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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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Scott Company sells merchandise with a one-year warranty. Sales consisted of 2,500 units in Year 1 and 2,000 units in Year 2. It
Alenkasestr [34]

Answer:

$0

Explanation:

Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:

Dr Warranty expense 25,000

    Cr Warranty liability 25,000

During year 2, they will record the warranty expense for that year:

Dr Warranty expense 20,000

    Cr Warranty liability 20,000

That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.

8 0
3 years ago
Shortly after you purchase the laptop, you receive your first credit card bill and forget to pay it, because it’s a new responsi
Anvisha [2.4K]

Answer and explanation:

<em>Forgetting to pay debts has a detrimental effect on the length and interest payment of a loan</em>. The more a consumer falls behind in the repayment of a debt the longer it will take to pay off the total amount owed. Besides, the interest rate is recalculated by the financial institution implying more interest will be paid.

Therefore, forgetting to pay debts must be avoided. <em>Setting automated payments is a good measure to avoid such circumstances.</em>

8 0
3 years ago
When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:
saveliy_v [14]

Answer and Explanation:

b. Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expensed for tax purposes.

3 0
3 years ago
Your colleagues at work are constantly talking about the vice-president in your region. He is perceived throughout the organizat
sergij07 [2.7K]

Answer:

The correct answer is B) coercive.

Explanation:

A coercive boss is a rigid and inflexible leader. When this style is used, the leader chooses to give many direct orders without offering his subordinates the opportunity to express their ideas and opinions.

This leader not only does not opt for the reward system but also focuses on criticizing and punishing the failures generated by disobedience. Therefore, the motivation of the team suffers greatly from the inability of employees to perceive that thanks to their work, business objectives are being achieved.

It is usually the least effective management style but ... it may be recommended in crisis situations when it is necessary to show authority and employees need clear and direct orders.

5 0
3 years ago
When $45,000 of goods are completed in Production Department D and transferred to the finished-goods warehouse where completed p
kykrilka [37]

Answer:

A debit to Finished-Goods Inventory

Explanation:

While recording this transaction, the journal entry is as follows

Finished goods inventory $45,000

      To work in process inventory $45,000

(Being the completed units are recorded)

For recording this, we debited the finished goods inventory and credited the work in process inventory so that the correct posting could be done and the same is shown above

8 0
3 years ago
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