Examlex
A barn held more than one year and used in a business is destroyed in a tornado. The barn originally cost $356,000 and was fully depreciated using straight-line depreciation. The barn was insured for its $543,000 replacement cost minus a deductible of $1,000. Which of the statements below is correct concerning these facts?
Doubtful Accounts
An estimate of the debts owed to a company that may not be collected, often listed as a contra account to accounts receivable.
Accounts Receivable
Funds that are yet to be paid by customers for the products or services they have received from a business.
Credit Sales
Credit Sales are sales made on credit, where the payment is received after the sale has been made, effectively extending a line of credit to the customer.
Note Receivable
A written promise for amounts to be received by a debtor, typically including interest, representing a credit instrument to the holder.
Q10: The Code contains two major depreciation recapture
Q22: Generally, deductions for additions to reserves for
Q47: In regard to choosing a tax year
Q51: The holding period of property given up
Q71: If a company uses the LIFO inventory
Q72: A restricted property plan is considered a
Q73: All collectibles short-term gain is subject to
Q124: In return for a 10% interest in
Q136: If a taxpayer purchases taxable bonds at
Q143: Transactions between related parties that result in