Answer:
5
Explanation:
The formula to compute the interest coverage ratio is shown below:
= (Earning before tax + interest expense) ÷ (interest expense)
where,
Earning before tax equal to
= Net income ÷ (1 - tax rate)
= $120 ÷ (1 - 0.40)
= $200
And interest expense is $50
So, the interest coverage ratio equal to
= ($200 + $50) ÷ ($50)
= 5
Im pretty sure that it is d
Answer:
3.53 years
Explanation:
The computation of the payback period is shown below:
In year 0 = $8,300
In year 1 = $2,100
In year 2 = $3,000
In year 3 = $2,300
In year 4 = $1,700
If we sum the first 3 year cash inflows than it would be $7,400
Now we subtract the $7,400 from the $8,300 , so the amount is $900 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $1,700
So, the payback period equal to
= 3 years + $900 ÷ $1,700
= 3.53 years
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.
