...CHAPTER 3 COMPUTING THE TAX SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Learning Objective LO 1 LO 1, 5, 8, 9 LO 1 LO 1 LO 1 LO 1 Topic Status: Present Edition Modified Modified Modified Modified New New Unchanged Modified Unchanged Updated New New Unchanged Modified Unchanged Modified Unchanged Q/P in Prior Edition 1 2 3 4 Tax formula Transactions with various income tax effects Gross income: inclusions Gross income: exclusions U. S. income tax: applicable to expatriates “Deductions for”: meaning and various designations LO 1, 8, 9 Effect of AGI on some deductions from LO 2 Choice between standard deduction and itemizing; variables involved LO 2 Standard deduction: characteristics of LO 2, 3, 5 Dependents and the determination of their standard deduction and personal exemptions LO 2 Dependents: determination of their standard deduction LO 4 Dependency exemption: qualifying child and earned income LO 4 Dependency exemption: children as qualifying child and as qualifying relative LO 4 Qualifying child: tie-breaker rules LO 4 Dependency exemption: ex-spouse and relationship test LO 4 Multiple support agreement: choice of eligible taxpayers LO 4 Dependency exemption: children of divorced parents 6 7 8 9 10 11 12 13 14 Instructor: For difficulty, timing, and assessment information about each item, see p. 3-4. 3-1 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted...
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...CHAPTER 1 UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Learning Objective LO 1 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 2 LO 3 Topic Revenue neutrality Controlling the economy Encouraging industries Research and development expenditures Social considerations Earned income credit Charitable contributions Fines and penalties Home ownership Higher education incentives Tax credit versus deduction Alleviating the effect of multiple taxation Double taxation and effect of a credit versus a deduction Wherewithal to pay concept: transfer to controlled corporation Avoiding the corporate income tax Wherewithal to pay: example Recognized gain versus realized gain: amount Like-kind exchange versus involuntary conversion: losses Settlement time period Installment method Keogh Plan: grace period Bracket creep: indexation Community property states Community property states Deterrence provisions $13,000 annual gift tax exclusion: audit Status: Present Edition New New New New New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Modified Modified New New New New New New New New New New New Q/P in Prior Edition 6 7 8 9 10 11 12 13 14 15 Instructor: For difficulty, timing, and assessment information about each item, see p. 1-3. 1-1 © 2012 Cengage...
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...requirements. Plants | Supply (barrels)) | | | 1. Kingsport | 35 | 2. Danville | 26 | 3. Macon | 42 | 4. Selma | 53 | 5. Columbus | 29 | 6. Allentown | 38 | Waste Disposal Sites | Demand (barrels) | A. Whitewater | 65 | B. Los Canos | 80 | C. Duras | 105 | Shown below are the shipping costs ($/per barrel) from each waste disposal site to each plants. Plants | Waste Disposal Sites | | A. Whitewater | B. Los Canos | C. Duras | 1. Kingsport | 12 | 15 | 17 | 2. Danville | 14 | 9 | 10 | 3. Macon | 13 | 20 | 11 | 4. Selma | 17 | 16 | 19 | 5. Columbus | 7 | 14 | 12 | 6. Allentown | 22 | 16 | 18 | Mathematical Formulation I. The six plants were represented by 1 through 6, while the three waste facilities were represented A through C. II. The objective function of the manager is to minimize the total transportation cost for all shipments. Minimize Z = 1A(12) + 1B(15) + 1C(17) + 2A(14) + 2B(9) + 2C(10) + 3A(13) + 3B(20) + 3C(11) + 4A(17) + 4B(16) + 4C(19) + 5A(7) + 5B(14) + 5C(12) + 6A(22) + 6B(16) + 6C(18) III. The constraints in the model are the number of barrels of wastes available per week at each plant and the number of barrels of wastes accommodated at each waste disposal site. There are 9 constraints (one for each plant supply and one for each waste disposal site’s demand). Subject to: 1A + 1B + 1C = 35 2A + 2B + 2C = 26 3A...
