Flora company owed $95,000, a debt incurred to purchase land that serves as security for the debt. if flora had borrowed the funds from a bank, the bank accepts $85,000 in full payment of the debt, and flora is solvent after the transfer, flora does not recognize income, but the company must reduce the cost of the land by $10,000. if flora had borrowed the funds from a bank, and the bank accepts $85,000 in full payment of the debt, when the value of the property is $80,000, flora can deduct a loss. if flora transfers to the bank other property, with a basis of $90,000 and a fair market value of $95,000, in full payment of the debt, flora can recognize a $5,000 loss. if the $95,000 is owed to the person who sold the property to flora, and the creditor accepts $85,000 in full payment for the debt, flora does not recognize gain but must reduce its basis in the land. none of these.

Case in point 1.2 suppose you work in the it department of global hotels, a multinational hotel chain. global hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. guests can make one-stop online reservations by visiting global's website, which has links to all major travel industry sites. global hotels just acquired momma's, a regional chain of 20 motels in western canada. momma's uses a vertical reservations package suitable for small- to medium-sized businesses and a generic accounting and finance package. should momma's use global hotels' information systems or continue with its own? in your answer, consider issues such as business profiles, business processes, system interactivity, edi, ecommerce, and the characteristics of both information systems. what additional information would be to you in making a recommendation?

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)