Answer:Long-term investments tie up money for More than one year.
One reason why individuals focus on long-term investments is to save for retirement.
A(n) 401(k) allows both employees and employers to contribute to a retirement plan.
The correct answer is choice b - the percentage of receivables basis.
When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.
Answer:
b. $ 50,000
Explanation:
Investment cost
720000
Book value of net asset
100000
420000
--------------
520000
Excess
200000
Allocated as follows
Land and equipment 50000
overvaluation of bonds payable 40000
Undervaluation of inventory 60000
Total 150000
Un allocated amount
Goodwill 50000
Total 200000