Answer:
Disclose the contingency and state that an estimate cannot be made.
Explanation:
Taylor Company's attorney informs its client that it is possible, but not probable, that the company will lose a currently litigated lawsuit. No reliable estimate of the potential loss is currently available. Taylor should accrue and/or disclose this potential loss BY DISCLOSING THE CONTINGENCY AND STATE THAT AN ESTIMATE CANNOT BE MADE.
Answer:
The statement is true
Explanation:
Business expenses are deductible to the extent that they are incurred outside the tax home. Expenses related to business purpose are deductible. For example, meals and lodging expenses. Personal expenses are not deductible.
However, for cost incurred on travel to and from destination within tax home is considered business expenses and is not required to be prorated between business and personal expenses. IRS keeps a close eye on any business travel outside tax home as in this case expenses need to be prorated between business and personal use.
Answer:
D )
Explanation:
Opportunity cost is higher for the United States than Bangladesh, therefore the United States has a comparative advantage in radish production.
<u>American Worker</u> <u>Bangladesh Worker</u> <u>
</u>
50 pairs of gloves 100 pairs of gloves
300 radishes 200 radishes
0.17 gloves/radishes 0.50 gloves/radishes
6.00 radishes/gloves 2.00 radishes/gloves
6.00 > 2.00
Answer:
2,917 shares
Explanation:
The maximum number of shares that can be bought from Carson Corporation will be computed as follows:
Maximum investment = (Funds available to invest / initial margin)
Maximum investment = $56,000/ 0.6 = $93,333
Number of shares = Maximum Investment/ price per share
Number of shares = $93,333/ $32
= 2,917 shares
Answer:
$629,000
Explanation:
The net cash flow from operating activities is the net income plus depreciation, minus the increase in accounts receivable as well as the decrease in accounts payable.
Net income is $620,000
depreciaton expense $47,000
Increase in accounts receivable ($11,000)
decrease in accounts payable ($27,000)
Net cash flow from operations $629,000
The increase in accounts receivable denies the business of additional cash,hence it is deducted ,the same applies to increase in accounts payable
