Answer: $200,000 Ordinary loss
Explanation:
In calculating the loss that was recognized by XYZ we subtract the basis of the inventory from the worth of the inventory before it was distributed during liquidation.
This translates to,
= 700,000 - 900,000
= -$200,000
Now as we know, Inventory is a day to day asset in the business that is sold to make profit. Inventory is what was distributed and as such it must be considered an Ordinary Income.
So this is a $200,000 Ordinary Income loss.
Management has the responsibility to apply accounting standards when communicating with investors and creditors.
Management (or managing) is the process of overseeing the operations of a company, nonprofit, or governmental entity. It is both the science and the art of managing a company's resources.
Setting an organization's strategy and managing employee (or volunteer) efforts to achieve goals through the use of available resources, such as financial, natural, technological, and human resources, are included in management.
The terms "run the business" and "change the business" are used in management to distinguish between the continuation of the delivery of goods or services and the adaptation of those same goods or services to accommodate changing client demands - see trend.
The term "management" can also refer to managers, who are responsible for running a company.
Learn more about management here:
brainly.com/question/14523862
#SPJ4
Around 69% of people went to college.
Answer:
False
Explanation:
Angel Investors are investors who invest in new start-ups in order to help them get moving and be able to advance with their goals and visions for the business. They do this in exchange for an ownership equity of the startup that they are investing in. This being the case, since Ted wants to exercise sole ownership and control over the firm for as long as possible, it can be said that it will not be easy to find Angel investors willing to help him meet his financial needs.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer and Explanation:
The journal entries are shown below:
On December 31
Bad debt expense Dr $5,232 ($654,000 × 0.80%)
To Allowance for doubtful debts $5,232
(To record the bad debt expense)
On Feb 01
Allowance for doubtful debts Dr $327
To Account receivable $327
(To record the uncollectible amount)
On June 5
Account receivable $327
To Allowance for doubtful debts Dr $327
(To record the uncollectible amount)
On June 5
Cash Dr $327
To Account receivable $327
(To record the cash received)