Determining absolute advantage

On June 1 of the current tax year Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership.

Helga [31]

Solution:

The relationship is called the deal to run the company by adding money, by distributing the business risk, etc. We share profit and loss from their relationship and the net profit is the partner's profits.

Calculating the basis of partners

Elisa's basis in partnership :

Particulars Amount $

Cash contribution 200,000

Add:

Share of the liability on the contributed land 70,000

Share of the construction debt 10,000

Share of the accounts payable debt 4,100

Share of partnerships taxable income 15,000

Hence, Elisha's basis in the partnership on December 30. $299,100

Ezra's basis in partnership

Particular Amount $

Land and building 340,000

Less: Debt assumed by the partnership 140,000

Add:

Share of liability on contributed land 70,000

Share of construction debt 10,000

Share of accounts payable debt 4,100

Share of partnerships taxable income 15,000

Ezra's basis in partnership on December 30. $299,100

8 0

4 years ago

If D0 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock's expected dividend yield for the coming year?

Ne4ueva [31]

666, but to be honest I don’t understand what you are trying to say but yup

5 0

3 years ago

John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each cont

marishachu [46]

Answer:

<em>2.statute.</em>

Explanation:

<em>The court ruling will be decided by the contractual agreement signed by the three parties. A Limited Liability Agreement will usually be demonstrated by three parties signing a contract together. </em>

The situation will become difficult once, within each partner, there is no written statement about the distribution of profit. Every partner must obtain the suitable yield rate, based on their original investment.

The verdict begins to appear as if it falls into the hands of the state. By considering the Revised Uniform Partnership Act-Section 306. It relies heavily on where the business is registered, authorized, type of business.

However, John is the majority shareholder with 60 per cent of financial and legal accountability[ which is why he owes more to investment return]. It is also partly due to unlawful double tax laws and they are intended to protect the owner / partner of the business.

The confusion could've been avoided if an attorney and bookkeeper were available to describe the process, before the agreement was made and/or written. The condition they submit for incorporation makes a huge difference however, it does not seem to be the circumstance.

8 0

4 years ago

On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a salvage v

postnew [5]

Answer:

If the adjusting entry is recorded at the end of the year

$1,800 debited to Depreciation expense: Equipment

$1,800 credited to Accumulated Depreciation: Equipment

If the adjusting entry is recorded at the end of the month

$150 debited to Depreciation expense: Equipment

$150 credited to Accumulated Depreciation: Equipment

Explanation:

The adjusting entry related to the equipment is that of recording depreciation expense for the equipment. To record this entry, we need to compute the depreciation expense first. Annual depreciation expense can be computed using the following formula

Annual depreciation expense = (Cost - Residual value)/Useful life of the asset

Plugging the values into the above formula, we get

Annual depreciation expense = (10,000 - 1,000)/ 5 = 9,000/5 = 1,800

Now we debit Depreciation expense: Equipment by $1,800 and credit Accumulated Depreciation: Equipment by $1,800

However, if the adjusting entry is made on a monthly basis, we would need to divide the annual depreciation by 12

1,800/12 = $150

In this case, we would have to debit Depreciation expense: Equipment by $150 and credit Accumulated Depreciation: Equipment by $150

If the adjusting entry is recorded every two months during the year. The monthly depreciation expense would be multiplied by 2 to get the amounts that need to be debited and credited to the accounts mentioned above

7 0

4 years ago

Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activit

Ivanshal [37]

Answer:

$141,373

Explanation:

As provided the details of cost activity:

Rate per activity is as follows:

Machining = $320,000/12,500 hours = $25.60 per hour

Luxury boat = 4,450 hours = $25.60 $\times$ 4,450 = $113,920

Setup = $69,000/350 batches = $197.143 per batch

Luxury boat = $197.143 $\times$ 65 = $12,814.295

Quality control = $89,000/760 = $117.11

Luxury boat = $117.11 $\times$ 125 = $14,638.75

Total Luxury Boat Overheads = $113,920 + $12,814.295 + $14,638.75

= $141,373

7 0

3 years ago