Question & Answer

1. The following table shows data for a monopsonist employer. Fill in the missing figures. How many workers should the firm employ if it wishes to maximise profits? 2. Will a monopsony typically also be a monopoly? Try to think of some examples of monopsonists that are not monopolists, and monopolists that are not monopsonists.

1.       : Describe specific ways that you might incorporate Twitter into an organization’s communication with customers. How about with employees?

JB Corporation is a C corporation owned 80 percent by Jacob and 20 percent by Bauer.  Jacob would like JB to make an S election, but Bauer is opposed to the idea.  Can JB elect to be taxed as an S corporation without Bauer’s consent?  Explain.

In 2024, Carson is claimed as a dependent on his parents’ tax return. His parents report taxable income of $200,000 (married filing jointly). Carson’s parents provided most of his support. What is Carson’s tax liability for the year in each of the following alternative circumstances?

When a taxpayer sells an asset, what is the difference between realized and recognized gain or loss on the sale?

Rex and Felix are the sole shareholders of the Dogs and Cats Corporation (DCC). After several years of operations using the accrual method, they decided to liquidate the corporation and operate the business as a partnership. Rex has a tax basis in his shares of $60,000 and Felix has a tax basis in his shares of $20,000. Rex and Felix hired a lawyer to draw up the legal papers to dissolve the corporation, but they need some tax advice from you, their trusted accountant. DCC’s tax accounting balance sheet at the date of liquidation is as follows:  AssetsTax BasisFMV Cash$30,000$30,000 Accounts receivable 10,000 10,000 Inventory 10,000 20,000 Equipment 30,000 20,000 Building 15,000 30,000 Land   5,000   40,000     Total assets $100,000 $150,000   Liabilities Accounts payable $5,000 Mortgage payable - Building 10,000 Mortgage payable - Land 10,000 Total liabilities $25,000   Stockholders’ Equity Common stock - Rex (80%)$100,000 Common stock - Felix (20%) 25,000   Total shareholders’ equity$125,000   Required: a) Compute the gain or loss recognized by Rex, Felix, and DCC on a complete liquidation of the corporation assuming each shareholder receives a pro rata distribution of the corporation’s assets and assumes a pro rata amount of the liabilities.

Analysis of WIP T-account Jasper Company uses a job costing system. Overhead is allocated based on 120 per cent of direct labour cost. Last month’s transactions in the work in process account are shown here:       Only one job, number 850, was still in process at the end of the month. Job 850 was charged with $9000 in overhead for the month.   Required (a)          What is the ending balance in the WIP account? (b)          How much direct labour cost was used for job 850? (c)           What is the amount of direct materials used for job 850?

Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction.   a. What is the amount of Ekiya’s after-tax compensation (ignore payroll taxes)?

What impact would an increase in potential output have on the DAS curve? How would the long-term rate of economic growth be reflected by the DAS curve?

Is a corporation’s choice of its tax year independent from its year-end for financial accounting purposes?

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year:

Bobbie works as an employee for Altron Corp. for the first half of the year and for Betel Inc. for rest of the year. She is relatively well paid. What FICA tax issues is she likely to encounter?  What FICA tax issues do Altron Corp. and Betel Inc. need to consider?

Given your knowledge of how interest rates are influenced by various factors reflecting the demand for funds and the supply of funds available in the credit markets, write a short essay to explain how and why interest rates will change over the next three months.

Describe the appeal and the difficulties of investing in a franchise as a route to small business ownership.

What policy prescriptions do the neoclassical and endogenous growth theories offer policy makers who are looking to raise their country’s long-run growth rate?

If a developing country has a comparative advantage in primary products, should the government allow market forces to dictate the pattern of trade?

1.    : One of the benefits of a strategy map is that it clearly communicates goals and how they are linked to everyone in the organization. Does a minimum-wage maintenance worker in a hospital really need to understand any goals beyond keeping the place clean? Discuss.

What are the three basic components of an automated system?

What are the most common metals used in die casting?

What is the range of carbon percentages which defines an iron-carbon alloy as cast iron?

What other factors will determine the MPP of land for industry?

Explain how the Fed’s monetary policy affects the unemployment level. (LO2)

What are the enhancing qualities of the qualitative characteristics? What is the role of enhancing qualities in the conceptual framework?

Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:

Where can authoritative IFRS be found related to investments?