Question & Answer

How does increasing discharge current affect metal removal rate and surface finish in electric discharge machining?

Within the area where you live, work, or attend school, name three businesses that would likely use job costing.

Using the facts in problem 48, what minimum tax would need to be assessed on Shameika to make the tax progressive with respect to effective tax rates?

Explain the two limitations placed on the §179 deduction. How are they similar? How are they different?

The Simon Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on January 2, 2014. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in 2 years it will increase to 18:1. At the date of issue, the bonds were sold at 98. Bond discount is amortized on a straightline basis. Simon’s effective tax was 35%. Net income in 2014 was $9,500,000, and the company had 2,000,000 shares outstanding during the entire year. Instructions (a) Prepare a schedule to compute both basic and diluted earnings per share. (b) Discuss how the schedule would differ if the security was convertible preferred stock.

Under what circumstances could a corporation with earnings and profits make a nontaxable distribution to its shareholders after the S election termination?

There are several ways of shaping plate or sheet glass. Name and briefly describe one of them

Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. a. How much of Nareh’s loss is limited by her tax basis? b. How much of Nareh’s loss is limited by her at-risk amount? c. How much of Nareh’s loss is limited by the passive activity loss rules? Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. a. How much of Nareh’s loss is limited by her tax basis? b. How much of Nareh’s loss is limited by her at-risk amount? c. How much of Nareh’s loss is limited by the passive activity loss rules?

In each of the following independent situations, determine the taxpayer’s filing status and the number of personal and dependency exemptions the taxpayer is allowed to claim.Frank is single and supports his 17-year-old brother, Bill.Bill earned $3,000 and did not live with Frank

Five friends, Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Janet (86 percent owner), and Tito (10.5 percent owner) are shareholders in Jackson 5 Inc. (an S corporation).  As employees of the company, each receives health insurance ($10,000 per year benefit), dental insurance ($2,000 per year benefit), and free access to a workout facility located at company headquarters ($500 per year benefit).  What are the tax consequences of these benefits for each shareholder and for Jackson 5 Inc.?

Under what circumstances would a rise in potential real income not result in a fall in the NAIRU?

Go through the above arguments and give a reply to the criticisms made of government intervention.

A resistance seam-welding operation is performed on two pieces of 2.5-mm-thick austenitic stainless steel to fabricate a container. The weld current in the operation is 10,000 amps, the weld duration = 0.3 sec, and the resistance at the interface is 75 micro-ohms. Continuous motion welding is used, with 200-mm-diameter electrode wheels. The individual weld nuggets formed in this RSEW operation have diameter = 6 mm and thickness = 3 mm (assume the weld nuggets are disc-shaped). These weld nuggets must be contiguous to form a sealed seam. The power unit driving the process requires an off-time between spot welds of 1.0 s. Given these conditions, determine (a) the unit melting energy of stainless steel using the methods of the previous chapter, (b) the proportion of energy generated that goes into the formation of each weld nugget, and (c) the rotational speed of the electrode wheels

Solve Problem 20.21 except that the stock thickness t = 1/8 in.

What method(s) might be used in the accounts to record a loss due to a price decline in the inventories? Discuss.

The designer has specified that a 3/8-16 UNC low-carbon bolt (3/8 in nominal diameter, 16 threads/in) in a certain application should be stressed to its proof stress of 33,000 lb/in2 (see Table 32.2). Determine the maximum torque that should be used if C = 0.25.

Matt hired Apex Services to repair his business equipment. On November 1 of this year, Matt paid $2,000 for the repairs that he expects to begin in early March of next year.  a) What amount of the cost of the repairs can Matt deduct this year if he uses the cash method of accounting for his business? b) What amount of the cost of the repairs can Matt deduct this year if he uses the accrual method of accounting for his business? c) What amount of the cost of the repairs can Matt deduct this year if he uses the accrual method, and he expects the repairs to be done by early February? d) What amount of the cost of the repairs can Matt deduct this year if he uses the cash method of accounting, and he expects the repairs to be done by early February?

Some believe that accounting depreciation measures the decline in the value of fixed assets. Do you agree? Explain.

The strength coefficient = 550 MPa and strain-hardening exponent = 0.22 for a certain metal. During a forming operation, the final true strain that the metal experiences = 0.85. Determine the flow stress at this strain and the average flow stress that the metal experienced during the operation

Presented below is information from the annual report of Emporia Plastics, Inc. Operating income $ 532,150 Bond interest expense 135,000 397,150 Income taxes 183,432 Net income $ 213,718 Bonds payable $1,000,000 Common stock 875,000 Retained earnings 375,000 Instructions (a) Compute the return on common stock equity and the rate of interest paid on bonds. (Assume balances for debt and equity accounts approximate averages for the year.) (b) Is Emporia Plastics Inc. trading on the equity successfully? Explain.

If the CPI went up from 150 to 162 over 12 months, what would be the rate of inflation?

Generally accepted accounting principles usually require the use of accrual accounting to “fairly present” income. If the cash receipts and disbursements method of accounting will “clearly reflect” taxable income, why does this method not usually also “fairly present” income?

Silverman Company purchased machinery for $162,000 on January 1, 2014. It is estimated that the machinery will have a useful life of 20 years, salvage value of $15,000, production of 84,000 units, and working hours of 42,000. During 2014, the company uses the machinery for 14,300 hours, and the machinery produces 20,000 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and doubledeclining- balance methods.

What factors must be considered by the actuary in measuring the amount of pension benefits under a defined benefit plan?

What are the steps to be completed in preparing the opening IFRS statement of financial position?