Answer:
a. The DVDs, CDs, albums, and video games held for sale to customers.
Classification: Assets
b. A long-term loan owed to Citizens Bank.
Classification: Liability
c. Promotional costs to publicize a concert.
Classification: Expense
d. Daily sales of merchandise sold
Classification: Revenue
e. Amounts due from customers
Classification: Asset
f. Land held as an investment
Classification: Asset
g. A new computer purchased for office use.
Classification: Expense
h. Amounts to be paid in 10 days to suppliers
Classification: Liability
i. Amounts paid to property owner for rent.
Classification: Expense
Answer:
A) $200,000 loss recognized by Jean and a basis in the land of $200,000 to Billie
Explanation:
The computation is shown below:
For loss recognized, the amount would be
= Land basis - fair value of land
= $400,000 - $200,000
= $200,000
And, the basis in the land should be equal to the fair value of the land i.e $200,000
Hence, the correct option is A
By dividing the fair value from the land basis we can get the loss recognized
This is an example of "Equilibrium in business"
<u>Explanation:</u>
Equilibrium is the state of balance between market supply and demand, and as a consequence, prices are stable. Over-supply of goods or services generally causes prices to fall, leading to higher demand. The offers and demand balance effect results in a stable state. Here as Denny have good retail distribution network which allow him to supply across city and maintain lower price due to good availability of ice creams. For Denny reaching to the customers was easy via vans, thus his ice-creams had lower price.
Answer:
Commuting refers to travelling from your home to your workplace. It generally refers to the distance that people generally travel to get to their office or any type of workplace.
While business travel refers to not only leaving your house to go to work, but actually going somewhere else to perform your regular business activities, e.g. going form one state to another to close a sale. In order for business travel to be effectively recognized as such, it must be necessary for your business activity and it should last more than one ordinary workday.
In this case, your client continuously leaves his house and goes form one state to another performing his normal business activities. This perfectly fits the IRS's definition of business travel.
Initially, you can try to solve this issue with IRS Office of Appeals (since you are right), but if that doesn't work, then you can go to Tax Court.
Answer:
(1) Recognition of revenue on account.
The accounting record a sale as usual.
(2) Collection of cash from accounts receivable.
The accounting records the accrued revenues as usual.
(3) Recognition of uncollectible accounts expense through a year-end adjusting entry.
Based on experience or other actors, the company considers a portion of their sales revenecue (or assets i nthe balance heet) to be ficticional.
(4) Write-off of uncollectible accounts.
The accouning simply decrease the acc receivalues and then, it proceeds with the credited agains the allowance.
Explanation:
