Question and Answer - 13

Ted and Marvin Brown purchased an apartment building in 2006 as equal tenants in common.
After a hectic decade of co-ownership, the brothers decided that their business association should
be terminated. This led to the sale of the apartment building and a division of the proceeds. The
realized gain on the sale of the
See Full Question And Answer at solutionrank.com
Pedro, who is a single taxpayer, had AGI of $328,000 for 2017. He incurred the following
expenses during the year: Medical expenses before 10%-of-AGI limitation ..................... $12,000
State and local income taxes ................................................ 8,900 Real estate
taxes ........................
Larry is the sole proprietor of a trampoline shop. During 2017, the following transactions
occurred. â€¢ Unimproved land adjacent to the store was condemned by the city on February 1.
The condemnation proceeds were $15,000. The land, acquired in 1986, had an allocable basis of
$40,000. Larry has additional parking acr
Paige, age 17, is claimed as a dependent on her parents' 2017 return, on which they report taxable
income of $120,000 (no qualified dividends or capital gains). Paige earned $3,900 pet sitting and
$4,100 in interest on a savings account. What are Paige's taxable income and tax liability for
2017?
Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2017.

Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2018.
Calculate Edith's realized gain or loss, recognized gain or loss, and basis for the replacement
property if she: a. Acquires a new wareho
On May 28, 2017, Mary purchased and placed in service a new $20,000 car. The car was used
60% for business, 20% for production of income, and 20% for personal use in 2017. In 2018, the
usage changed to 40% for business, 30% for production of income, and 30% for personal use.
Mary did not elect immediate expensing under
To what extent does Lynn Tilton fit your prototype of an effective leader?
During 2017, John was the chief executive officer and a shareholder of Maze, Inc. He owned
60% of the outstanding stock of Maze. In 2014, John and Maze, as co-borrowers, obtained a
$100,000 loan from United National Bank. This loan was secured by John's personal residence.
Although Maze was listed as a co-borrower, Joh
A number of years ago, Kay acquired an interest in a partnership in which she is not a material
participant. Kay's basis in her partnership interest at the beginning of 2016 is $40,000. Kay's
share of the partnership loss is $35,000 in 2016, while her share of the partnership income is
$15,000 in 2017. How much may Kay
Paul and Sonja, who are married, had itemized deductions of $8,200 and $400, respectively,
during 2017. Paul suggests that they file separately-he will itemize his deductions from AGI, and
she will claim the standard deduction. a. Evaluate Paul's suggestion. b. What should they do?
1. Newton, a business owner, signed a ten-year lease beginning in July of 2017, and immediately
paid rent for the remainder of 2017, all of 2018, and all of 2019. How much of the rent paid at
the lease signing can be declared as a business expense on Schedule C of Newton's 2017 tax
return? a. All of it b. The July 20
Describe three influence tactics Raj Gupta used to close the deal with Andrew Liveris and Dow
Chemical.
How would you assess the extent to which an organization is truly a learning organization?
Discuss different alternative methods.
Do you think future organizational change will (a) stay about the same as it is now, (b) decrease,
or (c) increase?
Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2017.
Also in 2017, Pierre paid $455 that was due when he filed his 2016 state income tax return and
made estimated payments of $975 toward his 2017 state income tax liability. When Pierre files
his 2017 Federal income tax return i
Compute the taxable income for 2017 in each of the following independent situations: a. Drew
and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four
dependent children, they have AGI of $65,000 and itemized deductions of $15,000. b. Sybil, age
40, is single and supports her dep
Which barriers do you think are most likely when communicating with Best Buy customers?
Roberto has received various gifts over the years. He has decided to dispose of the following
assets he received as gifts: a. In 1951, he received land worth $32,000. The donor's adjusted basis
was $35,000. Roberto sells the land for $95,000 in 2017. b. In 1956, he received stock in Gold
Company. The donor's adjusted
Siena Industries (a sole proprietorship) sold three Â§ 1231 assets on October 10, 2017. Data on
these property dispositions are as follows. a. Determine the amount and the character of the
recognized gain or loss from the disposition of each asset in 2017. b. Assuming that Siena has no
non-recaptured net Â§ 1231 loss
What are some sources of noise that interfere with communication during a class lecture?
Geranium, Inc., has the following net Â§ 1231 results for each of the years shown. What is the
nature of the net gain in 2016 and 2017? Tax Year ____________ Net Â§ 1231 Loss
___________ Net Â§ 1231 Gain 2012 ............................ $18,000 ..................................
2013 ............................. 3
In 2017, McKenzie purchased qualifying equipment for his business that cost $212,000. The
taxable income of the business for the year is $5,600 before consideration of any Â§ 179
deduction. Calculate McKenzie's Â§ 179 expense deduction for 2017 and any carryover to 2018?
On April 5, 2017, Kinsey places in service a new automobile that cost $36,000. He does not elect
Â§ 179 expensing, and he elects not to take any available additional first-year depreciation. The
car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the
MACRS 200% declining-balance meth
Ramon had AGI of $180,000 in 2017. He is considering making a charitable contribution this
year to the American Heart Association, a qualified charitable organization. Determine the
current allowable charitable contribution deduction in each of the following independent
situations, and indicate the treatment for any am
On May 9, 2015, Calvin acquired 250 shares of stock in Aero Corporation, a new startup
company, for $68,750. Calvin acquired the stock directly from Aero, and it is classified as Â§
1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in
capital). On January 15, 2017, Calvin sold all
Norma, who is single and uses the cash method of accounting, lives in a state that imposes an
income tax. In April 2017, she files her state income tax return for 2016 and pays an additional
$1,000 in state income taxes. During 2017, her withholdings for state income tax purposes
amount to $7,400, and she pays estimate
Jim and Mary Jean are married and have two dependent children under the age of 13. Both
parents are employed outside the home and during 2017 earn salaries as follows: $16,000 (Jim)
and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's
mother) $5,600. Eleanor does not qualify as a
George is the owner of numerous classic automobiles. His intention is to hold the automobiles
until they increase in value and then sell them. He rents the automobiles for use in various events
(e.g., antique automobile shows) while he is holding them. In 2017, he sold a classic automobile
for $1.5 million. He had held
Which of the four types of transformational leadership behavior are displayed by Tilton? Provide
examples.
Mary, a single taxpayer with two dependent children, has the following items of income and
expense during 2017: Gross receipts from business ....................................... $144,000 Business
expenses ..................................................... 180,000 Alimony received ..............................
Explain how each of the three influence outcomes was evident during the deal between Dow and
Rohm and Haas.
In late 2017, the Polks come to you for tax advice. They are considering selling some stock
investments for a loss and making a contribution to a traditional IRA. In reviewing their
situation, you note that they have large medical expenses and a casualty loss, neither of which is
covered by insurance. What advice would
In a nutshell, what does contingency organization design entail?
Adrian was awarded an academic scholarship to State University for the 2017-2018 academic
year. He received $6,500 in August and $7,200 in December 2017. Adrian had enough personal
savings to pay all expenses as they came due. Adrian's expenditures for the relevant period were
as follows: Tuition, August 2017 ........
Do you agree with Barbara Kellerman's conclusion that leadership is not a moral concept?
Explain.
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor
children who live with her. She also maintains the household in which her parents live and
furnished 60% of their support. Besides interest on City of Miami bonds in the amount of
$5,500, Charlotte's father received $2,400 from a
If organic organizations are popular with most employees, why can't all organizations be
structured in an organic fashion?
Based on the contingency approach toward organizational design, where did Yahoo go wrong
with its new structure?
How would you respond to a manager who made the following statement? "Unfreezing is not
important, employees will follow my directives."
In 2016, Fred invested $50,000 in a general partnership. Fred's interest is not considered to be a
passive activity. If his share of the partnership losses is $35,000 in 2016 and $25,000 in 2017,
how much can he deduct in each year?
How effective of a listener is Brian Dunn? Use Table 12-3 and the text to support your answer.
Compute the taxable income for 2017 for Aiden on the basis of the following information. Aiden
is married but has not seen or heard from his wife since 2015.
Salary ...................................................................................... $ 80,000 Interest on bonds issued
by the City of Boston ..........
Carla was the owner of vacant land that she was holding for investment. She paid $2 million for
the land in 2015. Raymond was an investor in vacant land. He thought Carla's land might be the
site of an exit ramp from a new freeway. Raymond gave Carla $836,000 for an option on her
land in 2016. The option was good for
Describe how Raj Gupta used three different political tactics to close the sale of Rohm and Haas.
Choose one of your current work or school goals. Then identify somebody that can help you
achieve that goal. Which bases of power and influence tactics can you use to influence that
person to help you achieve your goal? Explain not only which bases of power and influence
tactics you could use, but also how you would ac
Use the perceptual model (Figure 12-1) and barriers of communication (Table 12-1) to identify
the most common barriers to communication between you and your boss or you and the
professor of this class. What can you do to improve this communication? Do the same for
communications between you and your professor.
Compute the 2017 tax liability and the marginal and average tax rates for the following taxpayers
(use the 2017 tax rate schedules in Appendix A for this purpose). a. Chandler, who files as a
single taxpayer, has taxable income of $93,000. b. Lazare, who files as a head of household, has
taxable income of $56,000?
In 2013, Jed James began planting a vineyard. The costs of the land preparation, labor, rootstock,
and planting were capitalized. The land preparation costs do not include any non-depreciable
land costs. In 2017, when the plants became viable, Jed placed the vineyard in service. Jed wants
to know whether he can claim a
Tom Howard and Frank Peters are good friends (and former college roommates). Each owns
investment property in the other's hometown (Tom lives in Kalamazoo, MI; Frank lives in
Austin, TX.). To make their lives easier, they decide to exchange the investment properties.
Under the terms of the exchange, Frank will transfer
Hamlet acquires a 7-year class asset on November 23, 2017, for $100,000. Hamlet does not elect
immediate expensing under Â§ 179. He does not claim any available additional first-year
depreciation. Calculate Hamlet's cost recovery deductions for 2017 and 2018?
Bernadette, a longtime client of yours, is an architect and the president of the local Rotary
chapter. To keep up to date with the latest developments in her profession, she attends continuing
education seminars offered by the architecture school at State University. During 2017,
Bernadette spends $2,000 on course tuit
Ali owns 100 shares of Brown Corporation stock. He purchased the stock at five different times
and at five different prices per share as indicated. On April 28, 2017, Ali will sell 40 shares of
Brown stock for $40 per share. All of Ali's shares are held by his stockbroker. The broker's
records track when the shares we
How much impression management do you see in your classroom or workplace today? Citing
specific examples, are those tactics effective?
Coline has the following capital gain and loss transactions for 2017. Short-term capital
gain ......................................... $ 5,000 Short-term capital loss ......................................... (2,100)
Long-term capital gain (28%) ................................... 6,000 Long-term capital gain (15
An apartment building was acquired in 2008 by an individual taxpayer. The depreciation taken
on the building was $123,000, and the building was sold for a $34,000 gain. What is the
maximum amount of 25% gain?
Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On
January 1, 2016, his amount at risk in the activity was $30,000. His shares of the income and
losses were as follows: Year ___________________ Income (Loss) 2016 .................................
($40,000) 2017 ..........
Which barrier to effective communication is most difficult to reduce? Explain.
Randall owns an office building (adjusted basis of $250,000) that he has been renting to a group
of physicians. During negotiations over a new seven-year lease, the physicians offer to purchase
the building for $900,000. Randall accepts the offer with the stipulation that the sale be
structured as a delayed Â§ 1031 tra
In 2017, Kathleen Tweardy incurs $30,000 of interest expense related to her investments. Her
investment income includes $7,500 of interest, $6,000 of qualified dividends, and a $12,000 net
capital gain on the sale of securities. Kathleen asks you to compute the amount of her deduction
for investment interest, taking in
On December 1, 2015, Lavender Manufacturing Company (a corporation) purchased another

