Stella purchased vacant land in 2011 that she subdivided for resale as lots. All 10 of the
Question:
Stella purchased vacant land in 2011 that she subdivided for resale as lots. All 10 of the lots were sold during 2018. The lots had a tax basis of $12,000 each and sold for $35,000 each. Stella made no substantial improvements to the lots. She acted as her own real estate broker; so there were no sales expenses for selling the lots. Which of the following statements is correct?
a. Stella must hold the lots for at least 10 years before she is eligible for the special capital gain treatment of § 1237.
b. The $230,000 gain from the sale of the ten lots is all ordinary income.
c. All of the $230,000 gain from the sale of the ten lots is long-term capital gain.
d. To be eligible for the special capital gain treatment of § 1237, Stella must be a real estate dealer.
e. None of the above.
This simulation presents the Memo re Sales Invoice Procedures/Results relating to the Keystone Computers & Networks, Inc. (Keystone), audit. Background financial and other information on Keystone is included in Appendix 6C of Chapter 6. Callouts 1-4 of this simulation relate most directly to Chapters 10 and 11; Callouts 5-7 require knowledge of sampling, as presented in Chapter 9. A staff member on your audit team has performed a portion of the audit plan for the audit of Keystone Computers & Networks Inc., a nonissuer. The procedures involved selecting a random sample of sales invoices from throughout the year and comparing them to the authorized customer list and to appropriate support related to the sale. Required: Your job as senior on the engagement is to review the various points made by the assistant, including consideration of the exhibits. For each of the sentences called out in the points on the document, determine if the current language is appropriate as is, should be removed altogether, or replaced with any of the provided alternatives. Links to each of the exhibits are provided in the document, but are available in the list below for convenience. Exhibit 1- Sales Invoice Sample Exhibit 2 - Sample Inputs and Results Exhibit 3 Conversation with Controller Memo Exhibit 4 - Conversation with Billing Clerk Memo Document (For each Document Callout, choose the correct Determination from the table below.) Exhibit 1 Invoice No. 10239 10379 10403 10410 10478 10495 10526 10565 10620 10735 10737 10768 10822 10869 10877 10919 10940 10961 11006 11061 11120 11184 11224 11227 11250 11297 11309 11324 11369 11485 11486 11499 11526 11602 11696 11775 11779 11925 11961 11982 Sales Invoice Sample Purchaser Marvella Menefee Wingo Corp. Lola Incorp. Charolette Granderson Rufus Leeks Helena Mcguigan Ling Incorp. Isidro Durrance Williams Plant Spec. Chae Nicolosi Helena Mcguigan Ernesto Emigh Jennifer Jones Jeans Jone Board Terrell Rufener Hectors Hinklo corp. Mary Hagwood Shar Oil Sherryl Elsberry Alysa Mgf. Monet Eady Adams Mart Date Amount 1/04/year 5 4,557.60 1/19/year 5 1/19/year 5 13,539.94 854.51 1,151.59 1/22/year 5 2/09/year 5 13,144.44 2/10/year 5 10,846.72 2,558.47 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 7,679.81 5,782.62 594.77 2,748.76 12,371.50 2/23/year 5 3/03/year 5 3/17/year 5 3/29/year 5 8,289.44 7,672.66 300.33 12,509.57 4/07/year 5 4/25/year 5 5/31/year 5 9,755.97 6/03/year 5 12.875.53 6/04/year 5 6/14/year 5 6/19/year 5 12,884.30 250.23 4,748.74 3,298.92 14,821.84 3,816.34 6/22/year 5 14.770.15 4,831,41 936.97 8,024.79 13,268.00 3,676.32 3,744.02 11,364.69 2,074.39 2,681.88 2.120.18 1.330.95 8,760.84 12,747.04 1,536.08 11,412.25 Authorized Customer List Authorized Customer Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Tory Vargas 7/18/year 5 Keira Dion 7/28/year 5 Smith Inc. 8/09/year 5 Laraine Peralta 8/11/year 5 Charles' Inco. 9/10/year 5 Joycelyn Huber 10/05/year 5 Lesli Matamoros 10/17/year 5 Blanchard Co. 10/21/year 5 Wingdoll, Corporation. 