Answer:
$2,000 capital loss
Explanation:
Randolph recognizes a $2,000 capital loss because RD distributes only cash and inventory and the adjusted bases of the property distributed is less than his basis in RD.
Answer:
The primary advantage they refer to is additional sales revenue.
Explanation:
Extending credit to customers is generally done through use of credit cards these days. This does allow the customers to buy goods and services on credit and pay later for those goods.
Offering credit is beneficial for both the shopkeepers or merchants and the buyers. Customers do not have to pay cash (as they can run out of cash at times), so they buy more and this increases the sales revenue for the merchants, which becomes the primary advantage for them and outweighs the costs.
Answer:
B) Cannibalization occurs when the sales of a new brand take away from sales of an existing brand. Whenever a firm sells a new product it must look out for cannibalization. Michael's new mp3 players are cannibalizing the sales of his old players.
Explanation:
Market cannibalization occurs when a company's new product line crowds out the existing market for its current products, rather than expanding the company's market base as originally intended. In other words, rather than appealing to an additional segment of the market, a new product line appeals to the company's current market, reducing the demand for its established products. In this respect, market cannibalization is an instance in which a company's own two product lines compete against one another.
Answer:
Correct option is D.
Unearned Rent Revenue Dr. $16,000
Rent Revenue $16,000
Explanation:
Provided that rent is received for a period of 1 year that is 12 months on May 1, 2010 amounting $24,000
Thus rent per month = $24,000/12 = $2,000 per month
Provided financial year = Calendar year
thus for the year 2010 rent revenue = 1 May to 31 December = $2,000 
8 = $16,000
Since revenue = $16,000 for the year and initially was recorded as unearned rent thus for the year $16,000 should be transferred to rent revenue.
For this entry shall be:
Unearned Rent Revenue Dr. $16,000
To Rent Revenue $16,000
Correct option is D.
