Answer:
a. The $25,000 is deductible as a current expense.
b. The $25,000 is still deductible as a current expense.
Explanation:
a.They open a bagel shop in the city?
The $25,000 spent on travel, surveys, and financial forecasts will be treated as an an ordinary and necessary business expense. The reason is that it is spent to carry out an investigation necessary for expanding their already existing business. Therefore, the $25,000 is deductible as a current expense.
b. They decide not to open a bagel shop in the city?
It does not matter whether they open the bagel shop in the city or not. The $25,000 spent on investigation will still be treated as an an ordinary and necessary business expense, since it is spent to expand existing active business. The $25,000 is still deductible as a current expense.
Answer:
Deluxe should report a liability for un-redeemed coupons of 799,875
Explanation:
Estimated coupons to be redeemed
597,750
(797,000 * 75%)
Less: Coupons redeemed <u> 420,000
</u>
Coupons un-redeemed 177,750
X Cost per Coupon <u> 4.50 </u>
Liability for un-redeemed Coupons <u>799,875 </u>
Answer: Mediation
Explanation:
Mediation is a conflict resolution procedure whereby the parties that are involved will discuss their disputes and a third person who is impartial and also trained assists them in settling the dispute.
Meditation manages the process and context of interaction between the disputing parties but does not impose a solution on the parties.
Answer:
Dr. Cr.
Cash $107,850
Bond Payable $100,000
Premium on Bond Payable $7,850
Explanation:
When the Bond is issued on the price more than its face value, the exptra amount from face value received is called Bond Premium.
Bond Face value = $100,000
Issuance price = $107,850
Premium Paid =$107,850 - $100,000 = $7,850