company's assets, including a patent. The patent was used in Lavender's manufacturing
operations; $49,500 was allocated to the patent, and it was amortized at the rate of $275 per
month. On July 30, 2017, Lavender sold the patent for
Determine the amount of the standard deduction allowed for 2017 in the following independent
situations. In each case, assume that the taxpayer is claimed as another person's dependent. a.
Curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $6,100 from
repairing cars. b. Mattie, age
Jacob purchased business equipment for $56,000 in 2014 and has taken $35,000 of regular
MACRS depreciation. Jacob sells the equipment in 2017 for $26,000. What is the amount and
character of Jacob's gain or loss?
Elliott has the following capital gain and loss transactions for 2017. Short-term capital
gain ............................................ $ 1,500 Short-term capital loss ............................................
(3,600) Long-term capital gain (28%) .................................... 12,000 Long-term capital
Why is it appropriate to view modern organizations as open systems?
Clyde had worked for many years as the chief executive of Red Industries, Inc., and had been a
major shareholder. Clyde and the company had a falling out, and Clyde was terminated. Clyde
and Red executed a document under which Clyde's stock in Red would be redeemed and Clyde
would agree not to compete against Red in it
Lopez acquired a building on June 1, 2012, for $1 million. Calculate Lopez's cost recovery
deduction for 2017 if the building is: a. Classified as residential rental real estate. b. Classified as
nonresidential real estate?
Assume you are Brian Dunn. Describe the elements of a social media policy you would put in
place at Best Buy. Include an explanation of consequences for violations of the policy.
Think of a situation at work or school where somebody clearly used politics in a negative way.
What could have been done to prevent this from happening?
In 2014, John opened an investment account with Randy Hansen, who held himself out to the
public as an investment adviser and securities broker. John contributed $200,000 to the account
in 2014. John provided Randy with a power of attorney to use the $200,000 to purchase and sell
securities on John's behalf. John instr
Sissie owns two items of business equipment. Both were purchased in 2013 for $100,000, both
have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Sissie is
considering selling these assets in 2017. One of them is worth $60,000, and the other is worth
$23,000. Because both items were used in h
Kathy and Brett Ouray married in 1999. They began to experience marital difficulties in 2013
and, in the current year, although they are not legally separated, consider themselves completely
estranged. They have contemplated getting a divorce. However, because of financial concerns
and because they both want to remain
Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair
market value on July 1, 2017 (the date of death), was $45,000. The shares were distributed to
Tyneka on July 15, 2017. Tyneka sold the stock on July 30, 2018, for $33,000. After giving the
matter more thought, she decides
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2014. He lives at 4680
Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm.
During 2016, he had the following receipts: Logan inherited securities worth $60,000 from his
uncle, Daniel, who died in 2016. Logan also was the
Wesley and Myrtle (ages 90 and 88, respectively) live in an assisted care facility and for 2016
and 2017 received their support from the following sources:
__________________________________ Percentage of Support Social Security
benefits ............................. 16% Son .........................................
Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family
friend), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live with
Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000,
contributes $5,000 to a traditional IRA, and rec
What are the pros and cons of using social media at work? Discuss.
Dan bought a hotel for $2,600,000 in January 2013. In May 2017, he died and left the hotel to
Ed. While Dan owned the hotel, he deducted $289,000 of cost recovery. The fair market value in
May 2017 was $2,800,000. The fair market value six months later was $2,850,000. a. What is the
basis of the property to Ed? b. Wh
Ann and Bill were on the list of a local adoption agency for several years, seeking to adopt a
child. Finally, in 2016, good news came their way, and an adoption seems imminent. They paid
qualified adoption expenses of $5,000 in 2016 and $11,000 in 2017. Assume that the adoption
becomes final in 2017. Ann and Bill alwa
Taylor, age 18, is claimed as a dependent by her parents. For 2017, she has the following
income: $4,000 of wages from a summer job, $1,800 of interest from a money market account,
and $2,000 of interest from City of Boston bonds. a. What is Taylor's taxable income for 2017?
b. What is Taylor's tax for 2017? [Her par
Caden and Lily are divorced on March 3, 2016. For financial reasons, however, Lily continues to
live in Caden's apartment and receives her support from him. Caden does not claim Lily as a
dependent on his 2016 Federal income tax return but does so on his 2017 return? Explain.
Linda, age 37, who files as a single taxpayer, had AGI of $280,000 for 2017. She incurred the
following expenses and losses during the year: Medical expenses (before the 10%-of-AGI
limitation) ...................... $33,000 State and local income
taxes ....................................................... 4,500 S
Terri, age 16, is claimed as a dependent on her parents' 2017 return. During the year, Terri
earned $5,000 in interest income and $3,000 from part-time jobs. a. What is Terri's taxable
income? b. How much of Terri's income is taxed at her rate? At her parents' rate? c. Can the
parental election be made? Why or why n
In 2017, David is age 78, is a widower, and is being claimed as a dependent by his son. How
does this situation affect the following? a. David's own individual filing requirement. b. David's
personal exemption. c. The standard deduction allowed to David. d. The availability of any
additional standard deduction.
Thrasher Corporation sells short 100 shares of ARC stock at $20 per share on January 15, 2017.
It buys 200 shares of ARC stock on April 1, 2017, at $25 per share. On May 2, 2017, Thrasher
closes the short sale by delivering 100 of the shares purchased on April 1. a. What are the
amount and nature of Thrasher's loss up
Bob and Carol have been in and out of marital counseling for the past few years. Early in 2017,
they decide to separate. However, because they are barely able to get by on their current
incomes, they cannot afford separate housing or the legal costs of a divorce. So Bob moves out
of their house in March and takes up re
1. Keller is a single individual who in 2017 qualified for a foreign earned income exclusion of
$80,000. Keller's 2017 net investment income was $25,000, and Keller's 2017 adjusted gross
income prior to the foreign earned income exclusion was $220,000. Given a 3.8% Unearned
Income Medicare Contribution Tax rate, what i
Which of the following individuals are required to file a tax return for 2017? Should any of these
individuals file a return even if filing is not required? Why or why not? a. Patricia, age 19, is a
self-employed single individual with gross income of $5,200 from an unincorporated business.
Business expenses amounted
Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively, who file a joint
return for 2017. The Deckers live at 1121 College Avenue, Carmel, IN 46032. Paul is an
assistant manager at Carmel Motor Inn, and Donna is a teacher at Carmel Elementary School.
They present you with W-2 forms that reflect the f
Was Ford more mechanistic or organic in the approach it used to restructure? Explain.
In 2017, Dominique and Felix are married and file a joint tax return. Their AGI is $316,550 and
they claim three exemptions. Determine their total exemption amount for 2017?
Eagle Partners meets all of the requirements of Â§ 1237 (subdivided realty). In 2017, Eagle
Partners begins selling lots and sells four separate lots to four different purchasers. Eagle
Partners also sells two contiguous lots to another purchaser. The sales price of each lot is
$30,000. The partnership's basis for eac
Ruth Ames died on January 10, 2017. In filing the estate tax return, her executor, Melvin Sims,
elects the primary valuation date and amount (fair market value on the date of death). On March
12, 2017, Melvin invests $30,000 of cash that Ruth had in her money market account in
acquiring 1,000 shares of Orange, Inc. ($3
Describe a personal experience, or a situation you read about in the news in which too much
empowerment was used.
Sam and Elizabeth Jefferson file a joint return and have three children-all of whom qualify as
dependents. If the Jefferson's have AGI of $335,900, what is their allowable deduction for
personal and dependency exemptions for 2017?
Roy and Brandi are engaged and plan to get married. During 2017, Roy is a full-time student and
earns $9,000 from a part-time job. With this income, student loans, savings, and nontaxable
scholarships, he is self-supporting. For the year, Brandi is employed and has wages of $61,000.
How much income tax, if any, can Bra
Oregon Weights Company manufactures a specialty precision scale. For January, the company
expects to sell 1,500 scales at an average price of $2,320 per unit. The average manufacturing
cost of each unit sold is $1,420. Variable operating expenses for the company will be $1.40 per
unit sold and fixed operating expenses
Bentfield Health Center provides a variety of medical services. The company is preparing its
cash budget for the upcoming third quarter. The following transactions are expected to occur: a.
Cash collections from services in July, August, and September are projected to be $91,000,
$151,000, and $124,000, respectively.
TreadFast produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and
related demand is such that TreadFast could use all of its available machine hours producing
either model. The two models are processed through the same production department. What
product mix will maximize operating income
Organic Plus processes organic milk into plain yogurt. Organic Plus sells plain yogurt to
hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at
a cost of $830, yields 750 gallons of plain yogurt. Organic Plus sells the one-gallon tubs for
$6.00 each and spends $0.10 for each
Paul suffers from emphysema and severe allergies and, upon the recommendation of his
physician, has a dust elimination system installed in his personal residence. In connection with
the system, Paul incurs and pays the following amounts during 2017. Doctor and hospital
bills ...........................................
Riley Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene
terephthalate (PET), a lightweight yet strong plastic. Riley uses as much PET recycled resin
pellets in its bottles as it can, both because using recycled PET helps Riley to meet its
sustainability goals and because recycled P
Suppose Eagle Products is considering discontinuing its soy cereal product line. Assume that
during the past year, the soy cereal product line income statement showed the following: Gross
profit........................................$ 5,250,000 Less: Operating expenses................$ (1,000,000)
Operating income
Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania. Summer Fun's

