Disadvantages of company borrow to much money from the bank

Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000basis in his Coast stock.

Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $7,800,000 of 10-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $9,808,729.

Andrew is the prom committee chairman. He is at the prom and realizes that the meal delivered to the attendees was steak and not chicken.

The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit $ 335.18 $ 228.46 $ 199.

A company is obligated to pay its creditors $6,460 at the end of the year. If the value of the company's assets equals $6,304 at that time, what is the value of shareholders' equity?

A company's defined benefit pension plan had a pension benefit obligation (PBO) of $265,000 on 1/1/2018. During 2018, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000.

Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Identify the contract with the customer.

Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year.

An amortized loan: Multiple Choice requires the principal amount to be repaid in even increments over the life of the loan. may have equal or increasing amounts applied to the principal from each loan payment.

Why is it easier for a partnership to borrow money than a sole proprietorship?