Explanation:
When a new partner is admitted a new agreement is formed and thus the firm is reconstituted.
Answer:
Conyers = $38,580
Poodle = $222,420
Explanation:
Annual salary allowance to Poodle of $146,160.
Interest of 6% on each partner's capital balance on January 1.
Any remaining net income divided to Conyers and Poodle, 1:2.
net income $261,000
distribution of interests:
- Conyers = $54,000 x 6% = $3,240
- Poodle = $93,000 x 6% = $5,580
drawings (annual salary allowance):
remaining income = $261,000 - $146,160 - $3,240 - $5,580 = $106,020
- Conyers (1/3) = $35,340
- Poodle (2/3) = $70,680
total distributed:
- Conyers = $3,240 + $35,340 = $38,580
- Poodle = $5.580 + $146,160 + $70,680 = $222,420
Answer:
d. $2,950,000
Explanation:
The computation of amount of research and development costs charged is shown below:-
Amount of research and development costs = Direct materials + Personnel cost + Consulting fee paid to outsiders + Indirect costs + Depreciation
= $995,000 + $795,000 + $345,000 + $270,000 + $545,000
= $2,950,000
Therefore for computing the amount of research and development costs we simply applied the above formula.
Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
