Answer:
$200,000
Explanation:
In the given case, The distribution which is treated as a dividend is equal to the current E&P i.e $200,000 because the distributions are paid first by current E&P and when it is consumed then the balance of accumulated E&P got reduced.
So, it also consider the current E&P as a dividend
All other information which is given is not relevant. Hence, ignored it
Answer:
e. Liabilities Net Income
Overstated No Error
Explanation:
Unearned Revenue is a liability account that is used to record revenue that the business has received but not yet earned because the goods and services have not yet been provided. By crediting Accrued revenue to this account, it increases it when it is not supposed to so Liabilities are overstated.
Accrued Revenue go to the Accounts Receivable section of the balance sheet to indicate that the business is owed for goods or services provided and so have nothing to do with Net Income so there is no error there.
The amount of loss that should be recognized is the <u>minimum amount </u><u>of the </u><u>range. </u>
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<h3>Recording a Contingent liability </h3>
- It should only be recorded if the loss is probable and the amount to be incurred as liability can be reasonably estimated.
- If neither of the above are possible, the loss would be recorded as a footnote.
US GAAP rules state however that if the loss is probable and the amount is in a range, the amount to be recorded as a contingent liability should be the minimum of the range.
In conclusion, they should recognize the minimum amount.
Find out more on contingent liabilities at brainly.com/question/17371330.
I believe it's the Era when earth wasn't really made into earth yet.
