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3 years ago

How can you apply the statement of financial position or balance sheet in your everyday life?

1 answer:

4 0

Financial position also known as a Balance Sheet represents the Assets, Liabilities and Equity of a business at a point in time. Assets include cash, stock, property, plant or equipment - anything the business owns.

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Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing membe

kvv77 [185]

Answer:

Amy's basis at beginning = $1,215,000

Amy's ending basis = $1,599,625

Explanation:

As per the data given in the question,

Amy's capital basis at beginning :

Beginning capital balance = $900,000

Amy's share in amount debt = $315,000

Amy's basis at beginning = $900,000+$315,000 = $1,215,000

Amy's ending basis :

Beginning capital balance = $900,000

Taxable income = $1,080,000 × 50% = $540,000

Interest income = $10,800 × 50% = $5,400

Net short term capital gain = ($27000 - $9000) × 50% = $9,000

Total = $1,454,400

Charitable contribution = $10,850 × 50% = $5,425

Cash distribution to Amy = $54,000

Total = $1,454,400 - $5,425 - $54,000 = $1,394,875

Amy's share of debt = $409,500 × 50% = $204,750

Amy's ending basis = $1,394,875 + $204,750 = $1,599,625

8 0

3 years ago

A firm emphasizing long-term employment, collective decision making, individual responsibility, slow evaluation and promotion, i

ziro4ka [17]

Answer: type z firm

Explanation: In simple words, type Z firm refers to the firm structure under which the management of the organisation focuses on factors like employment stability, high productivity and high satisfaction and morale of employees.

The firms employing such structure believes that employees are the most important resource and without their satisfaction operational effectiveness and stability cannot be achieved.

6 0

3 years ago

Ms V resides in a jurisdiction with a 35% income tax. Ms V has $40,000 that she could invest in bonds paying 8% annual interest.

klio [65]

Answer:

Increase in tax rate will reduce income form bond but will not affect the benefits derivable from the purchase of the new luxury auto.

Explanation:

First, a look at the after tax rates for when tax is 35% and when it is increased to 50%.

Step 1: Compute the after tax rate when tax is 35%

=Interest rate x (1-tax rate)

= 0.08 x (1- 0.35)

-5.2%

Step 2: Compute the after tax rate when tax is increased to 50%

= Interest rate x (1- tax rate)

= 0.08 x (1-0.5)

=4%

The first outcome is that an increase in tax rate leads to a decrease in income. Meaning an increased tax rate reduces the income from the bonds.

However, an increase in tax rate although it will affect the income will have no effect on the new luxury condo, that Ms V wants to buy. This is because, the benefits Ms V will get from the auto cannot be taxed as compared with the interest on the bond.

Hence, it becomes easier for Ms V to buy the luxury auto than invest in bonds if the tax rate should increase

4 0

4 years ago

A company purchased new furniture at a cost of $19,000 on September 30. The furniture is estimated to have a useful life of 5 ye

OLga [1]

Answer: The depreciation expense that will be recorded for the furniture for the first year ended December 31 is $825.

Explanation: Straight-line mwthod of depreciation is:

(Acquisition value minus salvage value) / No of years

Per the question, the acquistion value of the new furniture is $19,000 while the salvage value is $2,500. The number of years is 5 years.

Then yearly depreciation would be ($19,000 - $2,500) / 5 years = $3,300.

Note that the furniture was purchased on September 30. To arrive at the depreciation expense that will be recorded as at December 31, you need to pro rate the yearly depreciation of $3,300.

September 30 to Decemer 31 is 3 months. So the total depreciation expense will be $3,300 * 3 / 12 = $825.

6 0

3 years ago

For many years Futura Company has purchased the starters that it installs in its standard line of farm tractors. Due to a reduct

ss7ja [257]

The real question is why do Flying Fish not choose to fly across the world into a nicer place? Like, if they can fly why don’t they go on holiday

8 0

3 years ago

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How can you apply the statement of financial position or balance sheet in your everyday life? ​

How can you apply the statement of financial position or balance sheet in your everyday life?