Answer:
C) $1,200 capital gain.
Explanation:
David's basis on the land was $24,000
liability assumed by other partners = $30,000 x (1 - 10%) = $27,000
liability assumed by David on the partnership's other liabilities = $18,000 x 10% = $1,800
David's gain = liability assumed by other partners ($27,000) - land basis ($24,000) - additional liability assumed by David ($1,800) = $1,200 gain
When a partner contributes property to a partnership, his/her gain or loss must be determined using the asset's basis, not the fair market value.
Answer:
$ 142,800.00
Explanation:
The ending inventory can be computed by rearranging the cost of goods sold formula:
cost of goods sold=Beginning inventory+net purchases-ending inventory
ending inventory=beginning inventory+net purchases-cost of goods sold
beginning inventory is $92,000
Net purchases=purchases-discount+freight-in charges-purchase return
net purchases=$425,000-($425,000*1%)+$7000-($5000*99%)=$422,800.00
cost of goods sold is $372,000
ending inventory=$92,000+$422,800-$372,000=$ 142,800.00
Answer:
$2.45
Explanation:
Fixed cost = $9,800
Variable cost:
= Units sold × (cost of the ice cream and cone + franchise fee)
= 24000 × ($0.76 + $0.24)
= $24,000
So,
total cost = Fixed cost + Variable cost
= $9,800 + $24,000
= $33,800
Profit = $25,000
Now,
Sales = $58,800
Sales unit = 24,000
So,
Sales price per unit:
= $58,800 ÷ 24,000
= $2.45
Hence, the price one should charge for each ice cream cone to achieve a $25,000 profit for the three-month period is $2.45.
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Answer:
$81,301.80
This is the yearly reveneus required to break even the project at 15% return
Explanation:
We need to solve for the equivalent annual cost to break-even financially at 15%
PV of the salvage value
Maturity $15,000.00
time 14.00
rate 0.15000
PV 2,119.9299
list price: 250,000 - quota: 2,119.93 = 247,880.07
<u>Now we solve for the equivallent annuity payment for this:</u>
PV 247,880.07
time 14
rate 0.15
C $ 43,301.795
<em><u>Now, we add up the maintenance cost: </u></em>
43,301.80 + 38,000 = 81,301.8
This is the yearly reveneus required to break even the project at 15% return
