of 20 mm. The roll has a radius = 500 mm, and its speed = 30 m/min. The work material has a strength coefficient = 240 MPa and a strain hardening exponent = 0.2. Determine (a) roll force, (b) roll torque, and (c) power required to accomplish this operation.

A lease agreement between Lennox Leasing Company and Gill Company is described in IFRS21-10. Refer to the data in IFRS21-10 and do the following for the lessor. (Round all numbers to the nearest cent.) Instructions (a) Compute the amount of the lease receivable at the inception of the lease. (b) Prepare a lease amortization schedule for Lennox Leasing Company for the 5-year lease term. (c) Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2014, 2015, and 2016. The lessor’s accounting period ends on December 31. Reversing entries are not used by Lennox.

A tensile test specimen has a starting gage length = 75.0 mm. It is elongated during the test to a length = 110.0 mm before necking occurs. Determine (a) the engineering strain and (b) the true strain. (c) Compute and sum the engineering strains as the specimen elongates from: (1) 75.0 to 80.0 mm, (2) 80.0 to 85.0 mm, (3) 85.0 to 90.0 mm, (4) 90.0 to 95.0 mm, (5) 95.0 to 100.0 mm, (6) 100.0 to 105.0 mm, and (7) 105.0 to 110.0 mm. (d) Is the result closer to the answer to part (a) or part (b)? Does this help to show what is meant by the term true strain?

Levi is recommending a tax return position to his client.  What standard must he meet to satisfy his professional standards?  What is the source of this professional standard?

Cartman Corporation owns 90 shares of SP Corporation. The remaining 10 shares are owned by Kenny (an individual). After several years of operations, Cartman decided to liquidate SP Corporation by distributing the assets to Cartman and Kenny. The tax basis of Cartman’s shares is $10,000, and the tax basis of Kenny’s shares is $7,000.  SP reported the following balance sheet at the date of liquidation:

Compare the main sources and uses of funds for finance companies, insurance companies, and pension funds. (LO3)

Cost of rework; control of scrap; accounting for scrap Dapper Dan Draperies manufactures and installs custom-ordered draperies.   Required (a)     For all drapes, occasionally the sewing equipment malfunctions and the drape must be reworked. Explain how to account for the cost of rework when it is needed. (b)     Explain how to account for the cost of rework when customers choose a fabric that is known to require rework. (c)      Explain why scrap will always arise in this business. (d)     Dapper Dan can sell scraps to quilting groups or just throw them away. List several factors that could affect this decision. (e)      If Dapper Dan decides to sell scraps, explain the accounting choices for recording the sales value.

Obtain a large common nail (flat head). Measure the head diameter and thickness, as well as the diameter of the nail shank. (a) What stock length must project out of the die in order to provide sufficient material to produce the nail? (b) Using appropriate values for strength coefficient and strain hardening exponent for the metal out of which the nail is made (Table 3.4), compute the maximum force in the heading operation to form the head.

Dakota Bank has a branch overseas with the following balance sheet characteristics: 50 percent of the liabilities are rate-sensitive and denominated in Swiss francs; the remaining 50 percent of liabilities are rate-insensitive and are denominated in dollars. With regard to assets, 50 percent are rate-sensitive and are denominated in dollars; the remaining 50 percent of assets are rate-insensitive and are denominated in Swiss francs. (LO3, LO7) A. Is the performance of this branch susceptible to interest rate movements? Explain. B. Assume that Dakota Bank plans to replace its short-term deposits denominated in U.S. dollars with short-term deposits denominated in Swiss francs because Swiss interest rates are currently lower than U.S. interest rates. The asset composition would not change. This strategy is intended to widen the spread between the rate earned on assets and the rate paid on liabilities. Offer your insights into how this strategy could backfire. C. One consultant has suggested to Dakota Bank that it could avoid exchange rate risk by making loans in whatever currencies it receives as deposits. In this way, it will not have to exchange one currency for another. Offer your insights into whether this strategy has any disadvantages.

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $12,000, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,200, and received credit on account. 15 Purchased merchandise on account, $16,000, terms 1/10, n/60. 25 Purchased merchandise on account, $20,000, terms 2/10, n/30. 28 Paid invoice of August 15 in full. Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why?

What are some of the important reasons why manufactured parts must be cleaned?

