Question & Answer

In 2024, Zach is single with no dependents.  He is not claimed as a dependent on another’s return.  All of his income is from salary and he does not have any for AGI deductions.  What is his earned income credit in 2024 in the following alternative scenarios? a. Zach is 29 years old and his AGI is $5,000.

A direct extrusion operation produces the cross section shown in Figure P19.32(c) from an aluminum billet whose diameter = 150 mm and length = 500 mm. The flow curve parameters for the aluminum are K = 240 MPa and n = 0.16. In the Johnson strain equation, a = 0.8 and b = 1.2. Determine (a) the extrusion ratio, (b) the shape factor, (c) the force required to drive the ram forward during extrusion at the point in the process when the billet length remaining in the container = 400 mm, and (d) the length of the extruded section at the end of the operation if the volume of the butt left in the container is 600,000 mm3

Explain how a mortgage company’s degree of exposure to interest rate risk differs from other financial institutions. (LO4)

In nine samples of size n = 10, the grand mean of the samples is x = 100 for the characteristic of interest, and the mean of the ranges of the samples is R = 8.5. Determine (a) lower and upper control limits for the x chart and (b) lower and upper control limits for the R chart. (c) Based on the data given, estimate the standard deviation of the process?

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

Determine the amount of the late filing and late payment penalties that apply for the following taxpayers.

What tax issue arises when a shareholder receives a nontaxable stock distribution?

Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deductions in each of the following situations and explain your solution.

On January 1, 2014, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crocker common stock. Crocker’s net income in 2014 was $300,000, and its tax rate was 40%. The company had 100,000 shares of common stock outstanding throughout 2014. None of the bonds were converted in 2014. Instructions (a) Compute diluted earnings per share for 2014. (b) Compute diluted earnings per share for 2014, assuming the same facts as above, except that $1,000,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Crocker common stock.

Theory If a downward-sloping yield curve is mainly attributed to segmented markets theory, what does that suggest about the demand for and supply of funds in the short-term and long-term maturity markets? (LO3)

Renee operates a proprietorship selling collectibles over the Web. This year, Renee’s business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover.

Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer.

If production were at a point on the production possibility curve below point S, describe the process whereby market forces would return the economy to point S.

What is the primary mineral in glass products?

Dax Jones submitted his 2024 tax return on time and elected to file a joint tax return with his wife, Darlene. Dax and Darlene did not request an extension for their 2024 tax return. Dax and Darlene owed and paid the IRS $124,000 for their 2024 tax liability. Two years later, Dax amended his return and claimed married filing separate status. By changing his filing status, Dax sought a refund for an overpayment for the tax year 2024 (he paid more tax in the original joint return than he owed on a separate return). Is Dax allowed to change his filing status for the 2024 tax year and receive a tax refund with his amended return?

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?

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

What is etching used for in PCB fabrication?

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

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

This year Elizabeth agreed to a three-year service contract with an engineering consulting firm to improve efficiency in her factory. The contract requires Elizabeth to pay the consulting firm $1,500 for each instance that Elizabeth requests its assistance. The contract also provides that Elizabeth only pays the consultants if their advice increases efficiency as measured 12 months from the date of service. This year Elizabeth requested advice on three occasions, and she has not yet made any payments to the consultants.  a) How much should Elizabeth deduct this year under this service contract if she uses the accrual method of accounting?  b) How much should Elizabeth deduct this year under this service contract if she uses the cash method of accounting?

What implication does the financial instability hypothesis have for the balance sheets of different sectors of the economy?

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)

Erin is considering switching her business from the cash method to the accrual method at the beginning of next year. Determine the amount and timing of her §481 adjustment for next year assuming the IRS grants Erin’s request in the following alternative scenarios. a) At the end of this year, Erin’s business has $15,000 of accounts receivables and $18,000 of accounts payables that have not been recorded for tax purposes.  b) At the end of this year, Erin’s business reports $25,000 of accounts receivables and $9,000 of accounts payables that have not been recorded for tax purposes.

When you made the decision to study economics, was it a ‘rational’ decision (albeit based on the limited information you had available at the time)? What additional information would you like to have had in order to ensure that your decision was the right one?