1. Assume these facts as true: Sen. Burr chaired the Senate Intelligence Committee. At a closed confidential hearing in late January, he heard dramatic evidence that the corona virus was likely to heavily impact the United States and its economy (which is what happened). The following day, Sen. Burr called his stockbroker and told him to sell all of his $2 million worth of stock holdings. Two weeks later, the danger of the corona virus became known to the public, and the stock market lost much value. Sen Burr saved $400,000. By selling his stock when he did. Was Sen Burr an “insider”. Did he violate the insider trading laws? Argue one way or the other but support your argument.

Assume these facts as true. Sen Loeffler attended the above described hearing chaired by Sen. Burr. When she returned home that evening, she told her husband about the hearing. Her husband is Chairman of the New York Stock Exchange. The next day, without telling his wife, he sold $3.5 million worth of stock jointly owned with his wife. He saved $600,000.00 in losses by selling his stock then. Was Sen Loeffler or her husband an “insider”? Did either of them violate the insider trading laws? Argue one way or the other.

2. In a closed economy, how would each of the following events affect bond price and market interest rate? Use the figures of both bond market and market of loanable funds to illustrate the changes to the interest rates.

A. The expected rate of inflation decreases.

B. The federal government runs a budget deficit.

A piston and cylinder device (closed system) contain 2.25 mol of an ideal gas which
is compressed irreversibly at constant temperature from 423 K and 200 kPa to 8 bar.
The irreversible work applied for the compression is 15 % larger than the reversible
work for the same process. Determine the entropy change of the gas, the
surroundings and the total entropy change if the heat is rejected from the gas to
surroundings maintained at 25 oC.

Will a CFL light bulb and an incandescent light bulb, in separate respective closed systems, produce exactly the same amount of overall temperature increase over time?

Assume you have two identical closed systems with gray walls, with a system input of 20 watts of power each.

EDIT added for clarity: (On the packaging of the CFL light bulb the large print equivalent wattage is irrelevant... the input current of both bulbs is a consistent 20 watts of power each. The comparison wattage vs. the actual wattage of the CFL is off subject.)

One has a CFL, one has an ordinary incandescent light bulb. Will both systems increase in heat the exact amount, every hour?

Due to conservation of energy it shouldn't matter if one light source is more efficient, right?... it's the same amount of energy input. One light makes more heat one makes more light, but the light when it hits the gray wall is converted to heat, right?

There is no such thing as loss of energy... it's just converted to another form of energy... and light is converted to heat, right?

The back story of this question is my wondering that if my wife leaves an incandescent light bulb on in the winter time it's not so bad because even though no one is in the room it's still heating up the room. On the other hand if she leaves on a CFL it's more efficient but it should still add heat to our "system," i.e., our home.

Assume a closed economy without Government. However, there exists a financial sector that creates an array of financial assets on which both households and firms invest. Let ? denote the average earnings from these financial assets. The consumption expenditure of the households is influenced by their wage income and the financial income and is given by ? = ?(?, ?); ?? > 0, ?? > 0, where ??, ?? are partial derivatives of consumption with respect to income ? and financial earnings ? respectively. Similarly, the real investment expenditure of firms is given by ? = ?(?, ?); ?? > 0, ?? < 0, where ??, ?? are the partial derivatives of the real investment with respect to income and financial earnings. Note that ?? < 0 implies that the real investment falls as financial earnings for the firm rises. Either using the Keynesian cross model or the Multiplier analysis, answer the following questions.

(i) Identify the “wealth effect” in this model? [2]

(ii) Derive the relationship between output ? and financial earnings ?, and examine the analytical conditions under which the relationship is positive ( ?? ??>0) and negative ( ?? ?? < 0). [15]

(iii) Describe why the scenario where the expansion in output driven by rise in financial earnings, i.e. when ?? ??>0, could make the economy unstable and vulnerable to crisis?

