Answer:
B. investing activities.
Explanation:
Cash flow transactions are categorized into three categories,
- Operating
- Investing
- Financing
Under Investing activities a company invests the money or cash in some sort of securities, in our case case loan, while investing it gives the money to some third person, then it gets return like interest or dividend on such amount.
Here, the company has lend some money in the form of loan and then it collects the loan, therefore it is investing activity.
Exceptionally if a company is a banking or NBFC companies then it lends money in normal course, and then collects them back in that case it is operating activity.
In general it is
B. investing activities.
Plz post a photo or answer choices of the problem
Answer: $68,000
Explanation:
If the inventory that remains is the $46,000 then that means that the cars costing $33,000 and $24,000 have been sold.
With specific identification, the actual prices of the stock are used so the cost of goods sold is:
= 24,000 + 33,000
= $57,000
The gross profit is therefore:
= Sales - Cost of goods sold
= 125,000 - 57,000
= $68,000
Answer:
The realized gain is 0
Explanation:
The fair market value of the truck that archie gives up is $15,000 and the new truck he gets has a fair market value of $20,000. Archie also gives $5,000 in cash plus his old truck in order to buy the new truck.
Gain= Fair market value of new truck -Fair market value of old truck - Cash paid
Gain = 20,000-15,000-5,000
Gain = 0
Answer:
True
Explanation:
While a sole proprietor is expected to report his business income or loss on his personal tax form as the business is not considered for separate tax , a c corporation shareholders are taxed based on the dividends received from the business profit and the entire profit taxed for the corporation tax.
As no profit was distributed to the owners , there was no personal tax basis for Lucy but only the corporation tax that will be charged on the business net profit.This could have been a tax avoidance method adopted by Lucy to reduce his tax liabilities as a sole share holder.
