Questions
Issue #1 Our clients Fred and Sarah Thompson were divorced in December 2014. During their marriage,...

Issue #1

Our clients Fred and Sarah Thompson were divorced in December 2014. During their marriage, they had two children, Aaron and Lisa. At the time of the divorce, the children were ages 13 and 12, respectively. The divorce decree provides for joint custody of the children. Specifically, Fred and Sarah are to have the children in alternating weeks. Both Fred and Sarah are professionals with high incomes, so the divorce decree doesn’t provide for child support. It also does not stipulate which parent is to claim the dependency exemptions.

During 2017, Fred and Sarah tried to alternate custody to the best of their ability. Work issues, however, caused a great deal of “trading” to take place. Fred kept the children for two weeks while Sarah was out of town on business during her custody week. Sarah would return the favor by keeping the children during one of Fred’s weeks. Unfortunately, neither parent kept any records, so it’s impossible to determine who had the most custody. Sarah feels that she had custody half of the year. Fred tends to agree as to Lisa, but disagrees as to Aaron. Fred recalls that he took Aaron walleye fishing during one of Sarah’s custody weeks. It looks like the two of them contributed equally to the children’s support. Neither parent has or will sign a Form 8332. Both parents know that the dependency exemption goes away under the new tax law, so 2017 will be the last year either can claim it. Which parent should claim the dependency exemptions for the children for 2017?

Issue #2

Fred is an insurance agent who receives a commission on each policy he sells. During 2016, he purchased a policy on his own life, naming his wife, Sarah as the beneficiary. He did not report the commission on the policy as gross income because he considered the commission a reduction in his cost (like a discount) for the life insurance. The Thompson’s 2016 joint return is being audited and the agent is challenging the exclusion. Is the agent correct, or is the position taken by our client correct? Provide citations to all relevant authority. I’ll need that for my meeting with the auditor.

In: Accounting

Employees at many successful companies start the day by checking the economic forecast.92Patagonia’s employees start the...

Employees at many successful companies start the day by checking the economic forecast.92Patagonia’s employees start the day by checking the weather forecast. The outdoor clothing company encourages its workforce to take time from the work day to get outside and get active. For Patagonia, linking employees with the natural environment is a major part of the culture.

New hires are introduced to this mindset very quickly. Soon after starting at Patagonia, marketing executive Joy Howard was immediately encouraged to go fly fishing, surfing, and rock climbing all around the world. She notes that all this vacationing is not just playing around—it’s an important part of her job. “I needed to be familiar with the products we market,” she said. Other practices support this outdoors-oriented, healthy culture. The company has an on-site organic café featuring locally grown produce. Employees at all levels are encouraged through an employee discount program to try out activewear in the field. Highly flexible hours ensure that employees feel free to take the occasional afternoon off to catch the waves or get out of town for a weekend hiking trip.

Are there bottom-line benefits to this organizational culture? Patagonia CEO Rose Marcario thinks so: “People recognize Patagonia as a company that’s . . . looking at business through a more holistic lens other than profit.” However, she is quick to add, “Profit is important; if it wasn’t, you wouldn’t be talking to me.”

Patagonia’s culture obviously makes for an ideal workplace for some people—but not for others who don’t share its values. People who are just not outdoor types would likely feel excluded. While the unique mission and values of Patagonia may not be for everyone, for its specific niche in the product and employment market, the culture fits like a glove.

QUESTIONS

1. What key dimensions of its culture do you think make Patagonia successful? How does the organization help to foster this culture?

2. Does Patagonia use strategies to build its culture that you think could work for other companies? Is the company a useful model for others that are not so tied to a lifestyle? Why or why not?

In: Operations Management

Which of the following is an example of adverse possession? B. Sally owned a one-acre lot...

Which of the following is an example of adverse possession?

B. Sally owned a one-acre lot next to a state park. She decided to donate the lot to the state in order to expand the park. Sally’s children claimed they had a right to the land, not the state.

C. In 2005, Megan fenced off a field belonging to Farmer Giles, put a new lock on the gate leading to the field, built a wooden shed, and grew vegetables on the land. After 10 years, Megan gained title to the land without paying Farmer Giles.

D. Bob needed a place to stay so he broke into an empty house and stayed there for nearly a month until the house owner asked the police to make Bob leave.

