Question & Answer

If a true centrifugal casting operation were to be performed in a space station circling the Earth, how would weightlessness affect the process?

How do organisations identify the costs of a cost object?

Briefly describe the fair value hierarchy

Using the facts in problem 52, what is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid?  This would result in what type of tax rate structure

What is meant by hysteresis when applied to unemployment? How do you account for this phenomenon in the 1980s?

Dover Company began operations in 2014 and determined its ending inventory at cost and at LCNRV at December 31, 2014, and December 31, 2015. This information is presented below. Cost Net Realizable Value 12/31/14 $346,000 $322,000 12/31/15 410,000 390,000 (a) Prepare the journal entries required at December 31, 2014, and December 31, 2015, assuming that the inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method is used. (b) Prepare journal entries required at December 31, 2014, and December 31, 2015, assuming that the inventory is recorded at cost and a perpetual system using the loss method is used. (c) Which of the two methods above provides the higher net income in each year?

On January 1, 2014, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000. During the year, Edwards earned net income of $80,000 and paid dividends of $20,000. Instructions Prepare the entries for Pennington to record the purchase and any additional entries related to this investment in Edwards Company in 2014.

There are four categories of nontraditional machining processes, based on principal energy form. Name the four categories

Assume short-term and long-term interest rates are very low. You believe that the Fed will use a monetary policy to maintain these interest rates at a very low level. Do you think financial institutions that could be adversely affected by a decline in interest rates would benefit from hedging their exposure with interest rate futures? Explain. (LO2)

] Describe the two methods that taxpayers use to prepay their taxes.

Describe the circumstances in which an individual taxpayer with a net §1231 gain will have different portions of the gain taxed at different rates.

To what extent do the costs used to value inventories for external financial reporting support internal management decisions on issues such as whether to accept a special, one-off order or whether to outsource part or all of the production process?

A tapered surface is to be turned on an automatic lathe. The workpiece is 750 mm long with minimum and maximum diameters of 100 mm and 200 mm at opposite ends. The automatic controls on the lathe permit the surface speed to be maintained at a constant value of 200 m/min by adjusting the rotational speed as a function of workpiece diameter. Feed = 0.25 mm/rev and depth of cut = 3.0 mm. The rough geometry of the piece has already been formed, and this operation will be the final cut. Determine (a) the time required to turn the taper and (b) the rotational speeds at the beginning and end of the cut.

What is the deciding factor in determining whether a capital gain is a short-term or long-term capital gain?

The downsprue leading into the runner of a certain mold has a length = 175 mm. The cross-sectional area at the base of the sprue is 400 mm2 . The mold cavity has a volume = 0.001 m3 . Determine (a) the velocity of the molten metal flowing through the base of the downsprue, (b) the volume rate of flow, and (c) the time required to fill the mold cavity

Is sustainability achievable in all organisations regardless of their           operating activities?

Lehman Brothers continued to report positive earnings throughout the spring of 2008, even though mortgage valuations were clearly declining. Nevertheless, some institutional investors were concerned that Lehman Brothers might have been overstating its earnings in 2007 and early 2008. Explain why more complete and accurate disclosure by banks and other financial institutions may help to resolve financial problems. Could managers’ compensation incentives discourage banks from fully disclosing their financial condition? Why or why not? (LO5)

What is the cost of a long-term investment in bonds?

At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2015, a new income tax act is signed into law that raises the tax rate to 40% for 2015 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.

An 92% aluminum-8% copper alloy casting is made in a sand mold using a sand core that weighs 20 kg. Determine the buoyancy force in Newtons tending to lift the core during pouring. Sand density = 1.6

Toro Co. has equipment with a carrying amount of $700,000. The expected future net cash flows from the equipment are $705,000, and its fair value is $590,000. The equipment is expected to be used in operations in the future. What amount (if any) should Toro report as an impairment to its equipment?

An RSW operation is used to make a series of spot welds between two pieces of aluminum, each 2.0 mm thick. The unit melting energy for aluminum = 2.90 J/mm3. Welding current = 6,000 amps, and time duration = 0.15 sec. Assume that the resistance = 75 micro-ohms. The resulting weld nugget measures 5.0 mm in diameter by 2.5 mm thick. How much of the total energy generated is used to form the weld nugget?

