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harkovskaia [24]
3 years ago
6

Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba

lance accounted for under the goodwill method. Partnership net income or loss is allocated 60% to Cor and 40% to Eng. To form the partnership, Cor originally contributed assets costing $30,000 with a fair value of $60,000 on January 2, 20X1, while Eng contributed $20,000 in cash. Drawings by the partners during 20X1 totaled
$3,000 by Cor and $9,000 by Eng. Cor-Eng's 20X1 net income was $25,000. Eng's initial capital balance in Cor-Eng is
A. $25,000
B. $20,000
C. $60,000
D. $40,000
Business
1 answer:
hjlf3 years ago
8 0

Answer:

$20,000

Explanation:

The problem simply asks for Eng's initial capital balance in Cor-Eng partnership and it is just Eng's <u>contributed cash of $2,000</u> to form the partnership.

No need to dwell on the other amounts. Just focus on what was being asked and you'll not get lost ^_^

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Use the following data to compute total manufacturing costs for the month:
Akimi4 [234]

Answer:

$132,300

Explanation:

The total manufacturing costs for the month can be calculated as follows

Direct labor + indirect materials + factory manager salary + indirect labour + direct materials + depreciation on factory equipment

= 40,600 + 16,200 + 8,200 + 10,000 + 7,300 + 41,500 + 8,500

= $132,300

Hence the total manufacturing costs if $132,300

7 0
3 years ago
On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight
Darya [45]

Answer: c. $94,240

Explanation:

On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.

Note payable value = Present value of seven $20,000 payments

= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.

= 20,000 * 4.712

= $94,240

5 0
2 years ago
As of December 31, 20X14, Eliot Corp. has net income per books of $100,000, which includes municipal bond interest of $4,000, a
muminat

Answer:

Option (e) is correct.

Explanation:

Taxable Income:

= Net income per book - municipal bond interest + deduction for business meals + deduction for a net capital loss + deduction for federal income taxes

= $100,000 - $4,000 + 50% of $5,000 + $5,000 + $22,000

= $125,500

Eliot Corp.'s current earnings and profits (Current E&P) for 2014:

= Taxable Income + municipal bond interest - deduction for federal income taxes - deduction for a net capital loss

= $125,500 + $4,000 - $22,000 - $5,000

= $102,500

5 0
3 years ago
Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.

8 0
3 years ago
A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.2. What do in
gladu [14]

Answer:

$53

Explanation:

The computation of the stock sale at the end of the year is computed after calculating the required rate of return and the growth rate

The required rate of return by applying the Capital Asset Pricing model formula is

= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 6% + 1.2 × (16% - 6%)

= 6% + 12%

= 18%

Now the growth rate is

Stock price = Dividend per share÷ (Required rate of return - growth rate)

$50 = $6 ÷ (18% - growth rate)

So, the growth rate is 6%

Now the ending stock price is

Next year dividend ÷ (Required rate of return - growth rate)

where,  

Next year dividend is  

= $6 + $6 × 6%

= $6 + 0.36

= $6.36

So,

= ($6.36) ÷ (18% - 6%)

= $53

5 0
3 years ago
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