Mark Sports Inc. sold 500 pairs of skates at $50 each in 2012. The management estimates that 4% of the skates sold will need rep

Response:

The correct choice is option "D": It is likely that the fees imposed by a bank will exceed the interest offered on a teenager’s savings account during their initial saving period.

Clarification:

Financial institutions often impose elevated fees on savings accounts for teenagers since they lack a credit history. This can make them appear to be riskier financially, particularly concerning overdrafts. Consequently, banks generally offer lower interest rates on these accounts along with certain limitations that one should consider before selecting a bank for account opening.

Response:

La opción correcta es D, formar una corporación.

Justificación:

Elegí esta respuesta porque la responsabilidad limitada se aplica a una corporación, que se diferencia de otros tipos de negocios.

El concepto de responsabilidad limitada significa que los accionistas en una compañía de responsabilidad limitada solo son responsables hasta el monto que han aportado a través de las acciones que poseen.

Si la empresa incurre en deudas, no se les pedirá a los accionistas que cubran estas deudas con su propio dinero, lo que protege los bienes personales de Harry y Meghan.

Answer:

1. Control and authority of owners - one vote corresponding to each share, easily transferable

2. Simplicity of establishment - necessitates government authorization

3. Ownership transferability - can be transferred without difficulty

4. Capacity to attract substantial capital - significant capability

5. Lifespan - Indefinite

6. Owners' liability - restricted

7. Status under law - recognized as a distinct legal entity

8. Tax implications for earnings - corporate earnings face taxation

Explanation:

A corporation represents a type of business:

1. To own a corporation, one must purchase its shares.

2. Establishing a corporation involves obtaining government sanctions and fulfilling numerous legal criteria.

3. Corporations can accumulate funds by selling shares, issuing bonds, and borrowing from banks and other financial institutions.

4. Shareholders' liability is confined to their invested capital.

5. Corporate earnings are subject to taxation, and distributions to shareholders also incur taxes.

6. A corporation exists as a legally separate entity.

7. A corporation can exist indefinitely.

8. Each share grants one vote.

I hope my response is beneficial to you

Answer:

In a non-monetary exchange that lacks commercial substance, a company should note the acquired asset using the same book value as that of the asset it exchanged.

ABC's journal entry:

Dr Cash 25,000

Dr Building - new 75,000

Dr Accumulated depreciation building - old 60,000

    Cr Building - old 150,000

    Cr Gain on the exchange 10,000*

As the cash received is less than 25% of the total value in the exchange, only a partial gain attributable to the cash must be acknowledged. The partial gain is derived by deducting the cash received from the asset's fair market value. Here, the fair market value was $100,000 with a carrying value of $90,000, leading to a recognized gain of $100,000 - $90,000 = $10,000. Consequently, the new carrying value needs to be adjusted to align with the fair market value minus cash received ($100,000 - $25,000 = $75,000).

XYZ's journal entry:

Dr Building - new 105,000

Dr Accumulated depreciation building - old 15,000

    Cr Building - old 95,000

    Cr Cash 25,000

Considering the absence of commercial substance in the transaction and that XYZ did not receive cash, it must register the new building's value by combining the old building's carrying value with the cash paid to ABC (=$80,000 + $25,000=$105,000).