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3 years ago

Land acquired so it can be resold in the future is listed on the balance sheet as a(n)

Business

1 answer:

olga nikolaevna [1]3 years ago

6 0

Answer:

investment

Explanation:

An investment is a commodity or object purchased for the purpose of producing revenue or development. In a financial sense, an investment is really the buying of products which are not used now but used for wealth creation in the forward.

In finance, investment is a capital commodity acquired with the expectation that the commodity provides income in retirement or is being sold for profit at a better price later. In other terms, Investment is really the concept of putting capital to work to create or grow a company or plan or to acquire an estate, with the purpose of generating income or capital growth.

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Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. W

sashaice [31]

Answer:

A. Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends

4 0

3 years ago

Bramble Corporation factors $252,500 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathl

attashe74 [19]

Answer:

Explanation:

Before passing the journal entry we have to do the calculations which is shown below:

The accounts receivable is $252,500

Financial charge = 2% of accounts receivable = $252,500 × 2% = $5,050

Recourse obligation fair value = $4,940

The loss on receivables sold would be = $5,050 + $4,940 = $9,990

Reserve amount = 4% of accounts receivable = $252,500 × 2% = $10,100

Now the journal entry would be shown below:

Cash A/c Dr $237,350

Reserve A/c Dr $10,100

Loss on receivables sold A/c Dr $9,990

To Recourse liability $4,940

To Accounts receivable $252,500

(Being the sale of receivables with recourse is recorded)

4 0

3 years ago

Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Each

ratelena [41]

Answer:

See below

Explanation:

a. At the end of the year, before distribution, each shareholder's basis

= $400,000 + $100,000 + $50,000

= $550,000

b. After the distribution, each shareholder's basis is

= $300,000 + $200,000

= $500,000

c. Therefore, each shareholder has

$250,000 worth of dividend income.

3 0

3 years ago

The following model shows how resources in an economy move between households, businesses, and government. The Circular Flow Mod

Alex

Answer:

The correct answer is the circular flow model.

Explanation:

The circular flow model shows the movement of resources between different sectors in the economy. The firms or business hire factors of production from the households. In return, they make factor payments. They use these factors to produce goods and services. The households purchase these goods and services and pay by their factor incomes.

The government sector charges taxes from households and businesses and provides goods and services in return. The government also hires factors of production and make factor payments. It also purchases goods and services from the businesses and pays for it.

6 0

3 years ago

Calculate the inventory-to-sale conversion period based on the following information: average inventories = $110,000; average re

Slav-nsk [51]

Answer:

232.08 days

Explanation:

<em>Inventory to sales conversion period is the average length of time it will take a business to sell its stock items and then replace them. It give s an indication of patronage from customers and the shorter the better.</em>

It is determined as follows:

Average inventory period

= (Average inventory/cost of goods sold) × 365 days

= (110,000/173,000) × 365 days

= 232.08 days

<em>It takes on the average 232.08 days to sell and replace stock</em>

4 0

3 years ago