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puteri [66]
3 years ago
6

Steve King and Chelsy Boxer formed a partnership, dividing income as follows: Annual salary allowance to Boxer of $125,670. Inte

rest of 5% on each partner's capital balance on January 1. Any remaining net income divided to King and Boxer, 1:2. King and Boxer had $60,000 and $111,000, respectively, in their January 1 capital balances. Net income for the year was $213,000. How much is distributed to King and Boxer?
Business
1 answer:
DaniilM [7]3 years ago
8 0

Answer:

King =  29260

Boxer = 183740

Explanation:

The Distribution of Net income will be as follows.

Net Income                                          $213000

<u>Less: Interest on Capital</u>

King                                    3000

Boxer                                  <u>5550</u>           (8550)

<u>Less: Salary</u>

Boxer                                                      <u>(125670)</u>

Residual Profit                                        78780

<u>Share of Profit</u>

King [78780 * 1/3]                                   26260

Boxer [78780 * 2/3]                               <u>52520</u>

<u />

King = 3000 + 26260 = 29260

Boxer = 5550 + 125670 + 52520 = 183740

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Lowden Company has an overhead application rate of 165% and allocates overhead based on direct material cost. During the current
AlekseyPX

Answer:

The amount of overhead that Lowden should be recorded in the current period = 165% * $74,000  =   $122,100

Explanation:

6 0
3 years ago
FILL IN THE BLANK. because the market outcomes in a competitive oligopoly are between those of a ___ , deadweight loss still exi
klemol [59]
Answer: monopoly and a perfectly competitive market

Because the market outcomes in a competitive oligopoly are between those of a monopoly and a perfectly competitive market, deadweight loss still exists, but it is lower than when there is collusion.
4 0
1 year ago
The Oviedo Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the opera
Elza [17]

Answer:

Yes it should as the net present value at the firm WACC is positive $ 4,156.54

Explanation:

we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide

So we should check if the present value of the savings is greater or equal than the machine cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C $ 8,000

time 10 years

rate=WACC= 0.1

8000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\  

PV $49,156.5368  

Net present value:

inflow - cost

49,156.54 - 45,000 = 4,156.54

6 0
3 years ago
When firms are said to be price takers, it implies that if a firm raises its price: a. buyers will go elsewhere. b. buyers will
MatroZZZ [7]

Answer:

The correct answer is a. buyers will go elsewhere.

Explanation:

This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.

3 0
3 years ago
Audio engineers at 3XT2 have determined that an anechoic additive will increase isolation and improve signal to noise by about 2
Crazy boy [7]

Answer:

The correct answer is $83230

Explanation:

Solution

Given that:

The Present worth of geometric series is shown below

= A *[1 - (1+g)^n /(1+i)^n] / (i-g)

Now,

The present  cost of worth from EOY 5 to EOY 13 at EOY 4 = 7000 *[1 - (1+0.12)^9 /(1+0.15)^9] / (0.15-0.12)

Thus,

= 7000 *[1 - (1.12)^9 /(1.15)^9] / (0.03)

Which is,

= 7000 * 7.0572647

= 49400.85

Now, The NPW of all costs = 35000 + 7000*(P/A,15%,4) + 49400.85*(P/F,15%,4)

= 35000 + 7000*2.854978 + 49400.85*0.571753

= 83229.93

Therefore the sound improvement better result in a net present worth profit of how much to negate the costs is $83229.93 or 83230

Note: EOY = End of year.

6 0
3 years ago
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