Fee simple defeasible can be thought of as complete ownership with a limitation, which if
violated, results in the loss of the property.
Indicate whether the statement is true or false
TRUE
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In 2015, Boone, Inc sold 1,000 carpets for $50 each. The carpets carry a 2-year warranty for repairs. Boone estimates that repair costs will average 2% of the total selling price. What is the amount that would be recorded in the warranty liability account as a result of selling the carpets during 2015?
a. $1,000 b. $ 500 c. $ 20 d. No liability should be recorded until the carpets are returned for repairs.
In a process costing system, regardless of the cost approach used, cost of beginning inventory is ignored while computing the cost per equivalent unit
Indicate whether the statement is true or false
Nick and Rodrigo form NRC Partnership by combining the assets of their respective businesses. Nick contributes $10,000 cash and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Rodrigo contributes $90,000 cash and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NRC also assumes $60,000 of debt on Rodrigo's assets. What is Rodrigo's basis in his partnership interest?
A. $180,000 B. $220,000 C. $240,000 D. $300,000 E. $360,000
Which of the following statements is true of the capital structure of companies in Germany?
A. Companies in Germany use the lowest proportion of debt of industrialized countries. B. Companies in Germany use only equity to finance their projects. C. The corporate debt raised by companies in Germany mostly consists of publicly issued bonds. D. Debt monitoring costs are high in Germany because of stringent audit requirements. E. Companies in Germany raise most of their corporate debt through bank loans.