Question & Answer

There are 20 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 on the quiz is based on the total number of correct answers. 31.1 In brazing, the base metals melt at temperatures above 840°F (450°C) while in soldering they melt at 840°F (450°C) or below: (a) true or (b) false? 31.2 The strength of a brazed joint is typically (a) equal to, (b) stronger than, or (c) weaker than the filler metal out of which it is made? 31.3 Scarfing in the brazing of a butt joint involves the wrapping of a sheath around the two parts to be joined to contain the molten filler metal during the heating process: (a) true or (b) false? 31.4 Best clearances between surfaces in brazing are which one of the following: (a) 0.0025-0.025 mm (0.0001-0.001 in.), (b) 0.025-0.250 mm (0.001-0.010 in.), (c) 0.250-2.50 mm (0.010-0.100 in.), or (d) 2.5-5.0 mm (0.10-0.20 in.)? 31.5 Which of the following is an advantage of brazing (three best answers): (a) annealing of the base parts is a by-product of the process, (b) dissimilar metals can be joined, (c) less heat and energy required than fusion welding, (d) metallurgical improvements in the base metals, (e) multiple joints can be brazed simultaneously, (f) parts can be readily disassembled, and (g) stronger joint than welding? 31.6 Which of the following soldering methods are not used for brazing (two correct answers): (a) dip soldering, (b) infrared soldering, (c) soldering iron, (d) torch soldering, and (e) wave soldering? 31.7 Which one of the following is not a function of a flux in brazing or soldering: (a) chemically etch the surfaces to increase roughness for better adhesion of the filler metal, (b) promote wetting of the surfaces, (c) protect the faying surfaces during the process, or (d) remove or inhibit formation of oxide films? 31.8 Which of the following metals are used in solder alloys (four correct answers): (a) aluminum, (b) antimony, (c) gold, (d) iron, (e) lead, (f) nickel, (g) silver, (h) tin, and (i) titanium? 31.9 A soldering gun is capable of injecting molten solder metal into the joint area: (a) true, or (b) false? 31.10 In adhesive bonding, which one of the following is the term used for the parts that are joined: (a) adherend, (b) adherent, (c) adhesive, (d) adhibit, or (e) ad infinitum? 31.11 Weldbonding is an adhesive joining method in which heat is used to melt the adhesive: (a) true or (b) false? 31.12 Adhesively bonded joints are strongest under which type of stresses (two best answers): (a) cleavage, (b) peeling, (c) shear, and (d) tension? 31.13 Roughening of the faying surfaces tends to (a) have no effect on, (b) increase, or (c) reduce the strength of an adhesively bonded joint because it increases the effective area of the joint and promotes mechanical interlocking?

The two axes of an x-y positioning table are each driven by a stepping motor connected to a leadscrew with a 10:1 gear reduction. The step angle on each stepping motor is 7.5°. Each leadscrew has a pitch = 5.0 mm and provides an axis range = 300.0 mm. There are 16 bits in each binary register used by the controller to store position data for the two axes. (a) What is the control resolution of each axis? (b) What are the required rotational speeds and corresponding pulse train frequencies of each stepping motor in order to drive the table at 600 mm/min in a straight line from point (25, 25) to point (100, 150)? Ignore acceleration.

Nadal Inc. has two temporary differences at the end of 2013. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal’s accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2014 2015 2016 2017 Taxable amounts $40,000 $50,000 $60,000 $80,000 Deductible amounts (15,000) (19,000) $40,000 $35,000 $41,000 $80,000 As of the beginning of 2013, the enacted tax rate is 34% for 2013 and 2014, and 38% for 2015–2018. At the beginning of 2013, the company had no deferred income taxes on its balance sheet. Taxable income for 2013 is $500,000. Taxable income is expected in all future years. Instructions (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013. (b) Indicate how deferred income taxes would be classified on the balance sheet at the end of 2013.

Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a §754 election in place. Alix sells one-half of her interest (25 percent) to Michael Tomei for $30,000 cash. Just before the sale, Alix’s basis in her entire partnership interest is $75,000, including her $30,000 share of the partnership liabilities. Tralix’s assets on the sale date are as follows: Basis Fair Market Value Cash $ 40,000 $ 40,000 Inventory 30,000 90,000 Land held for investment 80,000 50,000    Totals $ 150,000 $ 180,000 a. What are the amount and character of Alix’s recognized gain or loss on the sale? b. What is Alix’s basis in her remaining partnership interest? c. What is Michael’s basis in his partnership interest? d. What is the effect of the sale on the partnership’s basis in the assets?

Grieg Landscaping began construction of a new plant on December 1  2014. On this date, the company purchased a parcel of land for $139,000 in cash. In addition, it paid $2,000 in surveying costs and $4,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,000, with $1,000 being received from the sale of materials. Architectural plans were also formalized on December 1, 2014, when the architect was paid $30,000. The necessary building permits costing $3,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor as follows. Date of Payment Amount of Payment March 1 $240,000 May 1 330,000 July 1 60,000 The building was completed on July 1, 2015. To finance construction of this plant, Grieg borrowed $600,000 from the bank on December 1, 2014. Grieg had no other borrowings. The $600,000 was a 10-year loan bearing interest at 8%. Instructions Compute the balance in each of the following accounts at December 31, 2014, and December 31, 2015. (Round amounts to the nearest dollar.) (a) Land. (b) Buildings. (c) Interest Expense.

What is the difference between favorable and unfavorable book-tax differences?

In a turning operation on aluminum, cutting speed = 900 ft/min, feed = 0.020 in/rev, and depth of cut = 0.250 in. What horsepower is required of the drive motor, if the lathe has a mechanical efficiency = 87%? Use Table 21.2 to obtain the appropriate unit horsepower value.

When an employer makes a below-market loan to an employee, what are tax consequences to the employer and employee?

George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directorshas decided to raise funds for the new plant by issuing $2,000,000 of 11% term corporate bonds on March 1, 2014, due on March 1, 2029, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. Instructions As the controller of the company, determine the selling price of the bonds.

A cylindrical workpart has a diameter = 2.5 in and a height = 4.0 in. It is upset forged to a height =2.75 in. Coefficient of friction at the die-work interface = 0.10. The work material has a flow curve with strength coefficient = 25,000 lb/in2 and strain hardening exponent = 0.22. Determine the plot of force vs. work height. Use of a spreadsheet calculator is recommended.

There are 16 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 on the quiz is based on the total number of correct answers. 32.1 Which of the following are reasons why mechanical assembly is often preferred over other forming processes (two best answers): (a) ease of assembly, (b) ease of disassembly, (c) economies of scale, (d) involves melting of the base parts, (e) no heat affected zone in the base parts, and (f) specialization of labor? 32.2 Most externally threaded fasteners are produced by which one of the following processes: (a) cutting the threads, (b) milling the threads, (c) tapping, (d) thread rolling, or (e) turning the threads? 32.3 Which of the following methods and tools are used for applying the required torque to achieve a desired preload of a threaded fastener (three best answers): (a) arbor press, (b) preload method, (c) sense of feel by a human operator, (d) snap fit, (e) stall-motor wrenches, (f) torque wrench, and (g) use of lockwashers? 32.4 Which of the following are the common ways in which threaded fasteners fail during tightening (two best answers): (a) excessive compressive stresses on the head of the fastener due to force applied by the tightening tool, (b) excessive compressive stresses on the shank of the fastener, (c) excessive shear stresses on the shank of the fastener, (d) excessive tensile stresses on the head of the fastener due to force applied by the tightening tool, (e) excessive tensile stresses on the shank of the fastener, and (f) stripping of the internal or external threads? 32.5 The difference between a shrink fit and an expansion fit is that in a shrink fit the internal part is cooled to a sufficiently low temperature to reduce its size for assembly, whereas in an expansion fit, the external part is heated sufficiently to increase its size for assembly: (a) true or (b) false? 32.6 Advantages of snap fit assembly include which of the following (three best answers): (a) components can be designed with features to facilitate part mating, (b) ease of disassembly, (c) no heat affected zone, (d) no special tools are required, (e) parts can be assembled quickly, and (f) stronger joint than with most other assembly methods? 32.7 The difference between industrial stitching and stapling is that the U-shaped fasteners are formed during the stitching process while in stapling the fasteners are preformed: (a) true or (b) false? 32.8 From the standpoint of assembly cost, it is more desirable to use many small threaded fasteners rather than few large ones in order to distribute the stresses more uniformly: (a) true or (b) false? 32.9 Which of the following are considered good product design rules for automated assembly (two best answers): (a) design the assembly with the fewest number of components possible, (b) design the product using bolts and nuts to allow for disassembly, (c) design with many different fastener types to maximize design flexibility, (d) design parts with asymmetric features to mate with other parts having corresponding (but reverse) features, and (e) limit the required directions of access when adding components to a base part?

Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow: 2014 2015 Costs incurred during the year $640,000 $1,425,000 Estimated costs to complete, as of December 31 960,000 –0– Billings during the year 420,000 1,680,000 Collections during the year 350,000 1,500,000 Instructions (a) What portion of the total contract price would be recognized as revenue in 2014? In 2015? (b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2015? (c) Prepare a complete set of journal entries for 2014 (using the percentage-of-completion method).

Tori Amos Corporation began operations on December 1, 2013. The only inventory transaction in 2013 was the purchase of inventory on December 10, 2013, at a cost of $20 per unit. None of this inventory was sold in 2013. Relevant information is as follows. Ending inventory units December 31, 2013 100 December 31, 2014, by purchase date December 2, 2014 100 July 20, 2014 50 150 During the year, the following purchases and sales were made. Purchases Sales March 15 300 units at $24 April 10 200 July 20 300 units at 25 August 20 300 September 4 200 units at 28 November 18 150 December 2 100 units at 30 December 12 200 The company uses the periodic inventory method. Instructions (a) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average cost. (b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2014, purchase cost is the current cost of inventory. (Hint: The beginning inventory is the base layer priced at $20 per unit.)

An RSW operation is used to make a series of spot welds between two pieces of aluminum, each 2.0 mm thick. The unit melting energy for aluminum = 2.90 J/mm3. Welding current = 6,000 amps, and time duration = 0.15 sec. Assume that the resistance = 75 micro-ohms. The resulting weld nugget measures 5.0 mm in diameter by 2.5 mm thick. How much of the total energy generated is used to form the weld nugget?

What enables banks safely to engage in both maturity transformation and risk transformation?

1. Give other examples of each of the four types of externality. 2. Redraw Figure 12.4, only this time assume there is only one producer, which is thus a monopoly. How does the existence of power affect the relationship between the private and the social optimum positions? 3. Redraw Figure 12.4, only this time assume that at low levels of production the good generates no external costs. Only once a certain outcome is reached (Qx) does the production of additional units generate rising external costs.

A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2015, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2012 to 2015, inclusive. The following data were ascertained. Balance of Trucks account, Jan. 1, 2012 Truck No. 1 purchased Jan. 1, 2009, cost $18,000 Truck No. 2 purchased July 1, 2009, cost 22,000 Truck No. 3 purchased Jan. 1, 2011, cost 30,000 Truck No. 4 purchased July 1, 2011, cost 24,000 Balance, Jan. 1, 2012 $94,000 The Accumulated Depreciation—Trucks account previously adjusted to January 1, 2012, and entered in the ledger, had a balance on that date of $30,200 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2012. Transactions between January 1, 2012, and December 31, 2015, which were recorded in the ledger, are as follows. July 1, 2012 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $40,000. Ichiro Mfg. Co. paid the automobile dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,000. The transaction has commercial substance. Jan. 1, 2013 Truck No. 1 was sold for $3,500 cash; entry debited Cash and credited Trucks, $3,500. July 1, 2014 A new truck (No. 6) was acquired for $42,000 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.) July 1, 2014 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro Mfg. Co. received $2,500 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,200, and credits to Miscellaneous Income, $700, and Trucks, $2,500. Entries for depreciation had been made at the close of each year as follows: 2012, $21,000; 2013, $22,500; 2014, $25,050; and 2015, $30,400. Instructions (a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company’s errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (b) Prepare one compound journal entry as of December 31, 2015, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2015.

