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hodyreva [135]
3 years ago
14

Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules: Nancy an

d Betty will receive salaries of $1, 300 and $13, 500 respectively as the first allocation. The next allocation is based on 10% of each partner's capital balances. Any remaining profit or loss is to be allocated completely to Betty. The partnership's net income for the first year is $40,000. Nancy's capital balance is $100,000 and Betty's capital balance is $11,000 as at the end of the year. Calculate the share of profit/loss to be allocated to Betty. (Round your answer to the nearest dollar.) $11,300 $10, 200 $28,700 $1,110
Business
1 answer:
Margaret [11]3 years ago
5 0
From the first condition, Nancy already has $1,300. From the second condition, Nancy will also receive 10% of her capital balance which is 10% of $100,000 or $10,000. In total, Nancy has a share of $11,300. So, Betty's share is the remaining amount from the $40,000 net income which is
$28,700
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Which of the following statements abouot the declaration and payment of cash dividends is correct?
padilas [110]

Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.

Explanation:

When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.

This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.

It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.

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3 years ago
There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending Univers
LenaWriter [7]

Answer:

Substitutes

Explanation:

The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.

Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.

4 0
3 years ago
28. Callable bonds generally: A. grant the bondholder the option to call the bond any time after the deferment period. B. are ca
SIZIF [17.4K]

Answer:

E. have a sinking fund provision

Explanation:

Callable bonds are the one wherein the issuer/borrower has an option to redeem the bonds anytime after an initial stipulated period. In case of such bonds, if the issuer decides to redeem the bonds, the holders have to accept the redemption value.

Usually, when market rate of interest on such bonds falls below the coupon rate of such bonds, the issuer redeems such bonds. Thus, such bonds are beneficial to the issuer.

Call protection refers to the period within which such bonds cannot be called or redeemed.

Sinking fund provision refers to transferring a portion of money during the duration of such callable bonds to a separate reserve known as sinking fund, which is created for the purpose of redemption of funds. So when such bonds are to be called, the total money transferred to sinking fund reserve would be raised and used for payment to bondholders.

Creation of such a reserve helps the issuer avoid the pressure of lump sum payment as periodically funds are set aside for the purpose of redemption.

4 0
3 years ago
Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2016, vernon entered into a lease to rent a building for
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Answer:

$9,000

Explanation:

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= 3 months x $3,000 per month = $9,000

This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.

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3 years ago
Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in
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Answer:

1.

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2.

Dr. Income Summary      ¥1,770,833

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Cr. Other expense           ¥ 397,544

Explanation:

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First we will close the the revenue / income accounts and then expenses or cost accounts.

4 0
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