The entry to record this transaction would include:
Dr. Inventory $20,000
Cr. Accounts payable $20,000
What does it mean to purchase inventory on account?
Purchasing the inventory on account for $20,000 means that Ferguson corp. did not make payment for the inventory immediately, it rather purchased the inventory on credit with a promise to pay later.
As a result, the liability of Ferguson corp. has increased, specifically, the company would credit accounts payable with $20,000 such that inventory, which is the receiving account is debited with the same amount
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Answer: $9,000
Explanation:
Rule 144 is a regulation that governs the trading of restricted, unregistered, and control securities and is enforceable by the SEC.
Under the rule, the person, as an officer of the ABC Corporation is limited to selling the higher of 1% of the Outstanding stock the company has or the average weekly trading volume over the preceding 4 weeks.
1% of the outstanding 900,000 shares is;
= 1% * 900,000
= 9,000 shares
This is higher than the average weekly trading volume over the preceding 4 weeks so this is the maximum permitted sales figure.
Answer and Explanation:
1. The misstatement would depend on when there is inappropriate revenue recorded
2. For avoiding the revenue misstatement, the client should have to cut off the policies
3. The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation
4. The side agreements could modify the terms of sales
5. For recording the revenue, the collectibility needs to be confirmed
Answer:
1.15X + 1.09(11000 - X) = 11000 + 1452
1.15X + 11990 - 1.09X = 12452
0.06X = 462
X = 7700
The answer is
7700
Explanation:
Answer:
Yes, it is true that for the built-in loss limitation to apply, the property must have been acquired by the corporation as part of a plan whose principal purpose was to recognize a loss on the property by the liquidating corporation. That is why A net built in loss has to be determined first.
Explanation:
Limitation is equal to the value of the stock of the loss borne by corporation immediately before the ownership changes.
The basis limitation rule only applies when there is a net built-in loss.
Built-in losses are the excess of the adjusted basis for U.S. federal income tax of any Contributed Property over its Agreed Value as of the time of contribution treated as deductions or losses in the year recognized.
A net built-in loss occurs when the aggregate adjusted basis of the property exceeds its fair market value.
