Ken, the agent, violated the law of agency
In this particular instance, when Ken told the the buyer that the seller would take a lower price than what was on the listing in order to close the sale faster and then told the buyer exactly which price they should offer, Ken, who is the agent, has now violated the law of agency
Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
Answer:
Option (e) is correct.
Explanation:
Taxable Income:
= Net income per book - municipal bond interest + deduction for business meals + deduction for a net capital loss + deduction for federal income taxes
= $100,000 - $4,000 + 50% of $5,000 + $5,000 + $22,000
= $125,500
Eliot Corp.'s current earnings and profits (Current E&P) for 2014:
= Taxable Income + municipal bond interest - deduction for federal income taxes - deduction for a net capital loss
= $125,500 + $4,000 - $22,000 - $5,000
= $102,500