A. Years ago, your grandmother bought 10 acres of land, paid the property taxes, and left you the property in her will.

A landowner builds a nine-foot fence topped with barbed wire around his property to keep people out, and posts warning signs on the fence saying “DANGER: Barbed Wire.” A group of graduate students decides to go cow tipping on the landowner’s property. The students climb the fence in the night, and one student suffers injuries from the barbed wire. What duty of care does the landowner owe to the students?

D. No duty because the student trespassed onto the owner’s land

B. A duty not to intentionally injure and to warn about known defects on the property

A. A duty not to intentionally injure the student

C. A duty to inspect the property for defects, correct defects, and warn about defects

Marta places a large, pre-assembled plastic greenhouse in her backyard, with the steel frame bolted into concrete that she poured specially for that purpose. She attaches gas-heating ducts and builds a brick walkway around the greenhouse. Now the town wants to raise her real property taxes, claiming that her property has been improved. Marta argues that the greenhouse is not real property. Is it?

E. The greenhouse is an easement and is part of the real property.

C. The greenhouse cannot be part of the real property if Marta does not own the land.

B. The greenhouse is not part of the real property because it could be removed.

D. The greenhouse is a fixture and is part of the real property.

A. The greenhouse is not part of the real property because it was pre-assembled.

In: Operations Management

After watching a movie about a young woman who quit a successful corporate career to start...

After watching a movie about a young woman who quit a successful corporate career to start her own baby food com- pany, Julia Day decided that she wanted to do the same. In the movie, the baby food company was very successful. Julia knew, however, that it is much easier to make a movie about a successful woman starting her own company than to actu- ally do it. The product had to be of the highest quality, and Julia had to get the best people involved to launch the new company. Julia resigned from her job and launched her new company—Starting Right.
Julia decided to target the upper end of the baby food mar- ket by producing baby food that contained no preservatives but had a great taste. Although the price would be slightly higher than for existing baby food, Julia believed that parents would be willing to pay more for a high-quality baby food. Instead of put- ting baby food in jars, which would require preservatives to sta- bilize the food, Julia decided to try a new approach. The baby food would be frozen. This would allow for natural ingredients, no preservatives, and outstanding nutrition.
Getting good people to work for the new company was also important. Julia decided to find people with experience in finance, marketing, and production to get involved with Starting Right. With her enthusiasm and charisma, Julia was able to find such a group. Their first step was to develop prototypes of the new frozen baby food and to perform a small pilot test of the new product. The pilot test received rave reviews.
The final key to getting the young company off to a good start was to raise funds. Three options were considered: corpo- rate bonds, preferred stock, and common stock. Julia decided that each investment should be in blocks of $30,000. Further- more, each investor should have an annual income of at least $40,000 and a net worth of $100,000 to be eligible to invest in Starting Right. Corporate bonds would return 13% per year for he next five years. Julia furthermore guaranteed that investors in the corporate bonds would get at least $20,000 back at the end of five years. Investors in preferred stock should see their initial investment increase by a factor of 4 with a good market or see the investment worth only half of the initial investment with an unfavorable market. The common stock had the great- est potential. The initial investment was expected to increase by a factor of 8 with a good market, but investors would lose every- thing if the market was unfavorable. During the next five years, it was expected that inflation would increase by a factor of 4.5% each year.
Discussion Questions
1. Sue Pansky, a retired elementary school teacher, is con- sidering investing in Starting Right. She is very conserva- tive and is a risk avoider. What do you recommend?
2. Ray Cahn, who is currently a commodities broker, is also considering an investment, although he believes that there is only an 11% chance of success. What do you recommend?
3. Lila Battle has decided to invest in Starting Right. While she believes that Julia has a good chance of being suc- cessful, Lila is a risk avoider and very conservative. What is your advice to Lila?
4. George Yates believes that there is an equally likely chance for success. What is your recommendation?
5. Peter Metarko is extremely optimistic about the market for the new baby food. What is your advice for Pete?
6. Julia Day has been told that developing the legal docu- ments for each fundraising alternative is expensive. Julia would like to offer alternatives for both risk-averse and risk-seeking investors. Can Julia delete one of the finan- cial alternatives and still offer investment choices for risk seekers and risk avoiders?

In: Economics

Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time...

Choosing a Source of Credit: The Costs of Credit Alternatives

Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, is busy setting up her new home. Her budget is a little tight now as she made the decision to move in to a place of her own, which gives her privacy and independence, but all of the expenses are now her responsibility.

