Question & Answer

What is the primary mineral in glass products?

How is a process operating in statistical control distinguished from one that is not?

What is etching used for in PCB fabrication?

In Figure 24.6, which countries’ terms of trade improved in the 2000s?

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?

Wolverine Corporation made a distribution of $500,000 to Jin Inc. in partial liquidation of the company on December 31 of this year. Jin Inc. owns 100 percent of Wolverine Corporation. The distribution was in exchange for 50 percent of Jin Inc.’s stock in the company. At the time of the distribution, the shares had a fair market value of $200 per share. Jin Inc.’s tax basis in the shares was $50 per share. Wolverine had E&P of $8,000,000 at the time of the distribution.

Assume that the US economy expands. What will determine the size of the multiplier effect on other countries?

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2024, she sells the following long-term assets used in her business:

Explain why securities firms have used a high level of financial leverage in the past. How does such leverage affect their expected return and their risk? (LO4)

Koyuki transferred investment property she has owned for six years to XYZ Corporation in exchange for 40 percent of the corporation's stock (40 shares valued at $160,000) at the time XYZ was incorporated. The property's tax basis was $90,000 and its fair market value was $160,000. Assume the transfer qualifies under §351.  a. What gain or loss does Koyuki recognize on the transfer?   b. What is her basis in the stock she received in the exchange?   c. What is her holding period in the stock?

1. Give two more examples in each category. 2. Would you expect builders and restaurateurs to have the same degree of control over price?

Which of the following markets do you think are contestable? (a) credit cards; (b) brewing; (c) petrol retailing; (d) insurance services; (e) compact discs?

What are the advantages and disadvantages of local collaborations, such as LEPs, as compared to geographically larger collaboration?

What are some of the limitations of a mixed model line compared to a batch model line?

Kobayashi Corporation reports in the current liability section of its statement of financial position at December 31, 2014 (its year-end), short-term obligations of $15,000,000, which includes the current portion of 12% long-term debt in the amount of $10,000,000 (matures in March 2015). Management has stated its intention to refinance the 12% debt whereby no portion of it will mature during 2015. The date of issuance of the financial statements is March 25, 2015. Instructions (a) Is management’s intent enough to support long-term classification of the obligation in this situation? (b) Assume that Kobayashi Corporation issues $13,000,000 of 10-year debentures to the public in January 2015 and that management intends to use the proceeds to liquidate the $10,000,000 debt maturing in March 2015. Furthermore, assume that the debt maturing in March 2015 is paid from these proceeds prior to the authorization to issue the financial statements. Will this have any impact on the statement of financial position classification at December 31, 2014? Explain your answer. (c) Assume that Kobayashi Corporation issues ordinary shares to the public in January and that management intends to entirely liquidate the $10,000,000 debt maturing in March 2015 with the proceeds of this equity securities issue. In light of these events, should the $10,000,000 debt maturing in March 2015 be included in current liabilities at December 31, 2014?

What are some of the common law issues that a tax practitioner may face with respect to their duties and how might a tax practitioner avoid these issues?

Explain how an equity swap could allow Marathon Insurance Company to capitalize on expectations of a strong stock market performance over the next year without altering its existing portfolio mix of stocks and bonds. (LO2)

} Assume you asked your favorite AI learning tool “Please describe the all events test for recognizing taxable income.” and the AI tool responded as follows: The all events test is a rule that determines when an item of income or expense is recognized for tax purposes. The test is based on the principle that income or expense should be reported in the period in which it is earned or incurred, rather than when it is received or paid. For income, the all events test is met when: • The taxpayer has a fixed right to receive the income, and • The amount of the income can be determined with reasonable accuracy. For example, if a taxpayer sells goods or services on credit, the income is recognized when the sale is made, not when the payment is received. The taxpayer has a fixed right to receive the income at the time of the sale, and the amount of the income can be determined with reasonable accuracy. For expenses, the all events test is met when: • All events have occurred that establish the fact of the liability, and • The amount of the liability can be determined with reasonable accuracy, and • Economic performance has occurred. For example, if a taxpayer incurs an expense for services rendered by another person, the expense is recognized when the services are performed, not when the payment is made. The fact of the liability is established when the services are performed, the amount of the liability can be determined with reasonable accuracy, and economic performance occurs when the services are provided. The all events test is modified by certain provisions of the Internal Revenue Code that provide special methods of accounting for certain items of income or expense. For instance, Section 451(b) provides that an accrual method taxpayer cannot defer the recognition of income beyond the period in which it is reported as revenue in an applicable financial statement or other specified financial statement. Section 451(c) provides that an accrual method taxpayer can elect to defer the recognition of certain advance payments for goods, services, or other items until the next taxable year. Section 1275 provides rules for the recognition of income or expense from certain debt instruments with original issue discount or market discount.   Is the AI answer to the question correct?  Explain.

Explain why gains from depreciable property sold to a related taxpayer are treated as ordinary income under §1239.

Are satisficing firms more likely to suffer from X inefficiency (see Box 7.5) than firms which seek to maximise profit or sales revenue?

Use the information from IFRS17-10 but assume the shares were purchased to meet a non-trading regulatory requirement. Prepare Fairbanks’ journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment.

Explain why an employee should be concerned about whether his employer reimburses business expenses using an “accountable” plan?

If a business places several different assets in service during the year, must it use the same depreciation method for all assets? If not, what restrictions apply to the business’s choices of depreciation methods?

1.              What other strategies might Amara adopt to work with the oil company men as an active member of the team? What are the pros and cons of each strategy?

{Research} Gramps purchased a joint survivor annuity that pays $500 monthly over his remaining life and that of his wife, Gram.  Gramps is 70 years old and Gram is 65 years old.  Gramps paid $97,020 for the contract.  How much income will Gramps recognize on the first payment?