Question & Answer

How have international mutual funds (IMFs) increased the international integration of capital markets among countries? (LO7)

Explain the difference between an ideal standard and a currently          attainable standard.

Plant acquisitions for selected companies are as follows. 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co.,for a lump-sum price of $700,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $200,000 $150,000 Buildings 250,000 350,000 Equipment 300,000 300,000 To be conservative, the company decided to take the lower of the two values for each asset acquired. The following entry was made. Land 150,000 Buildings 250,000 Equipment 300,000 Cash 700,000 2. Harry Enterprises purchased store equipment by making a $2,000 cash down payment and signing a 1-year, $23,000, 10% note payable. The purchase was recorded as follows. Equipment 27,300 Cash 2,000 Notes Payable 23,000 Interest Payable 2,300 3. Kim Company purchased office equipment for $20,000, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Equipment 20,000 Cash 19,600 Purchase Discounts 400 4. Kaisson Inc. recently received at zero cost land from the Village of Cardassia as an inducement to locate its business in the Village. The appraised value of the land is $27,000. The company made no entry to record the land because it had no cost basis. 5. Zimmerman Company built a warehouse for $600,000. It could have purchased the building for $740,000. The controller made the following entry. Buildings 740,000 Cash 600,000 Profit on Construction 140,000 Instructions Prepare the entry that should have been made at the date of each acquisition.

“Tax avoidance is discouraged by the courts and Congress.”  Is this statement true or false? Please explain.

A sand core located inside a mold cavity has a volume of 157.0 in3 . It is used in the casting of a cast iron pump housing. Determine the buoyancy force that will tend to lift the core during pouring.

Geraldo recently won a lottery and chose to receive $100,000 today instead of an equivalent amount in ten years, computed using an 8 percent rate of return.  Today, he learned that interest rates are expected to increase in the future.  Is this good news for Geraldo given his decision?

Assume that Best Buy made a December 31 adjusting entry to debit Salaries and Wages Expense and credit Salaries and Wages Payable for $4,200 for one of its departments. On January 2, Best Buy paid the weekly payroll of $7,000. Prepare Best Buy’s (a) January 1 reversing entry; (b) January 2 entry (assuming the reversing entry was prepared); and (c) January 2 entry (assuming the reversing entry was not prepared).

In 2024, Sheryl is claimed as a dependent on her parents’ tax return.  Her parents report taxable income of $600,000 (married filing jointly). Sheryl did not provide more than half her own support.  What is Sheryl’s tax liability for the year in each of the following alternative circumstances?

Khamsah Mining Company has purchased a tract of mineral land for $900,000. It is estimated that this tract will yield 120,000 tons of ore with sufficient mineral content to make mining and processing profitable. It is further estimated that 6,000 tons of ore will be mined the first and last year and 12,000 tons every year in between. (Assume 11 years of mining operations.) The land will have a salvage value of $30,000. The company builds necessary structures and sheds on the site at a cost of $36,000. It is estimated that these structures can serve 15 years but, because they must be dismantled if they are to be moved, they have no salvage value. The company does not intend to use the buildings elsewhere. Mining machinery installed at the mine was purchased secondhand at a cost of $60,000. This machinery cost the former owner $150,000 and was 50% depreciated when purchased. Khamsah Mining estimates that about half of this machinery will still be useful when the present mineral resources have been exhausted, but that dismantling and removal costs will just about offset its value at that time. The company does not intend to use the machinery elsewhere. The remaining machinery will last until about one-half the present estimated mineral ore has been removed and will then be worthless. Cost is to be allocated equally between these two classes of machinery. Instructions (a) As chief accountant for the company, you are to prepare a schedule showing estimated depletion and depreciation costs for each year of the expected life of the mine. (b) Also compute the depreciation and depletion for the first year assuming actual production of 5,000 tons. Nothing occurred during the year to cause the company engineers to change their estimates of either the mineral resources or the life of the structures and equipment.

For the following application, identify one or more nontraditional machining processes that might be used, and present arguments to support your selection. Assume that either the part geometry or the work material (or both) preclude the use of conventional machining. The application is a matrix of 0.1 mm (0.004 in) diameter holes in a plate of 3.2 mm (0.125 in) thick hardened tool steel. The matrix is rectangular, 75 by 125 mm (3.0 by 5.0 in) with the separation between holes in each direction = 1.6 mm ( 0.0625 in).

Contrast the constructive receipt doctrine with the claim of right doctrine.

Describe the like-kind property requirements for real property for purposes of qualifying for a like-kind exchange. Explain whether land held for investment by a corporation will qualify as like-kind property with land held by an individual for personal use.