Jamie Lee applied for three store credit cards when she was shopping for her furnishings. The excitement of making selections and the attractiveness of percentages off her purchases made the credit card offers too good to pass up. It was all too easy to select the new furnishings when the cash was not immediately coming from her pocket. “The payments will not be due for at least 45 days from now, by the time all the accounts are opened and the grace periods are factored in. I am sure I will have enough to cover the balances by then,” Jamie Lee convinced herself.

Jamie Lee’s new furnishings have been delivered, and she is quite happy with her choices. The bungalow is comfortable, and Jamie is now getting into a routine balancing the new move with work and school obligations. Unfortunately, the bills have begun to arrive in Jamie Lee’s mailbox; payments are soon due for all the new furniture and appliances.

The corresponding annual interest rates on the credit card purchases were not something Jamie Lee factored in when she applied for the store credit cards. “Wow, 18.5 percent on one, and the other two have interest rates of 19 percent per year. Those interest fees can really add up quickly. The disclosure said that by making the minimum payments, I could be paid off in 14 years! I am not sure my appliances will still be working at that time, nor will the furniture still be in style 14 years from now.” Jamie Lee was starting to feel the consequences of overspending and knew she must develop a plan to pay off the purchases quickly!

Assets: Checking account: $1,800 Savings account: $7,200 Emergency fund savings account: $2,700 IRA balance: $410 Car: $2,800

Liabilities: Student loan balance: $10,800(Jamie is still a full-time student, so no payments are required on the loan until after graduation) Credit card balance: $4,250(total of the three store credit cards)

Income: Gross Monthly salary from the bakery: $2,750(Net Income: $2,175)

Monthly Expenses: Rent: $350 Utilities: $70 Food: $125 Gas/maintenance: $130 Credit card payment: $0

Questions

1. Jamie Lee received an offer to transfer the balance of all her store credit cards to her bank credit card in the mail. It offered zero percent finance charges/interest for the first three months(90 days), and 18.5 percent interest rate thereafter until the balance is paid in full. Upon reading the fine print, there was a $50 transaction fee and interest accrued from the day the balance transfer was made if the balance is paid in full within the first 90 days. How could Jamie Lee use this balance transfer offer to her advantage? How is this offer a major disadvantage to Jamie Lee?

In: Finance

Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time...

Choosing a Source of Credit: The Costs of Credit Alternatives

Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, is busy setting up her new home. Her budget is a little tight now as she made the decision to move in to a place of her own, which gives her privacy and independence, but all of the expenses are now her responsibility.

Jamie Lee applied for three store credit cards when she was shopping for her furnishings. The excitement of making selections and the attractiveness of percentages off her purchases made the credit card offers too good to pass up. It was all too easy to select the new furnishings when the cash was not immediately coming from her pocket. “The payments will not be due for at least 45 days from now, by the time all the accounts are opened and the grace periods are factored in. I am sure I will have enough to cover the balances by then,” Jamie Lee convinced herself.

Jamie Lee’s new furnishings have been delivered, and she is quite happy with her choices. The bungalow is comfortable, and Jamie is now getting into a routine balancing the new move with work and school obligations. Unfortunately, the bills have begun to arrive in Jamie Lee’s mailbox; payments are soon due for all the new furniture and appliances.

The corresponding annual interest rates on the credit card purchases were not something Jamie Lee factored in when she applied for the store credit cards. “Wow, 18.5 percent on one, and the other two have interest rates of 19 percent per year. Those interest fees can really add up quickly. The disclosure said that by making the minimum payments, I could be paid off in 14 years! I am not sure my appliances will still be working at that time, nor will the furniture still be in style 14 years from now.” Jamie Lee was starting to feel the consequences of overspending and knew she must develop a plan to pay off the purchases quickly!

Assets: Checking account: $1,800 Savings account: $7,200 Emergency fund savings account: $2,700 IRA balance: $410 Car: $2,800

Liabilities: Student loan balance: $10,800(Jamie is still a full-time student, so no payments are required on the loan until after graduation) Credit card balance: $4,250(total of the three store credit cards)

Income: Gross Monthly salary from the bakery: $2,750(Net Income: $2,175)

Monthly Expenses: Rent: $350 Utilities: $70 Food: $125 Gas/maintenance: $130 Credit card payment: $0

Jamie Lee received an offer to transfer the balance of all her store credit cards to her bank credit card in the mail. It offered zero percent finance charges/interest for the first three months(90 days), and 18.5 percent interest rate thereafter until the balance is paid in full. Upon reading the fine print, there was a $50 transaction fee and interest accrued from the day the balance transfer was made if the balance is paid in full within the first 90 days.