There are 16 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, andeach 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. 25.1 Which one of the following conventional machining processes is closest to grinding: (a) drilling, (b) milling, (c) shaping, or (d) turning? 25.2 Of the following abrasive materials, which one has the highest hardness: (a) aluminum oxide, (b) cubic boron nitride, or (c) silicon carbide? 25.3 Smaller grain size in a grinding wheel tends to (a) degrade surface finish, (b) have no effect on surface finish, or (c) improve surface finish? 25.4 Which of the following would tend to give higher material removal rates: (a) larger grain size, or (b) smaller grain size? 25.5 Which of the following will improve surface finish in grinding (three best answers): (a) denser wheel structure, (b) higher wheel speed, (c) higher workspeeds, (d) larger infeed, (e) lower infeed, (f) lower wheel speed, (g) lower workspeed, and (h) more open wheel structure? 25.6 Which one of the following abrasive materials is most appropriate for grinding steel and cast iron: (a) aluminum oxide, (b) cubic boron nitride, (c) diamond, or (d) silicon carbide? 25.7 Which one of the following abrasive materials is most appropriate for grinding hardened tool steel: (a) aluminum oxide, (b) cubic boron nitride, (c) diamond, or (d) silicon carbide? 25.8 Which one of the following abrasive materials is most appropriate for grinding nonferrous metals: (a) aluminum oxide, (b) cubic boron nitride, (c) diamond, or (d) silicon carbide? 25.9 Which of the following will help to reduce the incidence of heat damage to the work surface in grinding (four correct answers): (a) frequent dressing or truing of the wheel, (b) higher infeeds, (c) higher wheel speeds, (d) higher workspeeds, (e) lower infeeds, (f) lower wheel speeds, and (g) lower workspeeds? 25.10 Which one of the following abrasive processes achieves the best surface finish: (a) centerless grinding, (b) honing, (c) lapping, or (d) superfinishing? 25.11 The term deep grinding refers to which one of the following: (a) alternative name for any creep feed grinding operation, (b) external cylindrical creep feed grinding, (c) grinding operation performed at the bottom of a hole, (d) surface grinding that uses a large crossfeed, or (e) surface grinding that uses a large infeed?

How could long-term monetary growth come about if the government persistently ran a public-sector surplus?

Quality of decisions Maria and Tracey became good friends while working at the same entity. Two years ago, they both decided to increase their savings so that they could eventually purchase homes. Each began by putting a portion of each month's salary into a savings account. At the end of the first year, they had each accumulated $4000. Because their savings accounts paid a very small interest rate, they decided to invest the savings to earn a higher rate of return. Maria and Tracey both hoped to save enough money to buy homes within five years.   Maria decided to take an investment course offered through the entity. The course taught her about different types of investments and strategies for investing. She then purchased and read an investment book to learn more. Maria learned that some investments are riskier than others, and that investors must balance risk against desired return. Higher risk leads to higher returns on average; but, higher risk could also lead to low returns or even loss. She also learned that investment advisers recommend diversifying risky investments. One way to diversify is to invest in mutual funds, which invest in many different organisations. Maria decided that she was willing to assume some risk, but was not comfortable with a high level. She decided to invest her $4,000 in a share market mutual fund. She read consumer reports to learn about different mutual funds, and selected a fund that invests conservatively in fairly stable companies. However, the share market did not do well in the first year. The value of her mutual fund at the end of a year was $4050.   Tracey talked with her boyfriend and other friends about how they invest. Her boyfriend’s cousin recommended investing in a start-up company that sells video games. He told her that the games were very popular with teenagers and that the company would probably be acquired, resulting in big gains for investors. This opportunity sounded good to Tracey, so she decided to invest her entire $4000 in the company’s shares. After 10 months, she was excited to learn that the company was being acquired. She received shares in the acquiring company in exchange for her original shares. At the end of the year, the market value of her shares was $8200.   Required Evaluate the quality of the investment decisions made by Maria and Tracey. Hint: Refer to figure 1.3 (on page 18). (a)          List the information used by Maria in making her investment decision. (b)          List the information used by Tracey in making her investment decision. (c)           Did Maria appear to use high-quality information? Explain. (d)          Did Tracey appear to use high-quality information? Explain. (e)           Describe Maria’s decision-making process. What did she do to explore her options? Did she appear to be biased? What were her priorities? How did she reach a conclusion? (f)           Describe Tracey’s decision-making process. What did she do to explore her options? Did she appear to be biased? What were her priorities? How did she reach a conclusion? (g)          Did Maria appear to use a high-quality decision-making process? Explain. (h)          Did Tracey appear to use a high-quality decision-making process? Explain. (i)            Given your analyses of the information and decision-making processes used by Maria and Tracey, which investor made a higher-quality decision? Explain.