Question & Answer

Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland. He resided in the home for the remainder of the year. Rental income from the property was $6,500. Expenses associated with use of the home for the entire year were as follows:

1.    What is the difference between a benefit corporation and a B Corporation?

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

Outline the purpose of strategy maps.

. In 2024, Jack is single two children, ages 10 and 12.  Jack works full time and earns an annual salary of $195,000 as a consultant. Jack files as a head of household and does not itemize his deductions.  In the fall of this year, he was recently offered a position with another firm that would pay him an additional $45,000.

Briefly describe the impairment evaluation process and assessment of receivables on an individual or collective basis.

Saurez Company, your client, manufactures paint. The company’s president, Maria Saurez, has decided to open a retail store to sell Saurez paint as well as wallpaper and other supplies that would be purchased from other suppliers. She has asked you for information about the conventional retail method of pricing inventories at the retail store. Instructions Prepare a report to the president explaining the retail method of pricing inventories. Your report should include the following points. (a) Description and accounting features of the method. (b) The conditions that may distort the results under the method. (c) A comparison of the advantages of using the retail method with those of using cost methods of inventory pricing. (d) The accounting theory underlying the treatment of net markdowns and net markups under the method.

Presented below are three different transactions related to materiality. Explain whether you would  classify these transactions as material. (a) Blair Co. has reported a positive trend in earnings over the last 3 years. In the current year, it reduces its bad debt allowance to ensure another positive earnings year. The impact of this adjustment is equal to 3% of net income. (b) Hindi Co. has an extraordinary gain of $3.1 million on the sale of plant assets and a $3.3 million loss on the sale of investments. It decides to net the gain and loss because the net effect is considered immaterial. Hindi Co.’s income for the current year was $10 million. (c) Damon Co. expenses all capital equipment under $25,000 on the basis that it is immaterial. The company has followed this practice for a number of years.

There are 21 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. 39.1 Material handling is usually not associated with transportation between facilities that involves rail, truck, air, or waterway delivery of goods: (a) true or (b) false? 39.2 Fixed routing is associated with which of the following types of manufacturing systems (two best answers): (a) automated production lines, (b) automated storage systems, (c) cellular manufacturing systems, (d) flexible manufacturing systems, (e) job shops, and (f) manual assembly lines? 39.3 Which of the following types of material handling equipment are typically used in a process type layout (two best answers): (a) conveyors, (b) cranes and hoists, (c) fork lift trucks, and (d) railguided vehicles? 39.4 Batch model production lines are most suited to which one of the following production situations: (a) job shop, (b) mass production, or (c) medium production? 39.5 Precedence constraints are best described by which one of the following: (a) launching sequence in a mixed model line, (b) limiting value of the sum of element times that can be assigned to a worker or station, (c) order of workstations along the line, or (d) sequence in which the work elements must be done? 39.6 Which of the following phrases are most appropriate to describe the characteristics of tasks that are performed at automated workstations (three best answers): (a) complex, (b) consists of multiplework elements, (c) involves a single work element, (d) involves straight-line motions, (e) requires sensory capability, and (f) simple? 39.7 The transfer line is most closely associated with which one of the following types of production operations: (a) assembly, (b) automotive chassis fabrication, (c) machining, (d) pressworking, or (e) spot welding? 39.8 A dial indexing machine uses which one of the following types of workpart transfer: (a) asynchronous, (b) continuous, (c) parts passed by hand, or (d) synchronous? 39.8 A dial indexing machine uses which one of the following types of workpart transfer: (a) asynchronous, (b) continuous, (c) parts passed by hand, or (d) synchronous? 39.10 Most parts classification and coding systems are based on which of the following types of part attributes (two best answers): (a) annual production rate, (b) date of design, (c) design, (d) manufacturing, and (e) weight? 39.11 What is the dividing line between a manufacturing cell and a flexible manufacturing system: (a) two machines, (b) four machines, or (c) six machines? 39.12 A machine capable of producing different part styles in a batch mode of operation qualifies as a flexible manufacturing system: (a) true or (b) false? 39.13 The physical layout of a flexible manufacturing system is determined principally by which one of the following: (a) computer system, (b) material handling system, (c) part family, (d) processing equipment, or (e) weight of parts processed? 39.14 Industrial robots can, in general, most easily handle which one of the following part types in a flexible machining system: (a) heavy parts, (b) metal parts, (c) nonrotational parts, (d) plastic parts, or (e) rotational parts? 39.15 Flexible manufacturing systems and cells are generally applied in which one of the following areas: (a) high-variety, low-volume production, (b) low variety, (c) low volume, (d) mass production, (e) medium-volume, medium-variety production? 39.16 Which one of the following technologies is most closely associated with flexible machining systems: (a) lasers, (b) machine vision, (c) manual assembly lines, (d) numerical control, or (f) transfer lines?