10/27/year 5 Genesis Bellefs 11/04/year 5 Charolette Granderson 11/05/year 5 Thomas Mo. 11/07/year 5 Anastacia Italiano 11/13/year 5 Lloyd Sumrell 12/18/year 5 Williams Co. 12/22/year 5 Cristobal Posada Junie Denison 12/25/year 5 12/28/year 5 12/29/year 5 Wellington Assoc. *As per audit plan, details of sales journal, sales invoice, shipping document, and invoice agree. Sales Journal Recorded in Sales Journal 1/04/year 5 1/19/year 5 1/19/year 5 1/22/year 5 2/09/year 5 2/10/year 5 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 2/23/year 5 3/05/year 5 3/17/year 5 3/29/year 5 4/07/year 5 4/25/year 5 5/31/year 5 6/03/year 5 6/06/year 5 6/14/year 5 6/19/year 5 6/22/year 5 7/18/year 5 7/28/year 5 8/10/year 5 8/11/year 5 9/10/year 5 10/05/year 5 10/17/year 5 10/21/year 5 10/27/year 5 11/04/year 5 11/05/year 5 11/07/year 5 11/13/year 5 12/18/year 5 12/22/year 5 12/25/year 5 12/28/year 5 12/29/year 5 Shipping Document Date Shipped 1/04/year 5 1/19/year 5 1/19/year 5 1/22/year 5 2/09/year 5 2/10/year 5 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 2/23/year 5 3/03/year 5 3/17/year 5 3/29/year 5 4/07/year 5 4/25/year 5 5/31/year 5 6/03/year 5 6/04/year 5 6/14/year 5 6/19/year 5 6/22/year 5 7/18/year 5 7/28/year 5 8/09/year 5 8/11/year 5 9/10/year 5 10/05/year 5 10/17/year 5 10/21/year 5 10/27/year 5 11/04/year 5 11/05/year 5 11/07/year 5 11/13/year 5 12/18/year 5 12/22/year 5 12/25/year 5 12/28/year 5 12/29/year 5 Terms FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Dest FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Dest FOB Dest FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping Delivery Advice Date Delivered 1/06/year 5 1/20/year 5 1/21/year 5 1/27/year 5 2/11/year 5 2/15/year 5 2/20/year 5 2/21/year 5 2/20/year 5 2/24/year 5 2/26/year 5 3/07/year 5 3/19/year 5 4/03/year 5 4/12/year 5 4/28/year 5 6/02/year 5 6/08/year 5 6/17/year 5 6/19/year 5 6/20/year 5 6/24/year 5 7/23/year 5 8/12/year 5 8/13/year 5 8/15/year 5 9/14/year 5 10/08/year 5 10/21/year 5 10/24/year 5 10/31/year 5 11/08/year 5 11/08/year 5 11/12/year 5 11/18/year 5 12/22/year 5 12/24/year 5 1/02/year 6 12/31/year 5 1/03/year 6 Invoice sent to customer Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Details of documents" agree Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Exhibit 2 Sample Inputs and Results Attribute Risk of Assessing Control Risk Too Low Expected Deviation Rate Tolerable Deviation Rate Sample Size Results Deviations Sample Deviation Rate Achieved Upper Deviation Rate Decision Sales to Unauthorized Customers 5% 5% 15% 40 3 7.5% 18.3% Reject Exhibit 3 Conversation with Controller Memo I spoke with the controller on this issue of FOB Shipping Point versus FOB Destination freight. She informed me that a decision is made based on the likelihood of losing the client if the client is expected to pay the freight. Thus, if customer X isn't all that steady of a customer, particularly a customer who uses other sup- pliers, the company then offers the term FOB Destination and does not charge the customer for the freight. She also pointed out that the policy is beginning to cause a few problems as several customers have brought up the topic that they "heard" that not everyone had to pay the freight. She indi- cated that she told those customers that such shipping only occurred in rare and unexpected circumstances. Although her reply seems to understate the FOB Destination issue, I pass further review of it. Audit Assistant Exhibit 4 Conversation with Billing Clerk Memo I spoke with the Billing Clerk, who helped me organize my thoughts about Keystone's billing sys- tem. The company always bills the day that it ships items to customers. Generally, the customer pays for the shipping, although this is not always the case. When I asked him if there have been any "difficulties" during the year, he mentioned that in a few situations, goods had been shipped and no invoice had been prepared for the shipment, and accordingly, no sales journal entry had been prepared until the company discovered the prob- lem, once when a customer returned the goods and several times when customers asked about billing. He assured me that the problem had been rectified and that he believed there were no more such transactions. (A new employee had been involved who didn't completely understand the electronic process.) Audit Assistant Memo re Keystone Sales Invoice Procedures/Results 1/22/year 6 A number of the credit sales in our sample were to customers not on the authorized customers list (Exhibit 1, fifth column). Selling to unauthorized customers may increase the risk that receivables will not be collectible. Accordingly, to address this issue, I suggest that we test for year-end receivables to unauthorized customers that remain uncollected as of the end of January. For those not collected, we should corroborate that the client has taken its normal 2 percent estimate for credit losses. (Callout #1) Keystone in some circumstances ships sales FOB destination and pays the freight (see Exhibit 3). Because title ordinarily passes on such goods when they are delivered, there is a possibility that some sales have been recorded prior to the passage of title. Accordingly, we should increase the scope of our audit plan by