contribution margin income statement for the most recent month contains the following data:
Lacerna Chemical has spent $245,000 to refine 70,000 gallons of acetone, which can be sold for
$1.90 a gallon. Alternatively, Lacerna Chemical can process the acetone further. This processing
will yield a total of 65,000 gallons of lacquer thinner that can be sold for $3.30 a gallon. The
additional processing will cost
Spring Garden Preschool operates a not-for-profit morning preschool. Each family pays a
nonrefundable registration fee of $120 per child per school year. Monthly tuition for the eight-
month school year varies depending on the number of days per week that the child attends
preschool. The monthly tuition is $125 for the
Gentry Miller Sunglasses sell for $150 per pair. Suppose the company incurs the following
average costs per pair: Direct materials .........................................................................................
$43 Direct labor ................................................................................
DeWitt Corporation is preparing its cash payments budget. The following items relate to cash
payments the company anticipates making during the second quarter of the upcoming year. a.
DeWitt Corporation pays for 55% of its direct materials purchases in the month of purchase and
the remainder the following month. The c
Augustine Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to
be $904,000 in October, $964,000 in November, $1,045,000 in December, and $936,000 in
January. Augustine's sales are 20% cash and 80% credit. The company's collection history
indicates that credit sales are collected as follo
Holiday Corporation has found that 60% of its sales in any given month are credit sales, while
the remainder are cash sales. Of the credit sales, Holiday Corporation has experienced the
following collection pattern: 25% received in the month of the sale 50% received in the month
after the sale 16% received two month
Patterson Paints makes and sells paint to home improvement stores. Patterson's only plant can
produce up to 13 million cans of paint per year. Current annual production is 10 million cans.
Fixed manufacturing, selling, and administrative costs total $20 million per year. The variable
cost of making and selling each can
Nicholson Produce is considering whether it should replace a veggie burger patty shaper
machine. The new machine will produce 25% more veggie burger patties than the old machine in
the same amount of time. (This machine is the bottleneck of the veggie burger patty process for
Nicholson's.) The purchase of the new machi
Members of the board of directors of Security Alliance have received the following operating
income data for the year just ended: Members of the board are surprised that the industrial
systems product line is losing money. They commission a study to determine whether the
company should discontinue the line. Company ac
Snowy Mountain manufactures snowboards. Its cost of making 19,000 bindings is as follows:
Direct materials ............................................................................... $ 22,000 Direct
labor ........................................................................................ 81,000 Variable man
The Stenback Company is in the process of preparing its manufacturing overhead budget for the
upcoming year. Sales are projected to be 48,000 units. Information about the various
manufacturing overhead costs follows: Requirement Prepare the manufacturing overhead budget
for the Stenback Company for the upcoming year.
O'Connor Frozen Foods purchased new computer-controlled production machinery last year
from Advanced Enterprise. The equipment was purchased for $4.1 million and was paid for with
cash. A representative from Advanced Enterprise recently contacted O'Connor management
because Advanced Enterprise has an even more efficien
Consider Devine Fashion from S8-6. Assume that the fixed expenses assigned to each
department include only direct fixed costs of the department (rather than unavoidable fixed costs
as given in S8-6): In S8-6 â€¢ Salary of the department's manager â€¢ Cost of advertising
directly related to that department If Devine
Nichols Cycles manufactures chainless bicycles. On March 31, Nichols Cycles had 100 bikes in
inventory. The company has a policy that the ending inventory in any month must be 10% of the
following month's expected sales. Nichols Cycles expects to sell the following number of bikes
in each of the next four months: Apri
Johnston Bookstore is the bookstore on campus for students and faculty. The bookstore shows
the following sales projections in units by quarter for the upcoming year: The average price of an
item in each of the departments is as follows: Average sales price per unit
Books ............................................
Over the past several years, decommissioned U.S. warships have been turned into artificial reefs
in the ocean by towing them out to sea and sinking them. The thinking was that sinking the ship
would conveniently dispose of it while providing an artificial reef environment for aquatic life.
In reality, some of the sunke
The Robbins Company is preparing its cash payments budget. The following items relate to cash
payments the company anticipates making during the second quarter of the upcoming year. a.
The company pays for 45% of its direct materials purchases in the month of purchase and the
remainder the following month. The company
Sacco Industries manufactures a popular interactive stuffed animal for children that requires
three computer chips inside each toy. The company pays $2 for each computer chip. To help to
guard against stockouts of the computer chip, Sacco Industries has a policy stating that the
ending inventory of computer chips shoul
Brann Products, located in Ann Arbor, Michigan, produces two lines of electric toothbrushes:
Deluxe and Standard. Because Brann can sell all the toothbrushes it can produce, the owners are
expanding the plant. They are deciding which product line to emphasize. To make this decision,
they assemble the following data: A
The local grocery store expects that customers will use credit cards to pay for a total of 90,000
sales transactions during the month of April. These transactions are expected to amount to
$1,000,000 in total sales revenue. The credit card issuers charge the store a transaction fee equal
to $0.45 per transaction plus 1
CocoaJoy processes cocoa beans into cocoa powder at a processing cost of $10,100 per batch.
CocoaJoy can sell the cocoa powder as is, or it can process the cocoa powder further into
chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would
result in the following sales revenue: Coco
Noble Chemical has spent $240,000 to refine 71,000 gallons of acetone, which can be sold for
$2.30 a gallon. Alternatively, Noble Chemical can process the acetone further. This processing
will yield a total of 59,000 gallons of lacquer thinner that can be sold for $3.20 a gallon. The
additional processing will cost $0.
Excer Treads produces two types of exercise treadmills: Regular and Deluxe. The exercise craze
and related demand is such that Excer Treads could use all of its available machine hours
producing either model. The two models are processed through the same production department.
What product mix will maximize operating
Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered to
purchase 20,000 oil filters for $1.55 per filter. Of the total manufacturing cost per filter of $2.10,
$1.30 is the variable manufacturing cost per filter. For this special order, Shilling would have to
buy a special stampin
Hoffman Foods produces specialty soup sold in jars. The projected sales in dollars and jars for
each quarter of the upcoming year are as follows: Hoffman anticipates selling 223,000 jars with
total sales revenue of $260,000 in the first quarter of the year following the year given in the
preceding table. Hoffman has a
Maple Ridge Preschool operates a not-for-profit morning preschool that operates eight months of
the year. The preschool has 165 kids enrolled in its various programs. The preschool's primary
expense is payroll. Teachers are paid a flat salary each of the nine months as follows: Salary data
Teachers of tw
Corrigan Health Center provides a variety of medical services. The company is preparing its cash
budget for the upcoming third quarter. The following transactions are expected to occur: a. Cash
collections from services in July, August, and September are projected to be $99,000, $156,000,
and $120,000, respectively.
Mountain Sports manufactures snowboards. Its cost of making 1,850 bindings is as follows:
Direct materials .................................................................................. $ 18,500 Direct
labor ............................................................................................. 2,900 Varia
Osborne Manufacturing produces self-watering planters for use in upscale retail establishments.
Sales projections for the first five months of the upcoming year show the estimated unit sales of
the planters each month to be as follows: Number of planters to be sold
January ............................................
Suppose Smithers Company is considering discontinuing its organic dried fruit product line.
Assume that during the past year, the organic dried fruit's product line income statement showed
the following: Sales revenue.........................................$ 5,200,000 Less: Cost of goods
sold........................
McCall Enterprises manufactures one of the components used to assemble its main company
product. Specialty Products, Inc., has offered to make the component at a cost of $14.10 per unit.
McCall Enterprises' current cost is $17.00 per unit of the component, based on the 100,000
components that McCall Enterprises current
Storage Solutions produces plastic storage bins for household storage needs. The company
makes two sizes of bins: Large (50 gallon) and Regular (35 gallon). Demand for the product is so
high that the company can sell as many of each size as it can produce. The same machinery is
used to produce both sizes. The machinery
Danville Preschool operates a not-for-profit morning preschool. Each family pays a

