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OLEGan [10]
3 years ago
14

Five years ago, Tom loaned his son John $20,000 to start a business. A note was executed with an interest rate of 8%, which is t

he Federal rate. The note required monthly payments of the interest with the $20,000 due at the end of ten years. John always made the interest payments until last year. During the current year, John notified his father that he was bankrupt and would not be able to repay the $20,000 or the accrued interest of $1,800. Tom is an accrual basis taxpayer whose only income is salary and interest income. The proper treatment for the nonpayment of the note is:a. No deduction.b. $3,000 deduction.c. $20,000 deduction.d. $21,800 deduction.e. None of the above.
Business
1 answer:
Citrus2011 [14]3 years ago
6 0

Answer:

The answer is: B) $3,000 deduction

Explanation:

Tom can make only a $3,000 deduction this year since this loss qualifies as a capital loss. He doesn't have any capital gains to offset this loss. Therefore this year he is limited to make a $3,000 deduction against ordinary income and the remainder must be carried over to subsequent years.

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The appropriate response is Consent Order. Once the request is fixed it must be changed by shared assent of the now ex and spouse or if another judge chooses it can be changed after an application is made to the court, one individual can't change the terms of the request, it must be by common assent. For most by far of individuals, assent orders are last.
6 0
3 years ago
Starbucks is a global company that provides high-quality coffee products. Assume that as part of its expansion strategy, Starbuc
goldenfox [79]

No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.

We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.

There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.

Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

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7 0
1 year ago
assume that two firms are both following generally accepted accounting principles. both firms commenced operations two years ago
Igoryamba

The statement is False as when the balance sheets for the two companies are submitted to investors, they are not obligated to disclose the same amount of net fixed assets.

The Property, Plant, and Equipment classification is used to categorize fixed assets on a company's balance sheet. The cost of fixed assets is decreased on the balance sheet by depreciating them over the course of their useful lives in order to account for wear and tear. Both firms started off with $1 million worth of identical fixed assets when they first opened their doors two years ago, and neither one has sold or added any new ones. So, they are not supposed to report the same amount of fixed assets to investors since there is an absence of asset purchases.

Both current assets and fixed assets are listed on the balance sheet, with current assets intended for use immediately or for cash conversion and fixed assets for longer-term usage (more than one year).

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8 0
1 year ago
What is an example of a flame
solong [7]
If you mean like anY kind of example of flame, a lighter flame is a good example.
Anything that uses gas to emit a flame
6 0
3 years ago
The ______ requires that if a new employee had group health insurance at a previous employer and the new employer has healthcare
IRINA_888 [86]

Answer:

The correct answer is C. Consolidated Omnibus Budget Reconciliation Act.

Explanation:

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4 0
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