Question & Answer

Using the facts from Problem 49, what will happen to the government’s tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $75,000 in taxable income?  What is the term that describes this type of reaction to a tax rate increase?  What types of taxpayers are likely to respond in this manner?

What is hardness, and how is it generally tested?

1.    : What strategic plans could the college or university at which you are taking this management course adopt to compete for students in the marketplace? Would these plans depend on the school’s goals?

Outline the meaning of structural cost drivers.

Offer an argument for why a political regime that favors a large government will cause interest rates to be higher. Offer at least one example of why a political regime that favors a large government will cause interest rates to be lower. (Hint: Recognize that the government intervention in the economy can influence other factors that affect interest rates.) (LO2)

Differentiate between a fixed-rate mortgage and a variablerate mortgage.

An electron-beam welding operation uses the following process parameters: accelerating voltage = 25 kV, beam current = 100 milliamp, and the circular area on which the beam is focused has a diameter = 0.020 in. If the heat transfer factor = 90%, determine the average power density in the area in Btu/sec in2.

What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed?

Explain why some public firms decided to go private in response to the passage of the Sarbanes-Oxley (SOX) Act. (LO6)

The cash method of accounting means that taxpayers don’t recognize income unless they receive cash or cash equivalents. True or false? Explain.

Tiffany is unmarried and has a 15-year-old qualifying child.Tiffany has determined her tax liability to be $3,525, and her employer has withheld $1,500 of federal taxes from her paycheck.Tiffany is allowed to claim a $1,000 child tax credit for her qualifying child.What amount of taxes will Tiffany owe (or what amount will she receive as a refund) when she files her tax return?

Explain how pro-cyclical lending criteria applied by financial institutions could amplify fluctuations in real GDP.

Dejan owns stock in two S corporations, Blue and Green. He actively participates in the management of Blue but maintains ownership in Green only as a passive investor.  Dejan has no other business investments.  Both Blue and Green anticipate a loss this year, and Dejan’s basis in his stock of both corporations is $0. All else equal, if Dejan plans on making a capital contribution to at least one of the corporations this year, to which firm should he contribute in order to increase his chances of deducting the loss allocated to him from the entity?  Why?

What is a variable-interest entity?

What price should be used when there is such a distortion?

Laura Li, a U.S. resident, works for three months this summer in China.  What type of tax authority may be especially useful in determining the tax consequences of her foreign income?

What is self-assembly in nanofabrication?

What determines whether someone is considered a tax return preparer?

Lexington Corporation’s weekly payroll of $24,000 included FICA taxes withheld of $1,836, federal taxes withheld of $2,990, state taxes withheld of $920, and insurance premiums withheld of $250. Prepare the journal entry to record Lexington’s payroll.

Janelle and Lori were divorced in 2016.  Pursuant to the divorce decree, Janelle receives $10,000 of alimony each month.  Use an available tax service to determine if the alimony Janelle receives is taxable. Would your answer change if Janelle and Lori still live together?

Where can authoritative IFRS related to the statement of cash flows be found?

Distinguish between the following interest rates for bonds payable: (a) Yield rate. (d) Market rate. (b) Nominal rate. (e) Effective rate. (c) Stated rate.

According to rational choice theory, the money you’ve already spent – known as ‘sunk costs’ (see page 161) – should be excluded from decision making. However, there is considerable evidence that it does affect consumer behaviour. Using loss aversion, can you explain why this might be the case.

Sasha owes additional tax imposed in a recent audit.  In addition to the tax, will they be assessed other amounts?  If so, how will these amounts be determined?

What are the three methods of performing the masking step in chemical machining?