Question & Answer

Using the facts from the previous problem, when should Hank send the bill if he expects his marginal tax rate to be 33 percent next year? 25 percent next year?

If anti-monopoly legislation is effective enough, is there ever any need to prevent mergers from going ahead?

There are 15 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers 3.1 Which of the following are the three basic types of static stresses to which a material can be subjected (three correct answers): (a) compression, (b) hardness, (c) reduction in area, (d) shear, (e) tensile, (f) true stress, and (f) yield? 3.2 Which one of the following is the correct definition of ultimate tensile strength, as derived from the results of a tensile test on a metal specimen: (a) the stress encountered when the stress-strain curve transforms from elastic to plastic behavior, (b) the maximum load divided by the final area of the specimen, (c) the maximum load divided by the original area of the specimen, or (d) the stress observed when the specimen finally fails? 3.3 If stress values were measured during a tensile test, which of the following would have the higher value: (a) engineering stress or (b) true stress? 3.4 If strain measurements were made during a tensile test, which of the following would have the higher value: (a) engineering strain, or (b) true strain? 3.5 The plastic region of the stress-strain curve for a metal is characterized by a proportional relationship between stress and strain: (a) true or (b) false? 3.6 Which one of the following types of stress strain relationship best describes the behavior of brittle materials such as ceramics and thermosetting plastics: (a) elastic and perfectly plastic, (b) elastic and strain hardening, (c) perfectly elastic, or (d) none of the above? 3.7 Which one of the following types of stress strain relationship best describes the behavior of most metals at room temperature: (a) elastic and perfectly plastic, (b) elastic and strain hardening, (c) perfectly elastic, or (d) none of the above? 3.8 Which one of the following types of stress strain relationship best describes the behavior of metals at temperatures above their respective recrystallization points: (a) elastic and perfectly plastic, (b) elastic and strain hardening, (c) perfectly elastic, or (d) none of the above? 3.9 Which one of the following materials has the highest modulus of elasticity: (a) aluminum, (b) diamond, (c) steel, (d) titanium, or (e) tungsten? 3.10 The shear strength of a metal is usually (a) greater than or (b) less than its tensile strength? 3.11 Most hardness tests involve pressing a hard object into the surface of a test specimen and measuring the indentation (or its effect) that results: (a) true or (b) false? 3.12 Which one of the following materials has the highest hardness: (a) alumina ceramic, (b) gray cast iron, (c) hardened tool steel, (d) high carbon steel, or (e) polystyrene? Viscosity can be defined as the ease with which a fluid flows: (a) true or (b) false? 3.13 Viscosity can be defined as the ease with which a fluid flows: (a) true or (b) false?

What is the unit melting energy in welding, and what are the factors on which it depends?

A lease agreement between Lennox Leasing Company and Gill Company is described in IFRS21-10. Refer to the data in IFRS21-10 and do the following for the lessor. (Round all numbers to the nearest cent.) Instructions (a) Compute the amount of the lease receivable at the inception of the lease. (b) Prepare a lease amortization schedule for Lennox Leasing Company for the 5-year lease term. (c) Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2014, 2015, and 2016. The lessor’s accounting period ends on December 31. Reversing entries are not used by Lennox.

Explain the similarities and differences among absorption and variable costing.

Name some of the important applications of FRPs.

There are 29 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, andeach additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 13.1 The forward movement of polymer melt in an extruder barrel is resisted by drag flow, which is caused by the resistance to flow through the die orifice: (a) true or (b) false? 13.2 Which of the following are sections of a conventional extruder barrel for thermoplastics (three best answers): (a) compression section, (b) die section, (c) feed section, (d) heating section, (e) metering section, and (f) shaping section? 13.3 Which of the following processes are associated with the production of plastic sheet and film (three correct answers): (a) blown-film extrusion process, (b) calendering, (c) chill-roll extrusion, (d) doctor blade method, (e) spinning, (f) thermoforming, and (g) transfer molding? 13.4 The principal components of an injection molding machine are which two of the following: (a) clamping unit, (b) hopper, (c) injection unit, (d) mold, and (e) part ejection unit? 13.5 The parting line in injection molding is which one of the following: (a) the lines formed where polymer melt meets after flowing around a core in the mold, (b) the narrow gate sections where the parts are separated from the runner, (c) where the clamping unit is joined to the injection unit in the molding machine, or (d) where the two mold halves come together? 13.6 The function of the ejection system is which one of the following: (a) move polymer melt into the mold cavity, (b) open the mold halves after the cavity is filled, (c) remove the molded parts from the runner system after molding, or (d) separate the part from the cavity after molding? 13.7 A three-plate mold offers which of the following advantages when compared to a two-plate mold (two best answers): (a) automatic separation of parts from runners, (b) gating is usually at the base of the part to reduce weld lines, (c) sprue does not solidify, and (d) stronger molded parts? 13.8 Which of the following defects or problems is associated with injection molding (three correct answers): (a) bambooing, (b) die swell, (c) drag flow, (d) flash, (e) melt fracture, (f) short shots, or (g) sink marks? 13.9 In rotational molding, centrifugal force is used to force the polymer melt against the surfaces of the mold cavity where solidification occurs: (a) true or (b) false? 13.10 Use of a parison is associated with which one of the following plastic shaping processes: (a) bi-injection molding, (b) blow molding, (c) compression molding, (d) pressure thermoforming, or (e) sandwich molding? 13.11 A thermoforming mold with a convex form is called which one of the following: (a) a die, (b) a negative mold, (c) a positive mold, or (d) a three-plate mold? 13.12 The term encapsulation refers to which one of the following plastics shaping processes: (a) casting, (b) compression molding, (c) extrusion of hollow forms, (d) injection molding in which a metal insert is encased in the molded part, or (e) vacuum thermoforming using a positive mold? 13.13 The two most common polymer foams are which of the following: (a) polyacetal, (b) polyethylene, (c) polystyrene, (d) polyurethane, and (e) polyvinylchloride? 13.14 In which of the following properties do plastic parts often compare favorably with metals (two best answers): (a) impact resistance, (b) resistance to ultraviolet radiation, (c) stiffness, (d) strength, (e) strength-to-weight ratio, and (f) temperature resistance? 13.15 Which of the following processes are generally limited to thermoplastic polymers (two best answers): (a) blow molding, (b) compression molding, (c) reaction injection molding, (d) thermoforming, (e) transfer molding, and (f) wire coating? 13.16 Which of the following processes would be applicable to produce hulls for small boats (three best answers): (a) blow molding, (b) compression molding, (c) injection molding, (d) rotational molding, and (e) vacuum thermoforming?