nonrefundable registration fee of $105 per child per school year. Monthly tuition for the eight-
month school year varies depending on the number of days per week that the child attends
preschool. The monthly tuition is $140 for the two-d

Raber Corporation has found that 60% of its sales in any given month are credit sales, while the
remainder are cash sales. Of the credit sales, the company has experienced the following
collection pattern: 25% received in the month of the sale 50% received in the month after the
sale 18% received two months after th
You recently began a job as an accounting intern at Rockwall Adventures. Your first task was to
help prepare the cash budget for February and March. Unfortunately, the computer with the
budget file crashed, and you did not have a backup or even a hard copy. You ran a program to
salvage bits of data from the budget file
Ace Electronics sells tablets. Its sales budget for the nine months ended September 30 follows: In
the past, cost of goods sold has been 70% of total sales. The director of marketing and the
financial vice president agree that each quarter's ending inventory should not be below $20,000
plus 15% of cost of goods sold f
Each morning, Larry Imery stocks the drink case at Larry's Beach Hut in Charlotte, North
Carolina. Larry's Beach Hut has 110 linear feet of refrigerated display space for cold drinks.
Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. The
beverage stands sells three types of
Orr Products manufactures t-shirts. It has the following costs when its production level is
100,000 units (t-shirts): __________________________________Total costs for 100,000 units
Direct materials .................................................... $ 320,000 Direct
labor ..........................................
Kent Corner Shoppe is a local convenience store with the following information: â€¢ October
sales were $250,000. â€¢ Sales are projected to go up by 12% in November and another 30% in
December and then return to the October level in January. â€¢ 20% of sales are made in cash,
while the remaining 80% are paid by cred
Members of the board of directors of Security First have received the following operating
income data for the year just ended: Members of the board are surprised that the industrial
systems product line is losing money. They commission a study to determine whether the
company should discontinue the line. Company accou
George Industries manufactures three models of a product in a single plant with two
departments: Cutting and Assembly. The company has estimated costs for each of the three
product models: the Standard, the Deluxe, and the Premium models. The company is currently
analyzing direct labor hour requirements for the upcomi
Each morning, Max Rouse stocks the drink case at Max's Beach Hut in Daytona Beach, Florida.
Max's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear
foot can hold either five 12-ounce cans or four 20-ounce plastic or glass bottles. The beverage
stand sells three types of cold drin
Tech Systems manufactures an optical switch that it uses in its final product. Tech Systems
incurred the following manufacturing costs when it produced 71,000 units last year: Direct
materials......................................................$781,000 Direct labor...................................................
Suffield Motors is a chain of car dealerships. Sales in the fourth quarter of last year were
$4,400,000. Suppose management projects that its current year's quarterly sales will increase by
7% in quarter 1, by another 2% in quarter 2, by another 4% in quarter 3, and by another 3% in
quarter 4. Management expects cost o
Jefferson Sports Medicine, Inc., offers two types of physical exams for students: the basic
physical and the extended physical. The charge for the basic physical is $60, while the charge for
the extended physical is $135. Jefferson expects to perform 220 basic physicals and 190
extended physicals in July, 235 basic and
City Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,000,000.
Suppose its management projects that its current year's quarterly sales will increase by 3% in
quarter 1, by another 7% in quarter 2, by another 6% in quarter 3, and by another 5% in quarter
4. Management expects cost o
The Red Lantern, a local Thai restaurant, expects sales to be $500,000 in January. Its average
customer restaurant bill is $40. Only 20% of the restaurant bills are paid with cash; 70% are paid
with credit cards and 10% with debit cards. The transaction fees charged by the credit and debit
card issuers are as follows:
Gable Foods produces specialty soup sold in jars. The projected sales in dollars and jars for each
quarter of the upcoming year are as follows: Total sales revenue Number of jars sold 1st
quarter ........................................... $186,000...........................................152,500 2nd quarter ....
SaveCo Services, Inc., has $8,600 cash on hand on May 1. The company requires a minimum
cash balance of $7,500. May cash collections are $548,480. Total cash payments for May are
$563,420. Prepare a cash budget for May. How much cash, if any, will SaveCo need to borrow
by the end of May?
Jerico Beverages manufactures its own soda pop bottles. The bottles are made from polyethylene
terephthalate (PET), a lightweight yet strong plastic. The company uses as much PET recycled
resin pellets in its bottles as it can, both because using recycled PET helps Jerico to meet its
sustainability goals and because re
Jamison Paints makes and sells paint to home improvement stores. Jamison's only plant can
produce up to 12 million cans of paint per year. Current annual production is 10 million cans.
Fixed manufacturing, selling, and administrative costs total $15 million per year. The variable
cost of making and selling each can of
The Grant Company is in the process of preparing its manufacturing overhead budget for the
upcoming year. Sales are projected to be 49,000 units. Information about the various
manufacturing overhead costs follows: Requirement Prepare the manufacturing overhead budget
for the Grant Company for the upcoming year.
Use the following information to prepare a budgeted balance sheet for Luda Corporation at
March 31. Show computations for the cash and stockholders' equity amounts. a. March 31
inventory balance, $18,265 b. March payments for inventory, $4,600 c. March payments of
accounts payable and accrued liabilities, $8,700 d.
Barrett Labs performs a specialty lab test for local companies for $52 per test. For the upcoming
quarter, Barrett Labs is projecting the following sales: The budgeted cost of performing each test
is $25. Operating expenses are projected to be $61,000 in January, $54,000 in February, and
$64,000 in March. Barrett Labs
Dominion Industries manufactures three models of a product in a single plant with two
departments: Cutting and Assembly. The company has estimated costs for each of the three
product models: the Economy, the Standard, and the Premium models. The company is currently
analyzing direct labor hour requirements for the upco
Mrs. Yoder is a large family-style restaurant chain located throughout the Midwest in Amish
communities. Currently, Mrs. Yoder makes its own biscuits. Customers love these biscuits; they
are light, fluffy, and incredibly delicious. People are not eating out at restaurants as much as they
did before the recession hit i
Hartford Bookstore is the bookstore on campus for students and faculty. The bookstore shows
the following sales projections in units by quarter for the upcoming year: The average price of an
item in each of the departments is as follows: Average sales price per unit
Books ............................................
Werner Natural Dairy processes organic milk into plain yogurt. Werner sells plain yogurt to
hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at
a cost of $850, yields 540 gallons of plain yogurt. The company sells the one-gallon tubs for
$8.00 each and spends $0.16 for eac

