Answer:
1. Protection against default, evictions, foreclosures, and repossessions
2. Terminate residential and automobile leases due to PCS
Written and oral disclosure of terms
3. Reduce interest to 6% on certain loans and lines of credit obtained prior to entering active duty
Explanation:
The Servicemembers Civil Relief Act (SCRA) provides financial and legal protections for active-duty service members, as well as National Guard and reserve members, and their families. This protections are:
- creditors reduction of interest rate on debts to 6% for liabilities obtained prior to entering active duty
- Protection against default, evictions, foreclosures, and repossessions, preservice mortgage debt is valid if made during or within nine months after your service on active duty, unless carrying out a valid court order
- Deferment of income tax before or during military service.
- Protection against eviction
- Protection against default judgments
- Postponement of court proceedings if on duty
- Termination of automobile, residential lease and phone service by delivering a written notice of termination.
- Voting rights
- Life insurance coverage
Answer:
All of them
Explanation:
When making decisions, a business should evaluate:
- Legal implications of each decision
: do our decisions comply with all applicable laws and regulation?
- Public relations impact
: how will the public feel about our decision?
- Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
- Financial implications: does our decision benefit our business?
Answer:
Explanation:
Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2
Answer:
bad debt expense 6,000 debit
allowance for uncollectible amounts 6,000 credit
Explanation:
expected allowance balance:
account receivable x expected uncollectible amount
200,000 x 4% = 8,000
currently the allowance balance is 2,000
so the amount of the adjustment will be to move the balance to 8,000 from 2,000: adjusting entry for 6,000