Explain how ADRs enable U.S. investors to become part owners of foreign companies. (LO7)

Should the Fed or Congress decide the fate of large financial institutions that are near bankruptcy? (LO2, LO3)

What is ‘learning by doing? Why is this a possible hysteresis channel?

Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:

Rode Inc. incurred a net operating loss of $500,000 in 2014. Combined income for 2012 and 2013 was $350,000. The tax rate for all years is 40%. Rode elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward.

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 P&G’s financial statements and the accompanying notes to answer the following questions. (a) What amounts relative to income taxes does P&G report in its: (1) 2011 income statement? (2) June 30, 2011, balance sheet? (3) 2011 statement of cash flows? (b) P&G’s income taxes in 2009, 2010, and 2011 were computed at what effective tax rates? (See the notes to the financial statements.) (c) How much of P&G’s 2011 total income taxes was current tax expense, and how much was deferred tax expense? (d) What did P&G report as the significant components (the details) of its June 30, 2011, deferred tax assets and liabilities?

Which circumstances might cause a stimulative monetary policy to be ineffective? (LO2)

What effect will the discrimination by the firm have on the wages and employment of black workers in other firms in the area if (a) these other firms discriminate against black workers; (b) they do not discriminate?

Why will the short-run consumption function be different from the long-run consumption function?

At December 31, 2014, Hillyard Corporation has a deferred tax asset of $200,000. After a careful review of all available evidence, it is determined that it is probable that $60,000 of this deferred tax asset will not be realized. Prepare the necessary journal entry.

What is meant by liquidity? Rank the following assets from one to five in order of liquidity. (a) Goodwill. (b) Inventory. (c) Buildings. (d) Short-term investments. (e) Accounts receivable.

Describe the advantages and disadvantages of equity rewards.             (LO3)

One of the mandrel types in electroforming is a solid mandrel. How is the part removed from a solid mandrel?

Kleckner Company started operations in 2010. Although it has grown steadily, the company reported accumulated operating losses of $450,000 in its first four years in business. In the most recent year (2014), Kleckner appears to have turned the corner and reported modest taxable income of $30,000. In addition to a deferred tax asset related to its net operating loss, Kleckner has recorded a deferred tax asset related to product warranties and a deferred tax liability related to accelerated depreciation. Given its past operating results, Kleckner has determined that it is not probable that it will realize any of the deferred tax assets. However, given its improved performance, Kleckner management wonders whether there are any accounting consequences for its deferred tax assets. They would like you to conduct some research on the accounting for recognition of its deferred tax asset. Instructions Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you  canuse the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) (a) Briefly explain to Kleckner management the importance of future taxable income as it relates to the recognition of deferred tax assets. (b) What are the sources of income that may be relied upon in assessing realization of a deferred tax asset? (c) What are tax-planning strategies? From the information provided, does it appear that Kleckner could employ a tax-planning strategy in evaluating its deferred tax asset?

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marksand- Spencer-Annual-report-and-financial-statements-2012.pdf. Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions. (a) What amounts relative to income taxes does M&S report in its: (1) 2012 income statement? (2) 31 March 2012 statement of financial position? (3) 2012 statement of cash flows? (b) M&S’s provision for income taxes in 2011 and 2012 was computed at what effective tax rates? (See the notes to the financial statements.) (c) How much of M&S’s 2012 total provision for income taxes was current tax expense, and how much was deferred tax expense? (d) What did M&S report as the significant components (the details) of its 31 March 2012 deferred tax assets and liabilities?

Bedard Corporation reported net income of $300,000 in 2014 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share.

Explain the possible signal that would be transmitted to the market if a country abandoned its use of the euro. (LO1)