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vova2212 [387]
3 years ago
9

Mary and Jeff entered into a partnership agreement. However, the agreement didn't state how income and losses would be divided.

The law states that income will be divided
A. Equally

B. According to investments

C. According to abilities

D. None of the above
Business
2 answers:
PilotLPTM [1.2K]3 years ago
8 0
Hi there

the agreement didn't state how income and losses would be divided
So the dividend will be distributed according to the share of capital
for example Assume that Mary's share of capital is 1000 and Jeff's share of capital is 2000 and income is 1500

So we want to distribute the income 1500 between them according to their investments
Mary share of income is
1,500×(1,000÷(1,000+2,000))=500
Jeff share of income is
1,500×(2,000÷(1,000+2,000))=1,000

So it's b

Good luck!
zalisa [80]3 years ago
5 0

The correct answer to your questions is letter A. Equally.

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Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu
OverLord2011 [107]

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160  x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

(1+HPR)^{365/time} -1 = EAY

where:

Holding period return:

\frac{Net \: Return}{Investment} = HPR

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

(1+HPR)^{365/time} -1 = EAY

(1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY

EAY = 0.049242509 = 4.9242509%

8 0
3 years ago
ABC Corporation has E & P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) t
stealth61 [152]

Answer: Paul has a taxable dividend of $15,000.

Explanation:

From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.

The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:

= $70,000 - $55,000

= $15,000

Therefore, Paul has a taxable dividend of $15,000.

5 0
3 years ago
A friend of Mr. Richards recently won a law suit for $30 million. They have the ability to either take the payments over 10 year
denis23 [38]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.

First, we need to find the present value of the 30 million.

To do that we need to calculate the final value.

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {3,000,000*[(1.06^10)-1]}/0.06= 39,542,385

PV= FV/(1+i)^n= 39,542,385/1.06^10= 22,080,261

B) Now we know that the present value of option B is higher. One dollar today is better than one dollar tomorrow. It is better to receive the money now to invest it.

5 0
3 years ago
Alain mire files a single tax return and has adjusted gross income of $304,000. his net investment income is $53,000. what is th
scoray [572]

Answer:

$2,014

Explanation:

Alain's net investment income tax is the lesser of 1) his net investment income ($53,000) or 2) his modified adjusted gross income less the threshold of $200,000 .

Therefore

$304,000 - $200,000 = $104,000

3.8%×$104,000= $3,952

($53,000 × 3.8% )= $2,014

The additional tax that alain will pay on his net investment income for the year is $2,014

4 0
3 years ago
If $525,000 of bonds are issued during the year but $210,000 of old bonds are retired during the year, the statement of cash flo
geniusboy [140]

Answer and Explanation:

Given:

Issue of new bonds price = $525,000

Retired price of  bonds = $210,000

It is given that new bonds price a $525,000 issue and the value of retire Bond price will $210,000.

Issue of new bonds will increase cash by $525,000 because business gets cash from the issue of bonds and retire off the old bond will decrease cash by $210,000.

7 0
3 years ago
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