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...State University of New York at Stony Brook Department of Electrical and Computer Engineering ESE218 Digital Systems Design Lab 9. Counter design. 1. Objectives - Design of the synchronous finite state machine (FSM) with D-flip-flops and multiplexers - Verification of the circuit behavior with a CAD tool 2. Problem description Design the synchronous 4-bit counter which outputs follow the predetermined repeated sequence of states. The sequence of states represents the sequence of decimal digits of your ID number with the following exceptions: (1) digits which appear more than ones have to be deleted; (2) digit 9 has to be added at the end of the sequence if your ID has no 9. For example, for ID number 105123456 the second 1 and 5 are deleted and 9 is added at the end resulting in sequence 10523469. In the binary form the sequence is shown in Figure 1. The initial state is not critical. State 9 should be decoded to generate special signal SYNC shown in denominator in Figure 1. In the prelab: the circuit behavior has to be verified in OrCAD. The maximum clock frequency has to be calculated using timing specs of the flip-flops and multiplexers (logical gates) from datasheet. In the experiment: first, the functionality of the counter has to be tested with a pushbutton that controls the clock and a 7-segment LED display connected to the outputs. Finally, the counter sequence should be demonstrated with the logic analyzer synchronized with SYNC signal, 4inputs of the logic analyzer...
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...CHAPTER 3 COMPUTING THE TAX SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: |Q/P | |Question/ |Learning | | |Present | in Prior | |Problem |Objective |Topic | |Edition | Edition | | | | | | | | | | | | 1 |LO 1 |Tax formula | |Unchanged |1 | | 2 |LO 1, 5, 8, 9 |Transactions with various income tax effects | |Modified |2 | | 3 |LO 1 |Gross income: inclusions | |Modified |3 | | 4 |LO 1 |Gross income: exclusions | |Modified |4 | | 5 |LO 1 |U. S. income tax: applicable to U.S. citizens and residents | |New | | | 6 |LO 1 |“Deductions for”: meaning and various designations | |Unchanged |6 ...
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...Stateline Shipping and Transport Company School of Business MAT 540 This paper was presented in submission for MAT 540 assignment four (Part 1 Only). Abstract This paper serves as a written response to the instructions and questions asked in assignment four. Assignment four instructed the writer to read the case problem Stateline Shipping and Transport Company from pages 273-274 in the text, Introduction to Management Science by Bernard W. Taylor. The assignment then directed the writer to Formulate and Solve and linear transportation programming model, this step was done in QM. The linear programming model is attached herein. Keywords: Linear Programming, Transportation, Shipping, Model Introduction This Case Problem, Stateline Shipping and Transport Company, is based on a girl named Rachel Sundusky who is a manager of the South-Atlantic office for Stateline Shipping and Transport (Taylor, 2010). Rachel is negotiating a contract with Polychem an industrial use chemical company (Taylor, 2010). Polychem has six sites that it would like for Stateline to pick up waste from (Taylor, 2010). Polychem would then like for Stateline to transport the waste for disposal to one of three sites (Taylor, 2010). Polychem has agreed to handle all of the waste at all sites therefore Stateline needs only transport the materials and incur costs for the same (Taylor, 2010). Rachel would like to see what the less costly shipping routes are (Taylor, 2010). Rachel will need all of the...