Evansville Preschool operates a not-for-profit morning preschool that operates eight months of
the year. The preschool has 190 kids enrolled in its various programs. The preschool's primary
expense is payroll. Teachers are paid a flat salary each of the eight months as follows: Teachers
of two-day program ............
Windham Industries has an annual plant capacity of 80,000 units; current production is 65,000
units per year. At the current production volume, the variable cost per unit is $40.00, and the
fixed cost per unit is $4.50. The normal selling price of Windham's product is $60.00 per unit.
Windham has been asked by Ramone C
Unilever is a multinational consumer goods company headquartered in Rotterdam, Netherlands,

and London, United Kingdom. Some of its major brands in the United States include Dove,
Hellman's, Lipton, and Ben & Jerry's. The company is organized into four main divisions: Foods,
Refreshment (beverages and ice cream), Home
Refer to E8-44B. Tech Systems needs 78,000 optical switches next year (assume same relevant
range). By outsourcing them, Tech Systems can use its idle facilities to manufacture another
product that will contribute $220,000 to operating income, but none of the fixed costs will be
avoidable. Should Tech Systems make or b
Devine Fashion in Chicago operates three departments: Men's, Women's, and Accessories.
Devine Fashion allocates all fixed expenses (unavoidable building depreciation and utilities)
based on each department's square footage. Departmental operating income data for the third
quarter of the current year are as follows: Th
Perreth Industries has an annual plant capacity of 70,000 units; current production is 55,000 units
per year. At the current production volume, the variable cost per unit is $30.00 and the fixed cost
per unit is $4.10. The normal selling price of Perreth's product is $45.00 per unit. Perreth has
been asked by Rummell C
Finley Corporation is preparing its cash payments budget for next month. The following
information pertains to the cash payments: a. Finley Corporation pays for 50% of its direct
materials purchases in the month of purchase and the remainder the following month. Last
month's direct material purchases were $78,000, whi
Hamilton Containers manufactures a variety of boxes used for packaging. Sales of its Model A20
box have increased significantly to a total of 430,000 A20 boxes. Hamilton has enough existing
production capacity to make all of the boxes it needs. The variable cost of making each A20 box
is $0.80. By outsourcing the manuf
1. A beverage company is considering whether to discontinue its line of grape soda. What factors
will affect the company's decision? What is a qualitative factor? Which of the factors you listed
are qualitative? 2. What factors would be relevant to a restaurant that is considering whether to
make its own dinner rolls
Shaw Enterprises manufactures one of the components used to assemble its main company
product. Specialty Products, Inc., has offered to make the component at a cost of $12.80 per unit.
Shaw Enterprises' current cost is $14.75 per unit of the component, based on the 100,000
components that Shaw Enterprises currently pro
See the Winter Sports Inc. data from S8-2. Assume that Winter Sports' reputation has diminished
and other resorts in the vicinity are charging only $65 per lift ticket. Winter Sports has become a
price-taker and won't be able to charge more than its competitors. At the market price, Winter
Sports' managers believe they
Refer to E8-28A. InteliSystems needs 79,000 optical switches next year (assume same relevant
range). By outsourcing them, InteliSystems can use its idle facilities to manufacture another
product that will contribute $140,000 to operating income, but none of the fixed costs will be
avoidable. Should InteliSystems make o
Jasper McKnight Sunglasses sell for about $150 per pair. Suppose the company incurs the
following average costs per pair: Direct
materials ...................................................................................... $40 Direct
labor ...........................................................................
Consider Devine Fashion from S8-6. Assume once again that all fixed costs are unavoidable. If
the company discontinues one of the current departments, it plans to replace the discontinued
department with a Shoe Department. The company expects the Shoe Department to produce
$84,000 in sales and have $47,000 of variable
Over the past several years, decommissioned U.S. warships have been turned into artificial reefs
in the ocean by towing them out to sea and sinking them. The thinking was that sinking the ship
would conveniently dispose of it while providing an artificial reef environment for aquatic life.
In reality, some of the sunke
Plants Galore operates a commercial plant nursery where it propagates plants for garden centers
throughout the region. Plants Galore has $5.8 million in assets. Its yearly fixed costs are
$742,000, and the variable costs for the potting soil, container, label, seedling, and labor for each
gallon-sized plant total $1.55
Gunter Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of
Denver. Land and labor are cheap, and competition among developers is fierce. The homes are
"cookie-cutter," with any upgrades added by the buyer after the sale. Gunter Builders' costs per
developed sub lot are as follows: Land
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectibles &
More with a special order. The Hall of Fame wants to purchase 53,000 baseball card packs for a
special promotional campaign and offers $0.32 per pack, a total of $16,960. Collectibles &
More's total production cost is $0.52 per pa
Kessler Service anticipates the following sales revenue over a five-month period: The company's
sales are 30% cash and 70% credit. Its collection history indicates that credit sales are collected
as follows: 25% in the month of the sale 50% in the month after the sale 20% two months after
the sale 5% are never col
Delta Labs performs a specialty lab test for local companies for $45 per test. For the upcoming
quarter, Delta Labs is projecting the following sales: The budgeted cost of performing each test
is $21. Operating expenses are projected to be $59,000 in January, $57,000 in February, and
$58,000 in March. Delta Labs is su
Moe Industries manufactures a popular interactive stuffed animal for children that requires four
computer chips inside each toy. The company pays $3 for each computer chip. To help to guard
against stockouts of the computer chip, Moe Industries has a policy stating that the ending
inventory of computer chips should be
Henderson Containers manufactures a variety of boxes used for packaging. Sales of its Model
A20 box have increased significantly to a total of 400,000 A20 boxes. Henderson has enough
existing production capacity to make all of the boxes it needs. The variable cost of making each
A20 box is $0.74. By outsourcing the man
Dominic Builders builds 1,500-square-foot starter tract homes in the fast-growing suburbs of
Atlanta. Land and labor are cheap, and competition among developers is fierce. The homes are
"cookie-cutter," with any upgrades added by the buyer after the sale. Dominic Builders' costs per
developed sub lot are as follows: L
Agee Products, located in Peoria, Arizona, produces two lines of electric toothbrushes: Deluxe
and Standard. Because Agee can sell all of the toothbrushes it produces, the owners are
expanding the plant. They are deciding which product line to emphasize. To make this decision,
they assemble the following data: Aft
Flora Gardening operates a commercial plant nursery where it propagates plants for garden
centers throughout the region. Flora Gardening has $5.25 million in assets. Its yearly fixed costs
are $668,500, and the variable costs for the potting soil, container, label, seedling, and labor for
each gallon-sized plant total
Coastal Safety manufactures flotation vests in Miami, Florida. Coastal Safety's contribution
margin income statement for the most recent month contains the following data: Suppose Dazzle
Cruiselines wants to buy 4,600 vests from Coastal Safety. Acceptance of the order will not
require any variable selling and administ
