Question

IVE. O EnergyRadio.com ap Watch Bleach Anim. Dragon Ball Super E. Sradable Assignment i Savod Help Save & For each of the following cases, respond to the question and indicate the accounting principle or concept that applies. Required: 1. Williamson, LLC, paid insurance premiums of $3,600 on December 1, 2019. These premiums covered a two-year period beginning on that date. Whiat amount, from this payment, should the corporation show as insurance expense for the year 2019? What accounting principles, conventions, or assumptions support your answer? 2. Taylor Moore buys and sells real estate. On December 31, 2019, her inventory of property included a tract of undeveloped land for which she had paid $980,000. The fair market value of the land was $1,080,000 at that date. How much income should Moore report for 2019 in connection with this land? 3. Madison Building Company signed a contract with a customer on November 1, 2019. The contract called for construction of a building to begin by December 31, 2019, and to be completed by December 31, 2020. The contract price was $10.6 million. Madison estimated that the building would cost $7.6 million. On November 15, 2019, the customer was required to make an advance payment of $1,080,000. No work was done on the project until January 2020. How much income from the project should Madison report in 2019? Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Taylor Moore buys and sells real estate. On December 31, 2019, her inventory of property included a tract of undeveloped land for which she had paid s980,000. The fair market value of the land was s1,080,000 at that date. How much income should Moore report for 2019 in connection with this land? 1 of 2 Prew Next >

Answer 1

2. Income reported in connection with land = NIL

As per Prudence Concept, only liabilities and expenses are recorded as soon as they occur, but revenues only when they are assured or realized