Answer:
$62,000
Explanation:
Calculation to Determine Barnaby's basis at the end of the tax year
Using this formula
Ending tax year Barnaby's basis in the partnership=[BBB Partnership basis+( Share of debt-Share of partnership debt)+ Share of Partnership's income +Share of partnership's nontaxable income-Cash distributions]
Let plug in the formula
Ending tax year Barnaby's basis in the partnership =$50,000 + ($8,000-$5,000) + $20,000 + $1,000 - $12,000
Ending tax year Barnaby's basis in the partnership =$50,000 + $3,000 + $20,000 + $1,000 - $12,000
Ending tax year Barnaby's basis in the partnership = =$62,000
Therefore Barnaby's basis at the end of the tax year will be $62,000
Answer:
1. Repainted the office building: This should be capitalized.
2. Added a new wing onto the office building: This should be capitalized.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This should be expensed.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized.
4. Added newer electronic locks on the doors in the production building: This should be expensed.
Explanation:
1. Repainted the office building: This should be capitalized. This is because repainting is a repair that will restore the physical structure of the office building and significantly improve it. Since it is a capital improvement cost, it should be capitalized and depreciated like other fixed assets.
2. Added a new wing onto the office building: This should be capitalized and depreciated like other fixed assets since it is a capital expenditure that significantly added to the structure of the office building.
3. Took their fleet of cars in for servicing (changing the oil, etc.).: This falls under repair and should be expensed.
4. Added newer electronic locks on the doors in the production building: This should be expensed. Cost of locks and keys are ordinary expenses that do not improve the physical structure of the production building.
5. Had an engine rebuilt in one of their fleet cars: This should be capitalized. It is a tangible improvement to the fleets of cars and this kind of costs fall under capital expenditures.
Answer: Option A
Explanation: In simple words, business plan refers to an outline of framework that guides an organisation regarding its operations in future.
Business plan helps the organisation and its employees to set the chain of activities they need to perform for achieving their goals. Business plans also helps to determine the amount of capital needed to finance the projects that further helps the organisation to seek outside funding.
Hence from the above we can conclude that the correct option is A.