Name the four basic categories of processes used to shape rubber

Don Juan, a single taxpayer, is the sole owner, of DJ’s Inc., an S corporation. In 2024, DJ’s Inc. incurred a massive $600,000 business loss, all of which is allocable to Don Juan as the sole shareholder. Assume that the $600,000 loss is not limited by the basis, at-risk, or passive loss rules and that Don Juan has no other business income or business losses. How much of the $600,000 loss will Don Juan be able to deduct this year? What happens to any loss not deducted this year?

What is meant by the term interface in the context of composite materials?

Samantha Cordelia, an intermediate accounting student, is having difficulty amortizing bond premiums and discounts using the effective-interest method. Furthermore, she cannot understand why GAAP requires that this method be used instead of the straight-line method. She has come to you with the following problem, looking for help. On June 30, 2014, Hobart Company issued $2,000,000 face value of 11%, 20-year bonds at $2,171,600, a yield of 10%. Hobart Company uses the effective-interest method to amortize bond premiums or discounts. The bonds pay semiannual interest on June 30 and December 31. Prepare an amortization schedule for four periods. Instructions Using the data above for illustrative purposes, write a short memo (1–1.5 pages double-spaced) to Samantha, explaining what the effective-interest method is, why it is preferable, and how it is computed. (Do not forget to include an amortization schedule, referring to it whenever necessary.)

Cost driver selection For each of the following activities undertaken to bake pastries and cakes, identify a suitable cost driver to allocate costs. (a)          Mixing ingredients (b)          Baking pastries and cakes (c)           Decorating cakes (d)          Packing pastries and cakes on trays (e)           Sales (f)           Dispatch to customers

What are the three basic methods by which metals can be strengthened?

In a tensile test a metal begins to neck at a true strain = 0.28 with a corresponding true stress = 345.0 MPa. Without knowing any more about the test, can you estimate the strength coefficient and the strain-hardening exponent in the flow curve equation?

Part B: $187,222 computed as follows: Description Amount Explanation (1) AGI$207,000  From AGI deductions: a) and b) Medical expenses 0 Medical expenses in excess of 7.5 percent of AGI are deductible. See note A below. c) and d) State taxes 2,050 State income taxes paid last year are deductible ($1,800 withheld and $250 overpayment applied on last year’s return treated as paid last year. e) Real property taxes 3,200 Real property taxes deductible from AGI. Payment to developer is not a tax. f) Personal property taxes 200 Property tax on personal property based on value deductible from AGI g) Interest on loans secured by her home 12,300 Primary home loan and home equity loan deductible from AGI h) Charitable contributions 1,828 See note B below i) Investment expenses and tax return preparation fees 0 Nondeductible expenses j) Horse racing activities 0 Nondeductible hobby expenses k) Gambling losses 200 Gambling losses are limited to earnings from gambling deductible as a miscellaneous itemized deduction but not subject to 2% of AGI floor or phase out. (2) Total itemized deductions19,778 (3) Standard deduction 14,600 Single taxpayer (4) Greater of Itemized deductions or standard deduction 19,778 Greater of (2) or (3). Shauna should choose to itemize deductions. Taxable income $187,222 (1) − (4) Note A: $0. Medical expenses = $4,680 (medical expenses for broken ankle), + $24 (115 miles × 21¢ per mile) + 3,400 (unreimbursed health insurance premiums) + 3,000 (Lasik eye surgery) + 450 (other medical expenses) − $15,525 (AGI of 207,000 × 7.5 percent) < $0. Because 7.5 percent of Shauna’s AGI exceeds her total medical expenses, Shauna is unable to deduct any medical expenses. Note B: $1,828. Capital gain property generally in the form of stock is deductible at FMV; Thus, Shauna can deduct $1,000 for her ZYX stock donation to the Red Cross. Cash contributions of $300 are fully deductible. Religious artifacts are used by church in its normal function as a non-profit organization and thus are deductible at FMV of $500. Finally, Shauna may deduct $28 (as a cash donation) expense for her charitable mileage (200 miles × 14¢ per mile). Note that the value of services donated is not deductible. Accordingly, Shauna’s charitable contribution deduction is $1,828 (1,000 + 300 + 500 + 28). Shauna need not be concerned about the AGI-based limitations on her contributions because her AGI is relatively high and her contributions are relatively low.