Question & Answer

Using the facts in the previous problem, what are some ways that Bendetta could shift some of the rental income to Jenine? What are the disadvantages associated with these income-shifting strategies?

Because of calamitous earthquake losses, Bernstein Company, one of your client’s oldest and largest customers, suddenly and unexpectedly became bankrupt. Approximately 30% of your client’s total sales have been made to Bernstein Company during each of the past several years. The amount due from Bernstein Company—none of which is collectible—equals 22% of total accounts receivable, an amount that is considerably in excess of what was determined to be an adequate provision for doubtful accounts at the close of the preceding year. How would your client record the write-off of the Bernstein Company receivable if it is using the allowance method of accounting for bad debts? Justify your suggested treatment.

What are some of the general considerations that product designers must keep in mind when designing components out of plastics?

Name the accounts debited and credited for each of the following transactions. (a) Billing a customer for work done. (b) Receipt of cash from customer on account. (c) Purchase of office supplies on account. (d) Purchase of 15 gallons of gasoline for the delivery truck.

An indirect extrusion process starts with an aluminum billet with diameter = 2.0 in and length = 3.0 in. Final cross section after extrusion is a square with 1.0 in on a side. The die angle = 90°. The operation is performed cold and the strength coefficient of the metal K = 26,000 lb/in2 and strainhardening exponent n = 0.20. In the Johnson extrusion strain equation, a = 0.8 and b = 1.2. (a) Compute the extrusion ratio, true strain, and extrusion strain. (b) What is the shape factor of the product? (c) If the butt left in the container at the end of the stroke is 0.5 in thick, what is the length of the extruded section? (d) Determine the ram pressure in the process.

Explain what it means to say that a married couple filing a joint tax return has joint and several liability for the taxes associated with the return?

Zopf Company sells its bonds at a premium and applies the effective-interest method in amortizing the premium. Will the annual interest expense increase or decrease over the life of the bonds? Explain.

Briefly describe the provisions of the SarbanesOxley Act. Discuss how this act affects the monitoring performed by shareholders. (LO6)

Bar stock of initial diameter = 90 mm is drawn with a draft = 15 mm. The draw die has an entrance angle = 18°, and the coefficient of friction at the work-die interface = 0.08. The metal behaves as a perfectly plastic material with yield stress = 105 MPa. Determine (a) area reduction, (b) draw stress, (c) draw force required for the operation, and (d) power to perform the operation if exit velocity = 1.0 m/min

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for intangible assets.

What is meant by the term overcut in electric discharge machining?

How does a corporation determine the minimum amount of estimated tax payments it must make to avoid underpayment penalties?  How do these rules differ for large corporations.

The starting diameter of a shaft is 25.00 mm. This shaft is to be inserted into a hole in an expansion fit assembly operation. To be readily inserted, the shaft must be reduced in diameter by cooling. Determine the temperature to which the shaft must be reduced from room temperature (20°C) in order to reduce its diameter to 24.98 mm. Refer to Table 4.1.

Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $120 $110 $95 $90 $110 $90 Cost 75 80 80 80 50 36 Cost to complete 30 30 25 35 30 30 Selling costs 10 18 10 20 10 20 Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2014, for each of the inventory items above.

Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false. 1. The objective of financial statements emphasizes a stewardship approach for reporting financial information. 2. The purpose of the objective of financial reporting is to prepare a balance sheet, an income statement, a statement of cash flows, and a statement of owners’ or stockholders’ equity. 3. Because they are generally shorter, FASB interpretations are subject to less due process, compared to FASB standards. 4. The objective of financial reporting uses an entity rather than a proprietary approach in determining what information to report.

In year 0, Javens Inc. sold machinery with a fair market value of $400,000 to Chris. The machinery’s original basis was $317,000, and Javens’s accumulated depreciation on the machinery was $50,000, so its adjusted basis to Javens was $267,000. Chris paid Javens $40,000 immediately (in year 0) and provided a note to Javens indicating that Chris would pay Javens $60,000 a year for six years beginning in year 1. What are the amount and character of the gain that Javens will recognize in year 0?  What amount and character of the gain will Javens recognize in years 1 through 6?

Revenue is usually recognized at the point of sale. Under special circumstances, however, bases other than the point of sale are used for the timing of revenue recognition. Instructions (a) Why is the point of sale usually used as the basis for the timing of revenue recognition? (b) Disregarding the special circumstances when bases other than the point of sale are used, discuss the merits of each of the following objections to the sale basis of revenue recognition: (1) It is too conservative because revenue is earned throughout the entire process of production. (2) It is not conservative enough because accounts receivable do not represent disposable funds, sales returns and allowances may be made, and collection and bad debt expenses may be incurred in a later period. (c) Revenue may also be recognized (1) during production and (2) when cash is received. For each of these two bases of timing revenue recognition, give an example of the circumstances in which it is properly used and discuss the accounting merits of its use in lieu of the sale basis.

(Looking at the Maths) The IS function can be written as                      Y = IS(r, G, t, X, M, er, Ye …) where G is government expenditure, t is the tax rate, X and M are the levels of exports and imports, er is the exchange rate, Ye is the expected level of real national income and “...” represents other unspecified determinants. Write an MP function in the form r = MP(– – – – –) identifying each of the determinants.

A steel ring has an inside diameter = 30 mm and an outside diameter = 50 mm at room temperature (21°C). If the coefficient of thermal expansion of steel = 12.1 x 10-6 mm/mm per °C, determine the inside diameter of the ring when heated to 500°C.

Explain the difference between the voting-interest model and the risk-and-reward model used for consolidation.

What are some of the important applications of nickel?

1.       Think of a class that you’ve taken in the past. What standards of performance did your professor establish? How was your actual performance measured? How was your performance compared to the standards? Do you think the standards and methods of measurement were fair? Were they appropriate to your assigned work? Why or why not?

Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reported in the statement, if at all. Assume that net income is reported as $90,000. (a) Accounts receivable increased from $34,000 to $39,000 from the beginning to the end of the year. (b) During the year, 10,000 shares of preferred stock with a par value of $100 per share were issued at $115 per share. (c) Depreciation expense amounted to $14,000, and bond premium amortization amounted to $5,000. (d) Land increased from $10,000 to $30,000.

Prior to 2014, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2014, the company decided to change its accounting methods for manufacturing inventories to full costing by including these costs as product costs. Assuming that these costs are material, how should this change be reflected in the financial statements for 2013 and 2014?

Describe the effect of strain rate in metal forming.