Quinn Company sells mobile phones worldwide. The company expects to sell 4,600 mobile
phones for $160 each in January and 4,000 mobile phones for $190 each in February. All sales
are cash only. Quinn expects cost of goods sold to average 50% of sales revenue. The company
also expects to sell 4,200 mobile phones in Marc
Top managers of Vermont Flooring are alarmed by their operating losses. They are considering
dropping the laminate flooring product line. Company accountants have prepared the following
analysis to help make this decision: Total fixed costs will not change if the company stops selling
laminate flooring. Requirements
InteliSystems manufactures an optical switch that it uses in its final product. InteliSystems
incurred the following manufacturing costs when it produced 70,000 units last year: Direct
materials....................................................$ 560,000 Direct labor..................................................
Edsel Manufacturing produces self-watering planters for use in upscale retail establishments.
Sales projections for the first five months of the upcoming year show the estimated unit sales of
the planters each month to be as follows: Number of planters to be sold
January ..............................................
What follows are the income statements for Caesars Entertainment Corporation for the three
years ending December 31, 2012 through 2014?
Critique Fiedlerâ€™s LPC theory. Are other elements of the situation important? Do you think
Fiedlerâ€™s assertion about the inflexibility of leader behavior makes sense? Why or why not?
Alexander Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to
be $904,000 in October, $960,000 in November, $1,060,000 in December, and $930,000 in
January. Alexander's sales are 30% cash and 70% on credit. The company's collection history
indicates that credit sales are collected as fo
Top managers of Maine Flooring are alarmed by their operating losses. They are considering
discontinuing the laminate flooring product line. Company accountants have prepared the
following analysis to help make this decision: Total fixed costs will not change if the company
stops selling laminate flooring. Requiremen
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International
Cards with a special order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a
special promotional campaign and offers $0.43 per pack, a total of $24,080. International Cards'
total production cost is $0.63 per pa
Winter Sports Inc. operates a Rocky Mountain ski resort. The company is planning its lift ticket
pricing for the coming ski season. Investors would like to earn a 15% return on the company's
$100 million of assets. The company incurs primarily fixed costs to groom the runs and operate
the lifts. Winter Sports projects
What can happen if your organization prematurely starts building a team-based organization by
clarifying the mission and then selecting the site for the first work teams?
Had you been called in to improve IBMâ€™s management of the FSSA communication system,
which of the components of the communication process would you have focused on?
Do you agree that a certain degree of stress is necessary to induce high energy and motivation?
If employees are happy working in the traditional boss-hierarchical organization, why should a
manager even consider changing to a team-based organization?
A college classroom is a forum for a typical attempt at communication as the professor tries to
communicate the subject to the students. Describe classroom communication in terms of the
basic communication process outlined in the chapter.
What are two of the most important issues facing team-based organizations?
Do you consider yourself a Type A or a Type B person why?
The text discusses four group performance factorsâ€”group composition, group size, group
norms, and group cohesiveness. How does each of these factors affect â€œthe conditions under
which juries operateâ€? How might each contribute to â€œa substantial risk of jury decisions
being tainted by groupthinkâ€?
Can you think of a time when you satisfied when making a decision? Have you ever sub
optimized?
Describe a situation in which you tried to carry on a conversation when no one was listening.
Were any messages sent during the â€œconversationâ€?
Why is it important to make a distinction between â€œgroupâ€ and â€œteamâ€? What kinds
of behaviors might be different in these assemblages?
Of the three major leadership theoriesâ€”the LPC theory, the path-goal theory, and Vroomâ€™s
decision tree approachâ€”which is the most comprehensive? Which is the narrowest? Which has
the most practical value?
Controller Pete Rogers says that any gathering of air traffic controllers is â€œalmost like a mini
convention of Type A personalities.â€ Does this assessment surprise you or make sense to you?
In what ways is it perhaps a good thing a not so good thing?
Can a person who is a Type A change if so, how?
Do you consider yourself to be relatively more or less creative? Recall an instance in which you
made a discovery using the four phases of the creative process.
To what extent did group members disagree about which decisions were programmed and which
were non-programmed?
Discuss the following statement: â€œGroup cohesiveness is the good, warm feeling we get from
working in groups and is something that all group leaders should strive to develop in the groups
they lead.â€
Why is it useful for a manager to understand group behavior? Why is it useful for an employee?
Recall a situation in which you may have encountered or observed groupthink (either as a
member of a group or as a target or simple observer).
In your opinion, what organizational stressors are likely to be among the most common
experienced by air traffic controllers? Explain your reasoning.
Would the use of advanced computer information processing or telecommunications have helped
solve the communications problem you described in question 9?
Have you ever been in a situation in which you asked (or worried) about the legality of a
decision that you had to make? If so, how did you handle the situation? Would you handle it
differently today? If youâ€™ve never been in such a situation, explain how youâ€™d handle it if
it did arise. What factors would you consi
What types of communication problems will new telecommunications methods most likely be
able to solve? Why?
How is communication in organizations an individual process as well as an organizational
process?
How did you feel when a question needed to be asked but it could not be asked in trial 1? Was
your confidence in the final result affected differently in the two trials?
Which trial took longer? Why?
What do you think about the motives behind Cassanoâ€™s decision to keep dealing in risky
loans? Do you agree or disagree with Whalenâ€™s assessment explain your answer.
List four groups to which you belong. Identify each as formal or informal.
Describe a time when you successfully avoided stage 3 of the GAS and another time when you
got to stage 3.
Intel appears to rely heavily on mentoring and long term leadership development from within.
What are the pros and cons of such an approach? Intel also seems to have thrived on a pattern of
alternating leadership styles. What are the pros and cons of this approach?
Consider one of the groups to which you belong and describe the interactions that group has with
another group.
Have you ever worked in an organization in which communication was a problem? If so, what
were some causes of the problem?
Were there any differences between the membersâ€™ individual lists and the group lists? If so,
discuss the reasons for the differences.
What types of communications would NOT be appropriate to send by email or by voicemail?
Explain why each group you listed in question 3 formed why did you join each group why might
others have decided to join each group?
How does the role of information in the rational model of decision making differ from the role of
information in the behavioral model?
What about you? Do you think that you could handle the kind of stress that air traffic controllers
face on the job? Why or why not?
How are the six types of teams related to each other?

