Question & Answer

During 2014, Liselotte Company earned income of $1,500,000 before income taxes and realized a gain of $450,000 on a government-forced condemnation sale of a division plant facility. The income is subject to income taxation at the rate of 34%. The gain on the sale of the plant is taxed at 30%. Proper accounting suggests that the unusual gain be reported as an extraordinary item. Illustrate an appropriate presentation of these items in the income statement.

1.       : What is an organization’s workflow technology? How do an organization’s strategy and workflow technology influence the type of structure that will be most effective?

Agua Linda Inc. is a calendar-year corporation. What is the original due date for the corporate tax return? What happens if the original due date falls on a Saturday?

Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2014. (a) Assuming that total dividends declared in 2014 were$64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should receive 2014 dividends of what amount? (b) Assuming that total dividends declared in 2014 were $64,000, and that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2013, preferred stockholders should receive 2014 dividends totaling what amount? (c) Assuming that total dividends declared in 2014 were $30,000, that the preferred stock is cumulative, nonparticipating, and was issued on January 1, 2013, and that $5,000 of preferred dividends were declared and paid in 2013, the common stockholders should receive 2014 dividends totaling what amount?

Markell’s basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Markell receives the following assets: Tax BasisFMV Cash $8,000 $8,000 Land A 20,000 45,000 Land B 20,000 25,000 a. How much gain or loss will Markell recognize on the distribution? What is the character of any recognized gain or loss? b. What is Markell’s basis in the distributed assets?

30 Cost function using high-low method Wentworth Ltd sold 100 000 1 litre bottles of mineral water last year at $4 per unit and made a profit of $50 000. This year the costs for Wentworth Ltd remained the same, it sold 120 000 units at the same price, and made a profit of $80 000.   Required   (a)   Determine the total fixed costs per year and the total variable cost per unit for Wentworth Ltd using the high-low method. (b)   Write an equation for the cost function based on your answer to (a)

Why might a company become involved in an interest rate swap contract to receive fixed interest payments and pay variable?

Assume that a country had no state education at all. For what reasons might the private education system not provide the optimal allocation of resources to and within education?

What is meant by the term interface in the context of composite materials?

On January 1, 2014, Beyonce Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John’s net assets were $13,000,000. On July 1, 2015, Beyonce paid $3,040,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John’s identifiable assets net of liabilities was equal to their carrying amount of $14,200,000. As a result of this transaction, Beyonce owns 30% of John and can exercise significant influence over John’s operating and financial policies. John reported the following net income and declared and paid the following dividends. Net Income Dividend per Share Year ended 12/31/14 $700,000 None Six months ended 6/30/15 500,000 None Six months ended 12/31/15 815,000 $1.55 Instructions (Any excess fair value is attributed to goodwill.) Determine the ending balance that Beyonce Co. should report as its investment in John Corp. at the end of 2015.

What are some of the design recommendations for glass parts?

At January 1, 2014, Langley Company’s outstanding shares included the following. 280,000 shares of $50 par value, 7% cumulative preferred stock 900,000 shares of $1 par value common stock  Net income for 2014 was $2,530,000. No cash dividends were declared or paid during 2014. On February 15, 2015, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2014. On April 1, 2014, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2014, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock. Instructions Compute earnings per share for 2014. Assume that financial statements for 2014 were issued in March 2015.

Identify the most common types of coating processes.

How might we go about assessing whether quantitative easing actually worked?

Danica Patrick, Inc. includes the following account among its trade receivables.   Instructions Age the balance and specify any items that apparently require particular attention at year-end.

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, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 34.1 How many electronic devices would be contained in an IC chip in order for it to be classified in the VLSI category: (a) 1000, (b) 10,000, (c) 1 million, or (d) 100 million? 34.2 An alternative name for chip in semiconductor processing is which one of the following (one best answer): (a) component, (b) device, (c) die, (d) package, or (e) wafer? 34.3 Which one of the following is the source of silicon for semiconductor processing: (a) pure Si in nature, (b) SiC, (c) Si3N4, or (d) SiO2? 34.4 Which one of the following is the most common form of radiation used in photolithography: (a) electronic beam radiation, (b) incandescent light, (c) infrared light, (d) ultraviolet light, or (e) X-ray? 34.5 After exposure to light, a positive resist becomes (a) less soluble or (b) more soluble to the chemical developing fluid? 34.6 Which of the following processes are used to add layers of various materials in IC fabrication (three best answers): (a) chemical vapor deposition, (b) diffusion, (c) ion implantation, (d) physical vapor deposition, (e) plasma etching, (f) thermal oxidation, and (g) wet etching? 34.7 Which of the following are doping processes in IC fabrication (two best answers): (a) chemical vapor deposition, (b) diffusion, (c) ion implantation, (d) physical vapor deposition, (e) plasma etching, (f) thermal oxidation, and (g) wet etching? 34.8 Which one of the following is the most common metal for intraconnection of devices in a silicon integrated circuit: (a) aluminum, (b) copper, (c) gold, (d) nickel, (e) silicon, or (f) silver? 34.9 Which etching process produces the more anisotropic etch in IC fabrication: (a) plasma etching or (b) wet chemical etching? 34.10 Which of the following are the two principal packaging materials used in IC packaging: (a) aluminum, (b) aluminum oxide, (c) copper, (d) epoxies, and (e) silicon dioxide? 34.11 Which of the following metals are commonly used for wire bonding of chip pads to the lead frame (two best answers): (a) aluminum, (b) copper, (c) gold, (d) nickel, (e) silicon, and (f) silver?

How does the amount of liability allocated to a partner affect the amount of gain a partner recognizes when contributing property secured by a liability?

In 2007 China overtook the USA as the world’s largest emitter of CO2. Yet USA per capita emissions are three times that of China. What issues arise from this in the formulation of a global policy to reduce CO2 emissions?

How do volume discounts from suppliers affect our assumption that the cost function is linear? Explain how we incorporate this type of cost into a CVP analysis.

Describe the graduated-payment mortgage. What type of homeowners would prefer this type of mortgage? (LO2)

Identify some of the different forms of polymer matrix composite molding compounds

Explain why organisational form may vary if specific knowledge versus general knowledge is needed for decision making.

What has been the trend in noninterest income in recent years? Explain. (LO2)

In what case does the strength coefficient have the same value as the yield strength?

Cuevas Co. is in the process of developing a revolutionary new product. A new division of the company was formed to develop, manufacture, and market this new product. As of year-end (December 31, 2014), the new product has not been manufactured for resale. However, a prototype unit was built and is in operation. Throughout 2014, the new division incurred certain costs. These costs include design and engineering studies, prototype manufacturing costs, administrative expenses (including salaries of administrative personnel), and market research costs. In addition, approximately $900,000 in equipment (with an estimated useful life of 10 years) was purchased for use in developing and manufacturing the new product. Approximately $315,000 of this equipment was built specifically for the design development of the new product. The remaining $585,000 of equipment was used to manufacture the pre-production prototype and will be used to manufacture the new product once it is in commercial production. Instructions (a) How are “research” and “development” defined in the authoritative literature (GAAP)? (b) Briefly indicate the practical and conceptual reasons for the conclusion reached by the FinancialAccounting Standards Board on accounting and reporting practices for research and development costs. (c) In accordance with GAAP, how should the various costs of Cuevas described above be recorded on the financial statements for the year ended December 31, 2014?