Answer:
The answer is Option B.
$48000
Explanation:
Guaranteed payment $30,000.00
Balance distribution [($210000-$90000)*40%] $48,000.00
Stephanie's adjusted gross income $78,000.00
Less : Guaranteed Payment every year $30,000.00
Increase in Stephanie's adjusted gross income $48,000.00
Answer:
Debit Allowance for doubtful debts $1,200
Credit Accounts receivable $1,200
Being entries to write off uncollectible debt on December 1
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Answer:
<em>d) Slightly greater than 4 years</em>
Explanation:
<em>The portfolio's Macaulay period (MaD) is the mean maturity of its retained earnings.</em>
Fifty per cent of cash flows (in terms of PV) come after three years and another fifty per cent arrive after five years, so the MaD is 0.53 + 0.55 = 4.
We must divide the MaD by (1+ytm/2) to get Modified Duration (MoD).
<em>Then portfolio MoD is </em><u><em>4/(1 + 0.02/2) = 3.96.</em></u>
Answer:
No, Conchita will not be considered for a VA loan.
Explanation:
In order for a Veterans Affairs (VA) loan to be given, the borrower must comply with the following conditions regarding service time:
- the borrower must have served for at least 90 days of active duty (service during wartime)
- the borrower must have served for at least 181 days of active service (service during peacetime)
Conchita has not served the 181 days of active service required.
