Question & Answer

Is it horizontally equitable for smokers and drinkers to pay more tax than non-smokers and non-drinkers?

Francine’s mother Donna and her father Darren separated and divorced in September of this year.Francine lived with both parents until the separation.Francine does not provide more than half of her own support.Francine is 15 years old at the end of the year. a. Is Francine a qualifying child to Donna?

What are the most common metals used in die casting?

Hendrickson Corporation reported net income of $50,000 in 2014. Depreciation expense was $17,000. The following working capital accounts changed. Accounts receivable $11,000 increase Available-for-sale securities 16,000 increase Inventory 7,400 increase Nontrade note payable 15,000 decrease Accounts payable 12,300 increase Compute net cash provided by operating activities.

A cup-shaped part is to be drawn without a blankholder from sheet metal whose thickness = 0.25 in. The inside diameter of the cup = 2.5 in, its height = 1.5 in, and the corner radius at the base = 0.375 in. (a) What is the minimum starting blank diameter that can be used, according to Eq. (20.14)? (b) Does this blank diameter provide sufficient material to complete the cup?

A 2.0-in-long billet with diameter = 1.25 in is direct extruded to a diameter of 0.50 in. The extrusion die angle = 90°. For the work metal, K = 45,000 lb/in2 , and n = 0.20. In the Johnson extrusion strain equation, a = 0.8 and b = 1.5. Determine (a) extrusion ratio, (b) true strain (homogeneous deformation), (c) extrusion strain, and (d) ram pressure at L = 2.0, 1.5, 1.0, 0.5 and zero in. Use of a spreadsheet calculator is recommended for part (d).

Using the facts from the previous problem, when should Reese pay the bill if she expects her marginal tax rate to be 35 percent next year? 24 percent next year?

Explain the distinction between a direct-financing lease and a sales-type lease for a lessor.

What approaches may be employed in applying the lower-of-cost-or-market procedure? Which approach is normally used and why?

Why is the orthogonal cutting model useful in the analysis of metal machining?

Veldre Company provides the following information about its defined benefit pension plan for the year 2014. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 64,000 Benefi ts paid 40,000 Plan assets at January 1, 2014 640,000 Projected benefi t obligation at January 1, 2014 700,000 Accumulated OCI (PSC) at January 1, 2014 150,000 Interest/discount (settlement) rate 10% Instructions Compute the pension expense for the year 2014.

Briefly describe the process of computing a corporation’s taxable income assuming the corporation must use GAAP to determine its book income.

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

Turner, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. During 2014, Turner, Inc. incurred costs of $1,700,000, billed its customers for $1,200,000, and collected $960,000. At December 31, 2014, the estimated future costs to complete the project total $3,300,000. Prepare Turner’s 2014 journal entries using the percentage-of-completion method.

A 250 mm diameter silicon wafer has a processable area that is circular with a diameter = 225 mm. The IC chips that will be fabricated on the wafer surface are square with 20 mm on a side. However, the processable area on each chip is only 18 mm by 18 mm. The density of circuits within each chip’s processable area is 465 circuits per mm2. (a) How many IC chips can be placed onto the wafer? (b) Using Rent’s Rule with C = 3.8 and m = 0.43, how many input/output terminals (pins) will be needed for each chip package?

Indicate some of the limitations of using surface roughness as a measure of surface texture

In an orthogonal cutting operation, the 0.250 in wide tool has a rake angle of 5°. The lathe is set so the chip thickness before the cut is 0.010 in. After the cut, the deformed chip thickness is measured to be 0.027 in. Calculate (a) the shear plane angle and (b) the shear strain for the operation.

Go through each of the determinants we have identified so far and show how the respective elasticity of demand makes the problem of traffic congestion a difficult one to tackle.

Hamderson Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2012 $120,000 34% 2013 90,000 34% 2014 (280,000) 38% 2015 220,000 38% The tax rates listed were all enacted by the beginning of 2012. Instructions (a) Prepare the journal entries for the years 2012–2015 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryback and carryforward, assuming that at the end of 2014 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (b) Using the assumption in (a), prepare the income tax section of the 2014 income statement beginning with the line “Operating loss before income taxes.” (c) Prepare the journal entries for 2014 and 2015, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (d) Using the assumption in (c), prepare the income tax section of the 2014 income statement beginning with the line “Operating loss before income taxes.”

For what reasons might GDP be a poor indicator of (i) the level of development of a country; (ii) its rate of economic development?

Cost function using regression; scatter plots; three potential cost drivers Laura Mills is the controller of Peer Jets International, a manufacturer of small corporate jets. She has undertaken a project to study the behaviour of overhead cost. She has assembled factory overhead data for the last 30 months from the company’s manufacturing facility. Laura has asked you to develop a model to predict the level of manufacturing overhead.   Required (a)          Create a scatter plot of manufacturing overhead for each of the potential cost drivers. (b)          Would you eliminate any of the potential cost drivers based on the scatter plots? Why? (c)           Explain why you create a scatter plot of the data before you perform regression analysis. (d)          To practice your regression analysis skills, perform a simple regression analysis of manufacturing overhead for each of the three potential cost drivers. Write the cost function from each regression. (e)           Based on the simple regression results, which cost driver does the best job of explaining manufacturing overhead costs? Explain. (f)           Do your regression results support your answer to part (b)? Explain.

What is the difference between a machining center and a turning center?

Exquisite Furniture designs and manufactures custom furniture from exotic materials. Explain why spoilage is sometimes recorded as a cost for a specific job and other times as overhead for this entity.

Orthogonal cutting is performed on a metal whose mass specific heat = 1.0 J/g-C, density = 2.9 g/cm3 , and thermal diffusivity = 0.8 cm2 /s. The cutting speed is 4.5 m/s, uncut chip thickness is 0.25 mm, and width of cut is 2.2 mm. The cutting force is measured at 1170 N. Using Cook's equation, determine the cutting temperature if the ambient temperature = 22°C.

Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a tax-deferred exchange. The fair market value of these assets was $287,000 on the contribution date. Dennis’s original basis in the assets he contributed was $143,000, and the accumulated depreciation on the assets was $78,000. a. What is the business’s basis in the assets it received from Dennis?  b. What would be the business’s basis if the transaction qualified as a tax-deferred exchange?