In april of the current year, mr. beach, an accrual-basis taxpayer, had a $25,000 theft loss from inventory items held for sale to customers in the ordinary course of his business. in august of the current year, he received a $25,000 reimbursement from his insurance company to cover the loss. which of the following is a correct method of reporting the loss and reimbursement on beach's income tax return? a. include the $25,000 in ordinary income; the loss is accounted for in the cost of goods sold. b. do not report the loss as a separate item; do not include the $25,000 in ordinary income. c. include the $25,000 in ordinary income; decrease the cost of goods sold by the $100 casualty loss rule. d. apply the 10% adjusted gross income rule to the loss; the amount of the deductible loss would be the amount of the reimbursement to be included in ordinary income.

What does the phrase limited liability mean in a corporate context?

Tiana daniels enterprise’s trial balance as at december 31, 2016 did not balance. on february 15, 2017 the following errors were detected: errorsi. water rates had been undercast by $2, 000.  ii. a cheque paid to yvonne walch of $2, 680 had been posted to the credit side of her account.  iii. discount received total of $1, 260 had been posted to the debit side of the discount allowed account as $1, 620.  iv. rent paid in the amount of $24, 000 had been posted to the credit of the rent received account.  v. wayne returned goods valuing $1, 680 to daniels enterprise but had been completely omitted from the books.    required: 1. prepare the journal entries to correct the errors.  (narrations required)                    14.5 marks  2.    prepare the suspense account showing clearly the original trial balance error.          8 marks

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)