selecting a sample of sales shipped FOB Shipping Point shortly after year-end to determine that the sale is recorded in the period goods were received by the customer. (Callout # 2) Our sample results (Exhibit 1) reveal two sales recorded in year 5 that should have been recorded in year 6. (Callout #3) A billing clerk (Exhibit 4) informed us that in several cases, sales were not recorded (completeness). Based on the discussion, an effective audit procedure to address this would be to select a sample of invoices sent to customers and agree their details to the underlying customer purchase order and shipping document. (Callout #4) As a part of the audit of sales to unauthorized customers (above, top paragraph), we selected a sample of 40 sales invoices and found that three in our sample were to unauthorized customers. As indicated above, Exhibit 1 details our sample; Exhibit 2 presents results relating to the sample. The most likely deviation rate in the population is 5 percent (Callout # 5). The sample results in "rejection" because the achieved upper deviation rate exceeds the sample deviation rate (Callout # 6). Because we do not intend to expand our sample, the most likely effect on our audit will be a decrease in the assessed level of control risk (Callout #7) for the related assertion(s). Callouts 1. "For those not collected, we should corroborate that the client has taken its normal 2 percent estimate for credit losses." 2. "Shipping Point shortly after year-end to determine that the sale is recorded in the period goods were received by the customer." 3. "two sales recorded in year 5 that should have been recorded in year 6." 4. "invoices sent to customers and agree their details to the underlying customer purchase order and shipping document." 5. "5 percent" 6. "sample deviation rate." 7. "assessed level of control risk" Determination Callouts or those not collected, we should corroborate that lient has taken its normal 2 percent estimate for t losses." hipping Point shortly after year-end to determine that ale is recorded in the period goods were received by ustomer." vo sales recorded in year 5 that should have been -ded in year 6." voices sent to customers and agree their details to Inderlying customer purchase order and shipping ment." percent" Determination Retain the original text. Delete the text. Replace with "For those collected, we should corroborate that the client decreases the allowance for doubtful accounts." Replace with "We should age all uncollected accounts as of year- This simulation presents the Memo re Sales Invoice Procedures/Results relating to the Keystone Computers & Networks, Inc. (Keystone), audit. Background financial and other information on Keystone is included in Appendix 6C of Chapter 6. Callouts 1-4 of this simulation relate most directly to Chapters 10 and 11; Callouts 5-7 require knowledge of sampling, as presented in Chapter 9. A staff member on your audit team has performed a portion of the audit plan for the audit of Keystone Computers & Networks Inc., a nonissuer. The procedures involved selecting a random sample of sales invoices from throughout the year and comparing them to the authorized customer list and to appropriate support related to the sale. Required: Your job as senior on the engagement is to review the various points made by the assistant, including consideration of the exhibits. For each of the sentences called out in the points on the document, determine if the current language is appropriate as is, should be removed altogether, or replaced with any of the provided alternatives. Links to each of the exhibits are provided in the document, but are available in the list below for convenience. Exhibit 1- Sales Invoice Sample Exhibit 2 - Sample Inputs and Results Exhibit 3 Conversation with Controller Memo Exhibit 4 - Conversation with Billing Clerk Memo Document (For each Document Callout, choose the correct Determination from the table below.) Exhibit 1 Invoice No. 10239 10379 10403 10410 10478 10495 10526 10565 10620 10735 10737 10768 10822 10869 10877 10919 10940 10961 11006 11061 11120 11184 11224 11227 11250 11297 11309 11324 11369 11485 11486 11499 11526 11602 11696 11775 11779 11925 11961 11982 Sales Invoice Sample Purchaser Marvella Menefee Wingo Corp. Lola Incorp. Charolette Granderson Rufus Leeks Helena Mcguigan Ling Incorp. Isidro Durrance Williams Plant Spec. Chae Nicolosi Helena Mcguigan Ernesto Emigh Jennifer Jones Jeans Jone Board Terrell Rufener Hectors Hinklo corp. Mary Hagwood Shar Oil Sherryl Elsberry Alysa Mgf. Monet Eady Adams Mart Date Amount 1/04/year 