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Pani-rosa [81]
3 years ago
5

Sally is in the business of purchasing accounts receivable. Last year Sally purchased an account receivable with a face value of

$80,000 for $60,000. During the current year, Sally settled the account, receiving $65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.
Business
1 answer:
Simora [160]3 years ago
8 0

Answer:

Shally will not having any amount of bad debt deduction for the present year.

Explanation:

In the present year, Shally will not having any amount of bad debt deduction because she has a gain or income of $5,000. As, last year she has account receivable of $60,000 but this year she settled the account by receiving the $65,000 amount. So, she has received more amount than the basis in the receivable. Therefore, she will not have any bad debt deduction this year.

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"Dream, Inc., has debt outstanding with a face value of $4 million. The value of the firm if it were entirely financed by equity
Artist 52 [7]

Answer:

expected bankruptcy costs =  $190000

Explanation:

given data

face value = $4 million

equity = $18.6 million

stock outstanding = 510000 shares

sell price = $31 per share

corporate tax rate = 35 percent

to find out

decrease in the value of the company due to expected bankruptcy costs

solution

we get here value of levered firmed by M & M proportion

value of levered firm = value of equity + value of debit

value of levered firm = $18.6 million + 35% ( $4 million)

value of levered firm = $20 million

and

now we get total market value of firm that is

total market value of firm = market value of equity + market value of debit

total market value of firm = $31 ( 510000 ) +  $4 million

total market value of firm = $19810000

so expected bankruptcy costs are here as

expected bankruptcy costs =  $20 million - $19810000

expected bankruptcy costs =  $190000

7 0
3 years ago
Recently, the cable television networks have bombarded viewers with a variety of shows based around teams that come in to redeco
allochka39001 [22]

Answer:

social integration. i hope this helps for you!

Explanation:

7 0
3 years ago
A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000
Allushta [10]

Answer:

e. $ 282,000

Explanation:

To determine the assets of the company at year end, we need to find the equity at year end, this is calculated as follows:

Opening Equity                                                      $ 145,000

Net Income for the year                                        $ 45,000

Revenues     $ 210,000

Expenses     $ 165,000

Equity at end of year                                            $  190,000

The accounting equation is

Assets = Liabilities + Stockholders' Equity

Assets = $ 92,000 + $ 190,000                           $ 282,000

4 0
3 years ago
Situational crime prevention has many elements but one key element states that items which are disposable and can be easily sold
Usimov [2.4K]
Situational crime prevention includes crime <span>prevention strategies that are aimed at reducing the criminal opportunities. </span>
It is true that according the situational crime prevention items which are disposable and can be easily sold by thieves are most likely to be taken. 
5 0
3 years ago
Nellie works as an attorney for a large consulting firm. Nellie's job is to act as an advisor to the firm's consultants, to be s
WARRIOR [948]

Nellie's position would be classified as a staff position since he working as an attorney for the same consulting firm.

<h3>Who is an attorney?</h3>

An attorney is a person or a member of the legal profession. They are licensed and qualified to represent a client in court.

Here, Nellie is providing legal support to his firm's consultant hence his position would be considered as staff.

Learn more about attorney here : brainly.com/question/14745452

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3 0
1 year ago
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