Answered: The sale and distribution of the assets…

The sale and distribution of the assets of a business on its termination is Group of answer choices a takeover. a breach of fiduciary duty. liquidation. dissolution.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 17DQ

See similar textbooks

Related questions

Q: The statement of realization and liquidation reports the actual results of a liquidation whereas a…

A: The answer is True Refer step 2 for explanation

Q: Which of the following statements about a business combination is valid?

A: Answer: b.The acquirer should recognize the acquiree’s contingent liabilities if certain conditions…

Q: Which one of the following unsecured liabilities has the highest priority when an insolvent company…

A: Insolvency refers to the company being unable to pay its all its debts or when the liabilities of a…

Q: What is a contingency? Why are contingencies important to users of financial statements? What are…

A: When there is a scenario in which the conclusion cannot be predicted and which must be handled in…

Q: Define each of the following terms:a. Informal restructuring; reorganization in bankruptcy

A: Informal restructuring is a method by which a financially ailing company comes into contract with…

Q: In a bankruptcy proceeding, what is the significance of a liability with priority? What are the…

Q: If a loss from sale or exchange of property between related parties is disallowed and the property…

A: If a loss from sale or exchange of property between related parties is disallowed and the property…

Q: PRO Which of the 1. Financial assets in the form of investments in subsidiaries, associates and…

A: PAS 32 covers Contracts for delivery or receipt of commodity and other non financial assets that can…

Q: A bankruptcy court enters an order for relief. How does this action affect an insolvent company and…

A: Bankruptcy: Bankruptcy is the elimination of different types of debts. The acceptance of…

Q: In a stock acquisition that results to goodwill, the acquirer should classify it in its separate…

A: Asset is something owned by the business where is liability is something owed by the business. The…

Q: Which one of the following statements correctly describes a characteristic of an entity purchase…

A: In this question we will explain that which is the correct option or a suitable characteristic of…

Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…

A: While taking business decisions, business ethics play an important role. Business ethics means right…

Q: Why should a company monitor the reporting of goodwill prior to the filing of a bankruptcy petition?

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: A company should record an asset called "Goodwill" when it purchases another company for an amount…

A: Goodwill is one of the intangible assets.

Q: Which of the following is not considered in the determination of Total Assets after business…

A: In business combination , following are considered for determination of total assets : 1. Fair value…

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention advocates for accounting all the prospective losses but leave…

Q: In bankruptcy, which of the following lose (choose all that apply)? The community Clients/suppliers…

A: Bankruptcy is the state where an individual or a business organization is bound to surrender itself…

Q: Which of the following is not an application of the acquisition method? a. Measuring the…

A: Option a is correct.

Q: What are the primary objectives of a bankruptcy proceeding

A: A legal proceeding involving a person who is unable to repay his/her outstanding debt is known as…

Q: A company expected to go bankrupt in the near future is considered to be operating under the…

A: Three fundamental assumptions of accounting are: 1.Going concern assumption 2. Accrual 3.…

Q: When accounting for asset exchanges, O when an exchange lacks commercial substance, either a gain or…

A: Asset exchange means when an entity exchanges its asset with another entity and it may involve…

Q: What is a deficiency judgment and how is its value to a lender affected by the Bankruptcy Code?

A: Bankruptcy is filed by a debtor who is unable to repay its creditors. In case a person files for…

Q: Contraventions of the Corporations Act that are considered significant include: O a fraud by…

A: Under the Corporations Act, an auditor is obligated to report certain matters including certain…

Q: How bankruptcy can be initiated and what are the available alternatives to it?

A: Bankruptcy is one of the most dreaded words in the financial world. It is a situation where an…

Q: Which of the following is / are external indicator/s of impairment loss? Impact of legal environment…

A: The reduction or decline in the carrying worth of any asset due to its fair value can be referred to…

Q: director liability?

A: yes Directors square measure agents of the corporate in transactions they enter into on behalf of…

Q: Account for all the prospective losses but leave aside all the prospective profits. This is as per…

A: Accounting concepts: These are the set of rules and guidelines which every company must follow in…

Q: In general, a liquidating corporation recognizes both gains and losses. Question 14 options:…

A: The liquidating corporation refers to a process by which a business firm comes to end. There are…

Q: Which one of the following fraudulent activities constitute misappropriation of assets? Omitting,…

A: As per ISA 240 Auditors responsibilities relating to fraud in an Audit of Financial Statements.…

Q: What are the Investing factors, Financing factors and Operating factors of bankruptcy?

