Ficia Inc. owned investment land subject to a $294,500 recourse mortgage. Ficia failed to make timely mortgage payments, so the creditor foreclosed. At date of foreclosure, Ficia's basis in the land was $300,000, and the land's appraised FMV was $260,000. The creditor informed Ficia that it would not pursue collection of the $34,500 unpaid balance of the mortgage. Which of the following statements is true?
A. Ficia recognizes only a $40,000 capital loss.
B. Ficia recognizes only a $5,500 capital loss.
C. Ficia recognizes $34,500 ordinary income and a $40,000 capital loss.
D. None of the above
Answer: C
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What makes it difficult to use the term transformational leadership when referencing leaders such as Saddam Hussein and Adolf Hitler?
A. Transformational leadership focuses on the leader’s own interests. B. Hussein and Hitler had no leadership traits. C. Transformational leadership is effective; Hussein and Hitler’s leadership styles were not. D. Transformational leadership includes transforming, but only in a positive way.
Explain why certain types of employees typically receive ethics training more often than others, what those types are, and why the pressures of their jobs might lead to such a need.
What will be an ideal response?
The projected cost of all of the project’s activities ______.
a. is typically reported in the company’s balance sheet b. is known as the baseline budget c. is typically mentioned in the annual report d. is reported as a line item in the income tax filing with the government
Why is financial leverage attractive?
What will be an ideal response?