Question & Answer

A part to be turned in an engine lathe must have a surface finish of 1.5 µm. The part is made of a aluminum. The cutting speed is 1.5 m/s and the depth is 3.0 mm. The nose radius on the tool = 1.0 mm. Determine the feed that will achieve the specified surface finish.

According to the video on composites, list the primary purpose of the matrix and the reinforcement in a composite.

What is the difference between a process layout and a product layout in a production facility?

Ahmed does not have enough cash on hand to pay his taxes.  He was excited to hear that he can request an extension to file his tax return.  Does this solve his problem?  What are the ramifications if he doesn’t pay his tax liability by April 15?

Riverbend Inc. received a $200,000 dividend from stock it held in Hobble Corporation.  Riverbend’s taxable income is $2,100,000 before deducting the dividends-received deduction (DRD) and a $100,000 charitable contribution.

Under what circumstances would the IRS issue an acquiescence? A nonacquiescence? An action on decision?

What is a gang-drilling machine?

Theodore, Alvin, and Simon are equal shareholders of Timeless Corp. (an S corporation). Simon wants to terminate the S election, but Theodore and Alvin disagree.  Can Simon unilaterally elect to have the S election terminated?  If not, what would Simon need to do to have the S election terminated?

A Wall Street Journal article discussed a $1.8 billion charge to income made by General Electric for postretirement benefit costs. It was attributed to previously unrecognized healthcare and life insurance cost. As financial vice president and controller for Peake, Inc., you found this article interesting because the president recently expressed interest in adopting a postemployment benefit program for Peake’s employees, to complement the company’s existing defined benefit plan. The president, Martha Beyerlein, wants to know  the expense on the new plan will be determined and what impact the accounting for the plan will have on Peake’s financial statements. Instructions (a) As financial vice president and controller of Peake, Inc., explain the calculation of postemployment benefit expense under GAAP, and indicate how the accounting for the plan will affect Peake’s financial statements. (b) Discuss the similarities and differences in the accounting for the other postemployment benefit plan relative to the accounting for the defined benefit plan.

Describe a put option on interest rate futures. How does it differ from selling a futures contract? (LO6)

Name the principal groups of processes included in fusion welding.

What is the defining characteristic of a Newtonian fluid?

Identify some of the properties for which aluminum is noted?

: Describe how ethical behavior relates to behavior governed by law or free choice.

Holt Company purchased a computer for $8,000 on January 1, 2013. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value. In 2015, the estimates are revised. Holt now feels the computer will be used until December 31, 2016, when it can be sold for $500. Compute the 2015 depreciation.

What is torque-turn tightening?

Dierdorf Inc., a closely held corporation, has decided to go public. The controller, Ed Floyd, is concerned with presenting interim data when a LIFO inventory valuation is used. What problems are encountered with LIFO inventories when quarterly data are presented?

On December 31, 2014, Iva Majoli Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-bearing note. The note was issued to yield 10% interest. Unfortunately, during 2016, Majoli began to experience financial difficulty. As a result, at December 31, 2016, Paris Bank determined that it was probable that it would receive back only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%. Instructions (a) Prepare the entry to record the issuance of the loan by Paris Bank on December 31, 2014. (b) Prepare the entry, if any, to record the impairment of the loan on December 31, 2016, by Paris Bank.

The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2014, $147,000; 2015, $185,000. Early in 2016, the following errors were discovered. 1. Depreciation of equipment for 2014 was overstated $17,000. 2. Depreciation of equipment for 2015 was understated $38,500. 3. December 31, 2014, inventory was understated $50,000. 4. December 31, 2015, inventory was overstated $16,200. Instructions Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)

It has been suggested that tax policy favors deductions for AGI compared to itemized deductions. Describe two ways in which deductions for AGI are treated more favorably than itemized deductions.

Should the Fed or Congress decide the fate of large financial institutions that are near bankruptcy? (LO2, LO3)

A U.S. insurance company purchased British 20-year Treasury bonds instead of U.S. 20-year Treasury bonds because the coupon rate was 2 percentage points higher on the British bonds. Assume that the insurance company sold the bonds after five years. Its yield over the five-year period was substantially less than the yield it would have received on the U.S. bonds over the same five-year period. Assume that the U.S. insurance company had hedged its exchange rate exposure. Given that the lower yield was not because of default risk or exchange rate risk, explain how the British bonds could have generated a lower yield than the U.S. bonds. (Assume that either type of bond could have been purchased at the par value.) (LO2, LO5)

Question: The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2013. Current assets $540,000 Debt investments 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 Instructions Prepare the required journal entries for the following unrelated items. (a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39. (b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split. (c) A dividend is declared January 5, 2014, and paid January 25, 2014, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

How should the amount of interest capitalized be disclosed in the notes to the financial statements? How should interest revenue from temporarily invested excess funds borrowed to finance the construction of assets be accounted for?

In Problem 42.4, the design specification on the diameter is 28.0 ± 2.0 mm. (a) What proportion of parts fall outside the tolerance limits? (b) If the process were adjusted so that its mean diameter = 28.0 mm and the standard deviation remained the same, what proportion of parts would fall outside the tolerance limits? (c) With the adjusted mean at 28.0 mm, determine the value of the process capability index.