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sasho [114]
3 years ago
9

Sean is in the business of buying and selling stocks and bonds. He has a bond of Green Corporation for which he paid $200,000. T

he bond is currently worth only $50,000. Discuss whether Sean can take a $150,000 loss for a bt1siness bad debt or for a worthless security.
Business
1 answer:
zlopas [31]3 years ago
7 0

Answer:

Sean can not either realize the bond as the loss as business bad debt or as a worthless security.

Explanation:

- Whether Sean can take the bond as the loss as business bad debt? Sean can't take the bond as the loss as business bad debt because the bond is a security whose value is dropping because of various risks such as market risks, credit risks. There is no certain information given the bonds are going to be default.

- Whether Sean can take the bond as the loss as worthless security? Sean can't take the bond as the loss as worthless security because the security is still worthy ($50,000 each). Loss, in this case, is only realized when bonds is sold or completely worthless.

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All of the following are permitted investments in individual retirement accounts except commodity futures.

<h3>What is commodity futures?</h3>

Contracts for the purchase or sale of commodities at a predetermined price and on a specific date in the future are known as commodity futures contracts. Along with financial instruments and currencies, commodities also include things like metals, oil, grains, and animal goods. With a few exceptions, trading in futures contracts must take place on a commodity exchange's trading floor.

The federal government agency that oversees the trading markets for commodity futures, commodity options, and commodity swaps is called the Commodity Futures Trading Commission (CFTC). The National Futures Association (NFA), the independent regulator for anyone who trades futures with the public, requires registration from anyone who advises futures traders or engages in futures trading.

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1 year ago
20. Otto's Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31. The customer picks up the v
Allushta [10]

Answer:

Option A-The revenue must be recognized on 31 August.

Explanation:

The accrual concept says that the income must be recognized when they are earned not when the amount is received and expenses when they are incurred not when they are paid.

So according to accrual concept, the entity must deliver its share to recognize sales that is servicing the car. When the entity will service the car then it should recognize the revenue otherwise not. So in accrual basis accounting the date of payment is irrelevant for recognition of revenue and expenses.

4 0
3 years ago
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The sec generally defers to the fasb concerning controversial disclosure and reporting issues.
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This assertion is true. In addition, the SEC has the remaining accountability to make certain that the FASB deals with troubles referred to it by the SEC.

The cooperative effort between the public and personal sectors has given the United States the first-rate economic reporting gadget in the world, and the Commission is intent on making it even better.

<h3 /><h3>Who does the SEC document to?</h3>

19 The SEC is guilty to Congress as it operates beneath the authority of federal legal guidelines inclusive of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act), amongst others.

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6 0
1 year ago
What are the things needed to do a work or activity called..​
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yesAnswer:

hekpls

Explanation:

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3 years ago
The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual num
LenKa [72]

Answer:

Actual Rate= $9.5  per hour

Explanation:

Giving the following information:

Actual number of hours= 6,300

Direct labor price variance= $3,150 unfavorable

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<u>To calculate the actual rate, we need to use the direct labor rate (price) variance formula:</u>

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