Question & Answer

The designer of a polar configuration robot is considering a portion of the manipulator consisting of a rotational joint connected to its output link. The output link is 25 in long and the rotational joint has a range of 75°. The accuracy of the joint-link combination, expressed as a linear measure at the end of the link which results from rotating the joint, is specified as 0.030 in. The mechanical inaccuracies of the joint result in a repeatability error = ±0.030° of rotation. It is assumed that the link is perfectly rigid, so there are no additional errors due to deflection. (a) Show that the specified accuracy can be achieved, given the repeatability error. (b) Determine the minimum number of bits required in the binary register of the robot's control memory to achieve the specified accuracy.

Describe what is meant by qualified business income for purposes of the deduction for qualified business income.

Allocating overhead; over- and underapplied overhead; spoilage The Futons for You Company sells batches of custom-made futons to customers and uses predetermined rates for fixed overhead, based on machine hours. The following data are available for last year:     Required (a)          Calculate the estimated overhead allocation rate to be used for the year. (b)          Determine the overhead to be allocated to job 21. (c)           Determine total overapplied or underapplied overhead at the end of the year. (d)          Should cost of sales be increased or decreased at the end of the year? Why? (e)           If the amount of overapplied or underapplied overhead is material, how is it assigned? (f)           Suppose Job 21 required a special fabric cover for the futon pads. This type of fabric dulls the blades of the cutting machine, and a number of fabric covers were unusable. Should this spoilage be recorded for Job 21 or for all jobs processed this period? Explain your answer.

Define what an electrical arc is.

Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2014, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1. Prepare the journal entries to record (a) the issuance of the bonds, (b) the payment of interest and the related amortization on July 1, 2014, and (c) the accrual of interest and the related amortization on December 31, 2014. (Round to the nearest dollar.)

A fillet weld has a cross-sectional area of 25.0 mm2 and is 300 mm long. (a) What quantity of heat (in joules) is required to accomplish the weld, if the metal to be welded is low carbon steel? (b) How much heat must be generated at the welding source, if the heat transfer factor is 0.75 and the melting factor = 0.63?

The following table shows the average cost and average revenue (price) for a firm at each level of output.            1 2 3 4 5 6 7 8 9 10 AC (£) 7.00 5.00 4.00 3.30 3.00 3.10 3.50 4.20 5.00 6.00 AR (£) 10.00 9.50 9.00 8.50 8.00 7.50 7.00 6.50 6.00 5.50   (a)  Construct a table to show TC, MC, TR and MR at each level of output (put the figures for MC and MR mid-way between the output figures). (b)  Using MC and MR figures, find the profit-maximising output. (c)  Using TC and TR figures, check your answer to (b). (d)  Plot the AC, MC, AR and MR figures on a graph. (e)  Mark the profit-maximising output and the AR and AC at this output. (f)   Shade in an area to represent the level of profits at this output.

Differentiate between a lag indicator and a lead indicator.  Provide two examples of each.                   (LO1)

Explain the process of proprietary trading by securities firms. How was it affected by the Volcker Rule? (LO1, LO5)

Streep Factory provides a 2-year warranty with one of its products which was first sold in 2014. In that year, Streep spent $70,000 servicing warranty claims. At year-end, Streep estimates that an additional $400,000 will be spent in the future to service warranty claims related to 2014 sales. Prepare Streep’s journal entry to record the $70,000 expenditure and the December 31 adjusting entry, assuming the expenditures are inventory costs.

Why do the accounting standards require absorption costing for financial reporting?

How does a confidence shock differ from the idea of confidence as an amplifier?

Explain why mortgage defaults during the credit crisis in 2008 and 2009 adversely affected financial institutions that did not originate the mortgages. What role did these institutions play in financing the mortgages? (LO4)

What effect does intraperiod tax allocation have on reported net income?

Randy has found conflicting authorities that address a research question for one of his clients.  The majority of the authorities provide an unfavorable answer for his client.  According to Randy’s estimates, if the client takes the more favorable position on its tax return, then there is approximately a 48 percent chance that the position will be sustained upon audit or judicial proceeding.  If the client takes this position on its tax return, will Randy be subject to penalty?  Will the client potentially be subject to penalty?