Whose responsibility is it to solve classroom communication problems: the studentsâ€™, the
professorâ€™s, or the administrations?
Is there a communication network (other than professor-to-student) in the class in which you are
using this book? If so, identify the specific roles that people play in the network. If not, why has
no network developed? What would be the benefits of having a communication network in this
class?
How comfortable or uncomfortable are you in making risky decisions?
Are any of the groups to which you belong too large or too small to get their work done? If so,
what can the leader or the members do to alleviate the problem?
How realistic do you think it is for managers to attempt to use Vroomâ€™s decision tree
approach as prescribed? Explain.
Characterize each of the Intel CEOs in terms of the most appropriate leadership
behaviorâ€”directive, supportive, participative, or achievement oriented. Explain your thinking
in each case.
Cross-Rates and Arbitrage suppose the Japanese you exchange rate is Ò±118 = $1, and the
British pound exchange rate is Â£1 = $1.81. a. What is the cross-rate in terms of yen per pound?
b. Suppose the cross-rate is Ò± 204 = Â£1. Is there an arbitrage opportunity here? If there is,
explain how to take advantage of the
Describe a situation in which you experienced escalation of commitment to an ineffective course

of action. What did you do about it? Do you wish you had handled it differently? Why or why
not?
Which trial resulted in more accurate maps? Why?
Of the five profiled Intel CEOs, which would you characterize as the most job centered leader?
The least job centered? The most employee centered leader? The least employee centered?
Whose style most exemplifies initiating structure behaviour? Whose style least exemplifies it?
Explain your thinking in each case.
In what sense is the Carbon Mitigation Initiative (CMI) a group and in what sense is it better
characterized as a team?

