The loan terms establishes that Pacific Bank’s collateral will be the assets of Real Estate and the personal assets of Mr. Bigbux. The only asset owned by Real Estate is the building leased to FastCar. The lease meets the classification for an operating lease in accordance with FASB Statement No. 13, Accounting for Leases, and contains no explicit guarantees of the residual value of the building or any fixed-price purchase options. At inception, the terms of the lease were consistent with fair market rentals.
| | | present value of future lease payments as an asset and also showing this same amount as an offsetting liability. | | | undiscounted sum of future lease payments as an asset and as an offsetting liability. | | | undiscounted sum of future lease payments, less the residual value, as an asset and as an offsetting liability. | 8 points Question 3 Which of the following statements is most CORRECT? Answer | | If new debt is used to refund old debt, the correct discount rate to use in the refunding analysis is the before-tax cost of new debt.
The lien applies to all of the property owned by the PRP and not just the portion of the site affected by the cleanup. However, the lien is subject to the rights of bona fide purchasers and previously perfected interests in the property so it does not act as a “superlien”. The lien becomes effective when EPA incurs response costs or notifies the property owner of its potential liability whichever is later, whichever date is later. Although the lien was enacted as part of the 1986 Superfund Amendments and Reauthorization Act (SARA) to CERCLA, it applies to costs incurred prior to the passage of SARA. The lien continues until the PRP resolves its liability or it becomes unenforceable though operation of the CERCLA statute of
Having this knowledge, Big Bear agreed to a default provision in their lease contract. The provision calls for a penalty payment if Big Bear’s financial condition suffers a “material adverse change”. In-line with customary provisions in leasing the “material adverse change” is not defined. From ASC 840-10-25-14 we find four conditions that must be met in order for a penalty payment to be excluded from the minimum lease payment. All four of the conditions must be met to have the penalty payment excluded from the minimum lease payment.
Going concern principle: The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless the evidence shows that it will not continue. Objectivity principle: The accounting guideline that requires financial statement information to be supported by independent , unbiased evidence rather than someone’s opinion; objectivity adds to the reliability, verifiability, and usefulness of accounting information. Cost principle: The accounting principle that requires financial statement information to be based on actual costs incurred in business transactions; it requires assets and services to be recorded initially at the cash or cash equivalent amount given in exchange. Revenue recognition principle: Provides guidance on when revenue should be reflected on the income statement; the rule states that revenue is recorded at the same time it is earned regardless of whether cash or another asset has been exchanged. Business Organizations Single proprietorship: A business owned by one individual, which is not organized as a corporation; also called a sole
Rather, it only reorganizes debts and formats them for you to repay over time. Reorganization bankruptcies are for businesses, not individuals. Chapter 11 limits the debt to that of the business. In the case of your mortgage, filing Chapter 11 will allow you to re-write your mortgage. Real estate investors will work to rewrite your mortgage by reducing the principle balance to the value of the property.
I/WE UNDERSTAND THAT KINGS AND QUEENS LEASING LLC AND ANY OF ITS AGENTS IS AND/ARE AGENTS OF THE LANDLORD AND IS A PAID REPRESENTATIVE OF THE LANDLORD. I/WE ACKNOWLEDGE THAT THIS WRITTEN NOTICE WAS RECEIVED BEFORE I/WE RECEIVED A LEASE AGREEMENT. 2. IT IS AGREED THAT UPON EXECUTION OF THE LEASE BY APPLICANTS, SAID APPLICANTS SHALL DEPOSIT WITH THE LANDLORD AND/OR ITS AGENT A SUM EQUIVALENT TO FIRST MONTH’S RENT, REPRESENTING RENT IN ADVANCE AND/OR SECURITY. RENT: $_____________________________ SECURITY: $_____________________________ 3.
A covenant violation that gives the lender the right to call the debt has occurred at the balance sheet date or would have occurred absent a loan modification. * b. It is probable that the borrower will not be able to cure the default (comply with the covenant) at measurement dates that are within the next 12 months. (FASB 470-10-45) CE14-4 The following is the text of SAB Topic 4.A, Subordinated Debt. * Facts: Company E proposes to include in its registration statement a balance sheet showing its subordinate debt as a portion ofstockholders' equity.
The owner is also held responsible for all legal and financial liabilities. Liability: In a sole proprietorship the owner is liable for all debts of the business. If the business assets are not enough to cover any debt creditors can come after the owners personal assets. Income taxes: In a sole proprietorship the owner claims the business income on his or her personal tax form only. The business is not required to file taxes, as the business and owner are considered one.
The parties are not required to exchange consideration. A simple contract is any contract. viii) An offer is a statement of the terms which the client (the offeror) is prepared to be contractually bound. The offer must be complete, specific and capable of being accepted. It must include the fundamental terms of the agreement with the intention that no further negotiations are to take place.