Faith and Gordon are accountants who work together. Faith and Gordon can limit their potential liability for each other's misconduct by organizing their business as
A. a foreign corporation.
B. a non-professional corporation.
C. an unincorporated corporation.
D. a professional corporation.
Answer: D
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"Lifestyles" refer to the distinctive models of living of a society or some of its segments
Indicate whether the statement is true or false
An abrupt TCP close takes ________ segments
A) 2 B) 3 C) 4 D) None of the above.
Consolidated net income attributable to the shareholders of the parent for 2018 would be:
LEO Inc. acquired a 60% interest in MARS Inc. on January 1, 2018 for $400,000. Unless otherwise stated, LEO uses the cost method to account for its investment MARS Inc. On the acquisition date, MARS had common stock and retained earnings valued at $100,000 and $150,000 respectively. The acquisition differential was allocated as follows: $80,000 to undervalued inventory. $40,000 to undervalued equipment. (to be amortized over 20 years) The following took place during 2018: ? MARS reported a net income and declared dividends of $25,000 and $5,000 respectively. ? LEO's December 31, 2018 inventory contained an intercompany profit of $10,000. ? LEO's net income was $75,000. The following took place during 2019: ? MARS reported a net income and declared dividends of $36,000 and $6,000 respectively. ? MARS' December 31, 2019 inventory contained an intercompany profit of $5,000. ? LEO's net income was $48,000. Both companies are subject to a 25% tax rate. All intercompany sales as well as sales to outsiders are priced to provide the selling company with gross margin of 20%. A) $36,300. B) $33,300. C) $12,500. D) $53,200.
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,800 and $3100, respectively. During the year Kincaid reported $194,000 of credit sales. Kincaid wrote off $1800 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $234,500. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.Kincaid's entry to recognize the write-off of the uncollectible accounts will:
A. decrease total assets and total equity. B. increase total assets and total equity. C. increase total assets and decrease total equity. D. not affect total assets or total equity.