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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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Hines Cosmetic Co. sold beauty preparations nationally to beauty shops at a standard or fixed- price schedule. Some of the shops
babymother [125]

Answer:  No,the company is not guilty.

Explanation:  In the given case, Hines could not be considered guilty of price discrimination as the price charged from different shops was same. The free samples were distributed for the purpose of campaign and the discretion to which shop they want to provide lies completely with the company.

Price discrimination refers to the practice of charging different prices from different customer which the company have definitely not done.

Hence, Hines could not be charged of guilty of price discrimination.

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3 years ago
Robert invested in stock and received a positive return over a 9-month period. Which of the following types of returns will be g
Anton [14]

Options:

A) Holding period return (HPR)

B) Effective annual return

C) Annual percentage rate

D) There is not enough information to make a definitive choice.

Answer:

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Explanation:

Robert invested in stock and received a positive return over a 9-month period then the effective annual return  will be the greatest.

3 0
3 years ago
The management of urbine corporation is considering the purchase of a machine that would cost $340,000 would last for 4 years, a
attashe74 [19]

The net present value of the proposed project is closest to -$80,822.

Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :

PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r

PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09

PVIF of an annuity = 3.240 (rounded to three decimals)

PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)

NPV = PV of cost savings - Value of investment

NPV = 2,59,178 - 3,40,000

3 0
3 years ago
Briefly describe an experiment that would test the premack differential probability principle
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Some companies use automated payment processing technology in which paper checks that may arrive at a lockbox are converted into
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<span>The answer in the given statement above is the accounts receivable conversion. This type of process allows an individual to receive the amount that he or she converts from paper check into a real amount when scanned under an electronic machine in which is being described above.</span>

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