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...developed in #1 (above) and clearly describe the results. In Excel, or other suitable program. Develop a transshipment model in which each of the plants and disposal sites can be used as intermediate points. 6 Plants labeled 1 through 6, 3 waste facilities labeled A through C Objective function: Minimize Z = 1A(12) + 1B(15) + 1C(17) + 2A(14) + 2B(9) + 2C(10) + 3A(13) + 3B(20) + 3C(11) + 4A(17) + 4B(16) + 4C(19) + 5A(7) + 5B(14) + 5C(12) + 6A(22) + 6B(16) + 6C(18); Subject to: 1A + 1B + 1C = 35 2A + 2B + 2C = 26 3A + 3B + 3C = 42 4A + 4B + 4C = 53 5A + 5B + 5C = 29 6A + 6B + 6C = 38 1A + 2A + 3A + 4A + 5A + 6A ≤ 65 1B + 2B + 3B + 4B + 5B + 6B ≤ 80 1C + 2C + 3C + 4C + 5C + 6C ≤ 105 All Combinations ≥ 0 Solver add-on solution in MS Excel yielded the following results: 35 bbl of wastes shipped from Kingsport to Whitewater, 26 bbl of waste shipped from Danville to Duras, 42 bbl of wastes shipped from Macon to Duras, 1 bbl of wastes shipped from Selma to Whitewater, 52 bbl of wastes shipped from Selma to Los Canos, 29 bbl of wastes shipped from Columbus to Whitewater, 28 bbl of wastes shipped from Allentown to Los Canos, 10 bbl of wastes shipped from Allentown to Duras. Total Cost = $2,822 Rachel is considering using each of the plant and waste disposal sites as intermediate shipping points. Now, there is a possibility to reduce the transportation coat by utilizing alternative routes. For example, as per the given cost table,...
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...CHAPTER 20 INCOME TAXATION OF TRUSTS AND ESTATES SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 *21 22 *23 24 *25 *26 27 28 29 *30 31 32 Learning Objective LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 2 LO 2 LO 2 LO 2 LO 2 LO 3 LO 3 LO 2, 3, 5 LO 4 LO 4 LO 1, 4 LO 5 LO 5 LO 1 LO 1 LO 1 LO 2 LO 2 LO 1, 2, 3 LO 2 LO 2 LO 2 LO 2, 3 LO 2, 3 LO 3 Topic Creating a trust Parties to a fiduciary entity Fiduciary tax terminology Fiduciary tax terminology Pass-through entities: incidence of tax Fiduciaries and the AMT Simple versus complex trust; personal exemptions Determining taxable income: five-step approach Distributions of appreciated property Disallowance of § 212 deductions Cost recovery deductions of a fiduciary Charitable contributions of a fiduciary Functions of DNI Computing DNI Terminating a fiduciary entity Fiduciaries and education planning Grantor trust rules Fiduciary tax compliance Fiduciary tax planning Fiduciary tax planning Attributes of simple and complex trusts Fiduciary tax formula Fiduciary AMT computations Entity accounting income Computing entity accounting income Attributes of trusts and estates Income in respect of a decedent Charitable contributions Entity cost recovery Computing DNI, taxable income Computing DNI, taxable income Separate share rule 20-1 Status: Present Edition Unchanged Modified Unchanged Modified Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Modified Unchanged...
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...Ch 4: "Job Costing" A. Ch 4 Learning Objective 1: Describe the building-block concepts of costing systems. 1. LO 4-1 overview: The building-block concepts of a costing system are cost object, direct costs of a cost object, indirect costs of a cost object, cost pool, and cost allocation base. Costing systems should report cost numbers that reflect the way chosen cost objects, such as products or services, use the resources of the organization. 2. Study pages 98-100. 3. LO 4-1 lecture slides. Note: Look for the image of your instructor within the slides. Clicking on his smiling face will start a short lecture. 4. Q1: Define cost pool, cost tracing, cost allocation, and cost allocation base. Cost pool––a grouping of individual indirect cost items. Cost tracing––the assigning of direct costs to the chosen cost object. Cost allocation––the assigning of indirect costs to the chosen cost object. Cost-allocation base––a factor that links in a systematic way an indirect cost or group of indirect costs to cost objects. 5. A ___ is a grouping of individual indirect cost items. a. cost allocation base b. cost assignment c. cost pool d. job-costing system The correct answer is "c," cost pool. | 6. Q5: Give examples of two cost objects in companies using job costing. Major cost objects that managers focus on in companies...
