The Foreign Subsidiary of a Large Corporation Is
Identify and describe the four basic financial statements:
The characteristics below apply to at least one of the forms of business organization. a. Is a separate legal entity. b. Is allowed to be owned by one person only. c. Owner or owners are personally liable for debts of the business. d. Is a taxable entity. e. Is a business entity. f. May have a contract specifying the division of profits among the owners. g. Has an unlimited life Use the following format to indicate (with a "yes" or "no") whether or not a characteristic applies to each type of business organization.
A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?