Question & Answer

What are the three basic categories of inspection and testing techniques used for weldments? Name some typical inspections and/or tests in each category.

Elaine pays $40,000 cash for Martha’s one-third interest in Lakewood Partnership. Just prior to the sale, Martha’s basis in Lakewood is $140,000. Lakewood reports the following balance sheet: Assets: Tax Basis FMV Cash $ 50,000 $ 50,000 Land 370,000 70,000    Totals $ 420,000 $ 120,000 Liabilities and capital: Capital- Mary $140,000 - Martha 140,000 - Margaret 140,000   Totals $ 420,000 Assume the land had been purchased several years ago and the partnership does not have a §754 election in place. a. What are the amount and character of Martha’s recognized gain or loss on the sale? b. What is Elaine’s basis in her partnership interest? c. If Lakewood were to sell the land for $70,000 shortly after the sale of Martha’s partnership interest, how much gain or loss would Elaine recognize?

Define and sketch a groove weld.

Define and sketch a fillet weld.

Give some examples of commercial products which are laminar composite structures

New machinery, which replaced a number of employees, was installed and put in operation in the last month of the fiscal year. The employees had been dismissed after payment of an extra month’s wages, and this amount was added to the cost of the machinery. Discuss the propriety of the charge. If it was improper, describe the proper treatment.

1.    : A survey found that 69 percent of MBA students view maximizing shareholder value as the primary responsibility of a company. The Business Roundtable’s new Statement on the Purpose of a Corporation said that five major stakeholders should receive equal attention. With which view do you agree? Why?

Why is photolithography based on visible light not used in nanotechnology?

What is a two-high rolling mill?

What are the two main categories of printed circuit board assemblies, as distinguished by the method of attaching components to the board?

As part of the year-end accounting process for your company, you are preparing the statement of cash flows according to IFRS. One of your team, a finance major, believes the statement should be prepared to report the change in working capital because analysts many times use working capital in ratio analysis. Your supervisor would like research conducted to verify the basis for preparing the statement of cash flows. 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 can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) (a) What is the primary objective for the statement of cash flows? Is working capital the basis for meetingthis objective? (b) What information is provided in a statement of cash flows? (c) List some of the typical cash inflows and outflows from operations.

On September 30, 2013, Rolen Machinery Co. sold a machine and accepted the customer’s zero-interest-bearing note. Rolen normally makes sales on a cash basis. Since the machine was unique, its sales price was not determinable using Rolen’s normal pricing practices. After receiving the first of two equal annual installments on September 30, 2014, Rolen immediately sold the note with recourse. On October 9, 2015, Rolen received notice that the note was dishonored, and it paid all amounts due. At all times prior to default, the note was reasonably expected to be paid in full. Instructions (a) (1) How should Rolen determine the sales price of the machine? (2) How should Rolen report the effects of the zero-interest-bearing note on its income statement for the year ended December 31, 2013? Why is this accounting presentation appropriate? (b) What are the effects of the sale of the note receivable with recourse on Rolen’s income statement for the year ended December 31, 2014, and its balance sheet at December 31, 2014? (c) How should Rolen account for the effects of the note being dishonored?

Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of Lots Price per Lot 1 9 $3,000 2 15 4,000 3 17 2,400 Operating expenses for the year allocated to this project total $18,200. Lots unsold at the year-end were as follows. Group 1 5 lots Group 2 7 lots Group 3 2 lots Instructions At the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date.

Presented below are two independent situations related to future taxable and deductible amounts resulting from temporary differences existing at December 31, 2014. 1. Mooney Co. has developed the following schedule of future taxable and deductible amounts. 2015 2016 2017 2018 2019 Taxable amounts $300 $300 $300 $ 300 $300 Deductible amount — — — (1,600) — 2. Roesch Co. has the following schedule of future taxable and deductible amounts. 2015 2016 2017 2018 Taxable amounts $300 $300 $ 300 $300 Deductible amount — — (2,300) — Both Mooney Co. and Roesch Co. have taxable income of $4,000 in 2014 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2014 are 30% for 2014–2017 and 35% for years thereafter. All of the underlying temporary differences relate to noncurrent assets and liabilities. Instructions For each of these two situations, compute the net amount of deferred income taxes to be reported at the end of 2014, and indicate how it should be classified on the balance sheet.

Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2014.   The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2013, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2014, the average price per common share during fiscal year 2014 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2013. 3. The preferred stock was issued in 2013. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2014. 5. The 1,000,000 shares of common stock were outstanding for the entire 2014 fiscal year. 6. Net income for fiscal year 2014 was $1,500,000, and the average income tax rate is 40%. Instructions For the fiscal year ended June 30, 2014, calculate the following for Fitzgerald Pharmaceutical Industries. (a) Basic earnings per share. (b) Diluted earnings per share.

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

What does the term refractory mean?

Included in Gonzalez Company’s December 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry to record $300 of accrued interest, and the February 1 journal entry to record receipt of $12,400 from the borrower.

What are the parameters of a machining operation that are included within the scope of cutting conditions?

Explain how the value-at-risk (VaR) method can be used to determine whether a bank has adequate capital. (LO3)

Suppose you asked your favorite AI learning tool “What permanent book-tax differences are common for a C corporation?” and the AI tool responded as follows:

Under what circumstances does a corporate shareholder receive tax deferral in a complete liquidation?

How is the present value of a non-interest-bearing note computed?

What are the requirements to contribute to a health savings account? What limits are imposed on the contributions and deductions?

Define die swell in extrusion