Question & Answer

Olga is married and files a joint tax return with her husband.  What amount of AMT exemption may she deduct under each of the following alternative circumstances?  a.  Her AMTI is $390,000.

Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $120 $110 $95 $90 $110 $90 Cost 75 80 80 80 50 36 Cost to complete 30 30 25 35 30 30 Selling costs 10 18 10 20 10 20 Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2014, for each of the inventory items above.

1.              Let it slide. Missing the New York appointment is Owen’s first big mistake. He says he is getting things under control, and you believe that he should be given a chance to get himself back on track.

What evidence is necessary to demonstrate the ability to consummate the refinancing of short-term debt?

A parison is extruded from a die with outside diameter = 11.5 mm and inside diameter = 7.5 mm. The observed die swell is 1.25. The parison is used to blow mold a beverage container whose outside diameter = 112 mm (a standard size 2-liter soda bottle). (a) What is the corresponding wall thickness of the container? (b) Obtain an empty 2-liter plastic soda bottle and (carefully) cut it across the diameter. Using a micrometer, measure the wall thickness to compare with your answer in (a)

Komiko Tanaka invests $12,000 in LymaBean, Inc. LymaBean does not pay any dividends.  Komiko projects that her investment will generate a 10 percent before-tax rate of return.  She plans to invest for the long term.   a.   How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then she sells it when the long-term capital gains rate is 15 percent? b.   What is Komiko’s after-tax rate of return on her investment in part (a)? c.   How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then sells when the long-term capital gains rate is 25 percent? d.   What is Komiko’s after-tax rate of return on her investment in part (c)? e.   How much cash will Komiko retain, aftertaxes, if she holds the investment for 15 years and then she sells when the long-term capital gains rate is 15 percent? f.    What is Komiko’s after-tax rate of return on her investment in part (e)?

Ida and Clem were married for several years, but in 2018 they finalized their divorce. In the divorce decree, Ida agreed to deed their car to Clem and pay Clem $10,000 per year for twenty years (but not beyond his death). Did these transfers qualify as alimony for tax purposes? Explain.

What happens to an elastomer when it is below its glass transition temperature?

If a bank expects interest rates to decrease over time, how might it alter the rate sensitivity of its assets and liabilities? (LO3)

In 2024, SML Corp. reported taxable income of $100,000 before any NOL deductions. SML has a $170,000 NOL carryover that originated in 2017 and a $90,000 NOL carryover that originated in 2023. What is SML’s 2024 taxable income after the NOL deduction? What NOLs can SML carryover to 2025?

: Describe technical, human, and conceptual skills and their relevance for managers.

Will there be any cost to the UK economy from a decline in the demand for exports resulting from a world recession?

Bob’s Lottery, Inc., has decided to offer winners a choice of $100,000 in ten years or some amount currently.  Assume that Bob’s Lottery, Inc., earns a 10 percent after-tax rate of return.  What amount should Bob offer lottery winners currently, in order for him to be indifferent between the two choices?

Harriet, Herm, and Ronde formed an S corporation called Innovet. Harriet and Herm both contributed cash of $25,000 to get things started. Ronde was a bit short on cash but had a parcel of land valued at $60,000 (basis of $50,000) that he decided to contribute.  The land was encumbered by a $35,000 mortgage. What tax bases will each of the three have in their stock of Innovet?

On January 1, 2014, Beyonce Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John’s net assets were $13,000,000. On July 1, 2015, Beyonce paid $3,040,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. The fair value of John’s identifiable assets net of liabilities was equal to their carrying amount of $14,200,000. As a result of this transaction, Beyonce owns 30% of John and can exercise significant influence over John’s operating and financial policies. John reported the following net income and declared and paid the following dividends. Net Income Dividend per Share Year ended 12/31/14 $700,000 None Six months ended 6/30/15 500,000 None Six months ended 12/31/15 815,000 $1.55 Instructions (Any excess fair value is attributed to goodwill.) Determine the ending balance that Beyonce Co. should report as its investment in John Corp. at the end of 2015.

Dan has AGI of $50,000 and paid the following taxes during this tax year. Calculate how much Dan can deduct for taxes as an itemized deduction this year.

1.      : Give the job to the candidate with the highest score. You don’t need to make enemies on the Civil Service Board, and, although it is a bureaucratic procedure, the test is an objective way to select a permanent placement.

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2024, she sells the following long-term assets used in her business:

What is meant by the term faying surface?

What would the isoquant map look like if there were (a) continuously increasing returns to scale; (b) continuously decreasing returns to scale?

Many financial institutions borrow heavily in the money markets using mortgages and mortgage-backed securities as collateral. Write a short essay about the lessons of the credit crisis to the deficit units and the surplus units that participate in the money markets. Should money markets be regulated to a greater degree to ensure proper collateral in money markets?

Futabatei Enterprises purchased a delivery truck on January 1, 2014, at a cost of $27,000. The truck has a useful life of 7 years with an estimated salvage value of $6,000. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2014 and 2015 the company has revenues of $200,000 and operating expenses (excluding depreciation) of $130,000. Instructions (a) Prepare income statements for 2014 and 2015. (The final amount reported on the income statement should be income before income taxes.) (b) Compute taxable income for 2014 and 2015. (c) Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes. (d) Explain why depreciation for book and tax purposes will generally be different over the useful life of a depreciable asset.

How does electroless plating differ from electrochemical plating?

Isabella provides 30 percent of the support for her father Hastings, who lives in an apartment by himself and has no gross income. Is it possible for Isabella to claim her father as a dependent? Explain.

An extruder barrel has a diameter of 4.0 in and an L/D ratio of 28. The screw channel depth = 0.25 in, and its pitch = 4.8 in. It rotates at 60 rev/min. The viscosity of the polymer melt is 100 x 10- lb-sec/in2 . What head pressure is required to obtain a volume flow rate = 150 in3 /min?-