Question & Answer

What are the primary advantages of having a Codificationof generally accepted accounting principles?

Give some examples of how correcting problems in one part of the economy will create problems elsewhere.

Explain why boards of directors will often employ independent             remuneration consultants to assist in developing and assessing      compensation plans.             (LO5)

Presented below is information related to Kaisson Corporation for the last 3 years. Quantities Base-Year Cost Current-Year Cost in Ending Item Inventories Unit Cost Amount Unit Cost Amount December 31, 2013 A 9,000 $2.00 $18,000 $2.20 $19,800 B 6,000 3.00 18,000 3.55 21,300 C 4,000 5.00 20,000 5.40 21,600 Totals $56,000 $62,700 December 31, 2014 A 9,000 $2.00 $18,000 $2.60 $23,400 B 6,800 3.00 20,400 3.75 25,500 C 6,000 5.00 30,000 6.40 38,400 Totals $68,400 $87,300 December 31, 2015 A 8,000 $2.00 $16,000 $2.70 $21,600 B 8,000 3.00 24,000 4.00 32,000 C 6,000 5.00 30,000 6.20 37,200 Totals $70,000 $90,800 Instructions Compute the ending inventories under the dollar-value LIFO method for 2013, 2014, and 2015. The base period is January 1, 2013, and the beginning inventory cost at that date was $45,000. Compute indexes to two decimal places.

Amelie, a retired physician, is 66 years old. Determine her standard deduction in 2024 under the following scenarios. a. Amelie is married to Roget, age 52, and they file married filing jointly. b. Amelie is not married. c. Amelie is not married and her 10-year-old granddaughter, Emma, lives with her. Amelie supports Emma and claims her as a dependent.

Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a Ph.D. student and is unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations.

Explain the utilitarian, individualism, moral rights, justice, and practical approaches for making ethical decisions.

Identify various factors that shape a manager’s ethical decision making, including levels of moral development.

Trace through the short-run and long-run internal and external effects (under a fixed exchange rate) of (a) a fall in domestic saving; (b) a rise in the demand for exports.

Jimmy has fallen on hard times recently. Last year he borrowed $250,000 and added an additional $50,000 of his own funds to purchase $300,000 of undeveloped real estate. This year the value of the real estate dropped dramatically and Jimmy’s lender agreed to reduce the loan amount to $230,000. For each of the following independent situations, indicate the amount Jimmy must include in gross income and explain your answer:

How would you attempt to assess whether the technology used by an industry in a developing country was ‘inappropriate’?

Shawn receives stock in an S corporation when it is formed in a tax-deferred transaction by contributing land with a tax basis of $50,000 and encumbered by a $20,000 mortgage. What is Shawn’s initial basis in his S corporation stock?

Will underapplied and overapplied overhead arise under both actual and normal costing? Explain your answer.

Explain how CVP analysis can be used to make decisions about increases in advertising costs.

An extruder barrel has a diameter of 4.0 in and an L/D ratio of 28. The screw channel depth = 0.25 in, and its pitch = 4.8 in. It rotates at 60 rev/min. The viscosity of the polymer melt is 100 x 10- lb-sec/in2 . What head pressure is required to obtain a volume flow rate = 150 in3 /min?-

How does austenite differ from ferrite?

Calculate the MRS moving up the curve in Figure 6.5 between each of the points: e–d, d–c, c–b and b–a. Does the MRS diminish moving in this direction?

What is the purpose of annealing in glassworking?

Morgan Sondgeroth Inc. began operations in January 2012 and reported the following results for each of its 3 years of operations. 2012 $260,000 net loss 2013 $40,000 net loss 2014 $800,000 net income At December 31, 2014, Morgan Sondgeroth Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100; authorized, issued, and outstanding 5,000 shares $500,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 750,000 shares $750,000 Morgan Sondgeroth Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Sondgeroth began operations. The state law permits dividends only from retained earnings. Instructions (a) Compute the book value of the common stock at December 31, 2014. (b) Compute the book value of the common stock at December 31, 2014, assuming that the preferred stock has a liquidating value of $106 per share.

Give an example of how sovereign risk is related to currency swaps. (LO8)

Cost allocation has no impact on the transfer price set.  Discuss.

Explain what exchange-traded notes are and how they are used. Why are they risky? (LO4)

Explain the exchange rate system that existed during the 1950s and 1960s. How did the Smithsonian Agreement in 1971 revise it? How does today’s exchange rate system differ from the earlier system? (LO1)

An insurance company purchased bonds issued by Hartnett Company two years ago. Today, Hartnett Company has begun to issue junk bonds and is using the funds to repurchase most of its existing stock. Why might the market value of those bonds held by the insurance company be affected by this action? (LO2)

List several ways that variances can be used to improve future operations.