Answer:
B. Collateral promise.
Explanation:
Collateral promise refers to a promise to pay the debt of another that is ancillary to an original promise. It is an undertaking which renders the promisor a guarantor or surety upon a debt owing by a third person who is primarily liable. It is not made for the benefit of the party making it.
Using the sum-of-the-years'-digits method of depreciation instead of the double-declining balance method of depreciation would affect a gain or loss on the sale of the plant asset by decreased gain or increase
d loss.
<u>Explanation:
</u>
Depreciation is indeed an accounting strategy for the distribution of costs over the lifespan or life expectancy in a financial or material resource.
Depreciation shows the amount of money used for an asset. Depreciating capital allows businesses to earn profits from an estate while investing a part of its value on the property every year. It can significantly affect earnings if not taken into account.
The system of diminishing equilibrium often referred to as the method of reducing balances, is a quick form of depreciation which reports higher depreciation costs during an asset's early lifespan and in final years.
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
I believe the answer you're looking for is Entity
Answer:
$9,240 loss recognized
$43,000 basis
Explanation:
Tax basis of share purchase is the cost of share together with any tax related to this purchase.
Mr. Slake's loss recognized on the February 13 sale is $9,240 = total cost of 1,580 share purchased in the past - total amount collected from sales of these share = $49,240 - $40,000 = $9,240
His tax basis in purchase of 1,600 shares on Mar 2 is $43,000, the total cost he paid to acquire 1,600 shares
