Answer:
$21000
Explanation:
To determine Gray’s tax basis for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and deduction items.
Gray’s beginning basis = $5,000
Gray’s 50% distributive share of ordinary income = 50% × $20000 = $10000
Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and
portfolio income = 50% × $4000 = $2,000
Therefore, the ending basis of Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000
Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
The South African Congress of Nonprofit Organizations (SACONO) focuses on
the anti xenophobia imbizo in Orlando, Johannesburg to evaluate modalities of
re-integrating foreigners who were recently attacked by locals for supposedly
grabbing jobs and imposing businesses targeted by the locals.
Answer:
Option (D) is correct.
Explanation:
Expected Revenue = 30 Customers × 4 hours each × $31 per hour.
= $3,720
Actual Revenue = 40 Customers × 3.5 hours each × $31 per hour.
= $4,340
Increased Revenue = $4,340 - $3,720
= $620
Therefore, Cali's revenues for the month were 620 more than expected.
Answer:
Kingbird, Inc. Journal entry
March 1 2017
Dr Cash (250,000*96%) 240,000
Dr Discount on bonds payable
(250,000×4%) 10,000
Bonds payable 250,000
(to record issuance of bonds)
Explanation:
Since Kingbird, Inc. issues $250,000, 10 years 6% bonds at 96 this means we have to record the transaction as issuance of bonds by Debiting Cash with (250,000*96%)240,000 and as well Debiting Discount on bonds payable with(250,000×4%) 10,000 while Bonds payable will be Credited with 250,000.
