Answer:
a Interest paid to partners based on the amount of invested capital.
Explanation:
A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.
Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.
Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.
Answer:
Coverage D
Explanation:
Coverage D basically refers to insuring against the loss of use of your house, i.e. you cannot live in your house temporarily. Coverage D will provide for additional living expenses to the insured in order to cover lodging expenses while the insured property is being repaired and can be used again.
If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now. If the consumer expects that her income will be higher in the future the consumer may buy the good now. In other words positive expectations about future income may encourage present consumption.
Answer:
Explanation:
Calculation of total loss:
Net loss 320,000
Preferred dividend [5000*8%*100] 40,000
Total loss 360,000
Calculation of shares:
Common shares 250,000
Additional common stock [36,000*7/12] 21,000
Total shares 271,000
Loss per share = 360,000/271,000 = $1.328
