+1-415-670-9189
info@expertsmind.com
Net profits accrued as of date of termination
Course:- Accounting Basics
Reference No.:- EM13148995




Assignment Help
Assignment Help >> Accounting Basics

Employee entered into a written contract with Employer that provided, among other things, that Employee would manage a business division for Employer in exchange for half of the division's net profits, and if the division was sold during the term of the agreement, Employee would receive half of the net sale proceeds. In January, 2010, Employee was told that a contract had been made to sell the division. In February, 2010, Employer fired Employee without prior notice. The division sale was completed in March 2010, and Employer refused to pay Employee any part of the net sale proceeds or any accrued net profits. Employee sued to collect her share of the net proceeds of the sale and the net profits accrued as of the date of termination.

Question 1:

Is Employee entitled to any portion of the net sales proceeds? If so, why? If not, why not?

Question 2:

Is Employee entitled to any portion of the accrued net profits? If so, why? If not, why not?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The amount of unrealized intercompany profit in ending inventory at December 31, 2006 that should be eliminated in the consolidation process is :
Explain generally accepted accounting principles applied to the health care industry and how they are applied to your Operating Budget Projection.
Prepare the journal entry to record depletion expense. Assume that the 100,000 tons of ore were mined, but only 80,000 units were sold. How are the costs applicable to the 20
After all noncash assets are sold and all liabilities are paid, there is a cash balance of $130,000. What amount of loss on realization should be allocated to Soledad?
For the initial computations you are asked to present an excel sheet up to 10 years. After 10 years you will have to make an assumption about permanent growth and discount w
During 2013, Lockhart sold all of the inventory it owned at the beginning of the year for $250,000. What is its built-in gains tax in 2013?  Be sure to show your work.
Proceeds from long-term borrowings, Purchases of plant assets, Purchases of inventories, Proceeds from sale of common stock. What is the net cash provided by investing activ
Check out footnotes to financial statements and schedules for information regarding asset leases and, if possible, review for term, early payment, and bargain purchase claus