Answer:
d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller
Explanation:
A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.
Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.
Answer:
a. True
Explanation:
A minimum wage above $10 per hour is the binding minimum wage in the labour market so this would prevent the labor market from reaching equilibrium.
Zoning laws can be beneficial to a city's residents THEY CAN PREVENT NEW DEVELOPMENT THAT WOULD HARM ESTABLISHED RESIDENTS.
Zoning laws states how a property in a certain zone will be used. It specifies which zones are for commercial or residential use. Zoning laws may also specify the sizes of the lots, placement, bulk, and height of the structures.
Answer:
a. The realized loss of Liza’s is $30000 (it is not recognized loss).
b.1 Alfred recognized gain is $8000 and realized gain is $38000.
b.2 Alfred recognizes loss of $20000.
Explanation:
a. Explanation
The sell of business property to his son at $100000 which has the market value $130000. Since Lisa incurring a loss of $30000 is considered as a realized loss. This loss can not be considered as the recognized loss because section 267 explains that sell or exchange of property between related parties is not considered as recognized.
b.1 Explanation
the recognized gain can be determined by subtracting the previously disallowed loss of $30000 from $38000 gain. However, the realized gain ($38000) can be determined by subtracting $100000 from $138000.
b.2 Explanation
The recognized loss of $20000 can be calculated by subtracting the $100000 from $ 80000.
The first step that you should take when you want to open a savings account is go to the bank and fill out an application form.
<h3>What is saving account?</h3>
A saving account refers to a bank account that includes a limited number of withdrawals, lack of cheque and linked debit card facilities.
The first step you should take when you want to open a savings account is go to the bank and fill out an application.
Therefore, D is the correct option.
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