Question & Answer

A metal removal rate of 0.01 in3/min is achieved in a certain EDM operation on a pure iron workpart. What metal removal rate would be achieved on nickel in this EDM operation, if the same discharge current were used? The melting temperatures of iron and nickel are 2802°F and 2651°F, respectively.

Balanced scorecard at individual level; strategy map; boundary systems Required (a) Reflect on the management accounting case and the balanced scorecards used by Qantas and Virgin Australia as part of their incentive plans. How might they use a strategy map in the process of developing their scorecards? (b) With reference to the management accounting case, explain how the airlines might be able to use the balanced scorecard as a form of boundary system.

What is meant by consumption smoothing and of what significance might it be for the relationship between spending and income?

If a partner with a taxable year-end of December 31 is in a partnership with a March 31 taxable year-end, how many months of deferral will the partner receive? Why?

Is it possible for shareholders to defer or avoid the second level of tax on corporate income altogether? Briefly explain.

In 1987, Herman Moore Company completed the construction of a building at a cost of $2,000,000 and first occupied it in January 1988. It was estimated that the building will have a useful life of 40 years and a salvage value of $60,000 at the end of that time. Early in 1998, an addition to the building was constructed at a cost of $500,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $20,000. In 2016, it is determined that the probable life of the building and addition will extend to the end of 2047, or 20 years beyond the original estimate. Instructions (a) Using the straight-line method, compute the annual depreciation that would have been charged from 1988 through 1997. (b) Compute the annual depreciation that would have been charged from 1998 through 2015. (c) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2016. (d) Compute the annual depreciation to be charged, beginning with 2016.

Explain how in 2022, the rising inflation and higher prices in the United States affected the demand for loanable funds, the supply of loanable funds, and interest rates in the United States (LO1)

Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to a Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current year, Sherry withdraws $14,000 of the account balance to purchase a car. Assuming Sherry’s marginal tax rate is 24 percent, how much of the $14,000 withdrawal will she retain after taxes to fund her car purchase?

The following information was described in a note of Canon Packing Co. “During August, Holland Products Corporation purchased 311,003 shares of the Company’s common stock which constitutes approximately 35% of the stock outstanding. Holland has since obtained representation on the Board of Directors.” “An affiliate of Holland Products Corporation acts as a food broker for Canon Packing in the greater New York City marketing area. The commissions for such services after August amounted to approximately $20,000.” Why is this information disclosed?

Bingaman Resources sold two depreciable §1231 assets during the year. One asset resulted in a large gain (the asset was sold for more than it was purchased) and the other resulted in a small loss. Describe the §1231 netting process for Bingaman.

What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Inc. report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary.

Assume that on January 1, 2014, Elmer’s Restaurants sells a computer system to Liquidity Finance Co. for $680,000 and immediately leases the computer system back. The relevant information is as follows. 1. The computer was carried on Elmer’s books at a value of $600,000. 2. The term of the noncancelable lease is 10 years; title will transfer to Elmer. 3. The lease agreement requires equal rental payments of $110,666.81 at the end of each year. 4. The incremental borrowing rate for Elmer is 12%. Elmer is aware that Liquidity Finance Co. set the annual rental to insure a rate of return of 10%. 5. The computer has a fair value of $680,000 on January 1, 2014, and an estimated economic life of 10 years. 6. Elmer pays executory costs of $9,000 per year. Instructions Prepare the journal entries for both the lessee and the lessor for 2014 to reflect the sale and leaseback agreement. No uncertainties exist, and collectibility is reasonably certain.

For the preceding problem, use the inverse lever rule to determine the proportions of liquid and solid phases present in the alloy.

What is the common approach used in all of the material addition technologies to prepare the control instructions for the RP system?

Assume Congress increases individual tax rates on ordinary income while leaving all other tax rates unchanged. How would this change affect the overall tax rate on corporate taxable income? How would this change affect overall tax rates for owners of flow-through business entities?

1. Why do you think that the ratios for developing countries are lower than those for developed countries? 2. Make a list of reasons why the ratios of the bottom 40 per cent to the top 20 per cent may not give an accurate account of relative levels of inequality between countries. 3. What would the ratio be if national income were absolutely equally distributed?

Assume that your friend Will Morris, who is a music major, asks you to define and discuss the nature of a liability. Assist him by preparing a definition of a liability and by explaining to him what you believe are the elements or factors inherent in the concept of a liability.

For tax purposes, how is the compensation paid to an S corporation shareholder similar to compensation paid to an owner of an entity taxed as a partnership?  How is it different?

