Answer: customer's beginning tax basis = $10,000
Explanation:
Customer's beginning tax basis are the initial cost of the partnership for commission legal and organizational fees and these are not deductible from the cost basis.
Given: A customer subscribes to a $10,000 limited partnership interest.
That means initial cost = $10,000
So, the customer's beginning tax basis = $10,000
Answer:
Which product is an athlete more likely to endorse? Fast Food
Option b. 7.78% is the correct answer. The cost of equity from retained earnings is 7.78% as per the CAPM approach
The relationship between systematic risk, or the general dangers of investing, and expected return for assets, particularly stocks, is described by the Capital Asset Pricing Model (CAPM).
A linear relationship between the required return on investment and risk is established by this financial model.
Retained earnings refer to the total earnings that a company has generated from its operations minus the dividends distributed among shareholders. The retained earnings are earnings reinvested in the business.
The calculation is shown below.
Cost of equity = Risk-free rate + (beta * Market risk premium)
Cost of equity = 4.10% + (0.70 * 5.25%)
Cost of equity = 4.10% + 3.675%
Cost of equity = 7.77% or 7.78%
Learn more about retained earnings:
brainly.com/question/14529006
#SPJ4
Answer:
The sales amount to be recorded in the above transactions is $24,990
Explanation:
Term 2/15, net 45 means there is a discount of 2% available on the sale amount to the customers who will pay withing 15 days after sale with net credit period of 45 days.
As Pound Co paid the invoice with the discount period so, they will be eligible to claim the discount.
Discount amount = 25,500 x 2% = $510
Net Sales amount = $25,500 - $510 = $24,990
Answer:
Predetermined manufacturing overhead rate= $29 per machine hour
Explanation:
Giving the following information:
Estimated machine-hours 33,100
Estimated variable manufacturing overhead $5.72 per machine-hour
Estimated total fixed manufacturing overhead $770,568
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (770,568/33,100) + 5.72
Predetermined manufacturing overhead rate= $29 per machine hour
