Question: Hemlock Farms is a community located in

> In detern1ining Blue Corporation's current E & P for 2018, how should taxable income be adjusted as a result of the following transactions? a. A capital loss carryover from 2017, fully used in 2018. b. Nondeductible meal expenses in 2018. c. Interest on

> What are the general rules surrounding the QBI Deduction? How is it computed?

> A corporation acquires property as a contribution to capital from a shareholder. Describe the rules pertaining to the property's basis.

> Who can claim the qualified business income (QBI) deduction?

> Explain how the following tax provisions encourage small businesses. a. The nature of a shareholder's loss on a stock investment. b. The S corporation election.

> What is meant by revenue neutrality'

> Marmot Corporation pays a dividend of $100,000 in the current year. Otter Corporation, a calendar year C corporation, owns 15% of Marmot's stock. Gerald, an individual taxpayer in the 24% marginal bracket, also owns 15% of Marmot's stock. Compare and con

> Gold Corporation, a calendar year C corporation, was formed in 2012 and has been profitable until the current year. In 2018, Gold incurs a net operating loss. Identify the issues that Gold Corporation should consider regarding its NOL.

> In general, what is the limitation on the deductibility of executive compensation that applies to publicly traded corporations?

> Define each of the following terms, and explain how each is used in determining the QBI deduction: a. Modified taxable income. b. Qualified business income. c. Qualified trade or business. d. "Specified services" business.

> Why did the TCJA of 2017 include a deduction for qualified business income?

> Why is personal saving desirable for the U.S. economy?

> H0w does the tax law encourage technological progress?

> The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 27, 2018. One topic on the board's agenda is the approval of a $25,000 gift to a qualified charitable organization. Orange has a $20,000 c

> Under the annual accounting period concept, what time period is normally selected for final settlement of most tax liabilities?

> Can recognized gain exceed the realized gain' Explain.

> Give some examples of the wherewithal to pay concept.

> Assume the same facts as in Question 13. Heather is also wonned that once the partnership incorporates, the business will be subject to the Federal corporate income tax. What suggestions do you have?

> Heather and her partners operate a profitable partnership. Because the business is expanding, the partners would like to transfer it to a newly created corporation. Heather is concerned, however, over the possible tax consequences that would result from

> Why do you think the QBI deduction is limited to earnings from a business conducted in the United States and doesn't also include business income from a foreign business activity?

> Which of the following taxpayers may claim a deduction for qualified business income? a. A driver for Uber or Lyft. b. A veterinarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food a

> How does the tax law encourage the development of natural resources?

> Savings leads to capital formation and thus makes funds available to finance home construction and industrial expansion. What is a major tax law incentive to encourage savings?

> What purpose is served by allowing a deduction for contributions to qualified charitable organizations'

> On December 27, 2018, the directors of Partridge Corporation, an accrual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is made on April 12, 2019. Can Partridge deduct the charitabl

> The concept of equity is relative. Explain.

> A provision of the Code allows a taxpayer a deduction for Federal income tax purposes for some state and local income taxes paid. Does this provision eliminate the effect of multiple taxation of the same income? Why or why not? In this connection, consid

> Other than raising revenue, what considerations explain various provisions in our tax laws?

> Discuss task-based simulations that are part of the CPA examination.

> What are the key components of effective tax planning?

> Determine whether the following items are primary sources or secondary sources for the purpose of substantial authority. a. Revenue Procedure. b. Article written by a judge in Journal of Taxation. c. U.S. District Court decision. d. The "Bluebook." e. A

> Where does most tax research begin when someone is searching for an answer about a tax dispute?

> Aleshia needs to learn quickly about§ 351 transfers to a controlled corporation. How should Aleshia approach her research?

> What is the justification for the favorable treatment of corporate reorganizations?

