Answer:not dischargeable if Tim concealed asset to defraud Roy
Explanation:
A bankruptcy is a legal means for a debtor used by the court to relieve him of his debts obligations when he his unable to fulfill it's debt obligations payment.
However finding out that the value of a contract initial agreed was overpriced will not make the debt dischargeable nor dischargeable in any circumstances unless it's proven that the debtors is unable to pay his debt.
The debt will equally not be dischargeable if it's found that the debtors has concealed items to defraud the creditor and it's equally dischargeable in some circumstances particularly when the debtors is unable to pay.
Answer:
The Journal entry is as follows:
Land A/c Dr. $400,850
To Cash A/c $100,850
To Notes payable $300,000
(To record purchase of land with cash and notes payable)
Workings:
Purchase price of land = $392,000
Total cost of land:
= Purchase price of land + Property taxes + Title insurance + Removal of building
= $392,000 + $2,100 + $950 + $5,800
= $400,850
Answer: a. expropriation
Explanation:
Expropriation happens when privately owned property are forcefully taken by government for it to be used by the general public. It is an act of depriving people of their right to property, although expropriation is to the advantage of the general public. In most countries especially in the US expropriation occurs when there is a need to embark on certain infrastructural project such as airports, railroads, etc.
Answer: Alano's taxable income increases by $300,000.
Explanation:
Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.
If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.
Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.
