Answer:
B. - 5.71%
Explanation:
Given that
Purchase price = 1000 × 35 = 35000
Selling price = 1100 × 30 = 33000
Recall that
ROI = Net profit/total investment × 100
And that
Net profit = selling price - purchase price
= 33000 - 35000
= -2000
Therefore,
ROI = -2000/35000 × 100
= - 0.05714 × 100
= - 5.71 %
Thus, total return on investment is -5.71%
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.
The entry for this transaction would be this:
Land 1,827,000
Ordinary shares 1,827,000
#
<span>The market value of the shares on </span>this transaction<span> does not affect the recording of this transaction. If the share has no par value, the stated value should be used. Stated value is a value assigned by the company to its stock for the purpose of accounting and it does not have any relation with the market value of the shares. Since stated value is not given in this problem, we should record the entire amount of the land exchanged in this transaction to the "Ordinary shares" account.</span>
Answer:
Future value is approximately $3,183,600 which is equal to $3,184,000.
Explanation:
Please see attachment
