Discuss the possible outcomes of this situation considering his assets and the business assets.
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Chino is the sole proprietor of Kahit Saan Restaurant. COVID-19 pandemic came, his restaurant is no longer doing good and is on the verge of closing. Prior to pandemic, Chino secured a total Php 100,000.00 from various creditors to expand his restaurant operation. However, he is having a hard time paying his loans and creditors are running after him. Discuss the possible outcomes of this situation considering his assets and the business assets.
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- Last Winter Valley was involved in a car accident . His car was severely damaged so he arranged a loan to purchase a used car . Prior to replacing his car Don was able to manage hi debt. He is looking for options to address this problem . best solution is to A)Arrange a payday loan to pay his bills this week B)Approach his bank to arrange a debt consolidation loan c)Secure his car loan with his car to get a lower interest rate d)Decare bankruptcy in order to be released trom all debtsHarry has just started a business with $500,000 of assets, funded by $300,000 of personal funds and $200,000 debt. Unfortunately, on the opening day, before Harry could take out an insurance policy and before he could make any sales, a customer, Julie, injures herself on business premises and successfully sues for medical bills of $800,000. All business assets can be sold at cost to cover part of the medical expenses. Assume Harry has $400,000 of personal assets, including his $300,000 investment in the business. Which of the following statements is NOT correct? а. If the business is set up as a sole trader, Julie will receive $500,000. b. If Harry is a sole trader, his return on equity will be -133%. C. If the business is set up as a company, the customer, Julie, will receive $400,000 towards her medical bill. d. If Harry set this business up as a private company as the sole shareholder, his return on equity will be -100%. е. If Harry has set the business up as a partnership with…Trent is broke and needs cash immediately to pay off a debt he incurred. He visits the local pawn shop and leaves his grandfather’s watch in exchange for $100.00 cash. This is an example of what type of loan? Multiple Choice Unsecured loan Chattle loan UCC loan Secured loan The Environmental Defense Fund, an environmental watchdog group, files a lawsuit to prevent future open-pit coal mining in West Virginia. This type of lawsuit is known as a Multiple Choice wrongful-damage suit. negligence suit. citizen suit. nuisance suit. All of the following may be used as collateral for a secured transaction except Multiple Choice Future profits of a business A promissory note A patent Seeds and crops
- Your cousin lost her job because of the pandemic and used her credit card up to her $20,000 limit in order to pay bills. But she hasn’t found another job, so had to call the credit card company and explain that she had zero money with which to pay her bill, had zero assets that could be sold for cash, and had a pile of other debts besides. The credit card company did its due diligence, concluded that yes your cousin was a lost cause, then wrote off the entire $20,000 as uncollectible. Code § 61(a) includes “discharge of indebtedness” as an example of “gross in-come.” So your cousin will be taxable on that $20,000, right? Wrong? Why?After a wedding, ten people were hospitalized possibly as a result of food poisoning from products sold by Bane Inc. Legal proceedings are started seeking damages amounting to ₱500,000 for damages, ₱1,000,000 for the hospitalization expenses and ₱400,000 for the lost income of the patients. Bane Inc.’s lawyers advise that owing to the developments in the case, Bane Inc. will most likely be found liable and lose the case. How will this event be recorded in the financial statements? a. Record a journal entry and make a note disclosure. b. Make a note disclosure only. c. Record a journal entry without any note disclosure. d. Neither journal entry nor note disclosure is needed.Accounting Plaza Bistro is a restaurant and bar business in the northern suburbs. The Bistro has acquired a large base of loyal customers and established a name for itself during its 15 years of operation. Unfortunately, due to the effect of the pandemic, the owner can no longer sustain the business and it has to be put on sale.Adrian has been in the restaurant business for many years and is interested to buy Plaza Bistro. His negotiation for buying were going well until it came to evaluating the value for Inventory Ordering System (IOS). Adrian reasons that the IOS is not worth much as it is an old version, but the owner insists that the system has been routinely maintained and all problems have been fixed during its many years of trial run, making it very efficient and an essential part of the business. 1) Advise Adrian of two approaches (measurements) that can be used to evaluate the Inventory Ordering System (IOS). 2) Suggest what information (in three examples) Adrian should…
- Mrs. Ryes, a sole proprietor doing business under the trade name “Cheesy Cakes’, had seen her business booming because of the introduction of the hit flavor Red Macaroon Velvet Cakes. However, a series of natural disasters and misinformed business decisions had caused Mrs. Ryes to suffer losses, the details of which follow: An equipment with book value of P400,000 that was inundated by floods. The equipment was not insured and can be repaired for P500,000 to be reusable again. Another equipment with a book value of P330,000 and a fair market value of P440,000 swept by the same flood. The equipment is totally lost and is insured only up to P100,000 Also swept in the same flood are Mrs. Reyes’ appliances inside her home. The appliances were purchased two years ago at an aggregate cost of P1,000,000 with an expected useful life of 5 years How much loss can be claimed by Mrs. Reyes as an allowable deduction?Susan owned a restaurant in Key West, Florida that was destroyed by a hurricane. The restaurant had an adjusted basis of $589,000 when the hurricane hit. Susan had insurance coverage on the restaurant and received a check for $745,500. She purchased a new restaurant four months after receiving the insurance check for $633,500. Assume Susan wants to minimize gain if possible. What is Susan's realized gain/loss? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Susan's (b) What is Susan's recognized gain/loss? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Susan's ✓ is $ recognized gain -----------Amy is a business owner who purchased a policy of business insurance providing 1,000,000 limits for 1st party coverages. Covid and inflation has cut into her profits so she chose to purchase an actual cash value 1 party coverage limit as opposed to replacement cost. Unfortunately she had a fire and all of the contents of her office building were destroyed (computers, copying machine, phones etc.) Amy's office contents were quite old and had a value at the time of the fire of $550,000. The cost to replace these items, however, was $975,000. Amy is glad she purchased 1,000,000 limits thinking she will be able to buy new contents to replace the destroyed ones without having to spend any $. After all her limits are less than the cost to replace. Is she correct? Explain.
- Willie Waylon is a famous country and western singer. As an investment, Willie started a chain of barbecue restaurants called Willies Wonderful Ribs. Willie's friends and associates invested $500,000 in this venture. The restaurant chain failed and the investors lost all their money. Because of his visibility and status in the entertainment community, Willie felt that he personally had to make good on the losses suffered by the investors, to protect his singing and business reputation. Consequently, he personally paid $500,000 to reimburse the investors for their losses. What are Willie's tax consequences (if any) from the reimbursement?Ekon owns a small tow-truck business that responds to state patrol requests to tow cars involved in wrecks, as well as to private business requests from customers at various auto repair shops and individuals with stalled autos. Ekons business is open 24/7 for 365 days a year. He is starting to see too many repairs on his three trucks, which either means that he loses business or must divert a truck from another area. He is now trying to consider whether it is best to continue use of the current trucks or whether he needs to invest some money in new trucks. Using the steps for the process of capital decision-making, create an outline with sub-steps that include questions Ekon can use to guide his investigation or considerations of buying new truck.Imagine you are working for an insurance companies. An individual is calming 10,000$ worth of stolen objects on an insurance claim, but you suspect he may only as suffer a loss of 6,000$. You have the ability to offer a settlement. If accepted, the claim is close and the individual receives such payment. If rejected, a court will decide the payment is 6,000$ or 10,000$. If the individual really lost 10,000$, there is 60% chance the court will decide in his favor. If the individual only lost 6,000$, there is 60% chance the court will only grant him that amount. Propose a settlement amount that will allow you to figure out if the individual is lying or not. Between 7600 and 8400