8. A closed feedwater heater may be used for deaeration. a. True b. False
9. In a reciprocating power system,   i. Material flows at a constant rate through the device and passes through a turbine to produce shaft power output, ii. Material does not flow at a constant rate through every section of the device.   iii. Power is produced at all times. iv. Power is produced only during part of the cycle in each section of the device and is not produced uniformly at every instant.   v. The power unit consists of one or more piston and cylinder sections with intake and exhaust valves and where fresh fuel and air are taken in during one part of the process, exhaust gases are ejected during another part of the process, and at other times the cylinder is closed off from the intake and exhaust sections (manifolds).   vi. The power unit consists of a compressor, a burner section, and a turbine.   a. Items i), iii), and vi) are correct. b. Items ii) and iii) are correct. c. Items ii), iv) and v) are correct. d. Items ii), iv), and vi) are correct. e. None of these combinations are correct.

10. The Otto cycle model is used with … a. Reciprocating internal combustion engines where the fuel-air mixture is ignited by a spark. b. Reciprocating internal combustion engines where the fuel-air mixture is ignited by high pressures in the cylinders. c. Internal combustion engines with continuous flow of fuel and air (i.e., gas turbine engines). d. External combustion “hot air” engines. e. Vapor compression refrigeration.

11. In an air standard analysis, we pretend that the substance in an engine is pure air, and we analyze this as if energy is put into the air from the outside and, later, waste heat is removed from the air. a. True b. False




12. The Brayton cycle is used to model the operation of … a. Steam Power Plants b. Spark Ignition Internal Combustion Engines c. Compression Ignition Internal Combustion Engines d. Gas Turbine Engines e. Vapor Compression Refrigeration Machines f. None of these

13. For high thermal efficiency, the compression ratio in a spark ignition reciprocating engine is likely to be in the range of … a. 8:1 to 10:1. b. 15:1 to 20:1. c. 20:1 to 40:1. d. None of these are reasonable.

14. For high thermal efficiency, the compression ratio in a compression ignition reciprocating engine is likely to be in the range of … a. 8:1 to 10:1. b. 15:1 to 20:1. c. 20:1 to 40:1. d. None of these are reasonable.

15. The environmental aspects of refrigerants are important considerations in selection. a. True b. False

16. Ammonia may be used as a refrigerant. a. True b. False

17. Carbon Dioxide may be used as a refrigerant. a. True b. False  

Amazonian Corporation has the following tax information:

A. In 2020, Amazonian incurred a net operating loss (NOL) of $350,000, which the company elected to carry back. The statutory corporate tax rate in 2020 and for all future years is 22%. Prepare Amazonian's journal entry to record the effect of the loss carry back.

B. Assume instead that in 2020 Amazonian incurred an NOL of $2,000,000 and that the company elected to carry back the loss. The statutory corporate tax rate in 2020 and for all future years is 22%. Prepare the journal entry to record the effects of the NOL.

The Concord Company counted physically their beginning balance on January 02, 2020 and subsequent inventory purchases made by the company during the month of January 2020 are given below:

Date Description Units   Rate

Jan. 02 Beginning Inventory 300 $10

Jan. 11 Purchased 600 12   

Jan 23 Purchased 700 11

The company sold 1,300 units during the month of January 2020.

Instructions: The company uses periodic inventory system. Compute the cost of goods sold and ending inventory on January 31, 2020 using the following inventory costing methods:

a)    First in, first out (FIFO) method.

b) Weighted Average cost method.

On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life.

Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively.

What was the amount of the gain or loss on the sale of equipment reported by Republic on its pre-consolidation income statement in 2020?

a. $-0-

b. $ 5,000 gain

c. $20,000 loss

d. $35,000 gain

Facts:

On April 1, 2020, Bert's Baseball Company purchased equipment for $66,000. The company expected the equipment to last four years or 6,000 hours, with an estimated salvage value of $6,000 at the end of the useful life. The equipment was used 1,000 hours during 2020.

1. What amount of depreciation expense will Bert's Baseball Company record in 2020 using the straight-line method of depreciation?

2. What amount of depreciation expense will Bert's Baseball Company record in 2020 using the units-of-activity method of depreciation?

3. In your opinion, is it ethical for a company to change depreciation methods for the sole purpose of maximizing profitability (increasing net income)? Why or why not? Explain.