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vagabundo [1.1K]
3 years ago
5

Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted wi

th its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $800,000. What is the required journal entry as a result of this litigation? a. Debit Litigation Expense for $800,000 and credit Litigation liability for $800,000. b. No journal entry is required. c. Debit Litigation Expense for $320,000 and credit Litigation Liability for $320,000. d. Debit Litigation Expense for $480,000 and credit Litigation Liability for $480,000.
Business
1 answer:
Burka [1]3 years ago
5 0

Answer:

b. No journal entry is required

Explanation:

Given that

Estimated percentage of losing = 40%

Estimated amount = $800,000

By considering the above information, we concluded that

As in the case of the litigation, there is no journal entry is recorded as the possibility of the event is not certain with respect to the entity's economic resources.

Therefore in the given case, the correct option is b.

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Which statements about Section 1231 assets are true? Pick all that apply!!
dem82 [27]

Answer:

The answer is below

Explanation:

Given that Section 1231 assets are a term that is used to describe the real or depreciable trading property acquired for more than a year. For example, landed property, buildings, etc.

Hence, in this case, the correct answer or statement to the question are:

1. If Section 1231 assets are sold and the taxpayer has a realized loss, the loss is a fully deductible ordinary loss

2. If Section 1231 assets held long-term are sold for a realized gain, the taxpayer has a potential long term capital gain that may be taxed at favorable capital gains rates but this result often does not occur

4 0
3 years ago
Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000. Also, cash of $50,000 was borrowe
zhannawk [14.2K]

Answer:

$520,000

Explanation:

Kela corporation reports a net income of $450,000

The depreciation is $70,000

A cash of $50,000 was borrowed on a 5-year note payable

Therefore, the total cash inflows from operating activities can be calculated as follows

= Net income+depreciation

= $450,000+$70,000

= $520,000

Hence the total cash inflow from operating activities is $520,000

8 0
3 years ago
BI represents a bold new paradigm in which the company's business strategy must be aligned to its business intelligence analysis
nikdorinn [45]

The answer is, False.

  • A collection of tools (technology, applications, etc.) known as business intelligence (BI) is used to enable better business decisions.
  • BI is a tool for achieving goals, not a goal in and of itself.
  • BI is a crucial tool since technology is advancing quickly and steadily.
  • For instance, it took Walmart several decades to overtake Sears as the leading retailer in the United States, but Amazon did so in only a few short years.
  • Our world has radically transformed as a result of new technology, and no organization can afford to fall behind.

<h3>What do you mean by business intelligence?</h3>
  • Business intelligence (BI) is a technology-driven method for data analysis and information delivery that aids managers, employees, and executives in making wise business decisions.

<h3>What is business intelligence give examples?</h3>
  • BI encourages the use of historical data to promote fact-based decision making as opposed to assumptions and intuition.
  • Data analysis is carried out by BI tools, which also produce reports, summaries, dashboards, maps, graphs, and charts to give users a thorough understanding of the nature of the business.

Learn more about  business intelligence here:

brainly.com/question/13339276

#SPJ4

4 0
2 years ago
You are a communication designer for a design company. Your team is working on a project designing an interior office space for
Alexxx [7]

This is incomplete because the question is missing, here is the missing question and options:

Which phase of team development does this situation describe?

A. Performing

B. Norming

C. Forming

D. Storming

The answer to this question is B. Norming

Explanation:

In team development, norming is the third stage in the process of creating a team and making its members work together. This stage occurs after members have known each other (forming) and had solved their problems (storming). Due to this, during this stage members are able to work together and there are clear roles, which facilitates communication and adaptation. This stage is the one described because roles have been defined "everyone is taking on leadership functions related to their roles" and it seems the integration after three months facilitates communication and changes "report back to the rest of the team and smoothly adjust the project plan."

4 0
3 years ago
Leslie has developed a new kind of running shoe, and now she is trying to decide where to sell it. Which of the 4Ps of marketing
Crank
A. Price : hope) ich
6 0
3 years ago
Read 2 more answers
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