ATTENTION: I PAY EVERY MONTH TO BE ABLE TO POSTQUESTIONS HERE. tHEREFORE I EXPECT...

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Accounting

ATTENTION: I PAY EVERY MONTH TO BE ABLE TO POSTQUESTIONS HERE. tHEREFORE I EXPECT COMPLETE AND QUALITY ANSWERS.PLEASE READ CAREFULLY THE QUESTIONS AND ANSWER THEM THOROUGHLY. DONOT COPY AND PASTE A SOLUTION THAT IS ALREADY POSTED BY SOMEONEELSE ON CHEGG. REFRAIN FROM ANSWERING IF YOU CANNOT FULFILL MYDEMAND. DON'T WASTE MY QUESTION AS THEY ARE LIMITED.
THANKS
Business Entities—Partnerships and Corporations
Assume Target Corporation is involved in a major lawsuit and theprobable damages are estimated to be $2,000,000.
A. Describe the effects damage estimates would have on thefinancial statements of a corporation and a partnership.
B. How do disclosure requirements differ from a corporation to apartnership and what information is required?
C. Are the shareholders at risk for any personal liability withthe company set up as a corporation? Defend your response.
D. If Target Corporation was set up as a partnership, would thepartners be at risk for personal liability? Defend yourresponse.

Answer & Explanation Solved by verified expert

4.4 Ratings (635 Votes)

A As per your question if Target corporation is involved in any law suit than the amount of that damage is shown as contingent liability in the fote note ie below balance sheet just because See Answer

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In: AccountingATTENTION: I PAY EVERY MONTH TO BE ABLE TO POSTQUESTIONS HERE. tHEREFORE I EXPECT COMPLETE...ATTENTION: I PAY EVERY MONTH TO BE ABLE TO POSTQUESTIONS HERE. tHEREFORE I EXPECT COMPLETE AND QUALITY ANSWERS.PLEASE READ CAREFULLY THE QUESTIONS AND ANSWER THEM THOROUGHLY. DONOT COPY AND PASTE A SOLUTION THAT IS ALREADY POSTED BY SOMEONEELSE ON CHEGG. REFRAIN FROM ANSWERING IF YOU CANNOT FULFILL MYDEMAND. DON'T WASTE MY QUESTION AS THEY ARE LIMITED.THANKSBusiness Entities—Partnerships and CorporationsAssume Target Corporation is involved in a major lawsuit and theprobable damages are estimated to be $2,000,000.A. Describe the effects damage estimates would have on thefinancial statements of a corporation and a partnership.B. How do disclosure requirements differ from a corporation to apartnership and what information is required?C. Are the shareholders at risk for any personal liability withthe company set up as a corporation? Defend your response.D. If Target Corporation was set up as a partnership, would thepartners be at risk for personal liability? Defend yourresponse.