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Verdich [7]
2 years ago
7

Marcella has a $65,000 basis in her 50% partnership interest in the JM Partnership before receiving any distributions. This year

JM makes a proportionate currentdistribution to Marcella of $10,000 cash and inventory with an $80,000 fair value and a $40,000 basis to JM. What is Marcella's basis in the inventory and her remaining basis inJM after the distribution?A) $40,000 inventory basis, $0 JM basis.B) $80,000 inventory basis, $15,000 JM basis.C) $40,000 inventory basis, $15,000 JM basis.D) $80,000 inventory basis, $0 JM basis.
Business
1 answer:
PSYCHO15rus [73]2 years ago
3 0

Answer:

C) $40,000 inventory basis, $15,000 JM basis.

Explanation:

JM distributed $80,000 worth of inventory, since Marcella has a 50% partnership interest, then half of the inventory belongs to her, $40,000 (= $80,000 / 2).

Since Marcella also received $10,000 in cash from JM, then her remaining basis in the partnership is:

$65,000 - $40,000 - $10,000 = $15,000

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Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days.
Solnce55 [7]

The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900

Explanation:

  • Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900.
  • Unearned extended warranty revenue is given to be as an unearned revenues in accrued liabilities in the balance sheets.
  • Revenue which comes from separately priced, self-insured service contracts is reffered at the point of sale.
  • Unearned revenue is a money which is received from a customer for work that has not been performed still.

7 0
2 years ago
A cash payment of $130 on account was recorded as a $310 debit to accounts payable and a $310 credit to cash. the necessary corr
dexar [7]

(310-130=180)

debit cash $180; credit Accounts Payable, $180

Hope this helped :) !

8 0
3 years ago
Read 2 more answers
If a life insurance company sells a $240,000 life insurance policy with a one year term to a 25-year old lady for $210, the prob
MrMuchimi

Answer: $112.08

Explanation:

Given that,

Life insurance policy = $240,000

Cost = $210

Amount to be paid by company to old lady if she survives (A):

= $240,000 - $210

= $239,790

Probability that she survives (P1) = 0.999592

Probability that she doesn't survives (P2) = 1 - 0.999592

                                                                     =  0.000408

Expected value of this policy for the insurance company:

= (P1 × cost of policy) - (P2 × A)

= 0.999592 × $210 -  0.000408 × $239,790

= $209.91432 - $97.83432

= $112.08

7 0
2 years ago
G dixon company produced 6,000 units of product that required 1.5 standard hours per unit. the standard fixed overhead cost per
sweet [91]
Given:
Actual Production 6,000 units @ 1.5 standard hours per unit.
Budgeted hours: 10,000 
Fixed overhead cost per unit is $0.50 per hour.

6000 units * 1.5 std. hrs/unit = 9,000 hours

Actual hours: 9,000 hours * $0.50 per hour = $4,500
Budgeted hours: 10,000 hours * $0.50 per hour = $5,000

Fixed Factory Overhead Volume Variance = $5,000 - $4,500 = $500 UNFAVORABLE. 

It is unfavorable because the production is inefficient. It is more favorable if the produced units are higher than 6,000 units and the actual hours of production are more than the budgeted hours of production. 
3 0
2 years ago
Margo spends $30,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:
Tju [1.3M]

Answer:

Purchases she could have made with $30,000 plus the earnings foregone

Explanation:

Opportunity cost refers to the benefit obtained from the next best alternative.

Here, the opportunity cost of spending a year in the college is the purchases worth of $30,000 that she would have do it and the money income that she would have earned it.

Opportunity cost can be represented in terms of monetary and non monetary.

5 0
3 years ago
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