D. The seller's price to the buyer is fixed or determinable. Original AACSB: Analytic AICPA BB: Legal AICPA FN: Research Bloom's: Knowledge Difficulty: Medium 7-27 Chapter 07 - The Revenue and Collection Cycle 3. "Bill and Hold" refers to an arrangement where A. Sales are recorded but are not shipped. B.
He must declare the sales proceeds. $1,000 gain on sale. Ken's stock sale proceeds | Amount | Sale Proceeds ($32 x 1,000 shares) | $32,000 | Less Selling Expenses | $0 | Amount Realized | $32,000 | Less Tax basis ($31 x 1,000 shares) | $31,000 | Gain on sale | $1,000 | c.) Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years for $210,000. Gain of $14,500 Ken's Annuity | Amount | Total investment into annuity | $210,000 | Number of payments | 20 | Return on capital for the payments | $10,500 | Ken's
2. a. Critique Ace Repair’s current method of estimating its before-tax cost of debt. b. Is the earnings yield (E/P) an appropriate measure of the firm’s cost of equity? 3. a.
They purchased the house in 1998 and their basis today is $400,000. The fair market value of the house is $500,000. The house is subject to a 25-year, $250,000 mortgage. * B.Arnold is to continue making payments on the house until it is fully paid off. In 2011, Arnold made payments totaling $18,000.
1. Ronderos should win the lawsuit because the property was rightfully Schock’s already and Ronderos is not a merchant therefore the risk of loss is Schock’s. 6. The dealer
D. paid-in capital. 43) Stock dividends distributable should be classified on the A. balance sheet as an asset. B. balance sheet as a liability. C. income statement as an expense. D. balance sheet as an item of stockholders’ equity.
E&Y reasoned this as it creates an exception to the general rule of reserving for expected future product returns at the gross sales price and deferring the recognition of an equal amount of revenue. This justification is invalid. The company’s customers are not “ultimate customers,” but are wholesalers that sold their product to retailers. In addition, Medicis’s returns were not returns of products in exchange for products of “the same kind, quality, and price,” but of unsalable product for
b. Was there a misstatement of material fact? Yes, because it is information that influenced, in this case, the buyer into acting in a certain way or making a certain decision. c. Did Stein suffer a loss as a result of Gortino’s actions? There isn't enough information to decide if Stein suffered a loss.
(a) $100 bill found under the sugar caddy at the restaurant (b) Inheritance of a car from your grandmother valued at $5,000. (c) Loan from your father-in-law to start your business, (d) Child Support received totaling $16,500. (4 pts) The inheritance of a car from your grandmother valued at $5,000 would be excluded from income as long as the $5,000 was under the caps. The tax code where you would find this would be under sections 101-139. Chapter 5 3.
Ch. 13: Interpreting Financial Statements BYP13-4 Discussion Questions What are some of the various lease options? When would you use one option over the others? What could be the financial impact of this decision? Under which circumstances would you lease versus purchase?