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daser333 [38]
10 months ago
12

After all assets are sold and liabilities are settled, the partnership of Bina and Niren is liquidated. Capital balances are $30

,000 for Bina and $20,000 for Niren. Cash distributed is $50,000. The transaction to record the distribution of cash to Bina will include a (debit/credit) to Bina, Capital in the amount of $ .
Business
1 answer:
mihalych1998 [28]10 months ago
3 0

After all assets are sold and liabilities are settled, the partnership of Bina and Niren is liquidated. Capital balances are $30,000 for Bina and $20,000 for Niren. Cash distributed is $50,000. The transaction to record the distribution of cash to Bina will include a (debit/credit) to Bina, Capital in the amount of $ .<u>debit; $30,000 ( When the partnership is liquidated, the capital balances will be debited to reduce them to zero)</u>

<h3>What is Capital balances?</h3>

In international macroeconomics, the capital account is the portion of the balance of payments that keeps track of all transactions between entities in one country and entities in other countries. These exchanges involve the import and export of commodities, services, capital, as well as transfer payments like remittances and international aid. A capital account and a current account make up the balance of payments, while a more specific definition subdivides the capital account into a financial account and a capital account. The current account monitors the country's net revenue, whereas the capital account tracks changes in national ownership of assets.

The capital account in accounting displays the net worth of a company at a particular point in time.

To learn more about the Capital balances from the given link:

brainly.com/question/25765264

#SPJ4

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Wild Flowers Express has a debt-equity ratio of .60. The pretax cost of debt is 9 percent while the unlevered cost of capital is
andre [41]

Answer:

0.1631 ; 16.31%

Explanation:

Given:

Cost of capital = 14% = 0.14

Debt to equity ratio = 60% = 0.6

Cost of debt = 9% = 0.09

Tax rate = 23% = 0.23

Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)

Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)

Cost of equity :

0.14 + 0.60 * 0.77 * 0.05

0.14 + 0.0231

= 0.1631 ; 0.1631 * 100% = 16.31%

4 0
2 years ago
. El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.4. Bas
almond37 [142]

Answer:

The firm's unleveraged beta is 1.0251

Explanation:

Hamada's equation  is used to separate the financial risk of a levered firm from its business risk.

The Hamada equation:

Bu= Bl/(1 + (1 − T)(D/E))

Bl = 1.4

wd = 0.36

Tax rate = 35%

D/E = wd / (1 – wd) = 0.5625 = 56.25%

= 1.4/ (1+(1-0.35)(0.5625))

=1.4/ 1 + (0.65)(0.5625)

=1.4/1.36

= 1.0251

5 0
3 years ago
Matt is considering the purchase of a condo on a mortgage. However, he is not sure on the amount of mortgage he is eligible for.
Rudiy27

Answer:

A. Prequalification

Explanation:

First, the Options to the Question

a. Prequalification

b. A contingency clause

c. A Multiple Listing Service

d. Due diligence

What is a PreQualification in Mortgage Processing

Because most persons who are interested in buying a home do not have hundreds of thousands of dollars in cash to purchase the home of their dreams, the concept of mortgage is to approach a lender who will then advance the needed sum for the purchase and then the borrower will pay the advanced sum over some time (most times up to 30 years) at an interest rate.

A PreQualification is a process through which the lender evaluates the creditworthiness of the borrower and also decide the amount of loan the borrower is entitled to. This is done through the financial documents and records made available to the lender by the borrower

One important takeaway from a prequalification is that it is an approximation of what a borrower is entitled to base solely on the information given to the lender. It is, therefore, an approximation which can be less or more when the official application for the loan is submitted.

As stated in the question, getting a prequalification helps Matt to identify and understand the areas of problems and credit report errors that may arise and then he can use the prequalification information to attend to these errors and ensure a proper application is submitted that will allow him to maximise the amount of loan that can be made available to him.

Once Matt has corrected errors and identified problems that may arise on his mortgage application, he then gathers the relevant document and goes for the first formal process in mortgage processing which is the preapproval.

6 0
3 years ago
Read 2 more answers
Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $22,000 on December 31, 2016, after acco
Marina CMI [18]

Answer:

The answer is Lola should acknowledge a $3,000 from this distribution.

Explanation:

From the question given, we say that, Lola should acknowledge a $3,000 from this distribution.

Recall that

The Cash Distributed  cash = $ 25,000

The Basis in this ownership of interest is  = $22,000

The Gain = $3,000

Lola basis after the distribution is zero.

Therefore Lola should accept this distribution of a $ 3000

7 0
3 years ago
Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per
Roman55 [17]

Answer and Explanation:

The computation of the price that should be sell is shown below:

As we know that

Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)

a. The price is

= $3 × 1.05 ÷ (15% - 5%)

= $31.50

b. Now the price is

= $3 × 1.05 ÷ (12% - 5%)

= $45

Hence, the above represent the answer in both the cases.

6 0
2 years ago
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