Question & Answer

McNabb Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2014. How should these costs be accounted for in 2014?

There are 16 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 17.1 The following equipment is used for crushing and grinding of minerals in the preparation of traditional ceramics raw materials. Which of the pieces listed is used for grinding (two correct answers): (a) ball mill, (b) hammer mill, (c) jaw crusher, (d) roll crusher, and (e) roller mill? 17.2 Which one of the following compounds becomes a plastic and formable material when mixed with suitable proportions of water: (a) aluminum oxide, (b) hydrogen oxide, (c) hydrous aluminum silicate, or (d) silicon dioxide? 17.3 At which one of the following water contents does clay become a suitably plastic material for the traditional ceramics plastic forming processes: (a) 5%, (b) 10%, (c) 20%, or (d) 40%? 17.4 Which of the following processes are not plastic forming methods used in the shaping of traditional ceramics (three correct answers): (a) dry pressing, (b) extrusion, (c) jangling, (d) jiggering, (e) jolleying, (f) slip casting, and (g) spinning? 17.5 The term green piece in ceramics refers to a part that has been shaped but not yet fired: (a) true or (b) false? 17.6 In the final product made of a polycrystalline new ceramic material, strength increases with grain size: (a) true or (b) false? 17.7 Which one of the following processes for the new ceramic materials accomplishes shaping and sintering simultaneously: (a) doctor-blade process, (b) freeze drying, (c) hot pressing, (d) injection molding, or (e) isostatic pressing? 17.8 Which of the following are the purposes of finishing operations used for parts made of the new ceramics (two best answers): (a) apply a surface coating, (b) electroplate the surface, (c) improve surface finish, (d) increase dimensional accuracy, and (e) work harden the surface? 17.9 Which of the following terms describes what a cemented carbide is (one best answer): (a) ceramic, (b) cermet, (c) composite, (d) metal, (e) new ceramic, or (f) traditional ceramic? 17.10 Which of the following geometric features should be avoided if possible in the design of structural components made of new ceramics (three best answers): (a) deep holes, (b) rounded inside corners, (c) rounded outside corners, (d) sharp edges, (e) thick sections, and (f) threads?

What is the normal procedure for handling the collection of accounts receivable previously written off using the direct write-off method? The allowance method?

Why is it desirable to use a worksheet when preparing a statement of cash flows? Is a worksheet required to prepare a statement of cash flows?

Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2014, for $54,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 10 years. Prepare Celine Dion’s journal entries to record the purchase of the patent and 2014 amortization.

Keystone Corporation’s financial statements for the year ended December 31, 2014, were authorized for issue on March 10, 2015. The following events took place early in 2015. (a) On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share. (b) On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2014 should be $1,320,000. At December 31, 2014, income taxes payable were recorded at $1,100,000. Instructions Discuss how the preceding subsequent events should be reflected in the 2014 financial statements.

How is the rubber industry organized?

Do all investment projects generate significant spillovers

Deere and Company reported inventory in its balance sheet as follows. Inventories $1,999,100,000 What additional disclosures might be necessary to present athe inventory fairly?

Aero Inc. had the following balance sheet at December 31, 2013.   During 2014, the following occurred. 1. Aero liquidated its available-for-sale investment portfolio at a loss of $5,000. 2. A tract of land was purchased for $38,000. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $10,000 were declared and paid to stockholders. 5. Net income for 2014 was $35,000, including $12,000 in depreciation expense. 6. Land was purchased through the issuance of $30,000 in additional bonds. 7. At December 31, 2014, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000. Instructions (a) Prepare a statement of cash flows for the year 2014 for Aero. (b) Prepare the unclassified balance sheet as it would appear at December 31, 2014. (c) Compute Aero’s free cash flow and current cash debt coverage for 2014. (d) Use the analysis of Aero to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.

Solve the previous problem, except that the metal to be welded is aluminum, and the corresponding melting factor is half the value for steel.

Will the adoption of labour-intensive techniques necessarily lead to a more equal distribution of income?

Lorenzo is considering starting a trucking company either in Texas or Oklahoma.  He will relocate his family, which includes his wife, children, and parents, to reside in the same state as his business.  What types of taxes may influence his decision of where to locate his business?

Assume the same situation as in Question 11, except that the four equal amounts are deposited at the beginning of the period rather than at the end. In this case, what amount must be deposited at the beginning of each period  (Round to two decimals.)

A manual assembly line is being designed for a product with annual demand = 100,000 units. The line will operate 50 wks/year, 5 shifts/wk, and 7.5 hr/shift. Work units will be attached to a continuously moving conveyor. Work content time = 42.0 min. Assume line efficiency = 0.97, balancing efficiency = 0.92, and repositioning time = 6 sec. Determine (a) hourly production rate to meet demand, (b) number of workers required, and (c) the number of workstations required if the estimated manning level is 1.4.

What is the distinguishing feature of an excise tax?

For what reasons may governments want other governments to stick to tough climate or emissions targets and yet be not willing to so so themselves?

1.      Why do you think Nicola and Steve are on the defensive? Might the emphasis on core leadership behaviors be handled in a different way? What do you suggest?

In porcelain enameling, what is frit?

Why is it reasonable to believe that microsystem products would be available at lower costs than products of larger, more conventional size?

What types of federal income-based taxes, other than the regular income tax, might taxpayers be required to pay?In general terms, what is the tax base for each of these other taxes on income?

Would it in theory be possible for this long-run Phillips curve to be horizontal or even upward sloping over part of its length?

Using the lead-tin phase diagram in Figure 6.3, determine the liquid and solid phase compositions for a nominal composition of 90% Sn and 10% Pb at 204°C (400°F).

Why might a business claim a reduced §179 expense amount in the current year rather than claiming the maximum amount available?

A heat source can transfer 3500 J/sec to a metal part surface. The heated area is circular, and the heat intensity decreases as the radius increases, as follows: 70% of the heat is concentrated in a circular area that is 3.75 mm in diameter. Is the resulting power density enough to melt metal?