Question & Answer

Alladin Company purchased Machine #201 on May 1, 2014. The following information relating to Machine #201 was gathered at the end of May. Price $85,000 Credit terms 2/10, n/30 Freight-in $ 800 Preparation and installation costs $ 3,800 Labor costs during regular production operations $10,500 It is expected that the machine could be used for 10 years, after which the salvage value would be zero. Alladin intends to use the machine for only 8 years, however, after which it expects to be able to sell it for $1,500. The invoice for Machine #201 was paid May 5, 2014. Alladin uses the calendar year as the basis for the preparation of financial statements. Instructions (a) Compute the depreciation expense for the years indicated using the following methods. (Round to thenearest dollar.) (1) Straight-line method for 2014. (2) Sum-of-the-years’-digits method for 2015. (3) Double-declining-balance method for 2014. (b) Suppose Kate Crow, the president of Alladin, tells you that because the company is a new organization, she expects it will be several years before production and sales reach optimum levels. She asks you to recommend a depreciation method that will allocate less of the company’s depreciation expense to the early years and more to later years of the assets’ lives. What method would you recommend?

Describe some of the financial technologies that banks have incorporated into their daily operations. (LO4)

6 Explain differences in social values and communication challenges across country cultures.

Presented below are three different transactions related to materiality. Explain whether you would  classify these transactions as material. (a) Blair Co. has reported a positive trend in earnings over the last 3 years. In the current year, it reduces its bad debt allowance to ensure another positive earnings year. The impact of this adjustment is equal to 3% of net income. (b) Hindi Co. has an extraordinary gain of $3.1 million on the sale of plant assets and a $3.3 million loss on the sale of investments. It decides to net the gain and loss because the net effect is considered immaterial. Hindi Co.’s income for the current year was $10 million. (c) Damon Co. expenses all capital equipment under $25,000 on the basis that it is immaterial. The company has followed this practice for a number of years.

Dean Kastner is 78 years old and lives by himself in an apartment in Chicago.Dean’s gross income for the year is $2,500.Dean’s support is provided as follows:Himself (5 percent, his daughters Camille (25 percent) and Rachel (30 percent), his son Zander (5 percent), his friend Frankie (15 percent), and his niece Sharon (20 percent).

Name some of the reasons for the commercial importance of powder metallurgy technology.

A vertical true centrifugal casting process is used to cast brass tubing that is 15.0 in long and whose outside diameter = 8.0 in. If the speed of rotation during solidification is 1000 rev/min, determine the inside diameters at the top and bottom of the tubing if the total weight of the final casting = 75.0 lbs.

Suppose you asked your favorite AI query tool “For purposes of §721, what constitutes property?” and the AI tool responded as follows:

Lance contributed investment property worth $500,000, purchased three years ago for $200,000 cash, to Cloud Peak LLC in exchange for an 85 percent profits and capital interest in the LLC. Cloud Peak owes $300,000 to its suppliers but has no other liabilities. a. What is Lance’s tax basis in his LLC interest? b. What is Lance’s holding period in his interest? c. What is Cloud Peak’s basis in the contributed property? d. What is Cloud Peak’s holding period in the contributed property?

What is the relationship between ‘successful’ supply-side policies and unemployment in (i) the short run and (ii) the long run, according to (a) Keynesian and (b) monetarist assumptions?

What are the functions served by the bit of a soldering iron in hand soldering?

Suppose you asked your favorite AI query tool the following question: “Don Juan, a single taxpayer, is the sole owner of DJ’s Inc., an S corporation. In 2024, DJ’s Inc. incurred a massive $600,000 business loss, all of which is allocable to Don Juan as the sole shareholder. Assume that the $600,000 loss is not limited by the basis, at-risk, or passive loss rules and that Don Juan has no other business income or business losses. How much of the $600,000 loss will Don Juan be able to deduct in 2024?”  The AI tool provided the following response:

At December 31, 2014, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2023 $2,000,000 Discount on bonds payable 88,000 Interest payable 80,000 Show how the above accounts should be presented on the December 31, 2014, balance sheet, including the proper classifications.

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

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

Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2014. 2. An inventory count on August 31 shows $450 of supplies on hand. 3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,800 was earned prior to August 31. 5. Salaries of $375 were unpaid at August 31. 6. Rentals of $800 were due from tenants at August 31. 7. The mortgage interest rate is 8% per year. Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Omit explanations.) (b) Prepare an adjusted trial balance on August 31.

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to reporting accounting changes.

What is the main purpose of the Pension Benefit Guarantee Corporation (PBGC)? (LO3)

Quantity requirements are to be planned for component C2 in product P1. Required deliveries for P1 are given in Table 41.1. Ordering, manufacturing, and assembly lead times are as follows: for P1 and C2, the lead time is one week; and for S1 and M2, the lead time is two weeks. Given the product structure in Figure 41.4, determine the time-phased requirements for M2, C2, and S1 to meet the master schedule for P1. Assume no common use items and all on-hand inventories and scheduled receipts are zero. Use a format similar to Table 41.2 and develop a spreadsheet calculator to solve. Ignore demand for P1 beyond period 10.

A leadscrew with a 7.5 mm pitch drives a worktable in an NC positioning system. The leadscrew is powered by a stepping motor which has 200 step angles. The worktable is programmed to move a distance of 120 mm from its present position at a travel speed of 300 mm/min. Determine (a) the number of pulses required to move the table the specified distance and (b) the required motor speed and pulse rate to achieve the desired table speed.

Describe the Financial Services Modernization Act of 1999. Explain how it affected commercial bank operations and how it changed the competitive landscape among financial institutions. (LO2)

What are the economic arguments for larger ‘systemically important banks’ (SIBs) having an additional capital requirement?

Priya works for Shine Company, a retailer of upscale jewelry. How much taxable income does Priya recognize under the following scenarios?

Thriller Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:  Joe Jackson400 Mike Jackson (Joe’s son)200 Jane Jackson (Joe’s daughter)200 Vinnie Price (unrelated)   200   Total1,000   Thriller Corporation has current E&P of $300,000 for this year and accumulated E&P at January 1 of this year of $500,000.  During this year, the corporation made the following distributions to its shareholders:  03/31: Paid a distribution of $10 per share to each shareholder ($10,000 in total).   06/30: Redeemed 200 shares of Joe’s stock for $200,000.  Joe’s basis in the 200 shares redeemed was $100,000.   09/30: Redeemed 60 shares of Vinnie’s stock for $60,000. His basis in the 60 shares was $36,000.   12/31: Paid a distribution of $10 per share to each shareholder ($7,400 in total).

1.       : Until Sheryl Sandberg was promoted to chief operating officer of Facebook in 2012, its board was composed of only men. Yet a majority of Facebook’s users are women. Given this demographic, explain how Facebook might benefit from increasing the presence of women on its corporate board.