b. all noncurrent liabilities. c. current portions in current liabilities and the remainder in noncurrent liabilities. d. deferred credits. 48. To avoid leased asset capitalization, companies can devise lease agreements that fail to satisfy any of the four leasing criteria.
1. If the Hunter Corp. has an ROE of 13 and a payout ratio of 30 percent, what is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate ____% 2. The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 6,700 Assets $22,050 Debt $ 8,050 Costs 3,850 Equity 14,000 Net income $ 2,850 Total $22,050 Total $22,050 Assets and costs are proportional to sales.
Inversely, when a share repurchase is seen as treasury stock, the cost of the treasury stock is naturally disclosed as a decrease in total shareholders’ equity. Alcoa would report the purchase of the treasury stock by debiting treasury stock and crediting cash for the charge of the purchase. The treasury stock ought to be disclosed independently in the shareholders' equity area of Alcoa’s balance sheet as an unallocated cut of shareholders' equity. These shares are treated as issued although not part of common stock outstanding. If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost.
Merliss wants to be sure that all reporting for this transaction is proper and transparent. The company asks you to research disclosure requirements related to its capital structure. A .Identify the authoritative literature that addresses disclosure of information about capital structure. Statement of Financial Accounting Standards (SFAS) No. 129 This statement sets standards for disclosing information about an entity’s capital structure.
This is consistent with FASB codification ASC250-10-45-23 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? According to ASC250-10-50-9 the participation in the tax amnesty program will cause a liability to be recorded in the current year statements and adjustments for prior periods. If comparative financial statements are issued, the prior year column will need to reflect the adjustment and a change in opening balance (retained earnings) for the current year. 3.
 http://www.irs.gov/businesses/small/article/0,,id=146335,00.html It is important to determine if the taxpayer martially participates because this classifies the income as active or passive. Passive activity losses are non-deductable from active and portfolio income. This is why it is important to determine if the taxpayer martially participates in the business activity. PROBLEMS: 7-46) The $30,000 loss is considered a passive loss and can only be deducted against passive income, it is therefore suspended and carried forward to future years to offset potential passive income in those years. Mary has no martially participation in the rental activity, therefore the loss is considered
However, to qualify for this section, the properties exchanged must be like-kind and used for a trade or business or for investment. (4)So, in this case, the property exchanged is a house and not one used in any trade, business or for investment purposes. Hence, it does not qualify for Sec 1031 tax exchange. 2(c) As Sec 61 of IRS, any activity which is carried with the intention of earning any income will be classified by the IRS as a business and taxed accordingly. (5) So the distinction between hobby and business is important to determine the taxability of the profits earned from such activity.
Ch21 21SECURITIES CHAPTER LAW TRUE/FALSE 1. The states did not have federal legislation prior to the time of the federal securities laws. ANS: F NAT: AACSB: Analytic TOP: state regulations 2. A primary offering is a first-time offering of shares for sale. ANS: T NAT: AACSB: Analytic TOP: primary sales 3.
Bankruptcy The primary purposes of the laws of bankruptcy are to help people who can no longer pay their creditors by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy also protects troubled businesses and provides for orderly distributions to business creditors through reorganization or liquidation. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court. Most cases are filed under the three main chapters of the Bankruptcy chapter 7, chapter 11 and chapter 13.