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photoshop1234 [79]
3 years ago
9

An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $1

50,000, adjusted basis of $55,000, and subject to a liability of $60,000. Gerry contributes cash of $100,000. What is Rita's basis in her partnership interest immediately after formation of the partnership?
Business
1 answer:
erastova [34]3 years ago
7 0

Answer:

Rita's basis in her partnership interest is $35000

Explanation:

given data

cash = $10,000

fair market value = $150,000

adjusted basis = $55,000

liability = $60,000

to find out

Rita's basis in her partnership interest

solution

we know both Rita and Gerry half of total liability

we get here 50% share on debt that is

50% share on debt = 50% × liability

50% share on debt = 0.50 × $60,000

50% share on debt = $30000

so basis on interest is here as

basis on interest = cash + adjusted basis - 50% share on debt

basis on interest = $10000 +  $55000 - $30000

basis on interest = $35000

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Answer:$19500

Explanation:

The provision for doubtful debts accounts is an account that shows the amount of estimated debts that are expected to go bad at the end of the year. The estimated amount at the end of a year is debited to income account, credited to debtors account and left as a credit balance on the provision for doubtful debts accounts.

If at the end of a new year a new estimate is made which differs from the current estimated figure, then the account is adjusted to show the entire new estimate and that is why the answer to the question is 3% of $650,000 = $19,500.

5 0
3 years ago
AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.50 per unit and a selling price of $1.40
Sedaia [141]

Answer: Yes. AudioCable should buy a new equipment

Explanation:

Audiocables Inc. without new equipment:

Selling price: $1.40

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Fixed cost: $14,000

Sales: 30000 units

Total cost = Fixed cost + Variable cost

= $14000 + ($0.50 × 30000)

= $14000 + $15000

= $29000

Revenue = Sales × Selling price

= 30000 × $1.40

= $42000

Profit = Revenue - Total Cost

= $42000 - $29000

= $13000

Audiocables Inc. with new equipment:

Selling price: $1.40

Variable cost: $0.60

Fixed cost: $14,000 + $6000 = $20000

Sales: 50000 units

Total cost = Fixed cost + Variable cost

= $20000 + ($0.60 × 50000)

= $20000 + $30000

= $50000

Revenue = Sales × Selling price

= 50000 × $1.40

= $70000

Profit = Revenue - Total Cost

= $70000 - $50000

= $20000

From the calculations made, AudioCable buy a new equipment as profit generated is more.

5 0
3 years ago
A likely outcome of increased self-knowledge is:
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Greater understanding of your in tensions by those you lead
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3 years ago
Which of the following requirements must be met before a lender may begin the power of sale
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The lender must wait at least 15 days before receiving notice of a breach of the terms not being upheld and a mortgage default. This authority is frequently outlined in a clause in the mortgage contract between the lender and the borrower.

What is power?

The ability to exert authority, control, or influence over another person is referred to as having "power." Decision-making has benefited from the power.

According to the mortgage laws, a lender must wait at least 15 days before receiving notice that their mortgage has defaulted due to a breach of the terms. The mortgage contract between the lender and borrower often include a clause expressing this authority.

As a result, mortgage act as 15 days notice period, breach of contract and legal obligations.

Learn more about on power, here:

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3 0
1 year ago
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xeze [42]

Answer:

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Budgeted production (in units) for May: 230 (138+92)

Therefore Champ’s budgeted production (in units) for May will be 230

8 0
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