What role does the ASX Corporate Governance Council’s Corporate    government principles and recommendations, and the    Corporations Act have in executive remuneration?             (LO5)

The following independent situations relate to inventory accounting. 1. Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods? 2. Keillor Company’s inventory of $1,100,000 at December 31, 2014, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. (a) Goods shipped from a vendor f.o.b. shipping point on December 24, 2014, at an invoice cost of $69,000 to Keillor Company were received on January 4, 2015. (b) The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2014. The carrier picked up these goods on January 3, 2015. What amount should Keillor report as inventory on its balance sheet? 3. Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2014, costing $21 each. Purchases of part M.O. during May were as follows. Units Unit Cost May 9 2,000 $22.00 17 3,500 23.00 26 1,000 24.00 4 5 8A physical count on May 31, 2014, shows 2,000 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2014? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? 4. Ashbrook Company adopted the dollar-value LIFO method on January 1, 2014 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. At Base- At Current- Inventory Year Cost Year Cost 1/1/14 $200,000 $200,000 12/31/14 240,000 264,000 12/31/15 256,000 286,720 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2015? 5. Donovan Inc., a retail store chain, had the following information in its general ledger for the year 2015. Merchandise purchased for resale $909,400 Interest on notes payable to vendors 8,700 Purchase returns 16,500 Freight-in 22,000 Freight-out (delivery expense) 17,100 Cash discounts on purchases 6,800 What is Donovan’s inventoriable cost for 2015? Instructions Answer each of the preceding questions about inventories, and explain your answers.ROBLEMS

Did the exchange rate difficulties experienced by countries under the ERM strengthen or weaken the arguments for progressing to a single European currency?

In reviewing the tax rate schedule for a single taxpayer, Chuck notes that the tax on $75,000 is $5,226.25 plus 25 percent of the taxable income over $37,950.  What does the $5,226.25 represent?

Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange a parcel of land in North Carolina for Kase’s Maryland property. Kase agrees to the exchange. What is Kase’s realized gain or loss, recognized gain or loss, and basis in the North Carolina property in each of the following alternative scenarios?   a. The transaction qualifies as a like-kind exchange, and the fair market value of each property is $675,000. b. The transaction qualifies as a like-kind exchange, and the fair market value of

A bearing for the output shaft of a 200 hp motor is to be heated to expand it enough to press on the shaft. At 70°F the bearing has an inside diameter of 4.000 in and an outside diameter of 7.000 in. The shaft has an outside diameter of 4.004 in. The modulus of elasticity for the shaft and bearing is 30 x 106 lb/in2 and the coefficient of thermal expansion is 6.7 x 10-6 in/in per °F. (a) At what temperature will the bearing have 0.005 of clearance to fit over the shaft? (b) After it is assembled and cooled, what is the radial pressure between the bearing and shaft? (c) Determine the maximum effective stress in the bearing.

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 on the quiz is based on the total number of correct answers 29.1 Welding can only be performed on metals that have the same melting point; otherwise, the metal with the lower melting temperature always melts while the other metal remains solid: (a) true, (b) false? 29.2 A fillet weld can be used to join which of the following joint types (three correct answers): (a) butt, (b) corner, (c) edge, (d) lap, and (e) tee? 29.3 A fillet weld has a cross-sectional shape that is approximately which one of the following: (a) rectangular, (b) round, (c) square, or (d) triangular? 29.4 Groove welds are most closely associated with which one of the following joint types: (a) butt, (b) corner, (c) edge, (d) lap, or (e) tee? 29.5 A flange weld is most closely associated with which one of the following joint types: (a) butt, (b) corner, (c) edge, (d) lap, or (e) tee? 29.6 For metallurgical reasons, it is desirable to melt the weld metal with minimum energy input. Which one of the following heat sources is most consistent with this objective: (a) high power, (b) high power density, (c) low power, or (d) low power density? 29.7 The amount of heat required to melt a given volume of metal depends strongly on which of the following properties (three best answers): (a) coefficient of thermal expansion, (b) heat of fusion, (c) melting temperature, (d) modulus of elasticity, (e) specific heat, (f) thermal conductivity, and (g) thermal diffusivity? 29.8 The heat transfer factor in welding is correctly defined by which one of the following descriptions: (a) the proportion of the heat received at the work surface that is used for melting, (b) the proportion of the total heat generated at the source that is received at the work surface, (c) the proportion of the total heat generated at the source that is used for melting, or (d) the proportion of the total heat generated at the source that is used for welding? 29.9 The melting factor in welding is correctly defined by which one of the following descriptions: (a) the proportion of the heat received at the work surface that is used for melting, (b) the proportion of the total heat generated at the source that is received at the work surface, (c) the proportion of the total heat generated at the source that is used for melting, or (d) the proportion of the total heat generated at the source that is used for welding? 29.10 Weld failures always occur in the fusion zone of the weld joint, since this is the part of the joint that has been melted: (a) true, (b) false?