Question & Answer

Explain the mechanisms whereby the DAD and IS curves will shift by the same amount as the DAS and MP curves in the long run.

Explain the moral hazard problem as it relates to deposit insurance. (LO2)

Hiatt Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2014. The insurance company which administers the pension plan provided the following selected information for the years 2014, 2015, and 2016. For Year Ended December 31, 2014 2015 2016 Plan assets (fair value) $50,000 $ 85,000 $180,000 Accumulated benefi t obligation 45,000 165,000 292,000 Projected benefi t obligation 60,000 200,000 324,000 Net (gain) loss (for purposes of corridor calculation) –0– 78,400 86,121 Employer’s funding contribution (made at end of year) 50,000 60,000 105,000 There were no balances as of January 1, 2014, when the plan was initiated. The actual and expected return on plan assets was 10% over the 3-year period, but the settlement rate used to discount the company’s pension obligation was 13% in 2014, 11% in 2015, and 8% in 2016. The service cost component of net periodic pension expense amounted to the following: 2014, $60,000; 2015, $85,000; and 2016, $119,000. The average remaining service life per employee is 12 years. No benefits were paid in 2014, $30,000 of benefits were paid in 2015, and $18,500 of benefits were paid in 2016 (all benefits paid at end of year). Instructions (Round to the nearest dollar.) (a) Calculate the amount of net periodic pension expense that the company would recognize in 2014, 2015, and 2016. (b) Prepare the journal entries to record net periodic pension expense, employer’s funding contribution, and related pension amounts for the years 2014, 2015, and 2016.

A turning operation is performed on an engine lathe using a tool with zero rake angle in the direction of chip flow. The work material is an alloy steel with hardness = 325 Brinell hardness. The feed is 0.015 in/rev, depth of cut is 0.125 in and cutting speed is 300 ft/min. After the cut, the chip thickness ratio is measured to be 0.45. (a) Using the appropriate value of specific energy from Table 21.2, compute the horsepower at the drive motor, if the lathe has an efficiency = 85%. (b) Based on horsepower, compute your best estimate of the cutting force for this turning operation. Use the orthogonal cutting model as an approximation of the turning process.

1.              What decision style did John Tate use (Exhibit 9.5) and what mistakes do you think he made with the way he solved the problem of limited office space? Explain.

Identify which itemized deductions are subject to floor limitations, ceiling limitations, or some combination of these limits.

On January 1, 2014, Burke Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting January 1, 2014. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of depreciation for all of its plant assets. Burke’s incremental borrowing rate is 10%, and the Lessor’s implicit rate is unknown. Instructions (a) What type of lease is this? Explain. (b) Compute the present value of the minimum lease payments. (c) Prepare all necessary journal entries for Burke for this lease through January 1, 2015.

Assuming that liquidity and interest rate expectations are both important for explaining the shape of a yield curve, what does a flat yield curve indicate about the market’s perception of future interest rates? (LO3)

Why would a company restrict when a senior executive can exercise their         share options?             (LO2, 3 and 5)

] In 2024, OCC Corp. made a charitable donation of $400,000 to the International Rescue Committee (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution.

Direct costs and overhead Job 87M had direct material costs of $400 and a total cost of $2100. Overhead is allocated at the rate of 75 per cent of prime cost (direct material and direct labour).   Required (a)     How much direct labour was used? (b)     How much overhead was allocated?

1.      Why do you think Nicola and Steve are on the defensive? Might the emphasis on core leadership behaviors be handled in a different way? What do you suggest?

For each of the four part drawings in Figure P16.14, indicate which PM class the parts belong to, whether the part must be pressed from one or two directions, and how many levels of press control will be required? Dimensions are mm.

The state of Georgia recently increased its tax on a pack of cigarettes by $2.00.  What type of tax is this?  Why might Georgia choose this type of tax?

What causes the various types of changes that occur in the altered layer just beneath the surface?

Explain the difference between horizontal and vertical die-casting machines. Which is more popular?

Where can authoritative IFRS be found related to the various disclosure issues discussed in the chapter?

Caplets are used to support a sand core inside a sand mold cavity. The design of the caplets and the manner in which they are placed in the mold cavity surface allows each caplet to sustain a force of 10 lb. Several caplets are located beneath the core to support it before pouring; and several other caplets are placed above the core to resist the buoyancy force during pouring. If the volume of the core = 325 in.3 , and the metal poured is brass, determine the minimum number of caplets that should be placed (a) beneath the core, and (b) above the co

Question: The U.S. Constitution is the highest tax authority but provides very little in the way of tax laws.  What are the next highest tax authorities beneath the U.S. Constitution?

Determine the blanking force required in Problem 20.2, if the shear strength of the steel = 325 MPa and the tensile strength is 450 MPa.

Evaluate the following statement: “When dividends and long-term capital gains are taxed at the same rate, the overall tax rate on corporate income is the same whether the corporation distributes its after-tax earnings as a dividend or whether it reinvests the after-tax earnings to increase the value of the corporation.”

Why do Keynesians argue that, even in the long run, demand-side policies will be still be required if faster growth in aggregate supply is to be achieved?

When the COVID-19 epidemic struck unexpectedly at the end of 2019, company closures and instructions to stay at home severely disrupted the economy. Write a short essay outlining how COVID-19 has affected the growth and use of fintech. Do you think this terrible episode had a positive effect on the growth and use of fintech, or did it generate more problems than fintech could solve?

A fire destroys all of the merchandise of Assante Company on February 10, 2014. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2014 $ 400,000 Sales revenue to February 10, 2014 1,950,000 Purchases to February 10, 2014 1,140,000 Freight-in to February 10, 2014 60,000 Rate of gross profi t on selling price 40% What is the approximate inventory on February 10, 2014?

Journal entries Langley uses a job costing system. At the beginning of the month of June, two orders were in process as follows:       There was no inventory in finished goods on 1 June. During June, orders numbered 106 to 120 were put into process.   Direct materials requirements amounted to $13 000, direct labour costs for the month were $20 000, and actual manufacturing overhead recorded during the month amounted to $28 000.   The only order in process at the end of June was order 120, and the costs incurred for this order were $1150 of direct materials and $1000 of direct labour. In addition, order 118, which was 100 per cent complete, was still on hand as of 30 June. Total costs for this order were $3300. The entity's overhead allocation rate in June was the same as that used in May and is based on labour cost.   Required (a)    Prepare journal entries (with supporting calculations) to record the cost of goods manufactured, the cost of sales, and the closing of the overapplied or underapplied overhead to cost of sales. (b)   Describe the two different approaches to closing overapplied or underapplied overhead at the end of the period. How do you choose an appropriate method?