What is the difference between a shrink fit and expansion fit in assembly?

Compare and contrast the relationship test requirements for a qualifying child with the relationship requirements for a qualifying relative.

A square hole is to be cut using ECM through a plate of pure copper (valence = 1) that is 20 mm thick. The hole is 25 mm on each side, but the electrode used to cut the hole is slightly less that 25 mm on its sides to allow for overcut, and its shape includes a hole in its center to permit the flow of electrolyte and to reduce the area of the cut. This tool design results in a frontal area of 200 mm2. The applied current = 1000 amps. Using an efficiency of 95%, determine how long it will take to cut the hole.

What is a best-efforts agreement? (LO1)

There are 15 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. 41.1 Which one of the following terms best describes the overall function of production planning and control: (a) inventory control, (b) manufacturing logistics, (c) manufacturing engineering, (d) mass production, or (e) product design? 41.2 Which of the following are the three categories of items usually listed in the master production schedule: (a) components used to build the final products, (b) firm customer orders, (c) general product lines, (d) orders for maintenance and spare parts, (e) sales forecasts, and (f) spare tires? 41.3 Inventory carrying costs include which of the following (two best answers): (a) equipment downtime, (b) interest, (c) production, (d) setup, (e) spoilage, (f) stock-out, and (g) storage? 41.4 Which of the following are the three terms in the economic order quantity formula: (a) annual demand rate, (b) batch size, (c) cost per piece, (d) holding cost, (e) interest rate, and (f) setup cost? 41.5 Order point inventory systems are intended for which of the following (two best answers): (a) dependent demand items, (b) independent demand items, (c) low production quantities, (d) mass production quantities, and (e) mid-range production quantities? 41.6 With which of the following manufacturing resources is capacity requirements planning primarily concerned (two best answers): (a) component parts, (b) direct labor, (c) inventory storage space, (d) production equipment, and (e) raw materials? 41.7 The word kanban is most closely associated with which one of the following: (a) capacity planning, (b) economic order quantity, (c) just-in-time production, (d) master production schedule, or (e) material requirements planning? 41.8 Machine loading refers most closely to which one of the following: (a) assigning jobs to a work center, (b) floor foundation in the factory, (c) managing work-in-process in the factory, (d) releasing orders to the shop, or (e) sequencing jobs through a machine?

The strength coefficient and strain-hardening exponent of a certain test metal are 40,000 lb/in2 and 0.19, respectively. A cylindrical specimen of the metal with starting diameter = 2.5 in and length = 3.0 in is compressed to a length of 1.5 in. Determine the flow stress at this compressed length and the average flow stress that the metal has experienced during deformation

Allocation rates – update question (business name) DataShow’s IT support department budgets its costs at $40 000 per month plus $12 per hour. For November the following were the estimated and actual hours provided by the IT support department to three operating departments.   Required (a)          What is the support department’s allocation rate if estimated activity is the allocation base? (b)          What is the support department’s allocation rate if actual activity is the allocation base? (c)           List one advantage and one disadvantage for each type of allocation rate.

Compare and contrast the tests for accruing income and those for accruing deductions for tax purposes.

69. Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building.  a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth’s recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth’s realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year 0 and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth’s gain or loss in year 0 and in year 1.

During a recent management meeting at Sunset Consulting Services, a team member questioned why the costing system had multiple indirect cost pools given it would be easier just to have one.  Provide a brief response to explain why the business has adopted multiple indirect costs pools.

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.

Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, and received cash of $47,664. The implicit interest rate is 12%. Prepare Samson’s journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest.

What is the objective of financial reporting?

Presented below are a number of facts related to Weller, Inc. Assume that no mention of these facts was made in the financial statements and the related notes. Instructions Assume that you are the auditor of Weller, Inc. and that you have been asked to explain the appropriate accounting and related disclosure necessary for each of these items. (a) The company decided that, for the sake of conciseness, only net income should be reported on the income statement. Details as to revenues, cost of goods sold, and expenses were omitted. (b) Equipment purchases of $170,000 were partly financed during the year through the issuance of a $110,000 notes payable. The company offset the equipment against the notes payable and reported plant assets at $60,000. (c) Weller has reported its ending inventory at $2,100,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes. (d) The company changed its method of valuing inventories from weighted-average to FIFO. No mention of this change was made in the financial statements.

For tax purposes, why is the married filing jointly tax status generally preferable to the married filing separately filing status?Why might a married taxpayer prefer not to file a joint return with the taxpayer’s spouse?

On October 1, 2014, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $120,000, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Arden’s financial statements are prepared on a calendar-year basis. Instructions Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Arden Farm Equipment Company for the entire term of the note.