Question & Answer

What are the basic factors that affect surface finish in machining?

Kulikowski Inc., a client, is considering the authorization of a 10% common stock dividend to common stockholders. The financial vice president of Kulikowski wishes to discuss the accounting implications of such an authorization with you before the next meeting of the board of directors. Instructions (a) The first topic the vice president wishes to discuss is the nature of the stock dividend to the recipient. Discuss the case against considering the stock dividend as income to the recipient. (b) The other topic for discussion is the propriety of issuing the stock dividend to all “stockholders of record” or to “stockholders of record exclusive of shares held in the name of the corporation as treasury stock.” Discuss the case against issuing stock dividends on treasury shares.

{Research} XYZ declared a $1 per share dividend on August 15.  The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2).  The dividend was paid on September 10.  Ellis is a cash-method taxpayer.  Determine if he must include the dividends in gross income under the following independent circumstances

What are “liability gains and losses,” and how are they accounted for?

What are some of the challenges to the FASB and IASB in developing a converged conceptual framework?

Given the data in Problem 13.14, except that the flight angle of the extruder screw is a variable instead of a constant 17.7°. Use a spreadsheet calculator to determine the value of the flight angle that maximizes the volumetric flow rate Qx. Explore values of flight angle between 10° and 20°. Determine the optimum value to the nearest tenth of a degree.

What is a major difference between IFRS and GAAP as regards revenue recognition practices?

Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance sheet of the MS Partnership at year-end is as follows: Basis Fair Market Value Cash $ 60 $ 60 Land 60 180 Inventory 72 60 $192 $300 Mary $ 96 $150 Scott 96 150 $192 $300

A torsion test specimen has a radius = 25 mm, wall thickness = 3 mm, and gage length = 50 mm. In testing, a torque of 900 N-m results in an angular deflection = 0.3°. Determine (a) the shear stress, (b) shear strain, and (c) shear modulus, assuming the specimen had not yet yielded. (d) If failure of the specimen occurs at a torque = 1200 N-m and a corresponding angular deflection = 10°, what is the shear strength of the metal?

A steel collar is to be heated from room temperature (70°F) to 700°F. Its inside diameter = 1.000 in, and its outside diameter = 1.625 in. If the coefficient of thermal expansion of the steel is = 6.7 x 10-6 in/in per °F, determine the increase in the inside diameter of the collar.

What is the difference between the traditional ceramics and the new ceramics?

What important alloy is formed from lead and tin?

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.

What are the common book-tax differences relating to accounting for capital gains and losses?  Do these differences create favorable or unfavorable book-to-tax adjustments?

Describe when economic performance occurs for the following expenses: a)Workers’ compensation  b) Rebates and refunds c) Insurance, warranties, and service contracts provided to the business d) Taxes

Data for Amsterdam Company are presented in BE8-5. Compute the April 30 inventory and the April cost of goods sold using the LIFO method.

On July 1, 2014, Wheeler Company purchased $4,000,000 of Duggen Company’s 8% bonds, due on July 1, 2021. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,500,000 to yield 10%. Determine the amount of interest revenue Wheeler should report on its income statement for the year ended December 31, 2014.

O’Neil, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. O’Neil uses the percentage-of-completion method. At December 31, 2014, the balances in certain accounts were Construction in Process $2,450,000; Accounts Receivable $240,000; and Billings on Construction in Process $1,400,000. Indicate how these accounts would be reported in O’Neil’s December 31, 2014, balance sheet.

According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements.

Grady received $8,200 of Social Security benefits this year.  Grady also reported salary and interest income this year.  What amount of the benefits must Grady include in his gross income under the following two independent situations? a.       Grady files single and reports salary of $12,100 and interest income of $250. b.       Grady files single and reports salary of $22,000 and interest income of $600. c.       Grady files married joint and reports salary of $75,000 and interest income of $500. d.       Grady files married joint and reports salary of $44,000 and interest income of $700. e.            Grady files married separate and reports salary of $22,000 and interest income of $600

The following stress and strain values were measured in the plastic region during a tensile test carried out on a new experimental metal: (1) true stress = 43,608 lb/in2 and true strain = 0.27 in/in, and (2) true stress = 52,048 lb/in2 and true strain = 0.85 in/in. Based on these data points, determine the strength coefficient and strain-hardening exponent.

Describe the relation between the book-tax differences associated with depreciation expense and the book-tax differences associated with gain or loss on disposition of depreciable assets.

What is flash in die casting?

Braxton Inc. is considering the write-off of a limited-life intangible because of its lack of profitability. Explain to the management of Braxton how to determine whether a write-off is permitted.

What are interim reports? Why is a complete set of financial statements often not provided with interim data? What are the accounting problems related to the presentation of interim data?