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In 2010, Leppard Inc. issued 1,000 shares of $10 par value common stock for land worth $40,000.
(a) Prepare Leppard's journal entry to record the transaction.
(b) Indicate the effect the transaction has on cash.
(c) Indicate how the transaction is reported on the statement of cash flows.
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Dove Corporation had purchased the land as an investment three years ago for $375,000, and the land was distributed subject to a $270,000 liability. Alexandra took the land subject to the $270,000 liability. What is Alexandra's basis in the land?
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Under the lower-of-cost-or-market rule, the cost of inventory is reduced if the market value falls below the initial cost of the inventory.Why not increase the cost of inventory if the market value is higher than the initial cost of the inventory?
1. Identify the differences between accrual accounting and cash basis accounting. 2. How is the profit margin calculated? Discuss its use in analyzing a company's performance.
The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of :
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