Answer:
1. The likelihood of a payment occurring is probable, and the estimated amount is $1.14 million.
- Dr Law suit loss 1,140,000
- Cr Law suit liability 1,140,000
2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.94 to $1.14 million.
- Dr Law suit loss 940,000
- Cr Law suit liability 940,000
US GAAP allows companies to record probable losses at lowest estimated value.
3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.14 million.
- no journal entry is required, only a disclosure in the footnotes of the financial statements.
A contingent liability (or loss) that is only possible, but not probable, does not need to be journalized and recorded. It only needs to be disclosed in the footnotes of the financial statements.
4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.14 million.
- no journal entry is required
A contingent liability (or loss) that is remote, does not need to be journalized or recorded, nor included in the footnotes of the financial statements.
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the least accurate of all of these statements would be " Because of technology, the number of persuasive messages has decreased." This is completely false because technology has not decreased the flow of information but instead drastically increased in, and this includes persuasive messages as well.
Answer:
Explanation:
SOLUTION
Current year deduction of $3 million, carry forward of $200,000.
Reason:-
Business interest deduction limitation
Business Interest Income = $300000
+ 30% *$9m ie $2.7m
Total current year deduction = $3m
Remaining $200,000 will be allowed next year.
Answer:
C) $500,000
Explanation:
According to Section 1012, the basis for stock is the purchase cost of stock.
Axle Corporation's basis in the Drexel Corporation stock is $500,000 .
