How does coverage for a business relate to individual insurance?

Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contribu

spin [16.1K]

Answer:

$102,000

Explanation:

According to 26 US code Section 704(c) - Partner's distributive share :

Taxable gain to be recognized from sale = Sale value - ( Partner's share * Fair market value )

Brooke contributed the land, the gain realized before the land was contributed = $120,000 - $90,000 will be allocated entirely to her. She will also be allocated 40% of the gain after the contribution was made = ($150,000 - $120,000) x 40% = $30,000 x 40% = $12,000.

So the total gain recognized by Brooke will be $90,000 + $12,000 = $102,000.

Partnerships are pass through entities, the partners are taxed, not the partnership itself.

3 0

3 years ago

Union Company reported the following information about the production and sale of its only product during the first month of ope

AleksAgata [21]

Answer:

C) $200.00

Explanation:

Absorption Product Cost = Direct Labor + Direct Materials + Variable Overheads + Fixed Overheads

Thus, we need to Calculate the Total Cost of Goods Manufactured as follows :

Direct materials used $160,000

Direct labor $100,000

Variable factory overhead $60,000

Fixed factory overhead $80,000

Total Cost of Goods Manufactured $400,000

Then Calculate the product cost per unit

Product cost per unit = Total Cost / Total Production

= $400,000 / ($315,000/$225.00 + 600)

= $400,000 / 2,000

= $200.00

Note : Total Production = Units Sold <em>plus</em> Ending Finished Goods Inventory

3 0

3 years ago

Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p

Gelneren [198K]

Answer:

Lillich, Inc.

The unit product cost of Products U6 under activity-based costing is closest to: $1,460

Explanation:

a) Data about expected production of Products U6 and R5:

Expected Direct Labor-Hours Total Direct

Production Per Unit Labor-Hours

Product U6 640 8.4 5,376

Product R5 1,015 5.4 5,481

Total direct labor-hours 10,857

The direct labor rate is $27.50 per DLH.

Direct Materials Cost per Unit Product U6$249.30 Product R5 $166.70

Activity Cost Pools Activity Estimated Expected Activity

Measures Overhead Product U6 Product R5 Total

Cost

Labor-related DLHs $ 196,138 5,376 5,481 10,857

Production orders Orders 67,340 800 700 1,500

Order size MHs 1,015,108 5,400 5,700 11,100

$1,278,586

Overhead Costs:

Product U6 Product R5 Total

Labor-related overhead costs $97,121 $99,017 $196,138

Production orders 35,915 31,425 67,340

Order size 493,836 521,272 1,015,108

Manufacturing overheads $626,872 $651,714 $1,278,586

The direct labor rate is $27.50 per DLH

Product U6 Product R5 Total

Expected Production 640 1,015

Direct labor hours 5,376 5,481 10,857

Direct Materials Cost per Unit $249.30 $166.70

Direct material costs $159,552 $169,200.50 $328,752.50

Direct labor costs 147,840 150,727.50 298,567.50

Manufacturing overhead 626,872 651,714.00 1,278,586.00

Total production costs $934,264 $971,642.00 $1,905,906.00

Unit cost $1,459.79 $957.28

5 0

3 years ago

Red Industries began operations on April 11th, 2022. Red purchased $2,100 of supplies, and a physical count showed that $400 of

schepotkina [342]

Answer:

Explanation:

The journal entry is shown below:

Supplies expense A/c Dr $1,700

To Supplies A/c $1,700

(Being supplies account is adjusted)

The supplies expense is computed below

= Purchase value of supplies - supplies on hand at year end

= $2,100 - $400

= $1,700

For recording, this given transaction we debited the supplies expense account as the remaining balance is transferred to supplies expense and credited the supplies account

8 0

3 years ago

What are the three basic functions of money ?

Naddika [18.5K]

Answer: Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.

7 0

3 years ago

Read 2 more answers