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4 years ago

Four major types of transactions that affect equity in a business are

1 answer:

7 0

Equity in a business is simply the net worth of an individual or a company or a business organisation. It is calculated by subtracting liabilities from the assets (Assets - Liabilities). It is the sum of earnings, inventory and other assets less overheads, loans and other liabilities incurred by a business. Therefore, in this case the major types of transactions that affect equity in a business includes, revenues, expenses, owners withdrawals, and owners investments.

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Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten ye

romanna [79]

Answer:

(D) $71,446

Explanation:

we will calcualte the present value for an 11 payments annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%

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

C 10,000

time 11

rate 0.1

$10000 \times \frac{1-(1+0.1)^{-11} }{0.1} (1 + 0.10) = PV\\$

PV $71,445.6711

rounding to the nearest dollars: 71,446

6 0

4 years ago

On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note.

nadya68 [22]

Answer:

Sam must report $700,000 distribution from Silver on his Income report.

Explanation:

The sale of the land is made by the corporation and the corporation is a tax payer therefore any gains and losses are for the company to pay tax on.

The deficits in the E&P are for Silver to take into account when about to pay taxes.

The basis of $200,000 is not income but cost and subtracted on the distribution income as is for Sam.

6 0

3 years ago

A registered person wants to set up an investment program for a charity and will not be receiving compensation for his service.

Jlenok [28]

Answer:

B) He is required to provide written notice to his broker-dealer.

Explanation:

Under self-regulatory organization (SRO) rules, if a registered person engages transaction involving private securities, he/she must provide a written notice to his firm. Even if their is no compensation involved, the firm still has the right to impose certain conditions regarding the participation of the registered person.

4 0

3 years ago

) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for Bodbbm177 Corporation

m_a_m_a [10]

Answer: Disadvantage of -$5,800

Explanation:

Incremental sales revenue if processed further and sold = (12 - 10) * 2,200

= $4,400

Additional cost = $10,200

Financial Advantage(Disadvantage) = Incremental revenue - Additional cost

= 4,400 - 10,200

= -$5,800

3 0

3 years ago

Mutual interdependence occurs when

Alekssandra [29.7K]

Answer:

See below

Explanation:

Mutual interdepence means that action of one firm is seen and copied by others.

7 0

3 years ago