anta Fe Corporation adopts a plan of liquidation late in the current tax year in which it expects to earn $100,000 profits from its operating activities. Santa Fe's operating activities are discontinued before the end of the year. Pursuant to the liquidation, it distributes assets, which result in the recognition of $30,000 of ordinary losses. Santa Fe also distributes assets that have
appreciated in value, which results in the recognition of $30,000 of ordinary gains. Generally, Santa Fe Corporation should distribute
A) the $30,000 of ordinary loss property in the current year and the $30,000 of ordinary gain property next year.
B) both the ordinary loss and gain properties this year.
C) both the ordinary losses and gains properties next year.
D) the $30,000 of ordinary gain property in the current year and the $30,000 of ordinary loss property next year.
A) the $30,000 of ordinary loss property in the current year and the $30,000 of ordinary gain property next year.
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Which of the following procedures is not a fraud-related audit procedure used to respond to identified fraud risk factors?
a. Physically inspect tangible assets, including major additions, and agree serial numbers with invoices or other supporting documents. b. Use the work of a specialist for asset valuations, including impairments. c. Confirm the terms of significant additions of property or intangibles with other parties involved in the transaction. d. All of the above are fraud-related audit procedures.
Describe the five ways multinational organizations structure their divisions to integrate their international activity.
Fill in the blank(s) with the appropriate word(s).
Home2U Stores, Inc, sells household consumer goods. To create a pur¬chase-money security interest, Home2U must
a. assign, to a collecting agent, a portion of its accounts payable. b. assign, to a collecting agent, a portion of its accounts receivable. c. extend credit for part or all of the purchase price of the goods. d. refer purchasers to a third-party lender.
The "forced distribution method" of performance appraisals:
a. require that predetermined percentages of employees be placed into particular performance categories b. often require that employees in the lower performance categories are subject to termination or are ineligible for bonuses and raises c. may lead to claims of age, race or sex discrimination d. all of these