5 4,557.60 1/19/year 5 1/19/year 5 13,539.94 854.51 1,151.59 1/22/year 5 2/09/year 5 13,144.44 2/10/year 5 10,846.72 2,558.47 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 7,679.81 5,782.62 594.77 2,748.76 12,371.50 2/23/year 5 3/03/year 5 3/17/year 5 3/29/year 5 8,289.44 7,672.66 300.33 12,509.57 4/07/year 5 4/25/year 5 5/31/year 5 9,755.97 6/03/year 5 12.875.53 6/04/year 5 6/14/year 5 6/19/year 5 12,884.30 250.23 4,748.74 3,298.92 14,821.84 3,816.34 6/22/year 5 14.770.15 4,831,41 936.97 8,024.79 13,268.00 3,676.32 3,744.02 11,364.69 2,074.39 2,681.88 2.120.18 1.330.95 8,760.84 12,747.04 1,536.08 11,412.25 Authorized Customer List Authorized Customer Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Tory Vargas 7/18/year 5 Keira Dion 7/28/year 5 Smith Inc. 8/09/year 5 Laraine Peralta 8/11/year 5 Charles' Inco. 9/10/year 5 Joycelyn Huber 10/05/year 5 Lesli Matamoros 10/17/year 5 Blanchard Co. 10/21/year 5 Wingdoll, Corporation. 10/27/year 5 Genesis Bellefs 11/04/year 5 Charolette Granderson 11/05/year 5 Thomas Mo. 11/07/year 5 Anastacia Italiano 11/13/year 5 Lloyd Sumrell 12/18/year 5 Williams Co. 12/22/year 5 Cristobal Posada Junie Denison 12/25/year 5 12/28/year 5 12/29/year 5 Wellington Assoc. *As per audit plan, details of sales journal, sales invoice, shipping document, and invoice agree. Sales Journal Recorded in Sales Journal 1/04/year 5 1/19/year 5 1/19/year 5 1/22/year 5 2/09/year 5 2/10/year 5 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 2/23/year 5 3/05/year 5 3/17/year 5 3/29/year 5 4/07/year 5 4/25/year 5 5/31/year 5 6/03/year 5 6/06/year 5 6/14/year 5 6/19/year 5 6/22/year 5 7/18/year 5 7/28/year 5 8/10/year 5 8/11/year 5 9/10/year 5 10/05/year 5 10/17/year 5 10/21/year 5 10/27/year 5 11/04/year 5 11/05/year 5 11/07/year 5 11/13/year 5 12/18/year 5 12/22/year 5 12/25/year 5 12/28/year 5 12/29/year 5 Shipping Document Date Shipped 1/04/year 5 1/19/year 5 1/19/year 5 1/22/year 5 2/09/year 5 2/10/year 5 2/18/year 5 2/18/year 5 2/18/year 5 2/23/year 5 2/23/year 5 3/03/year 5 3/17/year 5 3/29/year 5 4/07/year 5 4/25/year 5 5/31/year 5 6/03/year 5 6/04/year 5 6/14/year 5 6/19/year 5 6/22/year 5 7/18/year 5 7/28/year 5 8/09/year 5 8/11/year 5 9/10/year 5 10/05/year 5 10/17/year 5 10/21/year 5 10/27/year 5 11/04/year 5 11/05/year 5 11/07/year 5 11/13/year 5 12/18/year 5 12/22/year 5 12/25/year 5 12/28/year 5 12/29/year 5 Terms FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Dest FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Dest FOB Dest FOB Dest FOB Dest FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping FOB Shipping Delivery Advice Date Delivered 1/06/year 5 1/20/year 5 1/21/year 5 1/27/year 5 2/11/year 5 2/15/year 5 2/20/year 5 2/21/year 5 2/20/year 5 2/24/year 5 2/26/year 5 3/07/year 5 3/19/year 5 4/03/year 5 4/12/year 5 4/28/year 5 6/02/year 5 6/08/year 5 6/17/year 5 6/19/year 5 6/20/year 5 6/24/year 5 7/23/year 5 8/12/year 5 8/13/year 5 8/15/year 5 9/14/year 5 10/08/year 5 10/21/year 5 10/24/year 5 10/31/year 5 11/08/year 5 11/08/year 5 11/12/year 5 11/18/year 5 12/22/year 5 12/24/year 5 1/02/year 6 12/31/year 5 1/03/year 6 Invoice sent to customer Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Details of documents" agree Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Exhibit 2 Sample Inputs and Results Attribute Risk of Assessing Control Risk Too Low Expected Deviation Rate Tolerable Deviation Rate Sample Size Results Deviations Sample Deviation Rate Achieved Upper Deviation Rate Decision Sales to Unauthorized Customers 5% 5% 15% 40 3 7.5% 18.3% Reject Exhibit 3 Conversation with Controller Memo I spoke with the controller on this issue of FOB Shipping Point versus FOB Destination freight. She informed me that a decision is made based on the likelihood of losing the client if the client is expected to pay the freight. Thus, if customer X isn't all that steady of a customer, particularly a customer who uses other sup- pliers, the company then offers the term FOB Destination and does not charge the customer for the freight. She also pointed out that the policy is beginning to cause a few problems as several customers have brought up the topic that they "heard" that not everyone had to pay the freight. She indi- cated that she told those customers that such shipping only occurred in rare and unexpected circumstances. Although her reply seems to understate the FOB Destination issue, I pass further review of it. Audit Assistant Exhibit 4 Conversation with Billing Clerk Memo I spoke with the Billing Clerk, who helped me organize my thoughts about Keystone's billing