In which of the following industries are exit costs likely to be low: (a) steel production; b) market gardening; (c) nuclear power generation; (d) specialist financial advisory services; (e) production of a new drug; (f) street food; (g) car ferry operators? Do these exit costs depend on how narrowly the industry is defined?

At December 31, 2014, Reid Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2014. Net income for 2014 was $2,000,000, and dividends declared on preferred stock were $400,000. Compute Reid’s earnings per common share. (Round to the nearest penny.)

As indicated in Section 23.4, the effect of a cutting fluid is to increase the value of C in the Taylor tool life equation. In a certain machining situation using HSS tooling, the C value is increased from C = 200 to C = 225 due to the use of the cutting fluid. The n value is the same with or without fluid at n = 0.125. Cutting speed used in the operation is v = 125 ft/min. Feed = 0.010 in/rev and depth = 0.100 in. The effect of the cutting fluid can be to either increase cutting speed (at the same tool life) or increase tool life (at the same cutting speed). (a) What is the cutting speed that would result from using the cutting fluid if tool life remains the same as with no fluid? (b) What is the tool life thatwould result if the cutting speed remained at 125 ft/min? (c) Economically, which effect is better, given that tooling cost = $2.00 per cutting edge, tool change time = 2.5 min, and operator and machine rate = $30/hr? Justify you answer with calculations, using cost per cubic in of metal machined as the criterion of comparison. Ignore effects of workpart handling time.

Differentiate between “financial statements” and “financialreporting.”

During 2010, George Winston Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2010, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $18,000 related to the patent were incurred as of October 1, 2010. Instructions (a) Prepare all journal entries required in 2010 and 2011 as a result of the transactions above. (b) On June 1, 2012, Winston spent $9,480 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2012. Prepare all journal entries required in 2012 and 2013. (c) In 2014, Winston determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2015. Prepare all journal entries required in 2014 and 2015.

Johanne transferred investment property to S&J Corporation in exchange for 60 percent of the S&J Corporation stock (60 shares valued at $115,000). The property's fair market value was $190,000 and its tax basis to Johanne was $60,000. The investment property was subject to a $75,000 mortgage that S&J Corporation assumed on the transfer (not treated as boot).   a. Assuming the transfer qualifies under §351, what are the amount and character of the gain Johanne must recognize on the exchange?  b. What is Johanne's tax basis in the S&J stock he received in the exchange? c. Assume that in addition to the investment property, Johanne transferred inventory with a fair market value of $30,000 and a tax basis of $20,000 for additional S&J Corporation stock. What are the amount and character of gain Johanne must recognize on the exchange of the investment property and inventory for stock? d. Assuming the facts in part (c), what is Johanne's basis in the S&J stock he received in the exchange? e. Assume the original facts except that the liability assumed by S&J Corporation would give rise to a deduction when paid. What are the amount and character of gain Johanne must recognize on the exchange? f. Assuming the facts in part (e), what is Johanne's basis in the S&J stock he received in the exchange?

The following defined pension data of Rydell Corp. apply to the year 2014. Projected benefi t obligation, 1/1/14 (before amendment) $560,000 Plan assets, 1/1/14 546,200 Pension liability 13,800 On January 1, 2014, Rydell Corp., through plan amendment, grants prior service benefi ts having a present value of 120,000 Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefi ts paid to retirees 40,000 Prior service cost amortization for 2014 17,000 Instructions For 2014, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

To what extent do Keynesians and new classicists agree about the role of fixed exchange rates?