Property rights can help the entrepreneurs by enabling them to purchase capital and use it as they fit. having the rights means they can use the property for martgage and raise loans,or show as an asset and acquire capital on its worth. they can sublet the property and get resources from the rent as well
Answer:
Sound Audio
Yes. This loss should be accrued.
Explanation:
Accruing the loss contingency gives the readers of the financial statements an early warning of the probable existence of a future loss. A loss contingency arises from a probable future event, which gives rise to an adverse outcome from a lawsuit. Since the cost of the loss can be reasonably estimated and the product recall is virtually certain, it is prudent for Sound Audio to provide for this loss in its December 2021 financial statements.
Answer:
the adjustment for estimated uncollectible accounts will require
b. Debit to Bad Debt Expense for $10,000.
Explanation:
There are two primary methods for estimating bad-debt expense. The first is an income-statement approach that measures bad debt as a percentage of sales.
Accout receivable at the end_ 80000
Credit sales_______________400000
Estimate________________ 2,50%
Debit bas debt expense______10000
Answer:
A.
Explanation:
Organizational expense amortized over fifteen years for purposes of determining taxable income results in an upper adjustment in the initial years to book income on the Schedule Minus−1 when the expense is being amortized over ten years for book income purposes.
Answer:
$272,000
Explanation:
Accumulated depreciation is the sum of depreciation expense.
Depreciation is a method of expensing the cost of an asset.
Depreciation expense using the straight line depreciation method = (Cost of asset - Salvage value) / useful life
($700,000 - $20,000) / 5 = $136,000
The straight line depreciation method Deprecation allocates the same deprecation expense each year of the useful life of an asset.
The depreciation expense in 2019 and 2020 would be $136,000 x 2 = $272,000
I hope my answer helps you
