Question & Answer

What is the difference between open pores and closed pores in a metallic powders?

{Research}  Cash donations to charity are subject to a number of very specific substantiation requirements.  Describe these requirements and how charitable gifts can be substantiated.  Describe the substantiation requirements for property donations.

How is the Schedule M-1 similar to and different from a Schedule M-3?  How does a corporation determine whether it must complete Schedule M-1 or Schedule M-3 when it completes its tax return?

Why is the oxyacetylene welding process favored over the other oxyfuel welding processes?

Name the five main types of material transport equipment.

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?

Assume that Switzerland has a very strong economy, putting upward pressure on both its inflation and interest rates. Explain how these conditions could place pressure on the value of the Swiss franc, and determine whether the franc’s value will rise or fall. (LO2)

Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000.

Differentiate between “accounting for the employer” and “accounting for the pension fund.”

In early January 2013, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2014, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions (a) Compute 2013 amortization, 12/31/13 book value, 2014 amortization, and 12/31/14 book value if the company amortizes the trade name over 10 years. (b) Compute the 2014 amortization and the 12/31/14 book value, assuming that at the beginning of 2014, Outkast determines that the trade name will provide no future benefits beyond December 31, 2017. (c) Ignoring the response for part (b), compute the 2015 amortization and the 12/31/15 book value, assuming that at the beginning of 2015, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2015.

Morgan Freeman is investing $16,380 at the end of each year in a fund that earns 10% interest. In how many years will the fund be at $100,000?

What are some of the limitations and disadvantages of casting?

The Samsons are trying to determine whether they can claim their 22-year-old adopted son, Jason, as a dependent. Jason is currently a full-time student at an out-of-state university. Jason lived in his parents’ home for three months of the year, and he was away at school for the rest of the year. He received $9,500 in scholarships this year for his outstanding academic performance and earned $4,800 of income working a part-time job during the year. The Samsons paid a total of $5,000 to support Jason while he was away at college. Jason used the scholarship, the earnings from the part-time job, and the money from the Samsons as his only sources of support. Can the Samsons claim Jason as their dependent?

Direct and indirect costs; and cost driver selection         LO2,3 Venture Buses operates throughout the south-eastern suburbs of Melbourne, with its depot located in Cheltenham. Every day, fuel is delivered and stored in tanks located in the depot. This fuel is used by all the buses and administration vehicles. The accountant has been requested to develop a system to assign the cost to the different vehicles in the depot. He has asked your assistance in coming up with a way to identify the fuel costs. Required (a) From the perspective of the depot, is the cost of fuel a direct or indirect cost? (b) From the perspective of the vehicles attached to the depot, can the cost be classified as either direct or indirect?  Briefly explain. (c) What system would be required to have the cost classified as direct?  (d) If the accountant decided to go with an indirect cost classification, how could the cost be allocated? (e) Identify some factors that would determine which method would be the best for the assignment of fuel costs to the vehicles.

The state of Georgia recently increased its tax on a pack of cigarettes by $2.  What type of tax is this?  Why might Georgia choose this type of tax?

The meaning of the term “fund” depends on the context in which it is used. Explain its meaning when used as a noun. Explain its meaning when it is used as a verb.

During a turning operation, a tool-chip thermocouple was used to measure cutting temperature. The following temperature data were collected during the cuts at three different cutting speeds (feed and depth were held constant): (1) v = 100 m/min, T = 505°C, (2) v = 130 m/min, T = 552°C, (3) v = 160 m/min, T = 592°C. Determine an equation for temperature as a function of cutting speed that is in the form of the Trigger equation, Eq. (21.23)

Describe reinforced reaction injection molding (RRIM)

At December 31, 2014, Indigo Girls Company has outstanding noncancelable purchase commitments for 36,000 gallons, at $3.00 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Instructions (a) Assuming that the market price as of December 31, 2014, is $3.30, how would this matter be treated in the accounts and statements? Explain. (b) Assuming that the market price as of December 31, 2014, is $2.70, instead of $3.30, how would you treat this situation in the accounts and statements? (c) Give the entry in January 2015, when the 36,000-gallon shipment is received, assuming that the situation given in (b) above existed at December 31, 2014, and that the market price in January 2015 was $2.70 per gallon. Give an explanation of your treatment.

The orthogonal cutting operation described in previous Problem 21.7 involves a work material whose shear strength is 40,000 lb/in2 . Based on your answers to the previous problem, compute (a) the shear force, (b) cutting force, (c) thrust force, and (d) friction force.

Describe the circumstances in which a taxpayer acquires a home and rents it out and is not allowed to deduct a portion of the interest expense on the loan the taxpayer used to acquire the home.

Define batch production and describe why it is often used for medium-quantity production products.

What is glazing, as applied to ceramics?

A deep drawing operation is to be performed on a sheet-metal blank that is 1/8 in thick. The height (inside dimension) of the cup = 3.8 in and the diameter (inside dimension) = 5.0 in. Assuming the punch radius = 0, compute the starting diameter of the blank to complete the operation with no material left in the flange. Is the operation feasible (ignoring the fact that the punch radius is too small)?

Distinguish between generating and forming when machining workpart geometries.