Answer: All of the options are correct.
Explanation:
The Allowance for Doubtful Account is a contra account because it reduces the value of the Accounts Receivable Account and does so in order to account for the possibility that some customers will not pay the amounts they owe.
It is credited when Bad debts are estimated and recorded; that way this reduction in Accounts receivable does not have to go out of the Accounts Receivable account directly.This will ensure that the Accounts Receivable Account is not volatile as it attempts to keep up with all the bad debts incurred.
The appropriate response is C.You might have the capacity to review the material yet you don't really comprehend it. An eidetic picture is a sort of clear mental picture, not really got from a real outside occasion or memory. It was distinguished in the mid twentieth century as a particular wonder by analysts including E.R. Jaensch, Heinrich Klüver, Gordon Allport and Frederic Bartlett.
Answer:
True
Explanation:
Generally, a chain-ratio method is a method of estimating the total amount of money to be spent on a particular business in order to achieve marketing targets. Based on the forecast of the factory and the decision to venture into the production of a new cheese product, the chain-ratio method is the best method for the estimation.
Answer:Social justice theory
Explanation:Social justice is a concept which encourages fair and just relationship in terms of how wealth, opportunities are distributed amongst society and individuals.
It encourages that no one shall be deprived of equal access to certain resources and thatg everyone must get their share and thatt shall not be taken away from them.
Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.