R is a shareholder in a newly?formed corporation that is involved in real estate development. There are five shareholders and income will be derived from rental properties only. The other four shareholders wish to elect Subchapter S status. R does not want to and tells the others he has doubts about the corporation qualifying for Subchapter S treatment. What result?

Ralirali Corporation's financial statements included the following amounts for the current year:

Issued new shares of preferred stock $98,000 Loaned cash to key supplier 24,000 Bought new delivery truck 54,000 Sold used production machinery 29,000 Sold treasury stock 31,000 Based on this information, what is the amount of net cash flows from investing activities? A) $74,000 net inflow B) $43,000 net inflow C) $18,000 net outflow D) $49,000 net outflow

The one-worksheet conversion adjustment to reflect debt service payments of $85,000 ($55,000 principal; $30,000 interest) by a governmental fund would be

Debit Credit A. Debt Service Expense Net Position $85,000 $85,000 B. Bonds Payable Cash $55,000 $55,000 C. Bonds Payable Debt Service Expenditures – Principal $55,000 $55,000 D. Bonds Payable Debt Service Expenditures – Principal $85,000 $85,000