Some courts have ruled that an alternative to "replacement cost less depreciation" should be used to determine the actual cash value of a property loss
Under this alternative, the value of property lost is determined by the price a willing buyer would pay a willing seller for the property in a free market. This method of determining actual cash value is called the
A) intrinsic value method.
B) valued policy method.
C) fair market value method.
D) forensic cost method.
Answer: C
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On January 1, 20A, Goldstein Company purchased a machine. The seller agreed that a total of $9,000 would be paid over a three-year period--$3,000 per year at the end of 20A, 20B, and 20C. At the time the machine was purchased, the market rate of interest was 10%. The amount that should be debited to the asset account, Machinery, on the date of purchase is (round to the nearest dollar)
A. $9,000. B. $9,948. C. $7,461. D. $9,016.
Which of the following statements about S corporations is MOST accurate?
A) S corporations enable owners to avoid the problem of double taxation. B) S corporations can have an unlimited number of owners. C) S corporations must have fewer than 5 employees. D) S corporation are easier to set up than sole proprietorships and partnerships. E) S corporations have unlimited liability.