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LekaFEV [45]
3 years ago
6

Molly is a 30% partner in the MAP Partnership. During the current tax year, the partnership reported ordinary income of $200,000

before payment of guaranteed payments and distributions to partners. The partnership made an ordinary cash distribution of $20,000 to Molly, and paid guaranteed payments to partners Molly, Amber, and Pat of $20,000 each ($60,000 total guaranteed payments). How much will Molly’s adjusted gross income increase as a result of the above items? a. $42,000 b. $60,000 c. $62,000 d. $80,000
Business
1 answer:
loris [4]3 years ago
8 0

Answer:

The answer is: C) $62,000

Explanation:

The partnership had a total ordinary income of $200,000. It made guaranteed payments to its three partners (Molly, Amber and Pat) of $20,000 each ($60,000 in total).

So the partnership adjusted income is reduced to $140,000, out of that amount, 30% belongs to Molly. Molly's share of the partnership adjusted income is $42,000.

Molly's total earnings from the partnership are $62,000 ($20,000 + $42,000)

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Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding
loris [4]

Answer:

Compute the amount of funds Ms. Bragg needs to borrow for June.

  • $162,850

Determine the amount of interest expense the restaurant will report on the June pro forma income statement.

  • $0, money is borrowed on June 30th there is no interest expense during June

What amount will the restaurant report as interest expense on the July pro forma income statement

  • $1,357

Explanation:

accounts receivable May 31 is $56,000.

budgeted cash sales for June $145,000

credit sales for June $591,000

65% of credit sales are collected in current month, 35% collected next month

suppliers are paid on the last day of the month

budgeted cash payments for June 30th = $710,000

cash balance $38,000

how much money does Ms. Bragg need to borrow on June 30?

total cash collections in June = $56,000 (from previous month) + $145,000 (cash sales) + $384,150 (65% of $591,000) = $585,150

payments - cash collected = $710,000 - $585,150 = $124,850

money borrowed on June 30 = $124,850 + $38,000 (desired cash balance) = $162,850

interest expense during July = $162,850 x 10% x 1/12 = $1,357

8 0
3 years ago
Jeff, the owner of the toy box (a toy store), has chosen his products carefully. they are all handmade of wood; none are cheap g
AlladinOne [14]
All of Jeff's activities are aimed at giving Jeff a sustainable competitive advantage through Strategic Positioning. Strategic positioning attempts to achieve a sustainable competitive advantage by preserving what is distinctive about a company.  A company has a sustainable competitive advantage when it acquires some qualities or attributes which are different from other competitors in the market and which makes it outstanding in the market, and when these advantages last for many years, then they are known as sustainable competitive advantages.
6 0
3 years ago
Ellen Carson’s sales for 5 months were $26,908, $28,386, $28,730, $27,290, and $29,009. What must be her sales next month if she
hjlf

Answer:

$28,065

Explanation:

The moving averages method uses the means of the previous months as the forecast for the next months.

The formula for the moving average is as below.

Moving Average = (n1 + n2 + n3 + ...) / n

In this case, the Moving average = $26,908 +$28,386 +$28,730, $27,290+  $29,009 / 5

= $140,323 /5

=$28,064.6

=$28,065

7 0
3 years ago
The government has just voted to repair the parking garages to all federal building and estimate the cost to be $750,000. the go
leonid [27]
Committed.

 A committed facility is a credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company.
8 0
3 years ago
Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th
Nina [5.8K]

Answer:

5.925%

Explanation:

For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment

Given that,  

Present value = $1,050

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8%  = $80

NPER = 20 year - 1 year = 19 year

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 7.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.50% × ( 1 - 0.21)

= 5.925%

3 0
3 years ago
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