In 2020, Raoul & Ayesha , married filing joint taxpayers, have adjusted gross income of $430,000. Their AGI includes $10,000 of interest income. They have no dependents and have $50,000 of itemize deductions. What is their 2020 federal income tax? (PLEASE SHOW ALL WORK)

A) $83,631

B) $83,829

C) $89,212

D) $89,404

Power Train, Ltd.

We have smashing systems for reporting, tracking, and controlling costs on design projects. Our planning of projects is better than any I have seen at other companies. Our scheduling seemed to serve us well when we were small and we had only a few projects. Now that we have many more projects and schedule using multiproject software, there are too many occasions when the right people are not assigned to the projects deemed important to our success. This situation is costing us big money, headaches, and stress!

Claude Jones, VP, Design and Operations

Page 293

HISTORY

Power Train, Ltd. (PT), was founded in 1970 by Daniel Gage, a skilled mechanical engineer and machinist. Prior to founding PT he worked for three years as design engineer for a company that designed and built transmissions for military tanks and trucks. It was a natural transition for Dan to start a company designing and building power trains for farm tractor companies. Today, Dan is no longer active in the management of PT but is still revered as its founder. He and his family still own 25 percent of the company, which went public in 1998. PT has been growing at a 6 percent clip for the last five years but expects industry growth to level off as supply exceeds demand.

Today, PT continues its proud tradition of designing and building the best-quality power trains for manufacturers of farm tractors and equipment. The company employs 178 design engineers and has about 1,800 production and support staff. Contract design projects for tractor manufacturers represent a major portion of PT’s revenue. At any given time, about 45 to 60 design projects are going on concurrently. A small portion of their design work is for military vehicles. PT only accepts military contracts that involve very advanced, new technology and are cost plus.

A new phenomenon has attracted management of PT to look into a larger market. Last year a large Swedish truck manufacturer approached PT to consider designing power trains for its trucks. As the industry consolidates, the opportunities for PT should increase because these large firms are moving to more outsourcing to cut infrastructure costs and stay very flexible. Only last week a PT design engineer spoke to a German truck manufacturing manager at a conference. The German manager was already exploring outsourcing of drive trains to Porsche and was very pleased to be reminded of PT’s expertise in the area. A meeting is set up for next month.

CLAUDE JONES

Claude Jones joined PT in 1999 as a new MBA from the University of Edinburgh. He worked as a mechanical engineer for U.K. Hydraulics for five years prior to returning to school for the MBA. “I just wanted to be part of the management team and where the action is.” Jones moved quickly through the ranks. Today he is the vice president of design and operations. Sitting at his desk, Jones is pondering the conflicts and confusion that seem to be increasing in scheduling people to projects. He gets a real rush at the thought of designing power trains for large trucks; however, given their current project scheduling problems, a large increase in business would only compound their problems. Somehow these conflicts in scheduling have to be resolved before any serious thought can be given to expanding into design of power transmissions for truck manufacturers.

Jones is thinking of the problems PT had in the last year. The MF project is the first to come to mind. The project was not terribly complex and did not require their best design engineers. Unfortunately, the scheduling software assigned one of the most creative and expensive engineers to the MF project. A similar situation, but reversed, happened on the Deer project. This project involved a big customer and new hydrostatic technology for small tractors. In this project the scheduling software assigned engineers who were not familiar with small tractor transmissions. Somehow, thinks Jones, the right people need to be scheduled to the right projects. Upon reflection, this problem with scheduling has been increasing since PT went to multiproject scheduling. Maybe a project office is needed to keep on top of these problems.

A meeting with the information technology team and software vendors was positive but not very helpful because these people are not really into detailed scheduling problems. The vendors provided all sorts of evidence suggesting the heuristics used—least Page 294slack, shortest duration, and identification number—are absolutely efficient in scheduling people and minimizing project delays. One project software vendor, Lauren, kept saying their software would allow PT to customize the scheduling of projects and people to almost any variation selected. Lauren repeated over and over, “If the standard heuristics do not meet your requirements, create your own heuristics that do.” Lauren even volunteered to assist in setting up the system. But she is not willing to spend time on the problem until PT can describe to her exactly what criteria will be used (and their sequence) to select and schedule people to projects.

QUESTION: After reading the case, analyze the scheduling problem that is happening at Power Train and develop a set of descriptive rules and/or processes that Power Train can adopt so that it is well positioned to handle its expansion into the truck power train business.*********

Choose the proper statistical technique to use for each scenario from the list below.

A. One sample test for a mean

B. One sample test for a proportion

C. Two sample test for means- independent

D. Two sample test for means – paired

E. Two sample test for proportions

F. Chi square test of independence

G. Chi square test for homogeneity of proportions

H. One Way Analysis of Variance

I. Correlation

J. Simple regression

K. Multiple regression

L. Time series forecasting.

1. What is the statistical technique if you want to predict stock ownership (number of shares) based upon annual income?

2. A study has been carried out to determine if there is a difference in the average dollar contributions made by clerical workers at three different firms.

3. AAA wants to determine EPA mileage ratings of new cars based upon their weight and whether they are standard or automatic transmission.

4. According to the ICR Research Group, 63% of Americans in the 18-34 age group say they are comfortable filing income tax returns electronically, compared to just 49% of those 55-64. They sampled 200 people from each age group to determine if the younger set were more comfortable with electronic filing than those in the older group.

5. It has been reported that the average visitor from Japan spent $1953 during a trip to the United States, while the average for a visitor from the United Kingdom was $1738. Does the visitor from the United Kingdom spend significantly higher than a visitor from Japan?

6. One of the measures of the effectiveness of a stimulus is how much the viewers pulse rate increases on exposure to it. In testing a lively music theme for its television commercials, an advertising agency shows ads with the new music to 25 viewers and their mean pulse rate is 20.5 beats per minute while the mean pulse rate per minute for another sample of 25 viewers seeing the same ads with the old music was 16.9 beats per minute. Is the new music theme better?

7. A trucking firm is considering the installation of a new, low restriction engine air filter for its long-haul trucks, but doesn’t want to make the switch unless the new filter can be shown to improve the fuel economy (miles per gallon) of these vehicles. A test is set up so that each of 10 trucks makes the same run twice- once with the old filtration system and once with the new version.

8. A movie complex has a sellout for three movies rated G, PG, and R that they show simultaneously on a Friday evening. A sample of patrons from each movie is observed to determine if they purchase snacks or do not. Could the percentage buying snacks be the same for each movie?

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 7% Distribution Transformers Corporation bonds costing $520,000 at face value. Sep. 1 Acquired $1,080,000 of American Instruments’ 9% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $557,000. Nov. 1 Purchased $1,560,000 of M&D Corporation 5% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments bonds $ 1,018,000 M&D Corporation bonds $ 1,640,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. a) Record the acquisition of 7% Distribution Transformers Corporation bonds costing $520,000 at face value. b)Record the acquisition of $1,080,000 of American Instruments’ 9% bonds at face value. c)Record the entry for the semiannual interest received on the Distribution Transformers bonds. d)Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. e)Record the entry for the reclassification adjustment on the date of sale. f)Record the entry for sale of Distribution Transformers bonds for $557,000. g)Record the acquisition of $1,560,000 of M&D Corporation 5% bonds at face value H) Record the interest accrual for American Instruments bonds. I)Record the interest accrual for M&D bonds. J)Record the entry to adjust fair value of the investments at year-end

Between China, India, and United Kingdom which country would be the most considered to expand a bussiness in that exports goods to the U.S?

How does managed competition, as conceived in the US, differ from that applied in the United Kingdom?

(300 words) No written responses.