Answer:
What is Bob’s basis in the warehouse and in the land?
- warehouse basis = $53,571
- land basis = $71,429
Explanation:
since the total appraisal value was $75,000 + $100,000 = $175,000, we must allocate the basis using a coefficient = $125,000 / $175,000 = 0.714285
- warehouse basis = appraised value x coefficient = $75,000 x 0.714285 = $53,571
- land basis = appraised value x coefficient = $100,000 x 0.714285 = $71,429
- total = $53,571 + $71,429 = $125,000 (total purchase price)
Since the transaction price was lower than the appraised value, we must adjust the basis for both the land and the warehouse in the same proportion.
Household spending on goods and services is known as consumption spending.
Explanation:
Consumption spending is the purchasing of goods and services by individuals or families. At the macroeconomic point, it is the bulk of aggregate demand. Household spending is the amount resident households pay for end-consumption spending to meet their daily needs.
Consumer spending is the overall money that individuals and households spend on the final goods and services for personal use and pleasure in an economy. Consumer spending is a major economic driving factor and a central principle in economic theory.
(Not completely sure) Tate and Anna should purchase dental insurance
Answer:
= $865.79
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>
Value of Bond = PV of interest + PV of RV
The value of bond of Morin Company can be worked out as follows:
Step 1
PV of interest payment
PV = A × (1-(1+r)^(-n))/r
r- 8%, n- 10, A- interest payment = 60
PV of interest
= 60× (1- (1+0.08)^(-10)/0.08
= 402.60
Step 2
<em>PV of Redemption Value</em>
PV = RV × (1+r)^(-n)
= 1,000 × (1.08)^(-10)
= $463.193
Step 3
<em>Price of bond</em>
= $536.80 + 463.19
= $865.79
Answer:
Explanation:
The retained earning are the earnings of the business organization which is earned until the date.
The net income or net loss would reflect in the statement of the retained earning account.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
The journal entry is shown below:
Retained earnings A/c Dr $3,000
To Dividend A/c $3,000
(Being dividend account is closed)
