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Oliga [24]
3 years ago
11

During 2019, John was the chief executive officer and a shareholder of Maze, Inc. He owned 60% of the outstanding stock of Maze.

In 2016, John and Maze, as co-borrowers, obtained a $100,000 loan from United National Bank. This loan was secured by John’s personal residence. Although Maze was listed as a co-borrower, John repaid the loan in full in 2019. On Maze’s Form 1120 tax returns, no loans from shareholders were reported. Discuss whether John is entitled to a bad debt deduction for the amount of the payment on the loan.
Business
1 answer:
harina [27]3 years ago
8 0

Answer:

Throughout the clarification segment elsewhere here, the definition of the concern is outlined.

Explanation:

  • Yes, Mr. John becomes qualified to something like a bad debt benefit for the balance including its interest made on either the loan.
  • Although Maze is obligated to declare the same here in his tax filing throughout respect including its loan lent over him from the United National Bank mostly as professional and non-borrower.
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Pie Corporation paid $319,500 to acquire 90 percent ownership of Slice Company on April 1, 20X2. At that date, the fair value of
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Answer and Explanation:

As per situation the Journal entries with narrations is here below:-

As per requirement of a

1. Slice Co. investment Dr, $319,500  

        To Cash $319,500

(Being cash paid is recorded)

2. Slice Co. investment Dr, $27,000  

      To  Income from Slice Co. $27,000

(Being investment is recorded)

3 Cash Dr, $13,500  

       To Slice Co. investment $13,500

(Being cash is recorded)

As per requirement b

1. Sales Dr, $90,000  

    To Total Expenses $80,000

     To Dividends Declared $5,000

      To Retained Earnings $5,000

(Being sales is recorded)

2. Common stock Dr, $160,000  

Additional paid-in capital Dr, $40,000  

Retained earnings Dr, $155,000  

Income from Slice Co. Dr, $27,000  

NCI in NI of Slice Co. Dr, $3,000  

       To Dividends declared $15,000  

            ($1,500 + $13,500)

        To Investment in Slice Co. $333,000  

             ($319,500 + $27,000 - $135,00)

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5 0
3 years ago
Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,045 square feet. Bottling occupies 18,855
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Answer:

Mixing= $112,000

Bottling= $91,800

Explanation:

Giving the following information:

Mixing occupies 23,045 square feet

Bottling occupies 18,855 square feet.

Total sq= 41,900

Indirect factory costs include maintenance costs of $204,000.

First, we need to calculate the proportion of square feet for each department:

Mixing= 23,045/41,900= 0.55

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Now, we can allocate overhead:

Mixing= 0.55*204,000= $112,000

Bottling= 0.45*204,000= $91,800

7 0
3 years ago
Why should you study more difficult topics first?
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Answer:

b

Explanation:

8 0
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An optimizing consumer will select the consumption bundle in which the :
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Answer:

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