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Paul [167]
3 years ago
6

Chris donated securities with a cost of $20,000 and a fair market value of $50,000 to a local civic theater. Chris's tax deducti

on was limited to $35,000. At what amount should the theater record the securities at the date of donation
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

$50,000

Explanation:

The theatre should record the securities at the date of donation for $50,000 because for donated securities, they are usually recorded at the fair value upon receipt. Also, for contribution - which is a gift, usually measured at the fair value when received to the not for profit organization , same applies to securities.

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Answer:

The correct options are:

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D. Credit to Factory Utilities Payable

Explanation:

The debit entry of the use of utilities in  a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.

However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to  the supplier of  the service being enjoyed by the factory in order to run on daily basis

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Answer:

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Explanation:

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