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quester [9]
3 years ago
13

Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $60,000 and $30,000, respectively

. With the consent of Bailey, Sandra buys one-half of Abby's interest for $35,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?
Business
1 answer:
tigry1 [53]3 years ago
7 0

Answer:$30,000

Explanation:

The total value of Abby capital is $60,000 a sales of one half means $30,000 which will be debited to his capital account and credited to Sandra capital account as her share in the partnership, however the balance of $5000 will be credited to Abby share of profit account as gain on sale of share of capital. Crediting the whole sum to his capital account will reduce his stake in the partnership and put the old partners at a disadvantage in future share of profit.

The $5000 further represents a reward for the value he has added to the partnership called goodwill.

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A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will m
leonid [27]

Answer:

Arbitration

Explanation:

Based on the information provided within the question it can be said that this type of settlement is called Arbitration. This term refers to a form of resolving disputes outside of the court system by bringing in a third party who will render an "arbitration award" that will make a binding determination on the dispute. Which is completely enforceable in the courts.

3 0
3 years ago
One thing that distinguishes the short run and the long run is?
Andrej [43]

A. the existence of at least one fixed input is the primary difference between short run and long run. It is because in the long run, the quantities of all inputs can be varied.

In economics, the short run can be defined as a concept that states that, within a certain period in the future. In the short run the others are variable while at least one input is fixed. In the other side, long run in economics can be defined as a theoretical concept in which all prices and quantities have fully adjusted and all markets are in equilibrium.

Learn more about long run here brainly.com/question/17029465

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6 0
1 year ago
I really need to graduate HIGHSCHOOL PLEASE HELP ASAP. In a Chapter 7 bankruptcy, a debtor: A. is required to draw up a petitio
Ivenika [448]
A. is required to draw up a petition listing all assets and liabilities.
6 0
3 years ago
Read 2 more answers
Mikalya put 500$ in the bank. The annual interest rate is 2 percent. How much money will mikalya earn in one year?
Tema [17]

Answer:

&10

Explanation:

This is a case of simple interest.

It gotten as Interest= Prt

Where:

P=principal

r=rate

t=time

Therefore

$500×2%×1= 10

5 0
3 years ago
Ethier Enterprise has an unlevered beta of 1. Ethier is financed with 55% debt and has a levered beta of 1.1. If the risk free r
tresset_1 [31]

Answer:

The correct answer is 0.4%.

Explanation:

According to the scenario, the computation for the given data are as follows:

If no debt, then required return can be calculated by using following formula:

Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium

= 6% + 1 × 4%

= 0.06 + 0.04

= 0.10 or 10%

If debt, then required return can be calculated by using following formula:

Required return ( with debt) = Risk free rate + levered Beta × Market risk premium

= 6% + 1.1 × 4%

= 0.06 + 0.044

= 0.104 or 10.4%

So, extra premium required = 10.4% - 10% = 0.4%

6 0
3 years ago
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