> Will Thomas calls you with respect to a tax issue. He has found a tax case in the U.S. District Court of Soud1 Carolina that is in favor of his position. The IRS lost and did not appeal the case. Over the phone, you explain to Will the significance of th

> Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a con1munity property state). Jane is a partner in a law firm and typically generates income of $150,000. Ben is a grade school teacher with wag

> Kenny Merinoff and his son, John, own all outstanding stock of Flan1ingo Corporation. Both John and Kenny are officers in the corporation and, together with their uncle, Ira, comprise me entire board of directors. Flamingo uses the cash method of account

> For an in-control process with subgroup data n = 3, X ̅ = 100, and R ̅= 3.386, compute the Cp, CPL, CPU, and Cpk if a. LSL = 98 and USL = 102. b. LSL = 93 and USL = 107.5.

> For an in-control process with subgroup data n = 3, X ̅= 100, and R ̅= 3.386, compute the percentage of outcomes within specifications if a. LSL = 98 and USL = 102. b. LSL = 93 and USL = 107.5. c. LSL = 93.8 and there is no USL. d. USL = 110 and there is

> For an in-control process with subgroup data n = 4, X ̅ = 20, and R ̅ = 2, find the estimate of a. the population mean of all X values. b. the population standard deviation of all X values.

> The file Cities contains a sample of 25 cities in the United States. Variables included are city average annual salary ($), unemployment rate (%), median home value ($thousands), number of violent crimes per 100,000 residents, average commuter travel tim

> A molding machine that contains different cavities is used in producing plastic parts. The product characteristics of interest are the product length (in.) and weight (g). The mold cavities were filled with raw material powder and then vibrated during th

> The J. Conklin article, “It’s a Marathon, Not a Sprint,” Quality Progress, June 2009, pp. 46–49, discussed a metal deposition process in which a piece of metal is placed in an acid bath and an alloy is layered on top of it. The key quality characteristic

> Financial analysts engage in business valuation to determine a company’s value. A standard approach uses the multiple of earnings method: You multiply a company’s profits by a certain value (average or median) to arrive at a final value. More recently, r

> You are a real estate broker who wants to compare property values in Glen Cove, Freeport, and Roslyn. Use the data in GCFreeRoslyn . a. Develop the most appropriate multiple regression model to predict fair market value. b. What conclusions can you reach

> You are a real estate broker who wants to compare property values in Glen Cove and Roslyn (which are located approximately 8 miles apart). Use the data in GCRoslyn . Make sure to include the dummy variable for location (Glen Cove or Roslyn) in the regres

> Data similar to Problem 15.32 are available for homes located in Freeport (located approximately 20 miles from Roslyn) and are stored in Freeport . a. Perform an analysis similar to that of Problem 15.32. b. Compare the results in (a) with those of Probl

> Data similar to those in Problem 15.32 are available for homes located in Roslyn (approximately 8 miles from Glen Cove) and are stored in Roslyn . a. Perform an analysis similar to that of Problem 15.32. b. Compare the results in (a) with those of Proble

> Nassau County is located approximately 25 miles east of New York City. The file GlenCove contains a sample of 30 singlefamily homes located in Glen Cove. Variables included are the fair market value, land area of the property (acres), interior size of th

> An investor has a certain amount of money available to invest now. Three alternative investments are available. The estimated profits ($) of each investment under each economic condition are indicated in the following payoff table: Based on his own pas

> In the production of printed circuit boards, errors in the alignment of electrical connections are a source of scrap. The file RegistrationError contains the registration error, the temperature, the pressure, and the cost of the material (low versus high

> A specialist in baseball analytics has expanded his analysis, presented in Problem 14.77 on page 580, of which variables are important in predicting a team’s wins in a given baseball season. He has collected data in Baseball related to wins, ERA, saves,

> How do you choose among models according to the Cp statistic in best subsets regression?

> What is the difference between stepwise regression and best subsets regression?

> How can you evaluate whether collinearity exists in a multiple regression model?

