Ten years ago, Latesha acquired a one-third interest in Dana Associates, a partnership, for $26,000 cash. This year, Latesha's entire interest in the partnership is liquidated when her basis is $24,000. Dana's assets consist of the following: cash, $20,000; inventory with a basis of $46,000 and an FMV of $40,000. Dana has no liabilities. Latesha receives the cash of $20,000 in liquidation of her
entire interest. What is Latesha's recognized loss on the liquidation of her interest in Dana?
A) $0
B) $4,000 long-term capital loss
C) $4,000 short-term capital loss and $2,000 ordinary loss
D) $4,000 long-term capital loss and $2,000 ordinary loss
B) $4,000 long-term capital loss
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Black Hills Manufacturing has two processing departments, Department I and Department II. During the year, direct materials worth $38,000 purchased on account were assigned to Department I. At the end of the year, when the production cost report for Department I was prepared, Black Hills assigned $40,000 to the units transferred from Department I to Department II. The journal entry to record the transfer of units to Department II will ________.
A) debit Work-in-Process Inventory—Department II for $38,000 and credit Work-in-Process Inventory—Department I for $38,000 B) debit Work-in-Process Inventory—Department I for $40,000 and credit Work-in-Process Inventory—Department II for $40,000 C) debit Work-in-Process Inventory—Department I for $38,000 and credit Work-in-Process Inventory—Department II for $38,000 D) debit Work-in-Process Inventory—Department II for $40,000 and credit Work-in-Process Inventory—Department I for $40,000
All of the following statements about the MOTO sector are true except:
A. compared to general merchandisers, the transition to e-commerce was easier for MOTO firms. B. the MOTO sector is also referred to as the specialty store sector. C. MOTO was the last technological retailing revolution that preceded e-commerce. D. distribution of catalogs is one of MOTO retailers' biggest expenses.
Henry Jones contributed equipment, inventory, and $44,000 cash to the partnership. The equipment had a book value of $35,000 and market value of $28,000. The inventory has a book value of $25,000, but only had a market value of $12,000. due to obsolescence. The partnership also assumed a $15,000 note payable owed by Henry that was originally used to purchase the equipment. What amount should
Henry's capital account be recorded? A) $104,000 B) $89,000 C) $69,000 D) $84,000
Social Security includes all the following EXCEPT:
A. retirement B. disability benefits C. Medicare D. survivor benefits E. workers’ compensation