Answer: Recognition of $20,000 gain in income.
Explanation:
The creditor reduced the mortgage that Ralph would have to pay by $20,000 because Ralph was struggling to keep up payments. When debt is reduced, the reduction is usually taxable because it is treated as income.
The reason for the reduction of debt is not a reason for a debt reduction being exempt from taxation so the $20,000 will have to be treated as a gain and will be reported as such for Ralph's gross income.
Answer:
Net income is distributed either to dividends or retained earnings.
Explanation:
The net income is calculated after providing for all the expenses, that is after providing for the tax expense from operating profit, it is net income.
Basically any amount distributed as dividend to shareholders whether preference or equity is deducted from net income, and the balance if any in net income forms part of retained earnings.
This is as per the guidelines of GAAP, for preparation and presentation of financial statements.
Therefore, the correct statement is:
Statement 2
Answer:
The answer is 48.37
Explanation:
Future value (FV) = $220,000
Present value(PV) = $33,000
Interest rate(i) = 4 percent.
Number of years(N)= ?
Using the Texas BA II Plus financial calculator:
FV = 220,000; PV = - 33,000; I/Y= 4;
CPT N= 48.37
Therefore, the number of years is 48.37 years. It will take him 48.37 years to invest $33,000 today at a 4 percent rate in order to buy the car at a cost of $220,000
Creditworthiness<span> is a valuation performed by lenders that determines the possibility a borrower may default on his debt obligations. It considers factors, such as repayment history and credit score.</span>
A <u>customer </u>orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations.
Customer orientation is a commercial enterprise approach that places the wishes of the client over the desires of the commercial enterprise.
Customer-oriented groups keep in mind that the enterprise won't thrive until it constantly improves customer recognition. it's a way of questioning that aligns your commercial enterprise dreams along with your client's goals.
The purchaser marketplace consists of all of the individuals or households that need goods and services for private consumption or use and features the assets to shop for them.
Learn more about Customer orientation here: brainly.com/question/24553900
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