In what way is the Securities and Exchange Commissionconcerned about and supportive of accounting principles and standards?

1. Assume that in Table 2.1 the total market demand for potatoes increases by 20 per cent at each price – due, say, to substantial increases in the prices of bread and rice. Plot the old and the new demand curves for potatoes. Is the new curve parallel to the old one? 2. The price of strawberries rises and yet it is observed that the sales of strawberries increase. Does this mean that the demand curve for blueberries is upward sloping? Explain.

On January 1, 2014, Cage Company contracts to lease equipment for 5 years, agreeing to make a payment of $137,899 (including the executory costs of $6,000) at the beginning of each year, starting January 1, 2014. The taxes, the insurance, and the maintenance, estimated at $6,000 a year, are the obligations of the lessee. The leased equipment is to be capitalized at $550,000. The asset is to be depreciated on a double-declining-balance basis, and the obligation is to be reduced on an effective-interest basis. Cage’s incremental borrowing rate is 12%, and the implicit rate in the lease is 10%, which is known by Cage.  itle to the equipment transfers to Cage when the lease expires. The asset has an estimated useful life of 5 years and no residual value. Instructions (a) Explain the probable relationship of the $550,000 amount to the lease arrangement. (b) Prepare the journal entry or entries that should be recorded on January 1, 2014, by Cage Company. (c) Prepare the journal entry to record depreciation of the leased asset for the year 2014. (d) Prepare the journal entry to record the interest expense for the year 2014. (e) Prepare the journal entry to record the lease payment of January 1, 2015, assuming reversing entries are not made. (f) What amounts will appear on the lessee’s December 31, 2014, balance sheet relative to the lease contract?

} Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship.  In late December she received a $20,000 bill from her accountant for consulting services related to her small business.  Reese can pay the $20,000 bill any time before January 30 of next year without penalty.  Assume Reese’s marginal tax rate is 30 percent this year and will be 40 percent next year, and that she can earn an after-tax rate of return of 12 percent on her investments.  When should she pay the $20,000 bill—this year or next?

Crowe Company purchased a heavy-duty truck on July 1, 2011, for $30,000. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $6,000. The company uses the straight-line method. It was traded on August 1, 2015, for a similar truck costing $42,000; $16,000 was allowed as trade-in value (also fair value) on the old truck and $26,000 was paid in cash. A comparison of expected cash flows for the trucks indicates the exchange lacks commercial substance. What is the entry to record the trade-in?

Question: No Doubt Company includes 1 coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2014, No Doubt Company purchased 8,800 premiums at 80 cents each and sold 110,000 boxes of soap powder at $3.30 per box; 44,000 coupons were presented for redemption in 2014. It is estimated that 60% of the coupons will eventually be presented for redemption. Instructions Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2014.

Explain why financial markets may be less liquid if companies are not forced to provide accurate financial reports. (LO3)

Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period. 2014 2015 2016 Costs to date $270,000 $450,000 $610,000 Estimated costs to complete 330,000 150,000 –0– Progress billings to date 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,000 Instructions (a) Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period. (b) Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period.

1. The following table shows data for a monopsonist employer. Fill in the missing figures. How many workers should the firm employ if it wishes to maximise profits? 2. Will a monopsony typically also be a monopoly? Try to think of some examples of monopsonists that are not monopolists, and monopolists that are not monopsonists.

Assembly of a product requires that a component part be ordered and stocked. Demand for the product is constant throughout the year at 7800 units annually. The cost to place an order is $95. The cost of the part is $56 and the holding cost rate is 22%. When units are ordered, they take two weeks to arrive. Determine (a) the economic order quantity and (b) the reorder point. (c) The parts are prepackaged in multiples of 100. It saves the supplier unpacking and repackaging time if they can ship in multiples of 100. The supplier has offered to reduce the price by $1 per unit if even multiples of 100 are purchased. How much would be saved (if anything) by taking this offer?