Question & Answer

Use the information for Indiana Jones Corporation from BE21-9. Assume that for Lost Ark Company, the lessor, collectibility is reasonably predictable, there are no important uncertainties concerning costs, and the carrying amount of the equipment is $202,921. Prepare Lost Ark’s January 1, 2014, journal entries.

How would a central bank’s aversion to inflation affect how much the MP curve moves vertically downwards in response to a reduction in cost-push inflation?

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?

Refer to the definition of assets on page 216. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.

Another type of strategy firms can follow in a repeated game is the ’tit-for-tat’ strategy. What is the tit-for-tat strategy? What impact will it have on the most likely outcome in a repeated game?

Using the facts from the previous problem, how would your answer change if, instead, Duff adopted the cash method of accounting to allow them to better control the timing of their cash receipts and disbursements?

Briefly describe the process of computing a corporation’s taxable income assuming the corporation must use GAAP to determine its book income.

Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2015. Its only temporary difference at the end of the period relates to a $70,000 difference due to excess depreciation for tax purposes. If the tax rate is 40% for all periods, compute the amount of income tax expense to report in 2015. No deferred income taxes existed at the beginning of the year.

Why is the MCL curve horizontal?

Shannon, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2014. The increase in the prior year’s income before taxes is $1,200,000. The tax rate is 40%. Prepare Shannon’s 2014 journal entry to record the change in accounting principle.

What hurdles (or limitations) must partners overcome before they can ultimately deduct partnership losses on their tax returns?

The earning of revenue by a business enterprise is recognized for accounting purposes when the transaction is recorded. In some situations, revenue is recognized approximately as it is earned in the economic sense. In other situations, however, accountants have developed guidelines for recognizing revenue by other criteria, such as at the point of sale. Instructions (Ignore income taxes.) (a) Explain and justify why revenue is often recognized as earned at time of sale. (b) Explain in what situations it would be appropriate to recognize revenue as the productive activity takes place. (c) At what times, other than those included in (a) and (b) above, may it be appropriate to recognize revenue? Explain.

Why is it difficult to estimate the magnitude of the benefits of completing the internal market of the EU?

A prototype of a part is to be fabricated using stereolithography. The part is shaped like a right triangle whose base = 36 mm, height = 48 mm, and thickness = 25 mm. In application, the part will stand on its base, which is 36 mm by 25 mm. In the stereolithography process, the layer thickness = 0.20 mm. The diameter of the laser beam (“spot size”) = 0.15 mm, and the beam is moved across the surface of the photopolymer at a velocity of 400 mm/s. Compute the minimum possible time required to build the part, if 8 sec are lost each layer to lower the height of the platform that holds the part. Neglect the time for postcuring.

If the industry under perfect competition faces a downward-sloping demand curve, why does an individual firm face a horizontal demand curve?

Jamel and Jennifer have been married 30 years and have filed a joint return every year of their marriage. Their three daughters, Jade, Lindsay, and Abbi are ages 12, 17, and 22 respectively, and all live at home. None of the daughters provides more than half of her own support. Abbi is a full-time student at a local university and does not have any gross income.  a. Which, if any, of the daughters qualify as dependents of Jamel and Jennifer?

: Describe how unconscious bias can contribute to an environment that limits the advancement of women, people of color, and other underrepresented employees.

What are some of the basic types of microsystem devices?

Describe some ways in which taxes affect the political process in the United States.

Compare a centralized database system to a decentralized, distributed blockchain system. (LO2)

1.       : Is there a role for personality characteristics such as authoritarianism and Machiavellianism in contemporary organizations? Explain your thinking.

What is meant by the term aspect ratio in microsystem technology?

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso. Instructions Refer to these financial statements and the accompanying notes to answer the following questions. (a) What was P&G’s 2011 short-term debt and related weighted-average interest rate on this debt? (b) What was P&G’s 2011 working capital, acid-test ratio, and current ratio? Comment on P&G’s liquidity. (c) What types of commitments and contingencies has P&G’s reported in its financial statements? What is management’s reaction to these contingencies?

A leadscrew with a 7.5 mm pitch drives a worktable in an NC positioning system. The leadscrew is powered by a stepping motor which has 200 step angles. The worktable is programmed to move a distance of 120 mm from its present position at a travel speed of 300 mm/min. Determine (a) the number of pulses required to move the table the specified distance and (b) the required motor speed and pulse rate to achieve the desired table speed.

Under what conditions should a short-term obligation be excluded from current liabilities?