Question & Answer

In the previous problem, suppose that the percent reduction were specified to be equal for each pass, rather than the draft. (a) What is the minimum number of passes required? (b) What is the draft for each pass?

On December 31, 2014, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2015. On January 21, 2015, the company issued 25,000 ordinary shares for $36 per share, receiving $900,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2015, the proceeds from the share sale, supplemented by an additional $300,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2014, statement of financial position is authorized for issue on February 23, 2015. Instructions Show how the $1,200,000 of short-term debt should be presented on the December 31, 2014, statement of financial position.

What are the three methods of performing the masking step in chemical machining?

‘As volume increases, total cost increases and per-unit cost decreases.’ What type of linear cost function does this describe? Draw a simple graph of this type of cost function.

How does creep feed grinding differ from conventional grinding?

Try to formulate a definition of ‘the public interest’.

Internal and external reports Classify the following reports as internal or external. (a)          Operating budget           (b)          Credit reports                             (c)           Financial statements                   (d)          Capital budget                            (e)           Tax returns                                 (f)           Analysis of product mix

Peggy is a rodeo clown, and this year she expended $1,000 on special “funny” clothes and outfits. Peggy would like to deduct the cost of these clothes as work-related because she refuses to wear the clothes unless she is working. Under what circumstances can Peggy deduct the cost of her clown clothes?

Jackie has a corporate client that has recently received a 30 day notice from the IRS with a $100,000 tax assessment.  Her client is considering requesting an appeals conference to contest the assessment.  What factors should Jackie advise her client to consider before requesting an appeals conference?

What is an embossing operation?

1.      : Is a 1-5 grading system by principals and master teachers a valuable part of a feedback control system for teachers? Why?

Conceptually, when taxpayers receive annuity payments, how do they determine the amount of the payment they must include in gross income?

What is a partnership’s ordinary business income (loss), and how is it calculated?

1. If monopoly power existed in an industry, would production be above or below the socially efficient level (assuming no externalities)? Which would be greater, MSB or P? 2. Assuming perfect competition and no externalities, social efficiency will also be achieved in factor markets. Demonstrate that this will be where:                     MSBf = MRPf = Pf = MDUf = MSCf (where MRP is the marginal product of a factor, MDU is the marginal disutility of supplying it and f is any factor – see section 10.1).

What is stare decisis, and how does it relate to the Golsen rule?

“The federal income tax scores very high on the economy criterion because the current IRS budget is relatively low compared to the costs of a typical collection agency.”  Explain why this statement may be considered wrong.

Under what circumstances would business income from an accounting practice qualify for the deduction for qualified business income?

List two purposes of dressing a grinding wheel.

Why would a company wish to reduce its bond indebtedness before its bonds reach maturity? Indicate how this can be done and the correct accounting treatment for such a transaction.

For what reasons might a corporation purchase its own stock?

Why does the exchange-rate transmission mechanism strengthen the interest-rate transmission mechanism?

Provide examples of assets that do not qualify for interest capitalization.

Name and briefly describe the four types of chips that occur in metal cutting

What dangers are there in maturity transformation for (a) financial institutions; (b) society generally?

On December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities. December 31, 2013 Investments (Trading) Cost Fair Value Unrealized Gain (Loss) Clemson Corp. stock $20,000 $19,000 $(1,000) Colorado Co. stock 10,000 9,000 (1,000) Buffaloes Co. stock 20,000 20,600 600 Total of portfolio $50,000 $48,600 (1,400) Previous fair value adjustment balance –0– Fair value adjustment—Cr. $(1,400) During 2014, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. Instructions (a) Prepare the adjusting journal entry needed on December 31, 2013. (b) Prepare the journal entry to record the sale of the Colorado Company stock during 2014. (c) Prepare the adjusting journal entry needed on December 31, 2014.