Answer:
c. protect lessees against lessors who abuse leased assets.
Explanation:
The residual value guarantee may be defined as a guarantee that is made to the lessor where the value of an underlying asset will become at least some specified amount at the end of the lease. The guarantee is given by the party unrelated to a lessor.
The residual value guarantee provides to protect the lessor against the lessees who tries to abuse the leased assets. It does not protect the lessees against the lessors.
Answer:
Cullumber Company
Balance Sheet
As at 2022
Explanation: Amount in $
Current Assets
Accounts Receivable 12,500
Cash 13,000
Prepaid Insurance 6,600
Supplies 4,600
Total Current Assets 36,700
Non-Current Assets
Equipment (225,000-36,900) 188,100
Total Assets <u> </u><u>224,800</u>
Liabilities & Shareholders' Equity
Current Liabilities
Accounts Payable 10,600
Notes Payable 65,000
Salaries Payable 3,900
Total Current Liabilities 79,500
Equity
Common Stocks 97,000
Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700) 64,300
Dividends (16,000)
Total Equity 145,300
Total Liabilities & shareholders' equity <u>224,800</u>
Answer: Individuals may have different categories based on age, lifestyle, and income.
Explanation:
At different ages people have different needs.
Answer:
f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Explanation:
Note: Guaranteed payments have no effect on Kim's outside basis.
Bright Line LLC will be reporting on page 1 of Form 1065, an ordinary loss of $15,000 ($150000 - $90000 - $45000 - $30000)
1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.
Vertical merger is the joining of two companies involved in different stages of related businesses.