> Accounting Today identified top public accounting firms in ten geographic regions across the U.S. The file AccountingPartners6 contains data for public accounting firms in the Southeast, Gulf Coast, and Capital Regions. The variables are: revenue ($milli

> You need to develop a model to predict the asking price of houses listed for sale in Silver Spring, Maryland, based on the living space of the house, the lot size, and the age, whether it has a fireplace, the number of bedrooms, and the number of bathroo

> The file FTMBA contains data from a sample of full-time MBA programs offered by private universities. The variables collected for this sample are average starting salary upon graduation ($), the percentage of applicants to the full-time program who were

> You are considering six independent variables for inclusion in a regression model. You select a sample of n = 40, with the following results: k = 2 T = 6 + 1 = 7 R k 2 = 0.274 RT2 = 0.653 a. Compute the Cp value for this two-independent-variable model.

> You are considering four independent variables for inclusion in a regression model. You select a sample of n = 30, with the following results: 1. The model that includes independent variables A and B has a Cp value equal to 4.6. 2. The model that include

> The Islander Fishing Company purchases clams for $2.50 per pound from fishermen and sells them to various restaurants for $4.00 per pound. Any clams not sold to the restaurants by the end of the week can be sold to a local soup company for $0.50 per poun

> Refer to Problem 14.8 on page 542. Perform a multiple regression analysis using the data in GlenCove and determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity? Problem 14.8: Nassau County

> Refer to Problem 14.7 on page 542. Perform a multiple regression analysis using the data in Nickels26Weeks and determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity? Problem 14.7: The busi

> Refer to Problem 14.6 on page 542. Perform a multiple regression analysis using the data in BestCompanies and determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity? Problem 14.6: Human res

> Refer to Problem 14.5 on page 542. Perform a multiple regression analysis using the data in VinhoVerde and determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity? Problem 14.5: The producti

> Refer to Problem 14.4 on page 541. Perform a multiple regression analysis using the data in CommunityBanks and determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity? Problem 14.4: Profitab

> If the coefficient of determination between two independent variables is 0.50, what is the VIF?

> If the coefficient of determination between two independent variables is 0.20, what is the VIF?

> Using the data of Problem 15.6 on page 601 stored in HondaPrices , perform a square-root transformation of the dependent variable (price). Using the square root of price as the dependent variable, perform a regression analysis. a. State the regression eq

> Using the data of Problem 15.6 on page 601, stored in HondaPrices , perform a natural logarithm transformation of the dependent variable (price). Using the transformed dependent variable and the age as the independent variable, perform a regression analy

> Using the data of Problem 15.4 on page 600, stored in DomesticBeer , perform a natural logarithmic transformation of the dependent variable (calories). Using the transformed dependent variable and the percentage of alcohol and the number of carbohydrates

> A vendor at a local baseball stadium must determine whether to sell ice cream or soft drinks at today’s game. The vendor believes that the profit made will depend on the weather. The payoff table (in $) is as follows: Based on her pas

> Using the data of Problem 15.4 on page 600, stored in DomesticBeer , perform either a square root transformation on the dependent variable (calories) or a square-root transformation on each of the independent variables (percentage alcohol and number of c

> Consider the following regression equation: a. Predict the value of Y when X1 = 8.5 and X2 = 5.2. b. Interpret the meaning of the regression coefficients b0, b1, and b2. In Î = 4.62 + 0.5X1, + 0.7X2

> Consider the following regression equation: a. Predict the value of Y when X1 = 8.5 and X2 = 5.2. b. Interpret the meaning of the regression coefficients b0, b1, and b2. log f, = log 3.07 + 0.9 log X1; + 1.41 log X2

> Researchers wanted to investigate the relationship between employment and accommodation capacity in the European travel and tourism industry. The file EuroTourism contains a sample of 27 European countries. Variables included are the number of jobs gener

> An automotive sales manager wishes to examine the relationship between age (years) and sales price ($) for used Honda automobiles. The file HondaPrices contains data for a sample of Honda Civic LXs that were listed for sale at a car shopping website. Sou

> In the production of printed circuit boards, errors in the alignment of electrical connections are a source of scrap. The data in the file RegistrationError-HighCost contains the registration error and the temperature used in the production of circuit bo

