Answer the following question:

Part A:

On February 1, 2020, Toronto Corp. factored receivables with a carry amount of $300,000 to JKlit Inc. JKlit assessed a finance charge of 3% of the gross receivables and retained the 5% allowance for uncollectibles. Relative to this transaction, you are to determine the amount of loss on disposal to be reported in the income statement of Toronto Corp. for February. Assume that Toronto factors the receivables on a without recourse basis. The decrease in net income to be reported from this transfer is: Show your work.

a) $24000

b) $9000

c) $0

d) $15000

Part B:

Giordano Corp. sold machinery for $2,000,000 and it was delivered in November 2020. On November 20, the customer informed Giordano Corp. that they were satisfied with the machinery. Giordano Corp. provided a warranty on the machinery for two years from November 20, 2020. The initial estimated warranty cost to Giordano Corp was estimated at $200,000. The stand-alone-value of the warranty is $150,000 and of the machinery is $1,900,000. The machinery can be purchased without the warranty by the customer. What would be the amount of unearned revenue on November 20 recorded by Giordano Corp.? (Round percentages to whole numbers). Show your work.

a) Between $1,800,000-$1,900,000

b) Between $150,000-$160,000

c) None of the choices

d) Between $140,000 - $147,000

e) Between $1,900,000-$2,000,000

Part C:

Lyubushkin Inc's largest customer declared bankruptcy shortly after the company's fiscal year end but before the financial statements for the last fiscal year were issued. This company accounted for roughly 2% of Lyubushkins revenues. At fiscal year-end, this company owed Lyubushkin Inc. $50,000 relating to the preceding fiscal year. Given the above, what should the company do from an accounting/financial reporting standpoint?

a) Will not disclose the event and the estimated amount uncollectible in a note to the financial statements.

b) Note disclosure is only required.

c) Disclose the event as part of management's M, D & A (Management Discussion and Analysis).

d) Accrue for the estimated amount uncollectible. Note disclosure is likely not required.