Question & Answer

Oak Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Glover, and has always operated as a C corporation.  However, at the beginning of this year, Glover made a qualifying S election for Oak Corp., effective January 1.  Oak Corp. did not have any C corporation earnings and profits on that date.  On June 1, Oak Corp. distributed $15,000 to Glover.  What are the amount and character of gain Glover must recognize on the distribution, and what is his basis in his Oak Corp. stock in each of the following alternate scenarios?

Many business organizations have been concerned with providing for the retirement of employees since the late 1800s. During recent decades, a marked increase in this concern has resulted in the establishment of private pension plans in most large companies and in many medium- and small-sized ones. The substantial growth of these plans, both in numbers of employees covered and in amounts of retirement benefits, has increased the significance of pension costs in relation to the financial position, results of operations, and cash flows of many companies. In examining the costs of pension plans, a CPA encounters certain terms. The components of pension costs that the terms represent must be dealt with appropriately if generally accepted accounting principles are to be reflected in the financial statements of entities with pension plans. Instructions (a) Define a private pension plan. How does a contributory pension plan differ from a noncontributory plan? (b) Differentiate between “accounting for the employer” and “accounting for the pension fund.” (c) Explain the terms “funded” and “pension liability” as they relate to: (1) The pension fund. (2) The employer. (d) (1) Discuss the theoretical justification for accrual recognition of pension costs. (2) Discuss the relative objectivity of the measurement process of accrual versus cash (pay-as-you-go) accounting for annual pension costs. (e) Distinguish among the following as they relate to pension plans. (1) Service cost. (2) Prior service costs. (3) Vested benefits.

Name the commonly used coating materials deposited by PVD onto cutting tools?

Castleman Holdings, Inc. had the following availablefor- sale investment portfolio at January 1, 2014. Evers Company 1,000 shares @ $15 each $15,000 Rogers Company 900 shares @ $20 each 18,000 Chance Company 500 shares @ $9 each 4,500 Equity investments (available-for-sale) @ cost 37,500 Fair value adjustment (available-for-sale) (7,500) Equity investments (available-for-sale) @ fair value $30,000 During 2014, the following transactions took place. 1. On March 1, Rogers Company paid a $2 per share dividend. 2. On April 30, Castleman Holdings, Inc. sold 300 shares of Chance Company for $11 per share. 3. On May 15, Castleman Holdings, Inc. purchased 100 more shares of Evers Co. stock at $16 per share. 4. At December 31, 2014, the stocks had the following price per share values: Evers $17, Rogers $19, and Chance $8. During 2015, the following transactions took place. 5. On February 1, Castleman Holdings, Inc. sold the remaining Chance shares for $8 per share. 6. On March 1, Rogers Company paid a $2 per share dividend. 7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month. 8. At December 31, 2015, the stocks had the following price per share values: Evers $19 and Rogers $21. Instructions (a) Prepare journal entries for each of the above transactions. (b) Prepare a partial balance sheet showing the investment-related amounts to be reported at December 31, 2014 and 2015.

] Fred is considering using the accrual method for his next business venture. Explain to Fred the conditions for recognizing income for tax purposes under the accrual method.

1.       You have been hired to manage a 20-person staff for Nightlight Travels, a travel agency in Las Vegas. For a full year, sales have been hammered by the COVID-19 pandemic, and staff morale has plummeted as key employees left for positions in more secure industries. The few remaining key customer relationships have been damaged by the sloppy and unprofessional work habits of the remaining staff members. Your first responsibility as a new manager is to create next year’s budget for all planned expenditures. But first you must decide if you will adopt a hierarchical approach or a decentralized approach to control. Which would you choose, and why?

: Describe the types of teams and the five contributions that teams make in organizations

Montana Matt’s Golf Inc. was formed on July 1, 2013, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $650,000 and liabilities of $200,000 (thus owners’ equity was $450,000). The fair value of Old Master’s assets is estimated to be $800,000. Included in the assets is the Old Master trade name with a fair value of $10,000 and a copyright on some instructional books with a fair value of $24,000. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Instructions (a) Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2013. How much amortization expense is included in Montana Matt’s income for the year ended December 31, 2013? Show all supporting computations. (b) Prepare the journal entry to record amortization expense for 2014. Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2014. (No impairments are required to be recorded in 2014.) (c) At the end of 2015, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $500,000. The fair value of the Old Master reporting unit is $420,000. The implied value of goodwill is $90,000. Magilke has collected the following information related to the company’s intangible assets.

