Answer:
Operating activities section
Explanation:
In the indirect method of cash flow statements, current assets and current liabilities are adjusted with net income and non-cash items. It means changes in net working capital (Current assets - Current liabilities) fit with the net income in the operating cash flow section. Therefore, any decrease or increase is stated under the operating cash flow segment. Inventory increase will deduct from the net income because we spend more cash to acquire inventory.
Answer:
A Contingent liability is recorded in the books if the loss is probable and the amount can be estimated.
a. The loss is probable and the amount can be estimated:
DR Loss $1,200,000
CR Contingent Liability $1,200,000
b. Loss is probable and the amount is estimated in a range. Take the <u>lower limit of the range:</u>
DR Loss $1,000,000
CR Contingent Liability $1,000,000
c. Loss is not probable but rather reasonably possible. Contingent liability i<u>s not recorded but disclosed in full in the footnotes</u>.
d. Loss is remote. <u>Do not record in books and Disclosure is not required.</u>
Answer:
a. Amber Corporation donated inventory of clothing (basis of $138,500, fair market value of $173,125) to a qualified charitable organization that operates homeless shelters.
- charitable donations are valued at fair market value, in this case that equals $173,125
b. Brass Corporation donated stock held as an investment to Western College (a qualified organization). Brass acquired the stock three years ago for $70,800, and the fair market value on the date of the contribution is $113,280. Western College plans on selling the stock.
- Again, we must use the fair market value to record donations, in this case = $113,280.
c. Ruby Corporation donates a sculpture held as an investment and worth $200,800 to a local museum (a qualified organization), which exhibits the sculpture. Ruby acquired the sculpture four years ago for $80,320.
- use fair market once more, = $200,800
Explanation:
When you donate assets to qualifying charities, it is always better to do it by donating the itself, not selling it before and then giving the money. If you sell the asset, you will owe capital gains taxes (either long or short term). By donating the asset directly, you avoid capital gains taxes.
Explanation:
Navigate to the screen you wish to record and press Win+G to open Game Bar. Several Game Bar widgets appear on the screen with controls for capturing screenshots, recording video and audio, and broadcasting your screen activity. Click the Start Recording button to capture your screen activity.
