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.

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Bulldog holdings is a u.s.-based consumer electronics company. it owns smaller firms in japan and taiwan where most of its cell phone technology is developed and manufactured before being released worldwide. which of the following alternatives to integration does this best illustrate? a. venture capitalism b. franchising c. joint venture d. parent-subsidiary relationship