sys- tem. The company always bills the day that it ships items to customers. Generally, the customer pays for the shipping, although this is not always the case. When I asked him if there have been any "difficulties" during the year, he mentioned that in a few situations, goods had been shipped and no invoice had been prepared for the shipment, and accordingly, no sales journal entry had been prepared until the company discovered the prob- lem, once when a customer returned the goods and several times when customers asked about billing. He assured me that the problem had been rectified and that he believed there were no more such transactions. (A new employee had been involved who didn't completely understand the electronic process.) Audit Assistant Memo re Keystone Sales Invoice Procedures/Results 1/22/year 6 A number of the credit sales in our sample were to customers not on the authorized customers list (Exhibit 1, fifth column). Selling to unauthorized customers may increase the risk that receivables will not be collectible. Accordingly, to address this issue, I suggest that we test for year-end receivables to unauthorized customers that remain uncollected as of the end of January. For those not collected, we should corroborate that the client has taken its normal 2 percent estimate for credit losses. (Callout #1) Keystone in some circumstances ships sales FOB destination and pays the freight (see Exhibit 3). Because title ordinarily passes on such goods when they are delivered, there is a possibility that some sales have been recorded prior to the passage of title. Accordingly, we should increase the scope of our audit plan by selecting a sample of sales shipped FOB Shipping Point shortly after year-end to determine that the sale is recorded in the period goods were received by the customer. (Callout # 2) Our sample results (Exhibit 1) reveal two sales recorded in year 5 that should have been recorded in year 6. (Callout #3) A billing clerk (Exhibit 4) informed us that in several cases, sales were not recorded (completeness). Based on the discussion, an effective audit procedure to address this would be to select a sample of invoices sent to customers and agree their details to the underlying customer purchase order and shipping document. (Callout #4) As a part of the audit of sales to unauthorized customers (above, top paragraph), we selected a sample of 40 sales invoices and found that three in our sample were to unauthorized customers. As indicated above, Exhibit 1 details our sample; Exhibit 2 presents results relating to the sample. The most likely deviation rate in the population is 5 percent (Callout # 5). The sample results in "rejection" because the achieved upper deviation rate exceeds the sample deviation rate (Callout # 6). Because we do not intend to expand our sample, the most likely effect on our audit will be a decrease in the assessed level of control risk (Callout #7) for the related assertion(s). Callouts 1. "For those not collected, we should corroborate that the client has taken its normal 2 percent estimate for credit losses." 2. "Shipping Point shortly after year-end to determine that the sale is recorded in the period goods were received by the customer." 3. "two sales recorded in year 5 that should have been recorded in year 6." 4. "invoices sent to customers and agree their details to the underlying customer purchase order and shipping document." 5. "5 percent" 6. "sample deviation rate." 7. "assessed level of control risk" Determination Callouts or those not collected, we should corroborate that lient has taken its normal 2 percent estimate for t losses." hipping Point shortly after year-end to determine that ale is recorded in the period goods were received by ustomer." vo sales recorded in year 5 that should have been -ded in year 6." voices sent to customers and agree their details to Inderlying customer purchase order and shipping ment." percent" Determination Retain the original text. Delete the text. Replace with "For those collected, we should corroborate that the client decreases the allowance for doubtful accounts." Replace with "We should age all uncollected accounts as of year-
Expert Answer:
E None of the above is statements is correct EXPLANATION Stella ... View the full answer
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Students also viewed these accounting questions
-
Which of the following statements is correct about monetary unit sampling? a. The risk of incorrect acceptance must be specified. b. Smaller logical units have a higher probability of selection in...
-
Which of the following statements is correct regarding the payback method as a capital budgeting technique? a. The payback method considers the time value of money. b. An advantage of the payback...
-
Which of the following statements is correct (where F is a continuously differentiable vector field defined everywhere)? (a) The flux of curl(F) through all surfaces is zero. (b) If F = , then the...
-
Classify antigen-antibody reactions. Describe the various types of agglutination/precipitation reactions along with examples. 40 marks
-
Ship collisions in the Houston Ship Channel are rare. Suppose the number of collisions are Poisson distributed, with a mean of 1.2 collisions every four months. a. What is the probability of having...
-
Use any method to find the exact real solutions, if they exist? 1. x2 + 5x = 21 + x 2. x2 + 17x = 8x - 14 3. 4. x2 + 17x = 8x - 14 - 4 = 0 2
-
Provide an example, real or imagined, of a hypothesis test for the difference between two means.
-
On January 1, 2010, Crouser Company sold land to Chad Company, accepting a two-year, $150,000 non-interest-bearing note due January 1, 2012. The fair value of the land was $123,966.90 on the date of...
-
A local sandwich shop uses on average 46 loaves of bread per day, and maintains an average inventory of 150 loaves. What is the average time a loaf of bread stays in inventory, in days?
-
End A of the slender pole is given a velocity v A to the right along the horizontal surface. Show that the magnitude of the velocity of end B equals v A when the midpoint M of the pole comes in...
-
Suppose, you could be a 'shark' (investor) on the private equity show 'Shark Tank.' You like a candidate's idea, and you agree to cover the business's loss in the first year of operation in the...
-
Using the value k ij = 0.084 fitted to the system methanol(1) + benzene(2), use the Peng- Robinson equation to plot P-x-y behavior of the system at the following temperatures: 350 K, 500 K, 520 K....
-
Table 17.8 shows the carbon and nitrogen footprints for transportation fuels. Answer the following questions based on these data. Table 17.8: 1. Plot the footprints for fossil and first-generation...
-
Typical data about beverage packaging are given in Table 17.7. Table 17.7: Answer the following questions based on these data. 1. Calculate the eco-efficiency of beverage packaging using the data the...
-
Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and...
-
You need to calculate the anticipated database capacity for constructing a database with four tables, is shown below: Table 1 will be initially loaded with 200,000 records, Table 2 with 100,000...
-
Question: Prepare for 4 years the following projected statements of the company (1) Fixed asset valuation for depreciation purposes, (2) SLM depreciation as per company law, (3) Depreciation as per...
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
McGoun Industries pays income taxes on capital gains at a rate of 30 percent. At December 31, 2011, the company owns marketable securities that cost $90,000 but have a current market value of...
-
Identify the variances from standard cost that are generally computed for direct materials, direct labor, and manufacturing overhead.
-
Big Screen Scripts is a service-type enterprise in the entertainment field, and its manager, William Pippin has only a limited knowledge of accounting. Pippin prepared the following balance sheet,...
-
A square chip of size \(8 \mathrm{~mm}\) is mounted on a substrate with the top surface being exposed to a coolant flow at \(20^{\circ} \mathrm{C}\). All other surfaces of the chip are insulated. The...
-
Derive the energy balance equation for a rectangular fin of variable crosssection as shown in Figure 1.6. The fin is stationary and is attached to a hot heat source.
-
A closed plastic container used to serve coffee in a seminar room is made of two layers with an air gap placed between them. List all heat transfer processes associated with the cooling of the coffee...
Study smarter with the SolutionInn App