: Identify ways in which team size, diversity of membership, and team roles affect team performance.

Describe the kinds of regulations that are imposed on finance companies. (LO1)

Nerwin, Inc. is a furniture manufacturing company with 50 employees. Recently, after a long negotiation with the local labor union, the company decided to initiate a pension plan as a part of its compensation plan. The plan will start on January 1, 2014. Each employee covered by the plan is entitled to a pension payment each year after retirement. As required by accounting  tandards, the controller of the company needs to report the pension obligation (liability). On the basis of a discussion with the supervisor of the Personnel Department and an actuary from an insurance company, the controller develops the following information related to the pension plan. Average length of time to retirement 15 years Expected life duration after retirement 10 years Total pension payment expected each year after retirement for all employees. Payment made at the end of the year. $700,000 per year The interest rate to be used is 8%. Instructions On the basis of the information above, determine the present value of the pension obligation (liability).

There are 11 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, andeach 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. 33.1 Machining is never used for rapid prototyping because it takes too long: (a) true or (b) false? 33.2 Which of the following rapid prototyping processes starts with a photosensitive liquid polymer to fabricate a component (two correct answers): (a) ballistic particle manufacturing, (b) fuseddeposition modeling, (c) selective laser sintering, (d) solid ground curing, and (e) stereolithography? 33.3 Of all of the current material addition rapid prototyping technologies, which one is the most widely used: (a) ballistic particle manufacturing, (b) fused deposition modeling, (c) selective laser sintering, (d) solid ground curing, and (e) stereolithography? 33.4 Which one of the following RP technologies uses solid sheet stock as the starting material: (a) ballistic particle manufacturing, (b) fused-deposition modeling, (c) laminated-object manufacturing, (d) solid ground curing, or (e) stereolithography? 33.5 Which of the following RP technologies uses powders as the starting material (two correct answers): (a) ballistic particle manufacturing, (b) fused-deposition modeling, (c) selective laser sintering, (d) solid ground curing, and (e) three-dimensional printing? 33.6 Rapid prototyping technologies are never used to make production parts: (a) true or (b) false? 33.7 Which of the following are problems with the current material addition rapid prototyping technologies (three best answers): (a) inability of the designer to design the part, (b) inability to convert a solid part into layers, (c) limited material variety, (d) part accuracy, (e) part shrinkage, and (f) poor machinability of the starting material?

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value ordinary shares. The bonds are converted on December 31, 2014. The bonds payable has a carrying value of $1,950,000 and conversion equity of $20,000. Record the conversion using the book value method.

Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,000,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were $120,000 and $30,000, respectively. Instructions Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.

What is a route sheet?

Summarize the factors that affect women’s opportunities, including the first rung of the management ladder and the female advantage.

Assume the same facts as in the previous problem, except that at the beginning of year 1 Sunita loaned Bikes-R-Us $3,000.  In year 2, Bikes-R-Us reported ordinary income of $12,000. What amount is Sunita allowed to deduct in year 1?  What are her stock and debt bases in the corporation at the end of year 1?  What are her stock and debt bases in the corporation at the end of year 2?

How would you set about assessing whether or not a country had made a net dynamic gain by joining a customs union? What sort of evidence would you look for?

Carlton Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profi t (Loss) Identifi able Assets W $ 60,000 $15,000 $167,000 X 10,000 3,000 83,000 Y 23,000 (2,000) 21,000 Z 9,000 1,000 19,000 $102,000 $17,000 $290,000 Instructions Determine which of the operating segments are reportable based on the: (a) Revenue test. (b) Operating profit (loss) test. (c) Identifiable assets test.

What are the alternative forms of ownership of a savings institution? (LO1)

What criteria do regulators use when examining a savings institution? (LO1)

On December 31, 2013, the inventory of Powhattan Company amounts to $800,000. During 2014, the company decides to use the dollar-value LIFO method of costing inventories. On December 31, 2014, the inventory is $1,053,000 at December 31, 2014, prices. Using the December 31, 2013, price level of 100 and the December 31, 2014, price level of 108, compute the inventory value at December 31, 2014, under the dollar-value LIFO method.

Explain how pension funds participate in financial markets. (LO2)

The Fed focuses its control on the federal funds rate, yet indirectly influences many other types of interest rates. Explain. (LO2)

How does high economic growth affect an SI? (LO3)