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...Assignment #4: Case Problem “Stateline Shipping and Transport Company” 1. In Excel, or other suitable program, develop a model for shipping the waste directly from the 6 plants to the 3 waste disposal sites. White water Los Canos Duras Availability Kingsport $12.00 $15.00 $17.00 35 Danville $14.00 $9.00 $10.00 26 Macon $13.00 $20.00 $11.00 42 Selma $17.00 $16.00 $19.00 53 Columbus $7.00 $14.00 $12.00 29 Allentown $22.00 $16.00 $18.00 38 Capacity 65 80 105 223 The objective of the problem is to develop a shipping schedule that minimizes the total cost of transportation. Suppose Xij denotes the number of barrels of wastes to be transported from the “i” plant to “j” site. Then the total cost of transportation is: Z = 12 X11 + 15 X12 + 17 X13 + 14 X21 + 9 X22 + 10 X23 + 13 X31 + 20 X32 + 11 X33 + 17 X41+ 16 X42 + 19 X43 + 7 X51 + 14 X52+ 12 X53 + 22 X61 + 16 X62 + 18 X63. Thus the objective function of the problem is to minimize Z = 12 X11 + 15 X12 + 17 X13 + 14 X21 + 9 X22 + 10 X23 + 13 X31 + 20 X32 + 11 X33 + 17 X41+ 16 X42 + 19 X43 + 7 X51 + 14 X52+ 12 X53 + 22 X61 + 16 X62 + 18 X63. Constraints Availability in plants: X11 + X12 + X13 = 35 X21 + X22 + X23 = 26 X31 + X32 + X33 = 42 X41 + X42 + X43 = 53 X51 + X52 + X53 = 29 X61 + X62 + X63 = 38 Capacity of the sites: X11 + X21+ X31+X41 + X51 + X61 ≤ 65 X12 + X22+ X32+X42 + X52 + X62 ≤ 80 X13 + X23+ X33+X43 + X53 + X63 ≤ 105 Non- Negativity restrictions Xij ≥ 0 , i = 1,2,3,4,5,6 ; j = 1,2,3...
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...UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW SOLUTIONS TO PROBLEM MATERIALS DISCUSSION QUESTIONS 1. (LO 1) When enacting tax legislation, Congress often is guided by the concept of revenue neutrality so that any changes neither increase nor decrease the net revenues raised under the prior rules. Revenue neutrality does not mean that any one taxpayer’s tax liability remains the same. Since this liability depends upon the circumstances involved, one taxpayer’s increased tax liability could be another’s tax saving. Revenue-neutral tax reform does not reduce deficits, but at least it does not aggravate the problem. 2. (LO 2) Economic, social, equity, and political factors play a significant role in the formulation of tax laws. Furthermore, the IRS and the courts have had impacts on the evolution of tax laws. For example, control of the economy has been an important economic consideration in passing a number of laws (e.g., rapid depreciation, changes in tax rates). 3. (LO 2) The tax law encourages technological progress by allowing immediate (or accelerated) deductions and tax credits for research and development expenditures. 4. (LO 2) Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion. For example, the tax laws provide incentives to encourage savings by giving private retirement plans preferential treatment. 5. (LO 2) a. Section 1244 allows ordinary loss treatment...
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...and stock prices both fall. What explanation can you give for this? Los intereses tienen un efecto inverso sobre los bonos. Al subir los intereses, los bonos existentes se devalúan porque están construidos con intereses más bajos. Lo que hace que se conviertan en bonos de descuento o sea bonos cuyo valor es menor del valor actual en el mercado y pierden atractivo para inversionistas. En este caso un inversionista se arriesga a perder dinero a menos que tenga capital nuevo que pueda invertir en los bonos de mayor valor del momento. A pesar de esto siempre existe el riesgo de perder por las fluctuaciones de los intereses en los mercados ya que los bonos son instrumentos de riesgo. Un ejemplo lo pudimos ver a mediados de la década de los 90. En el 1994 la Reserva Federal subió los intereses para desacelerar lo que consideraban una economía inflacionaria. Esto provocó que los bonos tuvieran uno de los peores años de la historia al sufrir caídas dramáticas. En el 1995 la inflación se controló pero de igual manera la economía se desaceleró. Esto hizo que la Reserva bajara los intereses y los bonos volvieron a recuperarse aumentando sus precios. Capítulo 5 Pregunta 13 Cite and explain three reasons why a P/E may not be a reliable indicator of a stock’s expected future performance. El “P/E (price / earnings) ratio” es la relación entre el precio de las acciones de una empresa y las ganancias de las mismas. Por lo general se establece que un P/E alto representa una buena oportunidad...
