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torisob [31]
3 years ago
13

Kane Corp. obtained a business loan from a bank. A year later, the company transferred the ownership of one of its properties to

the bank as settlement of its loan. In this instance, in which way did Kane Corp. dispose of its property?
A.
sale for profit
B.
like-kind exchange
C.
debt repayment
D.
repossession
E.
abandonment
Business
2 answers:
cupoosta [38]3 years ago
8 0

Answer: E. abandonment

In this case, the business gives up the ownership of one of properties with the intention of settling its loan taken by the company. So, the business is said to have disposed of its property by abandonment.

Here, abandonment is used in sense of relinquish which means to give up possession or control over something usually in favor of someone else.


eduard3 years ago
3 0

Answer:

D. repossession is the correct answer.

Explanation:

Repossession is defined as the action of retaking possession of something, in particular when a buyer defaults on payments. In the question, Kane Corp. is the debtor since they weren't able to pay the bank for the loan. So, if the bank receives one of the properties, it is considered as repossession, so it is the correct answer.

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Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
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Answer:

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$300,000 $300,000

Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.

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Which of these items is a tax deduction?. a)cash awards. b)interest from bonds. c)interest on a home mortgage
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