Question & Answer

Gerald Englehart Industries changed from the doubledeclining- balance to the straight-line method in 2015 on all its plant assets. There was no change in the assets’ salvage values or useful lives. Plant assets, acquired on January 2, 2012, had an original cost of $1,600,000, with a $100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was $270,000 in 2014 and $300,000 in 2015. Instructions (a) Prepare the journal entry(ies) to record depreciation expense in 2015. (b) Starting with income before depreciation expense, prepare the remaining portion of the income nstatement for 2014 and 2015.

From the late 1960s through to 2000 the share of capital spending in total public-sector spending in the UK fell. What could have driven this change and does the composition of public spending matter?

If a taxpayer has owned a building for 10 years and decides that it should make significant improvements to the building, what is the recovery period for the improvements?

The largest axis of a Cartesian coordinate robot has a total range of 750 mm. It is driven by pulley system capable of a mechanical accuracy = 0.25 mm and repeatability = ±0.15 mm. Determine the minimum number of bits required in the binary register for the axis in the robot's control memory.

For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income. Identify a tax authority that supports your analysis.

Sprague Company has been operating for several years, and on December 31, 2014, presented the following balance sheet.   The net income for 2014 was $25,000. Assume that total assets are the same in 2013 and 2014. Instructions Compute each of the following ratios. For each of the four, indicate the manner in which it is computed and its significance as a tool in the analysis of the financial soundness of the company. (a) Current ratio. (c) Debt to assets. (b) Acid-test ratio. (d) Return on assets.

Table 6.4 illustrates five different short-run production functions: i.e. where the number of machines remains constant at one, two, three, four or five. In each case explain if there are diminishing or increasing marginal returns

What is Circular 230?

What is the proper accounting for volume discounts on sales of products?

Explain why the market for auction-rate securities suffered in 2008. (LO4)

Why does the required rate of return for a particular bond change over time? (LO2)

In 2014, Steinrotter Construction Corp. began construction work under a 3-year contract. The contract price was $1,000,000. Steinrotter uses the percentage-of-completion method for financial accounting purposes. The income to be recognized each year is based on the proportion of cost incurred to total estimated costs for completing the contract. The financial statement presentations relating to this contract at December 31, 2014, are shown below. Balance Sheet Accounts receivable $18,000 Construction in process $65,000 Less: Billings 61,500 Costs and recognized profi t in excess of billings 3,500 Income Statement Income (before tax) on the contract recognized in 2014 $19,500 Instructions (a) How much cash was collected in 2014 on this contract? (b) What was the initial estimated total income before tax on this contract?

Explain what is meant by interest elasticity. Would you expect federal government demand for loanable funds to be more or less interest-elastic than household demand for loanable funds? Why? (LO1)

What is the danger of issuing too much stock? What is the role of the securities firm that serves as the underwriter, and how can it ensure that the firm does not issue too much stock? (LO2, LO4)

1.    : Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. As a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

1.              : Tell Carolyn Campbell that employee volunteerism is important to the company and that while her performance evaluation will not be affected by her decision, she should consider helping Hayes because it is an opportunity to help a worthy community project.

What is a gang-drilling machine?

What is so special about the superalloys? What distinguishes them from other alloys?

Assume that stocks in the United Kingdom become very attractive to U.S. investors. How could this affect the value of the British pound? Explain. (LO2)

1.       : Why do you think research has found that women receive less harsh feedback than men during performance reviews? How might that affect a woman’s career? Explain.

Yong’s tax return was audited because he calculated his tax liability incorrectly.  What IRS audit procedure identified his tax return for audit?

Hawkins Construction Co. has a $60 million contract to construct a highway overpass and cloverleaf. The total estimated cost for the project is $50 million. Costs incurred in the first year of the project are $8 million. Hawkins Construction Co. appropriately uses the percentageof- completion method. How much revenue and gross profit should Hawkins recognize in the first year of the project?

How is isostatic pressing distinguished from conventional pressing and sintering in PM?

How should consolidated financial statements be reported this year when statements of individual companies were presented last year?

Differentiate between “accounting for the employer” and “accounting for the pension fund.”