3. What solution would you recommend for Jamie Lee to get her credit cards paid off as soon as possible? What are the advantages of your choices? What are the disadvantages of your choices?

In: Finance

Joe Clark, a 56-year-old male client, is newly diagnosed with primary hypothyroidism. He is a principal...

Joe Clark, a 56-year-old male client, is newly diagnosed with primary hypothyroidism. He is a principal at a local high school. The laboratory results included TSH, 22 mIu/L (normal range: <7 mIu/L); T4, 3.5 mcg/d (normal range: 5 to12 mcg/dL); Total T3, 75 mcg/dL (normal range: 80 to 220 mcg/dL); Free T4 or FT4, 0.5 mcg/dL (normal range: 0.7 to 2.0 mcg/dL); and Free T3, 1.7 mcg/dL (normal range: 2.3 to 4.2 mcg/dL). The vital signs are T, 97° F; BP, 92/50 mm Hg; HR (Apical pulse), 58 beats/minute and regular; RR, 12 breaths/minute. He stated that since his last visit to the clinic 2 days earlier, he has noticed that he has constipation and that his weight has increased another 3 lb despite eating very little because he has no appetite. He also stated that he is so tired he has trouble staying awake at work. He has problems remembering important things to do during the day. He also feels like he has an unusual quick temper toward others. He has a masklike face and periorbital edema, and the tongue is slightly enlarged. The client’s feet and hands are puffy and cold to touch. He asks the LPN/LVN to tell him how to manage hypothyroidism and more about the new medication, levothyroxine (Synthroid).


Explain why the TSH, T3, and T4 indicate the client has hypothyroidism.


What is the cause of goiter?


What signs and symptoms indicate Joe Clark has hypothyroidism? Explain at least 4.


What is the name of the medication a client will take for hypothyroidism?


What directions will you give Mr. Clark about his new medication?


If Mr. Clark does not take his medication or has an infection what is the life-threatening condition that can develop? What signs and symptoms would he have if he has this condition? List 3 signs and symptoms and discuss the nursing interventions related to these 3 signs and symptoms


I'm not understanding

In: Nursing

Which of the following is not a true statement about a 403(b)?

Which of the following is not a true statement about a 403(b)?

A 403(b) can only be established by a non-profit organization, like a hospital or a school.

A 403(b) only involves the employer making contributions.

A 403(b) could be enabled for plan loans.

A 403(b) is not available to independent contractors who work for the non-profit organization.


Which of the following statements correctly describes a SEP plan?

The plan can exclude employees who are aged 25 or younger.

The allocation formula cannot be integrated with Social Security.

The plan must provide for immediate and full vesting.

The plan can exclude employees who work fewer than 1,000 hours a year.

In: Finance

When Amy had 2 years left in college, she took out a student loan for $14,765....

When Amy had 2 years left in college, she took out a student loan for $14,765. The loan has an annual interest rate of 8.1%. Amy graduated 2 years after acquiring the loan and began repaying the loan immediately upon graduation. According to the terms of the loan, Amy will make monthly payments for 4 years after graduation. During the 2 years she was in school and not making payments, the loan accrued simple interest.

(a)If Amy's loan is subsidized, find her monthly payment.

Subsidized loan monthly payment: $

(b)If Amy's loan is unsubsidized, find her monthly payment.

Unsubsidized loan monthly payment: $

In: Finance

(4 pts) The Graduate Record Examination (GRE) is a test required for admission to many U.S....

(4 pts) The Graduate Record Examination (GRE) is a test required for admission to many U.S. graduate schools. Students' scores on the quantitative portion of the GRE follow a normal distribution with mean 150 and standard deviation 8.8. In addition to other qualifications, a score of at least 160 is required for admission to a particular graduate school.

Suppose n = 16 randomly selected students take the GRE on the same day.

  1. Describe the sampling distribution of the sample mean for the quantitative GRE Scores for the 16 students. (give the shape, mean, and SD)
  1. What is the probability that a random sample of 16 students has a mean score on the quantitative portion of the GRE that is less than 147? Would this be an unusual outcome.

In: Statistics and Probability