Priya Rahavy, M.D., is a general practitioner whose offices are located in the Lake Forest Professional Building. In the past, Dr. Rahavy has operated her practice with a nurse, a receptionist/secretary, and a part-time bookkeeper. Dr. Rahavy, like many small-town physicians, has billed her patients and their insurance companies from her own office. The part-time bookkeeper, who works 15 hours per week. is employed exclusively for this purpose.
North Avenue Physician's Service Center has offered to take over all of Dr. Rahavy's billings and collections for an annual fee of $24,000. If Dr. Rahavy accepts this offer, she will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $20 per hour, and the bookkeeper works 50 weeks per year. With all the billings and collections done elsewhere, Dr. Rahavy will have three additional hours available per week to see patients. She sees an average Of four patients per hour at an average fee of $30 per visit. Dr. Rahavy's practice is expanding, and new patients often have to wait several weeks for an appointment. She has resisted expanding her office hours or working more than 50 weeks per year. Finally, if Dr. Rahavy signs on with the center, she will no longer need to rent a records storage facility for $200 per month.
a. Conduct a relevant cost analysis to determine if it is profitable to outsource the bookkeeping.
Answer:
A. Is in violation of the bankruptcy code.
The product that is an example of a consumer good is shop gallon of milk to use in a bowl of cereal. Consumer goods are mostly consumed immediately.
<h3>What are consumer goods?</h3>
Consumer goods are products or goods that are bought for consumption. Consumer goods are mostly finished products from a factory such as buscuit, cereals, milk, bread that can be sell on retail to the consumer.
The products are ate and mostly bought for personal use from a supermarket, store or exhibition.
Most of the consumer products can be consumed without any further processing.
Areas with high rate of consuming consumer products will have economic growth this is because the increase in it's demand help to improve economy.
Therefore, The product is an example of a consumer good is shop gallon of milk to use in a bowl of cereal.
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Answer:
ABC has a gain of $145,000 and Andre's dividend income is $130,000
Explanation:
Property ABC issued, has the following:
fair market value = $350,000
Adjusted basis = $205,000
Liability = $220,000
Calculate ABC's Corporation gain:
Gain = market value - Adjusted basis
= $350,000 - $205,000
= $145,000
ABC has a gain of $145,000
Calculate Andre's dividend income since he is the sole shareholder:
Dividend earnings = fair market value - liability
= $350,000 - $220,000
= $130,000
Andre's dividend income is $130,000
Correct option is D.
With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000
Answer:
The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.
Explanation:
Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.
<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>
