Answer:
b. $10,000
Explanation:
Calculation to determine Eileen recognizes gain on the transfer
Recognized gain=Basis -Fair market value
Recognized gain=$190,000 -$180,000
Recognized gain=$10,000 gain
Therefore Eileen recognizes gain on the transfer of:$10,000
Answer:
a. $ 898,750 55.63%
Explanation:
The computation of the expected dividend payout ratio is shown below:
Expected dividend pay out ratio = 100 - {(capital budget × equity ratio) ÷ (net income} × 100
= 100 - {($725,000 × 55%) ÷ ($898,750} × 100
= 100 - ($398,750 ÷ $898,750) × 100
= 100 - 44.37%
= 55.63%
The net income is
= $725,000 × 55% + $500,000
= $398,750 + $500,000
= $898,750
Answer:
1. Rule out other explanations such as an error by the computer distributor.
Explanation:
The best and most appropriate action is to rule out explanation. There can be an error with the shipment or by computer distributor. Before suspecting Bill for the missing computer we need to seek explanation from him. The computer can either be loss or missed out when shipped. Bill should be asked to explain the missing inventory. The explanation from Bill can be a point for further investigation.
A discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler.
