Sparkling Clean, Inc. is considering implementing a system that will pay its cleaning workers based on the number of completed r
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Answer:
A = $97,200
B = $32,400
C = $129,600
D = $64,800
E = $36,000
Explanation:
Provided for 10% share in business E contributes = $36,000
That means total capital = $36,000/10% = $360,000
Therefore remaining partner's share = 100 - 10% = 90%
Total Value of share of all partners except E = $360,000 - $36,000 = $324,000
Which shall be in the ratio
A = 30%, B = 10%, C = 40%, D = 20%
Therefore, capital balances shall be as follows:
A = $324,000 30% = $97,200
B = $324,000 10% = $32,400
C = $324,000 40% = $129,600
D = $324,000 20% = $64,800
E = $36,000
Total Share = $360,000
The balance in an investment account after shares are sold is $845,250.
<h3>What is an investment?</h3>An investment is the acquisition of shares owned by a parent company in a subsidiary company.
Given values for step 1:
Cost of shares : $900,000
Share in profit of Company W: $ 96,000 ($240,000 X 40%)
Share in dividends of Company W: $ 30,000 ($75,000 X 40%)
<u>Step-1</u> Computation of investment value of Company S :
Given values for step 2:
Number of shares sold: 5,000
Number of shares owned : 40,000
investment value (refer Step-1): $966,000
<u>Step-2</u> Computation of investment value after the sale of shares :
Given values for step 3:
Investment value of Company S:$966,000
Investment value after shares sale:$120,750
<u>Step-3 </u>Computation of balance in investment value:
Therefore, after selling the shares, the amount of investment comes out to be $845,250.
Learn more about the investment balance in the related link:
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