Answer:
The Rex’s gross income from the partnership in 2019 and 2020 is $1,20,000 and $1,80,000 respectively
Explanation:
The computation of the gross income for each year is shown below:
In 2019:
Gross income = Taxable income × percentage of interest in profits
= $400,000 × 30%
= $1,20,000
In 2020:
Gross income = Taxable income × percentage of interest in profits
= $600,000 × 30%
= $1,80,000
The withdrawn amount is not consider for computing the gross income. So, we ignored it
Answer:
D) Theoretical reason
Explanation:
Theoretical reason is the pursuit of truth, knowledge and wisdom. It is the reason that leads to cognition. According to this belief, science is the ultimate means to truth. By following theoretical reason, we are in search of the highest standard for what we should believe and live by.
Answer:
Option C. 30,000 decrease
Explanation:
At the moment Product G is covering its own variable cost which is 180,000 from its sale figure of 210,000. So there is a balance of 30,000 which product G is contributing to offset the Fixed costs of the company.
It will be inadvisable for management to discontinue the production of Product G because it appears to be making a loss. The loss is as a result of the fixed cost of 50,000 imposed (apportioned) to the product. So product G can only cover 30,000 out of this 50,000 which is resulting in the 20,000 loss.
If the product is discontinued, the 30,000 contribution of product G will be lost which will lead to a decrease in profit of that amount.
In this case the Atlantic bank will respond by increasing its bank reserves.
Bank reserves is the minimal amount of cash that financial institutions must keep on hand in order to comply with central bank standards . The purpose of the cash reserve regulations is to make sure that every bank has enough cash on hand to handle any significant and unforeseen demand for withdrawals.
The federal discount rate is the interest rate that the Federal Reserve bank charges banks to borrow money from it.
A higher discount rate makes it more expensive for banks to borrow, which reduces the amount of money available and reduces investment activity. In contrast, a decline in the discount rate lowers the cost of borrowing for commercial banks, which increases the amount of credit that is accessible and lending activity across the economy.
To learn more about bank reserves here
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