> Is the number of calories in a beer related to the number of carbohydrates and/or the percentage of alcohol in the beer? Data concerning 158 of the best-selling domestic beers in the United States are stored in DomesticBeer . The values for three variabl

> A study was conducted on automobile engines to examine the relationship between engine speed measured in revolutions per minute (RPM) and engine torque with the goal of predicting engine torque. Source: Data extracted from Y. Chen et al., “Cluster-Based

> Businesses actively recruit business students with well-developed higher-order cognitive skills (HOCS) such as problem identification, analytical reasoning, and content integration skills. Researchers conducted a study to see if improvement in students’

> The following is the quadratic regression equation for a sample of n = 25: a. Predict Y for X1 = 2. b. Suppose that the computed tSTAT test statistic for the quadratic regression coefficient is 2.35. At the 0.05 level of significance, is there evidence

> The following are the returns ($) for two stocks: Which stock would you choose and why?

> As a consultant to an investment company trading in various currencies, you have been assigned the task of studying long-term trends in the exchange rates of the Canadian dollar, the Japanese yen, and the English pound. Data from 1980 to 2016 are stored

> Teachers’ Retirement System of the City of New York offers several types of investments for its members. Among the choices are investments with fixed and variable rates of return. There are several categories of variable-return investments. The Diversifi

> The data stored in McDonalds represent the gross revenues (in billions of current dollars) of McDonald’s Corporation from 1975 through 2016: a. Plot the data. b. Compute the linear trend forecasting equation. c. Compute the quadratic trend forecasting eq

> The monthly commercial and residential prices for natural gas (dollars per thousand cubic feet) in the United States from January 2008 through December 2016 are stored in Natural Gas. Source: Data extracted from Energy Information Administration, U.S. De

> The U.S. Department of Labor gathers and publishes statistics concerning the labor market. The file Workforce contains data on the size of the U.S. civilian noninstitutional population of people 16 years and over (in thousands) and the U.S. civilian noni

> The data in the following table, stored in Polio , represent the annual incidence rates (per 100,000 persons) of reported acute poliomyelitis recorded over five-year periods from 1915 to 1955: a. Plot the data. b. Compute the linear trend forecasting e

> How does forecasting for monthly or quarterly data differ from forecasting for annual data?

> What is the major difference between using SYX and MAD for evaluating how well a particular model fits the data?

> Use the table of random numbers (Table E.1) to simulate the selection of different-colored balls from an urn, as follows: a. Start in the row corresponding to the day of the month in which you were born plus the last two digits of the year in which you

> For a period of four weeks, record your pulse rate (in beats per minute) just after you get out of bed in the morning and then again before you go to sleep at night. Construct X and R charts and determine whether your pulse rate is in a state of statisti

> The following are the returns ($) for two stocks: Which stock would you choose and why?

> Refer to Problem 19.53. The production team at the cat food company investigating nonconformities due to the fill weight of the cans determined that at 15-minute intervals during each shift, a subgroup of five cans would be selected, and the contents of

> A team working at a cat food company had the business objective of reducing nonconformance in the cat food canning process. As the team members began to investigate the current process, they found that, in some instances, production needed expensive over

> As chief operating officer of a local community hospital, you have just returned from a three-day seminar on quality and productivity. It is your intention to implement many of the ideas that you learned at the seminar. You have decided to construct cont

> A branch manager of a brokerage company is concerned with the number of undesirable trades made by her sales staff. A trade is considered undesirable if there is an error on the trade ticket. Trades with errors are canceled and resubmitted. The cost of c

> The funds-transfer department of a bank is concerned with turnaround time for investigations of funds-transfer payments. A payment may involve the bank as a remitter of funds, a beneficiary of funds, or an intermediary in the payment. An investigation is

> A professional basketball player has embarked on a program to study his ability to shoot foul shots. On each day in which a game is not scheduled, he intends to shoot 100 foul shots. He maintains records over a period of 40 days of practice, with the res