Question & Answer

] Jimmer has contributed $15,000 to his Roth IRA, and the balance in the account is $18,000. In the current year, Jimmer withdrew $17,000 from the Roth IRA to pay for a new car. If Jimmer’s marginal ordinary income tax rate is 24 percent, what amount of tax and penalty, if any, is Jimmer required to pay on the withdrawal in each of the following alternative situations? a. Jimmer opened the Roth account 44 months before he withdrew the $17,000, and Jimmer is 62 years of age. b. Jimmer opened the Roth account 44 months before he withdrew the $17,000, and Jimmer is age 53. c. Jimmer opened the Roth account 76 months before he withdrew the $17,000, and Jimmer is age 62. d. Jimmer opened the Roth account 76 months before he withdrew the $17,000, and Jimmer is age 53.

{Planning}Tesha works for a company that pays a year-end bonus in January of each defer the bonus income.  Assume Congress recently passed tax legislation that decreases individual tax rates as of next year.  Does this increase or decrease the benefits of the bonus deferral this year?  What if Congress passed legislation that increased tax rates next year?  Should Tesha ask the company to change its policy this year?  What additional information do you need to answer this question?year (instead of December of the preceding year) to allow employees to

Fatima pays $120,000 cash for Brittany’s one-third interest in the Westlake Partnership. Just prior to the sale, Brittany’s basis in Westlake is $96,000. Westlake reports the following balance sheet: Assets: Tax Basis FMV Cash $ 96,000 $ 96,000 Land 192,000 264,000    Totals $ 288,000 $ 360,000 Liabilities and capital: Capital- Amy 96,000 - Brittany 96,000 - Ben 96,000   Totals $ 288,000 a. What are the amount and character of Brittany’s recognized gain or loss on the sale? b. What is Fatima’s basis in her partnership interest? What is Fatima’s inside basis? c. If Westlake were to sell the land for $264,000 shortly after the sale of Brittany’s partnership interest, how much gain or loss would the partnership recognize? d. How much gain or loss would Fatima recognize if the land were sold for 264,000? e. Suppose Westlake has a §754 election in place. What is Fatima’s special basis adjustment? How much gain or loss would Fatima recognize on a subsequent sale of the land in this situation?

What is an adjustable-rate mortgage (ARM)? Discuss the potential advantages that such mortgages offer a savings institution. (LO4)

True or False.For purposes of determining head of household filing status, the taxpayer’s mother or father is considered to be a qualifying person of the taxpayer (even if the mother or father does not qualify as the taxpayer’s dependent) as long as the taxpayer pays more than half the costs of maintaining the household of the mother or father.Explain

As a newly enrolled accounting major, you are anxious to better understand accounting institutions and sources of accounting literature. As a first step, you decide to explore the IASB’s Framework for the Preparation and Presentation of Financial Statements. Instructions Access the IASB Framework at the IASB website (http://eifrs.iasb.org/ ). (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following items. (Provide paragraph citations.) (a) What is the objective of financial reporting? (b) What other means are there of communicating information, besides financial statements? (c) Indicate some of the users and the information they are most directly concerned with in economic decision-making.

What must a shareholder do to waive the family attribution rules in a complete redemption of stock?

Explain the lesson to be learned about the repo market based on the experience of Bear Stearns. (LO1)

Tevez Company experienced an actuarial loss of $750 in its defined benefit plan in 2014. For 2014, Tevez’s revenues are $125,000, and expenses (excluding pension expense of $14,000, which does not include the actuarial loss) are $85,000. Prepare Tevez’s statement of comprehensive income for 2014.

Spoilage journal entries Jones Company manufactures custom doors. When job 186 (a batch of 14 custom doors) was being processed in the machining department, one of the wood panels on a door split. This problem occurs periodically and is considered normal spoilage. Direct materials and labour for the door, to the point of spoilage, were $35. In addition, a storm caused a surge in electricity, and a routing machine punctured the wood for job 238. This incident occurred at the beginning of production, so spoilage amounted to only the cost of wood, at $200.   Required (a)     Prepare the journal entries for normal and abnormal spoilage. (b)     Now suppose that the wood from abnormal spoilage can be sold for $25. Record the journal entries for the disposal value. (c)      Jones Company is considering hiring someone to inspect all wood after it arrives at the plant, but prior to production. Discuss the pros and cons of hiring an inspector.

An L-shaped part is to be bent in a V-bending operation on a press brake from a flat blank 4.0 in by 1.5 in that is 5/32 in thick. The bend of 90° is to be made in the middle of the 4-in length. (a) Determine the dimensions of the two equal sides that will result after the bend, if the bend radius = 3/16 in. For convenience, these sides should be measured to the beginning of the bend radius. (b) Also, determine the length of the part's neutral axis after the bend. (c) Where should the machine operator set the stop on the press brake relative to the starting length of the part?

P.1 What would cause (a) a steep DAD curve; (b) a gently sloping DAD curve? P.2 Compare the short-run and long-run effects of (i) a temporary adverse supply shock and (ii) a permanent supply reduction under each of (a) and (b).

The part dimension for a certain injection molded part made of polycarbonate is specified as 3.75 in. Compute the corresponding dimension to which the mold cavity should be machined, using the value of shrinkage given in Table 13.1.

What methods are used in practice to determine the extent of progress toward completion? Identify some “input measures” and some “output measures” that might be used to determine the extent of progress.

Hawkins Corporation has the following balances at December 31, 2014. Projected benefi t obligation $2,600,000 Plan assets at fair value 2,000,000 Accumulated OCI (PSC) 1,100,000 How should these balances be reported on Hawkins’s balance sheet at December 31, 2014?

If factor X costs twice as much as factor Y (Px/Py = 2), what can be said about the relationship between the MPPs of the two factors if the optimum combination of factors is used?

How does accounting help the capital allocation process?

List several ways that variances can be used to improve future operations.

How is nano-imprint lithography different from micro-imprint lithography?

Jerry is a 30 percent partner in the JJM Partnership when he sells his entire interest to Lucia for $56,000 cash. At the time of the sale, Jerry’s basis in JJM is $32,000. JJM does not have any debt or hot assets. What is Jerry’s gain or loss on the sale of his interest?

1. Will the shape of the long-run AS curve here depend on just how the ‘long’ run is defined? 2. If a shift in the aggregate demand curve from AD to AD1 in Figure 20.17 causes a movement from point a to point d in the long run, would a shift in aggregate demand from AD1 to AD cause a movement from point d back to point a in the long run?

The credit crisis was caused by the mortgage market, yet it had a serious impact on bond markets. Write a short essay on how the bond market was affected and offer your opinion on how the bond market may attempt to insulate itself from a credit crisis in the future.

Suppose the hole in Problem 26.10 were to be cut using EDM rather than ECM. Using a discharge current = 20 amps (which would be typical for EDM), how long would it take to cut the hole? From Table 4.1, the melting temperature of iron is 2802°F.

During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 80,000 shares for cash at $6 per share. Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at $8 per share. Sept. 1 Issued 60,000 shares for cash at $10 per share. Instructions (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. (b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $3 per share.

What is meant by the term structural adhesive?