Equipment was acquired for $256,000 and has accumulated depreciation of $190,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $209,000 and the business pays $157,000 cash. Assume the exchange has commercial substance. The exchange results in ________.
A) loss $14,000
B) gain $14,000
C) gain $143,000
D) loss $143,000
A) loss $14,000
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As the beneficiary of a business trust, Kevin's liability for trust debts and obligations is
a. limited to his capital investment in the trust. b. limited to his personal assets. c. nothing. d. unlimited.
Which of the following reasons is the most responsible for corporations being the most important form of business organization in the United States?
A) Corporations have limited life. B) Stockholders have unlimited liability. C) Corporations are subject to less government regulation than other forms of business organizations. D) Corporations have the ability to raise larger sums of capital than other forms of business organizations.
The Bankruptcy Code uses the term "debtor" to refer to a person who cannot pay his debts
Indicate whether the statement is true or false
The confidence index indicates a strong stock market when the
A) ratio of the average yield on high-grade corporate bonds to the average yield on low-grade corporate bonds rises. B) ratio between the average yield on S&P 500 stocks to the average yield on high-grade corporate bonds rises. C) consumer confidence index rises above its long-term trend. D) demand for bonds declines relative to the demand for equity securities.