Albert owns 100 acres of land on which he grows spruce trees. His adjusted basis for the land is $105,600. He receives condemnation proceeds of $10,560 when the city's new beltway takes 5 acres along the eastern boundary of his property. He also receives a severance award of $6,336 associated with the possible harmful effects of exhaust fumes on his trees. Albert invests the $16,896 in a growth mutual fund. a. Determine the tax consequences to Albert of the condemnation proceeds.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?