There are 14 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 24.1 Which of the following criteria are generally recognized to indicate good machinability (four best answers): (a) ease of chip disposal, (b) high cutting temperatures, (c) high power requirements, (d) high value of Ra, (e) long tool life, (f) low cutting forces, and (g) zero shear plane angle? 24.2 Of the various methods for testing machinability, which one of the following is the most important: (a) cutting forces, (b) cutting temperature, (c) horsepower consumed in the operation, (d) surface roughness, (e) tool life, or (f) tool wear? 24.3 A machinability rating greater than 1.0 indicates that the work material is (a) easier to machine than the base metal or (b) more difficult to machine than the base metal, where the base metal has a rating = 1.0? 24.4 In general, which one of the following materials has the highest machinability: (a) aluminum, (b) cast iron, (c) copper, (d) low carbon steel, (e) stainless steel, (f) titanium alloys, or (g) unhardened tool steel? 24.5 Which one of the following operations is generally capable of the closest tolerances: (a) broaching, (b) drilling, (c) end milling, (d) planing, or (e) sawing? 24.6 When cutting a ductile work material, an increase in cutting speed will generally (a) degrade surface finish, which means a higher value of Ra or (b) improve surface finish, which means a lower value of Ra? 24.7 Which one of the following operations is generally capable of the best surface finishes (lowest value of Ra): (a) broaching, (b) drilling, (c) end milling, (d) planing, or (e) turning? 24.8 Which of the following time components in the average production machining cycle is affected by cutting speed (two correct answers): (a) part loading and unloading time, and (b) setup time for th 24.9 Which cutting speed is always lower for a given machining operation: (a) cutting speed for maximum production rate, or (b) cutting speed for minimum cost? 24.10 A high tooling cost and/or tool change time will tend to (a) decrease, (b) have no effect on, or (c) increase the cutting speed for minimum cost?

Sandburg Company requires additional cash for its business. Sandburg has decided to use its accounts receivable to raise the additional cash and has asked you to determine the income statement effects of the following contemplated transactions. 1. On July 1, 2014, Sandburg assigned $400,000 of accounts receivable to Keller Finance Company. Sandburg received an advance from Keller of 80% of the assigned accounts receivable less a commission of 3% on the advance. Prior to December 31, 2014, Sandburg collected $220,000 on the assigned accounts receivable, and remitted $232,720 to Keller, $12,720 of which represented interest on the advance from Keller. 2. On December 1, 2014, Sandburg sold $300,000 of net accounts receivable to Wunsch Company for $270,000. The receivables were sold outright on a without recourse basis. 3. On December 31, 2014, an advance of $120,000 was received from First Bank by pledging $160,000 of Sandburg’s accounts receivable. Sandburg’s first payment to First Bank is due on January 30, 2015. Instructions Prepare a schedule showing the income statement effects for the year ended December 31, 2014, as a result of the above facts.

How does electroless plating differ from electrochemical plating?

(Threshold Concept 1) 1. Think of three things you did last week. What was opportunity cost of each one? (Threshold Concept 1) 2. Assume that a supermarket has some fish that has reached its sell-by date. It was originally priced at £10, but yesterday was marked down to £5 ‘for quick sale’. It is now the end of the day and it still has not been sold. The supermarket is about to close and there is no one in the store that wants fish. What is the opportunity cost for the store of throwing the fish away?

What are some common point defects in a crystal lattice structure?

Try using the same type of analysis in the labour market to show what will happen if there is an increase in demand for labour. What is the ‘price’ of labour?

Suppose you asked your favorite AI query tool the following question: “When is an S corporation required to pay a built-in gains tax??”  The AI tool provided the following response:

Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.   Intangible assets Goodwill 80,000 Cash surrender value of life insurance 90,000 Prepaid expenses 12,000 Current liabilities Accounts payable 135,000 Notes payable (due next year) 125,000 Pension obligation 82,000 Rent payable 49,000 Premium on bonds payable 53,000 Long-term liabilities Bonds payable 500,000 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 290,000 290,000 Additional paid-in capital 160,000 Retained earnings ? Instructions Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long-term liability.

What are the similarities and differences between the tax benefit rule and depreciation recapture?

A corporation distributes appreciated property to a shareholder. What impact does the distribution have on the corporation’s earnings and profits?

What are the three methods of performing the masking step in chemical machining?

Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,000, and Clyde owns the remaining 40 shares with a basis of $12,000. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale or exchange treatment.

On January 1, 2014, Irwin Animation sold a truck to Peete Finance for $33,000 and immediately leased it back. The truck was carried on Irwin’s books at $28,000. The term of the lease is 5 years, and title transfers to Irwin at lease-end. The lease requires five equal rental payments of $8,705 at the end of each year. The appropriate rate of interest is 10%, and the truck has a useful life of 5 years with no salvage value. Prepare Irwin’s 2014 journal entries.