Question & Answer

Oil Products Company purchases an oil tanker depot on January 1, 2014, at a cost of $600,000. Oil Products expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $75,000 to dismantle the depot and remove the tanks at the end of the depot’s useful life. Instructions (a) Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2014. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2014, is $41,879. (b) Prepare any journal entries required for the depot and the asset retirement obligation at December 31, 2014. Oil Products uses straight-line depreciation; the estimated salvage value for the depot is zero. (c) On December 31, 2023, Oil Products pays a demolition firm to dismantle the depot and remove the tanks at a price of $80,000. Prepare the journal entry for the settlement of the asset retirement obligation.

There are 20 correct answers in the following multiple choice questions (some questions have multiple answer(a).s 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. 28.1 Which of the following are reasons why workparts must be cleaned in industry (four best answers): (a) to avoid air pollution, (b) to avoid water pollution, (c) to enhance appearance, (d) to enhance mechanical properties of the surface, (e) to improve hygiene conditions for workers, (f) to improve surface finish, (g) to prepare the surface for subsequent processing, and (h) to remove contaminants that might chemically attack the surface? 28.2 Which of the following chemicals are associated with alkaline cleaning (two correct answers): (a) 28.3 In sand blasting, which one of the following blast media is used: (a) Al2O3, (b) crushed nut shells, (c) nylon beads, (d) SiC, or (e) SiO2?borax, (b) 28.4 Which of the following processes generally produces a deeper penetration of atoms in the impregnated surface: (a) diffusion or (b) ion implantation? 28.5 Calorizing is the same as which one of the following surface processes: (a) aluminizing, (b) doping, (c) hot sand blasting, or (d) siliconizing? 28.9 Which one of the following plate metals produces the hardest surface on a metallic substrate: (a) cadmium, (b) chromium, (c) copper, (d) nickel, or (e) t28.3 In sand blasting, which one of the following blast media is used: (a) Al2O3, (b) crushed nut shells, (c) nylon beads, (d) SiC, or (e) SiO2? 28.10 Which one of the following plating metals is associated with the term galvanizing: (a) iron, (b) lead, (c) steel, (d) tin, or (e) zinc?   28.11 Which of the following processes involves electrochemical reactions (two correct answers): (a) anodizing, (b) chromate coatings, (c) electroless plating, (d) electroplating, and (e) phosphate coatings? 28.12 With which one of the following metals is anodizing most commonly associated (one answer): (a) aluminum, (b) magnesium, (c) steel, (d) titanium, or (e) zinc? 28.13 Sputtering is a form of which one of the following: (a) chemical vapor deposition, (b) defect in arc welding, (c) diffusion, (d) ion implantation, or (e) physical vapor deposition? 28.14 Which one of the following gases is the most commonly used in sputtering and ion plating: (a) argon, (b) chlorine, (c) neon, (d) nitrogen, or (e) oxygen? 28.15 The principal methods of applying powder coatings are which of the following (two best answers): (a) brushing, (b) electrostatic spraying, (c) fluidized bed, (d) immersion, and (e) roller coating? 28.16 Porcelain enamel is applied to a surface in which one of the following forms: (a) liquid emulsion, (b) liquid solution, (c) molten liquid, or (d) powders? 28.17 Hard facing utilizes which one of the following basic processes: (a) arc welding, (b) brazing, (c) dip coating, (d) electroplating, or (e) mechanical deformation to work harden the surface?

Explain how the maturity of mortgage-backed securities can be affected by interest rate movements. (LO4)

If supernormal profits are competed away under perfect competition, why will firms have an incentive to become more efficient?

1.   Talk to the manufacturing vice president and emphasize the responsibility that Petro-Tech has as an industry leader to set an example. Present her with a recommendation that Petro-Tech participate in voluntary pollution reduction as a marketing tool and as a way to position itself as the environmentally friendly choice.

Given the LRAC curve in Figure 6.11, what would the firm’s long-run total cost curve look like?

What are the differences between an explicit and an implicit tax?

How is it that the cost of an investment to a firm will exceed the value of the output that the investment will yield? Surely that would make the investment unprofitable. (Clue: the increase in output refers to output over a specific time period, usually a year.)

In what sense is it true to say that the Phillips curve is horizontal today?

Explain the difference between a freely floating system and a dirty float. Which type is more representative of the U.S. system? (LO1)

What are the major factors considered in determining what depreciation method to use?

Would the stock market be more efficient if insider dealing were made legal?

Wilco Corporation has the following account balances at December 31, 2014. Common stock, $5 par value $ 510,000 Treasury stock 90,000 Retained earnings 2,340,000 Paid-in capital in excess of par—common stock 1,320,000 Prepare Wilco’s December 31, 2014, stockholders’ equity section.

Show how Eq. (21.4) is derived from Figure 21.6.

A wire EDM operation is to be performed on a slab of ¾-in-thick aluminum using a brass wire electrode whose diameter = 0.005 in. It is anticipated that the overcut will be 0.001 in, so that the kerf width will be 0.007 in. Using a discharge current = 7 amps, what is the expected allowable feed rate that can be used in the operation? The melting temperature of aluminum is 1220°F.

The partner in charge of the Kappeler Corporation audit comes by your desk and leaves a letter he has started to the CEO and a copy of the cash flow statement for the year ended December 31, 2014. Because he must leave on an emergency, he asks you to finish the letter by explaining: (1) the disparity between net income and cash flow, (2) the importance of operating cash flow, (3) the renewable source(s) of cash flow, and (4) possible suggestions to improve the cash position.   Date President Kappeler, CEO Kappeler Corporation 125 Wall Street Middleton, Kansas 67458 Dear Mr. Kappeler: I have good news and bad news about the financial statements for the year ended December 31, 2014. The good news is that net income of $100,000 is close to what we predicted in the strategic plan last year, indicating strong performance this year. The bad news is that the cash balance is seriously low. Enclosed is the Statement of Cash Flows, which best illustrates how both of these situations occurred simultaneously . . . Instructions Complete the letter to the CEO, including the four components requested by your boss.

Describe the slip casting process in traditional ceramics processing

Identify some of the characteristic properties of composite materials.

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?

Describe, in general terms, why Congress implemented the AMT.

Discuss the importance of selecting an appropriate cost driver for cost allocation.

Ray and Matias each own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each work full time (over 1,000 hours per year) managing Alpine. Alpine’s liabilities (at both the beginning and end of the year) consist of $1,500,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of $250,000 in his LLC interest, including his share of the nonrecourse mortgage liability. Alpine’s ordinary business losses for the current year totaled $600,000, and neither member is involved in other activities that generate passive income. a. How much of each member’s loss is suspended because of the tax-basis limitation? b. How much of each member’s loss is suspended because of the at-risk limitation? c. How much of each member’s loss is suspended because of the passive activity loss limitation? [Hint: See §469(c)(7).] d. If both Ray and Matias are single and Ray has a current-year loss of $100,000 from a sole proprietorship, how much trade or business loss can each deduct on his tax return in the current year?

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?

: Describe the major components of the classical perspective and current uses of the management science approach

1. What does this analysis assume about the price elasticity of demand for the new entrant (a) above PL; (b) below PL? 2. Can you think of any limitations with the limit price model?