Lin Co., a distributor of machinery, bought a machine from the manufacturer in November for $10,000. On December 30, Lin sold this machine to Zee Hardware for $15,000, under the following terms: 2% discount if paid within 30 days, 1% discount if paid after 30 days but within 60 days, or payable in full within 90 days if not paid within the discount periods. However, Zee had the right to return this machine to Lin if Zee was unable to resell the machine before expiration of the 90-day payment period, in which case Zee's obligation to Lin would be canceled. Based on its past experience, Lin concludes that it is probable that (1) Zee will not be able to sell the machine and (2) it will be returned. In Lin's net sales for the year ended December 31, how much should be included for the sale to Zee?
A. $15,000
B. $0
C. $14,850
D. $14,700
1. Sheetz Company is purchased by Pulsar Corporation, at an acquisition cost that is $25,000,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $15,000,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was actually worth $7,000,000 at the date of acquisition. What entry is made to reflect this new information? a. Dr. goodwill; Cr. building for $8,000,000 b. Dr. loss on building; Cr. building for $8,000,000 c. Dr. retained earnings; Cr. building for $8,000,000 d. No entry is made
