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3 years ago

A company prepared the following journal entry:

Business

1 answer:

sineoko [7]3 years ago

6 0

Answer:

D. CFFO decreases by $8,000.

Explanation:

First and foremost, the amortization of discount on bonds payable would increase the book value of the bond by $2,000 since discount amortized is added to book value while premium amortized is deducted.

As a result, option A which stated that bonds payable book value increases by $8000 is wrong as well as option C since a discount amortization increases bonds payable book value and not the way around.

Cash account with a credit of $8,000 showed that the cash paid to bondholders was $8,000, hence, cash flows from operations (CFFO) should decrease by $8,000

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Pursuant to a complete liquidation in the current year, Scarlet Corporation distributes to Jake land (basis of $425,000, fair ma

zubka84 [21]

Answer:

The Long-term capital gain (Jake recognize) = $80,000

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Explanation:

From the questions given we find the following,

What are the consequences of tax for the distribution liquidating to Jake and Scarlet Corporation

Then,

The Long-term capital loss (Scarlet Corporation recognize) = Fair market value - Basis

The Long-term capital loss (Scarlet Corporation recognize) = $390,000 - $425,000

The Long-term capital loss (Scarlet Corporation recognize) = $35,000

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4 years ago

Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government

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Answer:

considering the economy is stable it will expand the economy

Explanation:

The multiplier effect of the 100 public spending will be partially negate by the negative multiplier of the taxes.

100 x 1 /(1-0.7)

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4 years ago