Emc corporation manufactures large-scale, high-performance computer systems. in a recent annual report, the balance sheet included the following information ($ in millions): 2015 2014 current assets: receivables, less allowances of $90 in 2015 and $72 in 2014 $3,977 $4,413 in addition, the income statement reported sales revenue of $24,704 ($ in millions) for the current year. all sales are made on a credit basis. the statement of cash flows indicates that cash collected from customers during the current year was $25,737 ($ in millions). there were no recoveries of accounts receivable previously written off. required: 1. compute the following ($ in millions): a. the amount of bad debts written off by emc during 2015. b. the amount of bad debt expense that emc included in its income statement c. the approximate percentage that emc used to estimate bad debts for 2015, assuming that it used the income statement approach 2. suppose that emc had used the direct write-off method to account for bad debts. compute the following ($ in millions): a. the accounts receivable information that would be included in the 2015 year-end balance sheet. b. the amount of bad debt expense that emc would include in its 2015 income statement,

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.