Answer:
You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.
Explanation:
a. Corporation A realized a $4.000 loss, and Corporation Z realized a $68.000 gain on the contribution of business equipment to AZ partnership. Neither corporation recognizes gain or loss.
b. A's basis in it's one-half equity interest in AZ Partnership is $134.000, while Z's basis in it's one-half equity in AZ partnership is $62.000.
c. AZ partnership's basis in the equipment contributed by A is $34.000 and in the equipment contributed by B is $12.000.
Answer:
<u>BALANCE SHEET</u>
<em>ASSETS </em>
Cash 1410
Accounts Receivable 950
Prepaid insurance 110
Stock investments 1290
Inventory 1107
Equipment 2560
Accumulated Depreciation Equipment -670
Land 3240
TOTAL ASSETS 9997
<em>LIABILITIES</em>
Accounts Payable 884
Income tax payable 185
Mortgage payable 3640
Notes payable 201
Salaries and wages payable 272
TOTAL LIABILITIES 5182
NET EQUITY
Retained earnings (beginning) 1600
Common stock 1320
Dividends -375
<em>Net Income 2270
</em>
TOTAL NET EQUITY 4815
TOTAL LIABILITIES+TOTAL NET EQUITY 9997
<u>INCOME STATEMENT</u>
Sales revenue 5240
Cost of goods sold -1110
Gross Profit 4130
Salaries and wages expense -650
Insurance expense -260
EBITDA 3220
Depreciation expense -285
EBIT 2935
Interest expense -450
EBT 2485
Income Tax expense -215
<em>NET INCOME 2270</em>
Explanation:
According to the accounting equation the total of the assets should be equal to the sum between the liabilities and net equity. One of the components of the net equity is the net income that can be visualized in the final line of the income statement.
<span>Margaret Rousseau developed techniques to mass-produce: penicillin.
Explanation: Margaret Rousseau was a chemical engineer who designed the first penicillin production plant
An entrepreneur is best defined as a person who: takes financial risk to try new business ideas
Explanation: The element of financial risk is inherent in entrepreneurship.</span>
