Three years ago, sharon loaned her sister $30,000 to buy a car. a note was issued for the loan with the provision for monthly payments of principal and interest. last year, sharon purchased a car from the same dealer, hank's auto. as partial payment for the car, the dealer accepted the note from sharon's sister. at the time sharon purchased the car, the note had a balance of $18,000. during the current year, sharon's sister died. hank's auto was notified that no further payments on the note would be received. at the time of the notification, the note had a balance due of $15,500. what is the amount of loss with respect to the note that hank's auto may claim on the current year tax return?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?