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...CHAPTER 2 CORPORATIONS: INTRODUCTION AND OPERATING RULES SOLUTIONS TO PROBLEM MATERIALS Question/ Problem Learning Objective 1 LO 1 2 LO 1 3 LO 1, 7 4 LO 1, 2 5 6 LO 1, 2 LO 1, 2 7 8 9 10 LO 1 LO 1 LO 1 LO 2 11 LO 2 12 LO 2 13 LO 2 14 LO 2 15 LO 2 16 17 LO 2 LO 2 18 LO 2 Topic Choice of entity: tax and nontax factors in entity selection Corporation versus S corporation: treatment of operating income and tax-exempt income; no distributions Corporation versus proprietorship: treatment of losses Corporation versus partnership: treatment of operating income and STCG Corporation versus LLC and S corporation Closely held corporations: shareholder transactions Double taxation LLCs: single member LLCs: multi-owner default rule Accounting periods: general rule and fiscal year limitation Accounting periods: PSC fiscal year limitation Accounting methods: limitation on cash method Accounting methods: limitation on accrual of expenses to cash basis related party Net capital gain: corporate and individual tax rates contrasted Net capital loss: corporation and individual contrasted Recapture of depreciation: § 291 adjustment Passive loss rules: closely held C corporations and PSCs contrasted Passive loss rules: closely held C corporation Status: Present Edition Q/P in Prior Edition Unchanged 1 Unchanged 2 Unchanged 3 Unchanged ...
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...CHAPTER 1 INTRODUCTION TO FINANCIAL STATEMENTS SUMMARY OF QUESTIONS BY LEARNING OBJECTIVE AND BLOOM’S TAXONOMY |Item | |1. | |41. | |175. | |192. | |202. | |210. | |211. | |Item | |Item ...
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...BUSINESS EXPENSES AND LOSSES SOLUTIONS TO PROBLEM MATERIALS | | | | Status: | Q/P | Question/ | Learning | | | Present | in Prior | Problem | Objective | Topic | | Edition | Edition | | | | | | | | | | 1 | LO 1 | Bad debts: accounts receivable | | New | | 2 | LO 1 | Bad debts: basis | | Unchanged | 2 | 3 | LO 1 | Bad debts: worthlessness | | Unchanged | 3 | 4 | LO 1 | Bad debts: recovery | | Modified | 4 | 5 | LO 1 | Bad debts: business | | Unchanged | 5 | 6 | LO 1 | Bad debts: business | | Unchanged | 6 | 7 | LO 1 | Worthless securities versus theft loss | | Unchanged | 7 | 8 | LO 2 | Worthless securities versus bad debts | | Unchanged | 8 | 9 | LO 2 | Section 1244 stock | | Modified | 9 | 10 | LO 3, 4 | Casualty loss versus business loss | | Modified | 10 | 11 | LO 3, 4 | Casualty loss | | Unchanged | 11 | 12 | LO 4 | Casualty loss: timing | | Unchanged | 12 | 13 | LO 4 | Casualty loss: reimbursement | | Unchanged | 13 | 14 | LO 4 | Casualty loss: measurement rule for theft | | New | | 15 | LO 4 | Casualty loss: insurance claim | | Unchanged | 15 | 16 | LO 4 | Casualty loss: cost of repairs method | | Unchanged | 16 | 17 | LO 4 | Casualty loss: rental property...
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