Explain the doctrine of substance over form

Assignment Help Accounting Basics
Reference no: EM13126488

1. An acquaintance of yours is considering acquiring bonds as an investment. Your friend states "I will only invest in bonds that sell at a discount. I can't imagine why a person would pay more than maturity value for the bond. That appears to be plain stupid." Comment.

2. In general, explain the doctrine of "substance over form". Apply this concept to leases. In general, do you believe the idea of "substance over form" to be an important for accountants? Why? Why not?

Reference no: EM13126488

Questions Cloud

What color- red or blue- would you expect : What color- red or blue- would you expect each of the following to produce when added to litmus
Participation in an employer-sponsored plan : If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution John can make in 2010?
What is the incremental cost of meeting demand : Use gradient analysis to provide an estimate of eleven data points that seem to represent the MC curve over this range of outputs. Plot these data points and sketch in estimated MC and AVC curves that seem to best fit these data points.
What volume of m calcium chloride : What volume of .250 M calcium chloride would be required to precipitate silver chloride if it is mixed with 600.0 ml of 0.650 M Silver nitrate.
Explain the doctrine of substance over form : An acquaintance of yours is considering acquiring bonds as an investment. Your friend states "I will only invest in bonds that sell at a discount. I can't imagine why a person would pay more than maturity value for the bond. That appears to be pla..
Determining greatest common divisor : Please respond to the following question: Find the greatest common divisor of the following polynomials over F, the field of rational numbers:
Explain hydrochloric acid according to the equation : Q 3: The salt NaBrO(3) oxides Sn^2+ to SnCl(6)^2- in the presence of hydrochloric acid according to the equation
Prepare all journal entries necessary through june : Jensen Company forecasts a need for 200,000 pounds of cotton in May. On April 11, the company acquires a call option to buy 200,000 pounds of cotton in May at a strike price of $0.3765 per pound for a premium of $814.
Write a balanced equation for the reaction : Consider two solutions. One solution is 0.1115 M Ca(OH)(2). The other is 0.1050 M HClO(4). a) Write a balanced equation for the reaction between the two solutions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accounting - theoretical and practical questions

What is meant by the net realizable value for accounts receivable? What is aging of accounts receivable, and how is it used to account for uncollectible accounts? How is the accounts receivable turnover computed? What information does this ratio prov..

  Constructive receipt argument

A taxpayer, who uses the cash method of accounting for tax purposes, received income in 1989, 1990, 1991 and 1992 for illegal espionage activities performed in 1985.

  Computing break-even point and after-tax target profit

Jo Manufacturing Company provides the following data from 2011: 20,000 units were sold for $60 each; total variable expenses were 900,000 and total fixed expenses were $240,000. Jo's income tax rate is 30%.

  Passive loss and research tax questions

Discuss the factors to consider when determining eligibility for the R&D Tax Credit. Discuss your reaction to the president's approach of R&D deduction related to the software training costs.

  Discuss why a buyer may want to order on a bill

Discuss why a buyer may want to order on a bill and hold basis. Why might a seller want to classify an order as bill and hold if it does not meet the above criteria?

  Calculating federal tax due

Sheniqua, a single taxpayer, had taxable income of $73,239. Her employer withheld $14,077 in federal income tax from her paychecks throughout the year. Using the tax tables

  Discontinue production of subassemblies

Making decision for discontinue production of subassemblies and purchase from an outside supplier.

  Problem regarding investment opportunity

Patrick Seeley has $2,400 that he is looking to invest. His brother approached him with an investment opportunity that could double his money in four years. What interest rate would the investment have to yield in order for Patrick's brother to de..

  Tax court appeal

George's case was handled under the "small tax case procedure." He does not agree with the findings of the Tax Court. He would like to appeal the decision of the Tax Court. Which one of the following is true?

  Determining performance evaluation-residual income

Calculate net operating income and residual income for each division. Compare the two divisions and discuss the usefulness of ROI and residual income for the purpose of comparing the divisions.

  Prepare journal entry-income statement

The following information has been obtained for the Kerdyk Corporation. Compute taxable income and income tax payable for 2007.

  Balance sheet as cash and cash equivalents

What amount will Cashmere Soap include in its year-end balance sheet as cash and cash equivalents?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd