Question & Answer

There are 12 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. 27.1 Which of the following are the usual objectives of heat treatment (three best answers): (a) increase hardness, (b) increase melting temperature, (c) increase recrystallization temperature, (d) reduce brittleness, (e) reduce density, and (f) relieve stresses? 27.2 Of the following quenching media, which one produces the most rapid cooling rate: (a) air, (b) brine, (c) oil, or (d) pure water? 27.3 On which one of the following metals is the treatment called austenitizing be performed: (a) aluminum alloys, (b) brass, (c) copper alloys, or (d) steel? 27.4 The treatment in which the brittleness of martensite is reduced is called which one of the following: (a) aging, (b) annealing, (c) austenitizing, (d) normalizing, (e) quenching, or (f) tempering? 27.5 The Jominy end-quench test is designed to indicate which one of the following: (a) cooling rate, (b) ductility, (c) hardenability, (d) hardness, or (e) strength? 27.6 In precipitation hardening, the hardening and strengthening of the metal occurs in which one of the following steps: (a) aging, (b) quenching, or (c) solution treatment? 27.7 Which one of the following surface-hardening treatments is the most common: (a) boronizing, (b) carbonitriding, (c) carburizing, (d) chromizing, or (e) nitriding? 27.8 Which of the following are selective surface-hardening methods (three correct answers): (a) austenitizing, (b) electron beam heating, (c) fluidized bed furnaces, (d) induction heating, (e) laser beam heating, and (f) vacuum furnaces?

Explain how finance companies provide financing through leasing. (LO2)

1.       : If talkative men are viewed as powerful and competent, why do you think talkative women are seen as less capable and pushy? Do you think this perception would be different in an organization with a large percentage of female managers at top levels?

Describe the annualized income method for determining a corporation’s required estimated tax payments.  What advantages does this method have over other methods?

Why have large banks’ noninterest income levels typically been higher than those of smaller banks? (LO2)

Salazar Inc., a Colorado company, is relocating to a nearby town. It would like to trade its real property for some real property in the new location. While Salazar has found several prospective buyers for its real property and has also located several properties that are acceptable in the new location, it cannot find anyone willing to trade Salazar Inc. for its property in a like-kind exchange. Explain how a third-party intermediary could facilitate Salazar’s like-kind exchange.

Job costing; overhead rates The Eastern Seaboard Company uses an estimated rate for allocating factory overhead to job orders based on machine hours for the machining department and on a direct labour cost basis for the finishing department. The company budgeted the following for last year:       During December, the cost record for job 602 shows the following:   Required (a)     What is the estimated overhead allocation rate that should be used in the machining department? In the finishing department? (b)     What is the total overhead allocated to job 602? (c)      Assuming that job 602 consisted of 200 units of product, what is the unit cost for this job? (d)     What factors affect the volume of production in a period? Can we know all of the factors before the period begins? Why? (e)      Explain why the company would use two different overhead allocation bases.

Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2014. Harrisburg expected to complete the building by December 31, 2014. Harrisburg has the following debt obligations outstanding during the construction period. Construction loan—12% interest, payable semiannually, issued December 31, 2013 $2,000,000Short-term loan—10% interest, payable monthly, and principal payable at maturity on May 30, 2015 1,400,000Long-term loan—11% interest, payable on January 1 of each year. Principal payable on January 1, 2018 1,000,000 Instructions (Carry all computations to two decimal places.) (a) Assume that Harrisburg completed the office and warehouse building on December 31, 2014, as planned at a total cost of $5,200,000, and the weighted-average amount of accumulated expenditures was $3,600,000. Compute the avoidable interest on this project. (b) Compute the depreciation expense for the year ended December 31, 2015. Harrisburg elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $300,000.

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.

How might a balanced scorecard be used?             (LO4)

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

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.

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.

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

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?

Presented below is information related to Rembrandt Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $190.00 $106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to distribute 19.00 8.00 2.50 Current replacement cost 203.00 105.00 51.00 Normal profi t margin 32.00 29.00 21.25 Determine the following: (a) the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis, (b) the cost amount that should be used inthe lower-of-cost-or-market comparison of boots, and (c) the market amount that should be used to valueparkas on the basis of the lower-of-cost-or-market.

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?