Do you agree or disagree with Fiedlerâ€™s assertion that leadership motivation is basically a
personality trait? Why?
Is an organizational stressor or a life stressor likely to be more powerful?
Some say that changing to a team-based arrangement â€œjust makes senseâ€ for organizations.
What are the four primary reasons why this might be so?
Although the team scores in this exercise usually are higher than the average individual scores,
under what conditions might individual averages exceed group scores?
Compare and contrast the LPC and path-goal theories of leadership. What are the strengths and
weaknesses of each?
One of IBMâ€™s jobs was to enhance the efficiency of the social services system by further
automating it. In your opinion, why did the introduction of added technology into the system
decrease rather than increase its communications effectiveness?
In what ways did Indianaâ€™s privatized social services system fail to satisfy the three purposes
of organizational communicationâ€”achieving coordinated action, sharing information, and
expressing feelings and emotions?
What information did you use in deciding to enter the school you now attend?
Recent evidence suggests that successful managers (defined by organizational rank and salary)
may indeed have some of the same traits originally ascribed to effective leaders (such as an
attractive appearance and relative height). How might this finding be explained?
Are you now or have you ever been a member of an in-group an out-group? If so, in what ways
did your experiences differ?
Which steps in the communication process are usually left out, or at least, poorly done when
email and voicemail are used for communication?
Our definition of a group is somewhat broad. Would you classify each of the following
collections of people as a group? Explain why or why not. a. 70,000 people at a football game. b.
Students taking this course. c. People in an elevator. d. People on an escalator. e. Employees of
IBM. f. Employees of your local colleg
Why is planning the change important in the implementing process?

Do you practice any of the stress reduction methods discussed in the text? Which one(s)? Do you
use others not mentioned in the text?
Are there differences in the average individual scores and the team scores? What are the reasons
for the differences, if any?
Is the typical classroom means of transferring information from professor to student an effective
form of communication? Where does it break down? What are the communication problems in
the college classroom?
Why might educators typically focus most communication training on the written and oral
methods and pay little attention to the nonverbal methods? Do you think that more training
emphasis should be placed on nonverbal communication? Why or why not?
What other forms of leader behavior besides those cited in the chapter can you identify?
Which of the three traditional situational theories discussed in Chapter 12 is most similar to the
Leader-Member Exchange model to the Hersey and Blanchard model?
To what extent do you think Cassanoâ€™s activities resulted from escalation of commitment?
Explain your answer.
Which type of team is the most common in organizations? Why?
In what sense was the carbon footprint team a work team, a problem solving team a management
team, a virtual team?
Explain the circumstances under which a cross-functional team is useful in organizations.
List two norms each for two of the groups to which you belong. How are these norms enforced?
Has the work-life balance been an issue in your life?
Compare and contrast the Leader-Member Exchange and the Hersey and Blanchard models of
leadership.
Where would you place the style of each Intel CEO on the leadership grid? Explain your
reasoning.
What kinds of noise disturbed the flow of communications in the system described in the case?
At what points did it appear to enter into the communication process?
What consequences are students most likely to suffer as a result of too much stress?
How are other organizational characteristics different for a team-based organization?
Have you ever worked in an organization in which communication was a problem? If so, what
were some causes of the problem?
Why does it make sense to discuss several different models of decision making?
What are the major stressors for a student?
Some researchers are wary about the nature of collaborations between academic and industry
organizations, such as CMI. Why do you suppose this is so? What potential problems do you
see? How can they best be avoided?
How would you define leadership? Compare and contrast your definition with the one given in
this chapter.
What primary factors did the group discuss in making each decision?
Identify an individual who could serve as an example of a transformational leader. How

successful or unsuccessful has this person been?
Some have argued that people, not organizations, make decisions and that the study of
â€œorganizationalâ€ decision making therefore is pointless. Do you agree with this argument?
Why or why not?
Describe the conditions of uncertainty under which Cassano was working. In what ways did the
AIG culture affect Cassanoâ€™s risk propensity? In what ways did it affect his ethical behavior?
This business of people saying they â€˜thrive on stressâ€™ itâ€™s nuts, says one eminent
psychiatrist who goes so far as to say that such people are in danger of slipping into a
pathological state. Nevertheless, some people say that they like getting into chaotic situations
and putting them back in order. What about yo
A recent study found that racially mixed juries â€œdeliberated longer, raised more facts, and
conducted broader and more wide ranging deliberationsâ€ than either all white or all black
juries. Why do you think this was so? Do you think that â€œmixedâ€ juries are more likely to
avoid groupthink than racially homogeneo
In your experience, have you found that decision making groups tend toward groupthink? If so,
what factors contributed to this tendency? If not, what factors helped to prevent it?
Cite examples of managers who are not leaders and leaders who are not managers. What makes
them one and not the other? Also, cite examples of both formal and informal leaders.
What traits do you think characterize successful leaders? Do you think the trait approach has
validity?
What can be done to prevent burnout? If someone you know is suffering burnout, how would
you advise that person to recover from it?
Whatâ€™s your experience with teamwork? Have you ever undertaken a solo project which, in
retrospect, would have benefited from a team based approach? If youâ€™ve ever been part of a
work or problem solving team, explain why, in your opinion, it succeeded (or failed) at its
appointed task(s).
Alice owns 100% of Medical Data, a C corporation, and 100% of Your Realtors, an S
corporation. She worked full time for Medical Data (i.e., she materially participated in the
entity), but Alice did not materially participate in Your Realtors. During the tax years 2015
through 2017, Your Realtors leased real estate to M
Analyze the composition of two of the groups to which you belong. How are they similar in
composition how do they differ?
Discuss the three primary purposes of organizational communication.
Describe at least three points in the decision-making process at which information plays an
important role.
When your alarm goes off each morning, you have a decision to make: whether to get up and go
to school or work, or to stay in bed and sleep longer. Is this a programmed or non-programmed
decision why?
Jacob Patterson cannot make a fully deductible $5,500 IRA contribution because his AGI
exceeds the phase-out range. Instead, he makes a $3,500 nondeductible IRA contribution to his
traditional IRA. Determine how Jacob reports this on his tax return, and complete the appropriate
form that he should attach to his Form 10
Pheasant, Inc., is going to be subject to the AMT in 2017. The corporation owns an investment
building and is considering disposing of it and investing in other realty. Based on an appraisal of

Question and Answer - 13

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Question and Answer - 13

Uploaded by

Copyright:

Available Formats

Ted and Marvin Brown purchased an apartment building in 2006 as equal tenants in common.

See Full Question And Answer at solutionrank.com

Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2017.

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

In a nutshell, what does contingency organization design entail?

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Which barrier to effective communication is most difficult to reduce? Explain.

On December 1, 2015, Lavender Manufacturing Company (a corporation) purchased another

See Full Question And Answer at solutionrank.com

Why is it appropriate to view modern organizations as open systems?

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Summer Fun manufactures flotation vests in Philadelphia, Pennsylvania. Summer Fun's

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Danville Preschool operates a not-for-profit morning preschool. Each family pays a

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Unilever is a multinational consumer goods company headquartered in Rotterdam, Netherlands,

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Do you consider yourself a Type A or a Type B person why?

See Full Question And Answer at solutionrank.com

Can a person who is a Type A change if so, how?

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

See Full Question And Answer at solutionrank.com

Which trial took longer? Why?

See Full Question And Answer at solutionrank.com

What types of communications would NOT be appropriate to send by email or by voicemail?

See Full Question And Answer at solutionrank.com

How are the six types of teams related to each other?

See Full Question And Answer at solutionrank.com

How comfortable or uncomfortable are you in making risky decisions?

See Full Question And Answer at solutionrank.com