The equity reporting for a Limited Liability Company is similar to that of a partnership but the changes in capital are shown on a statement of members' equity
Indicate whether the statement is true or false
True
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Which of the following is a factor of nonsampling risk?
a. Not carrying out the appropriate audit procedure. b. Having a sample which does not represent the population. c. Using a random sample selection d. Using non-statistical sampling
Mario is a real estate and financial consultant who owns and operates his own business as a sole proprietor. His adjusted gross income, excluding the items below, is $48,000. The following information relates to his current-year activities and income tax.
a. Land adjacent to his office was purchased in 2019 for an anticipated expansion. It cost $10,000 but is sold later in the year for $17,000. ? ? b. His office building is sold for $250,000 in anticipation of moving to a different location. The building was purchased in 1994 for $200,000, with 10% of the cost allocated to the land. Depreciation taken on the building was $100,000. ? ? c. Office furniture that cost $20,000 and was fully depreciated is sold for $6,000. ? ? d. A color copier purchased two years ago for $50,000 is traded for 200 shares of Microsoft stock that were worth $24,000 on the date of the exchange. The copier had a basis to Mario of $35,000 but is worth only $24,000 on the date of the exchange. ? ? e. Mario's automobile, which he used 100% for business and had cost him $18,000 in 2010, is sold for $8,000. Depreciation of $6,000 had been taken on the automobile. ? REQUIRED: Fill in the following table by listing the amount and proper treatment of the recognized gain or loss from each of the above transactions. Identify by letters a–e. Ordinary Sec. 1231 Capital Gain (Loss) Unrecaptured Income Gain (Loss) Short-term/Long term Sec. 1250 Gain a.b.c.d.e.What is Mario's net capital gain (loss) for the current year? ? What will be an ideal response?
Why has there recently been renewed interest in corporate governance? How can it be improved?
What will be an ideal response?
A business owner might believe it is morally wrong to push people to make financial choices that cause them to go into debt, thus hurting their own livelihoods. This example is related to which ethical decision-making approach?
What will be an ideal response?