Answer:
b. The resource allocator role
Explanation:
The resource allocator role -
It refers to the person , who represents and decides the resources , is referred to as the resource allocator .
All the resources and funds are handled by the resource allocator .
Any major decision or any confusion about the certain goods and services is resolved by the resource allocator .
Hence , from the given scenario of the question ,
The correct option is b. The resource allocator role .
Answer:
Revenue that has been earned by the end of December is $ 140,000
Explanation:
When entity uses the accrual method of accounting, the transaction is recorded as and when it occurs.
The subscription revenue received relates to services to be rendered over 12 months. Therefore the Revenue is recognised as magazines are issued over - time.
<em>From the first issue June to end of December , there exists 7 issues of magazines.</em>
Revenue to be recognised = $240,000 × 7/12
= $ 140,000
Answer:
A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentage ownership of partnership profits in order to meet the substantial economic effect tests.
True
Explanation:
Equity and equality must be put in place as a yardstick to allocate such which would bring a common ground for both parties.
A similarity between mortgages and auto loans is that both are less risky for lenders.
Lenders are the ones who lend money to those who need it urgently, in the form of a mortgage, or perhaps an auto loan. This money is going to be repaid monthly, or in whatever way the contract stipulates. It is less risky for the lender because legally, this has to be repaid.
Answer:
a. Does this qualify as a good Section 351 transaction?
Answer: No. This is because service is not a qualified property contribution under the section 321. Moreover, fair value of stock received by Chrissie is just 75% of 100%.
b. What gain does Chrissie Recognize?
Answer: The Gain Chrissie recognizes = FMV of stock received - Adjusted basis of transferred property = $750,000 - $500,000 = $250,000.
c. What gain does Mirinda recognize?
Answer: The Gain Mirinda recognizes is $0 or Mirinda will recognizes compensation worth which will be taxed as an ordinary Income ($250,000).
