<u>Solution:</u>
1. It is given that capital contribution on year 1 is $120,000. Loss allocation is $40,000. It is equal. Depreciation is allocated on the basis of 80:20. Thus, depreciation expense of $36,000 is allocated as $28,800 and $7,200. They all are added. Therefore, basis on the end of year 1 is $51,200 and $72,800. Income allocation on year 2 is $20,000. Depreciation allocation on year 2 is also allocated same with $57,600. It is $46,080 and $11,520. Therefore, basis on the end of year 2 is $25,120 and $81,280. No losses were suspended for any partner. As there is no loss beyond partner’s tax basis it is not suspended.
2. It is true that the allocations on the agreement of partnership have “economic effect”. Given gains, income or any losses are reflected through their allocation in the balance of capital accounts. Capital balances that are deficit must be restored and capital accounts balance on end should be in accordance with liquidating distributions.
The stock price is $27.774.
The stock price can be determined using the Gordon constant dividend growth model. According to the model:
Stock price = DI / (r - g)
Where:
- D1 = dividend in the next period = 1 x ( 1.054) = 1.054
- r = required rate of return
- g = growth rate
1.054 / (9.2 - 5.4)
1.054 / 3.8
1.054 / 0.038
= $27.74
A similar question was answered here: brainly.com/question/14058705
Answer:
104 million
Explanation:
A = Income from continuing operations before tax
B = Accrued warranty expense in excess of expense included in operating income
C = Depreciation deducted on tax return in excess of depreciation expense
D = Nondeductible portion of entertainment expense
E = Applicable enacted tax rate for all periods
Tax payable = (A - B - C + D) * E
Tax payable = (250 - 10 - 15 + 10) * 40% = 235 * 40% = 94 million
Deferred tax = (B + C) * E
Deferred tax = (10 + 15) * 40% = 25 * 40% = 10 million
Total tax expense = Tax payable + Deferred tax
= 94 million + 10 million = 104 million
Hope this helps!
Matters where you live. it is different in different places.