A: Definition: When a firm is not able to meet its obligation, the firm is said to be bankrupt. When a…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer…

A: Introduction:- As per IFRS 3 deals Business Combinations. Business combinations means acquirer…

Q: When a business ceases to operate and its inventories are disposed of a gain on the inventories will…

A: Capital gain is the profit one earns on the sale of an asset like stocks, bonds or real…

Question

The sale and distribution of the assets of a business on its termination is

Group of answer choices

a takeover.

a breach of fiduciary duty.

liquidation.

dissolution.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

In a liquidation proceeding, if the proceeds on the realization of an asset exceed the lien against that asset, the excess is assigned to*a. the holder of the lien.b. meet the claims of the unsecured creditors.c. the stockholders of the corporation.d. other lien holders whose assets will not realize a sufficient amount to cover their liens.
Describe three circumstances under which a person who has ceased to be a liquidator is released from their obligations with respect to a voluntary liquidated company
Which of the following is not a ground for the extinguishment of an obligation?
If a bankruptcy is deemed likely to occur and is reasonably estimated, what would be the recognition and disclosure requirements for the company?
Which of the following statements about a business combination is valid? a. The acquirer should recognize the acquiree’s contingent assets if certain conditions are met. b. The acquirer should recognize the acquiree’s contingent liabilities if certain conditions are met. c. The acquirer should recognize the acquiree’s contingent assets regardless of any conditions to be met. d. The acquirer should never recognize the acquiree’s contingent liabilities even if certain conditions are met.
An arrangement for creditors to accept an amount less than the amount owed to them is referred to as a a. charge and discharge agreementb. composition agreementc. bankruptcy agreementd. chandler agreement
Under the going concern assumption: * an entity is viewed as not likely to O continue in operation for the foreseeable future. an entity's assets and liabilities are recorded at liquidation values. an entity is viewed as continuing in business for the foreseeable future. an entity is considered to be a separate legal entity from its owners.
PROBLE other financial assets. associates and joint ventures. delivering cash or another financial asset. However, Entity A's not sufficient to justify offsetting because the rights and d. An intention to settle a financial asset and a financial 2 A contract that evidences a residual interest in the entity's assets after deducting all of its liabilities is classified as 4. Entity A issues an instrument that is re-purchasable by d. Liabilities arising from constructive obligations. Physical assets, such as inventories and PPE. and financial liability remain unaltered. Which of the following is within the scope of PAS 32? b. Contracts for the delivery or receipt of commodity and other non-financial items that can be settled net in cash or Financial assets in the form of investments in subsidiaries, 1. a. b. Co non-financial items that can be settled net in cash or Physical assets, such as inventories and PPE C. ssets after deducting all of its liabilities is classified as a. a financial…
Assume that a business is headed for certain bankruptcy and it is evident that its liabilities greatly exceed its assets. Which principle would be violated if its financial statements wereprepared using standard U.S. GAAP?a. Entity assumptionb. Continuity assumptionc. Historical cost principled. Stable-monetary-unit assumption
92. Which of the following is not a mode of extinguishment of contract of sale? Group of answer choices a. Redemption, whether legal redemption or conventional redemption b. Fulfilment of suspensive condition on sale of a determinate thing whose acquisition of ownership by the seller depends upon a contingency c. Resale of the goods by the unpaid seller d. Cancellation of sale of personal property in instalments by the seller in case the buyer defaulted in at least two instalments
When should a transfer of receivables be recorded as a sale? A) The buyer surrenders controlof the receivables to the seller. B) The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeeem them prior to their maturity. C) The transferee cannot pledge or exchange the transferred assets. D) The transferred asstes are isolated from the transferor.
Which of the following statements regarding the accounting for business combinations is false? Review Later The acquirer in a business combination will anly recognize the labilities assumed if they meet the definition of liabilities and are part of the business combination transaction. Under the acquisition method, the identifiable assets acquired during a business combination are measured at their acquisition- date fair values. Goodwill is the difference between the consideration transferred by the acquirer to the acquiree and the fair value of identifiable assets acquired. The identifiable assets acquired, liabilities assumed, and noncontrolling interest in the acquiree are recognized separately from the goodwill arising out of a business combination.