Question & Answer

: Explain how the reinforcement perspective can be used to motivate employees.

1.    : A new business venture must develop a comprehensive business plan if it hopes to acquire start-up funding. Companies such as FedEx and Nike say they did not follow their original plans closely. Does this mean that developing the plan was a waste of time for these eventually successful companies?

What is the difference between gross income and adjusted gross income, and what is the difference between adjusted gross income and taxable income?

: Discuss how job design influences motivation.

In 2007 China overtook the USA as the world’s largest emitter of CO2. Yet USA per capita emissions are three times that of China. What issues arise from this in the formulation of a global policy to reduce CO2 emissions?

What income tax issues must a corporation consider before it makes a noncash distribution to a shareholder?

Is the child tax credit a refundable or nonrefundable credit?  Explain.

Five friends, Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Janet (86 percent owner), and Tito (10.5 percent owner) are shareholders in Jackson 5 Inc. (an S corporation).  As employees of the company, each receives health insurance ($10,000 per year benefit), dental insurance ($2,000 per year benefit), and free access to a workout facility located at company headquarters ($500 per year benefit).  What are the tax consequences of these benefits for each shareholder and for Jackson 5 Inc.?

1.       : Use Herzberg’s two-factor theory to explain why motivation seems to be high and turnover low at Publix, based on the information provided in the chapter opening example.

Potomac Corporation wants to sell a warehouse that it has used in its business for 10 years. Potomac is asking $450,000 for the property. The warehouse is subject to a mortgage of $125,000. If Potomac accepts Wyden Inc.’s offer to give Potomac $325,000 in cash and assumes full responsibility for the mortgage on the property, what amount does Potomac realize on the sale?

Aram’s taxable income before considering capital gains and losses is $60,000. Determine Aram’s taxable income and how much of the income will be taxed at ordinary rates in each of the following alternative scenarios (assume Aram files as a single taxpayer).   a. Aram sold a capital asset that he owned for more than one year for a $5,000 gain, a capital asset that he owned for more than one year for a $500 loss, a capital asset that he owned for six months for a $1,200 gain, and a capital asset he owned for two months for a $900 loss.

What are some of the disadvantages of PM methods?

With reference to Table 4.2, determine the quantity of heat required to increase the temperature of an aluminum block that is 10 cm x 10 cm x 10 cm from room temperature (21°C) to 300°C.

Compare and contrast the personal traits associated with great leaders and those associated with ineffective leaders.

Tremaine would like to organize UTA as either an S Corporation or a C corporation. In either form, the entity will generate a 9 percent annual before-tax return on a $1,000,000 investment. Tremaine’s marginal income tax rate is 37 percent, and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an S corporation, he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA’s business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 25 percent of its after-tax earnings every year as a dividend if it is formed as a C corporation.   a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an S corporation or as a C corporation?  b. What is the overall tax rate on UTA’s income in the first year if UTA is organized as an S corporation or as a C corporation? c. What is the overall tax rate on UTA’s income in the first year if it is organized as an S corporation, but UTA’s income is not qualified business income? d. What is the overall tax rate on UTA’s income if it is organized as an S corporation, UTA’s income is not qualified business income, and Tremaine is a passive investor in UTA?

What are some of the reasons why a controlled atmosphere furnace is desirable in sintering?

What is a stud (in the context of threaded fasteners)?

The cutting force and thrust force in an orthogonal cutting operation are 1470 N and 1589 N, respectively. The rake angle = 5°, the width of the cut = 5.0 mm, the chip thickness before the cut = 0.6, and the chip thickness ratio = 0.38. Determine (a) the shear strength of the work material and (b) the coefficient of friction in the operation.

Schwartzkopf Co. purchased for $2,200,000 property that included both land and a building to be used in operations. The seller’s book value was $300,000 for the land and $900,000 for the building. By appraisal, the fair value was estimated to be $500,000 for the land and $2,000,000 for the building. At what amount should Schwartzkopf report the land and the building at the end of the year?

Using the IRS Web site (www.irs.gov/uac/The-Tax-Gap), how large is the current estimated “tax gap” (i.e., the amount of tax underpaid by taxpayers annually)?  What group of taxpayers represents the largest “contributors” to the tax gap?

What is continuity testing, and when is it performed in the PCB fabrication sequence?

What are the three basic categories of inspection and testing techniques used for weldments? Name some typical inspections and/or tests in each category.

Explain the difference between the weighted average and FIFO methods for process costing. Explain why an entity might choose one method over the other.

Larry Bounds has won the Gold Bat Award for hitting the longest home run in Major League Baseball this year. The bat is worth almost $35,000. Under what conditions can Larry exclude the award from his gross income? Explain.

For problem 9.1, determine the modulus of elasticity in (a) the longitudinal direction of the glass fibers and (b) the perpendicular direction to the glass fibers.