Economic entity assumption
What is the economic entity assumption? Give an example of its violation.
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Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contributed cash of $25,000 to get things started. Ron was a bit short on cash but had a parcel of land valued at $60,000 (basis of $50,000).
Explain why pro forma income statements adjust for depreciation expense when developing projected cash flows for a project.
Tip Top Corp. produces a product that requires 14 standard gallons per unit. The standard price is $6.00 per gallon. If 3,500 units required 51,000 gallons.
Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership 5 years ago by contributing cash. Prior to any distributions Harrison has a basis in his partnership interest of $44,000. On December.
Randolph is a 30% partner in the RD Partnership. On January 1, RD distributes $15,000 cash, an investment with a fair value of $20,000 (inside basis of $10,000), and a parcel of land with a fair value of $10,000.
If a $1,000 zero coupon bond with a 20-year maturity has a market price of $311.80, what is its rate of return?
Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $33,000 at the end of the year. If the balance of the Allowance for Doubtful Accounts is $10,000 debit before adjustment; what is the
At Jan 1, 2008 a company had a net valuation allowance account credit balance for investments in securities-available-for-sale of $20,000. At Deceber 31, 2008 the total cost of the relevant portfolio was $300,000, and total market value was $275,0
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