Answer:
What is Bob’s basis in the warehouse and in the land?
- warehouse basis = $53,571
- land basis = $71,429
Explanation:
since the total appraisal value was $75,000 + $100,000 = $175,000, we must allocate the basis using a coefficient = $125,000 / $175,000 = 0.714285
- warehouse basis = appraised value x coefficient = $75,000 x 0.714285 = $53,571
- land basis = appraised value x coefficient = $100,000 x 0.714285 = $71,429
- total = $53,571 + $71,429 = $125,000 (total purchase price)
Since the transaction price was lower than the appraised value, we must adjust the basis for both the land and the warehouse in the same proportion.
The auditors!
They are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards
Answer:
organization expenses.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
Some examples of multinational firms are Ap-ple, Volkswagen, G-oogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.
The costs of bringing a corporation into existence, including legal fees and promoter fees, are called organization expenses.
Answer:
A.True
Explanation:
A fixture refers to something which is fixed or attached to a property such as a building built on a piece of land shall be construed as a fixture with respect to the land.
To determine as to what shall be considered a fixture relates to the purpose for which something is attached to the asset.
The "manner" of attachment refers to if the attachment is of permanently or temporarily fixed. If something is permanently fixed and requires specific tools for it's removal, such an attachment is usually considered a fixture.
Hence the given statement is true.
