HELP ASAP In which situation would government regulation most likely be necessary?

The SRT partnership agreement specifies that partnership net income be allocated as follows:

Assoli18 [71]

Answer: Option (C) is correct.

Explanation:

Given that,

Partner S:

Salary allowance = $20,000

Interest on average capital balance = 10% of 60,000

= $6,000

Average capital balances for the current year = $60,000

Remainder = 30% of 50,000

= $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $20,000 + $6,000 + $15,000

= $41,000

Partner R:

Salary allowance = $25,000

Interest on average capital balance = 10% of 50,000

= $5,000

Average capital balances for the current year = $50,000

Remainder = 30% of 50,000

= $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $25,000 + $5,000 + $15,000

= $45,000

Partner T:

Salary allowance = $15,000

Interest on average capital balance = 10% of 40,000

= $4,000

Average capital balances for the current year = $40,000

Current year net income = $125,000

Remainder = 40% of 50,000

= $20,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $15,000 + $4,000 + $20,000

= $39,000

Workings:

Salary allowed = $20,000 + $25,000 + $15,000

= $60,000

Interest on average capital balance = $6,000 + $5,000 + $4,000

= $15,000

Total = Salary allowed + Interest on average capital balance

= $60,000 + $15,000

= $75,000

Remainder = Current year net income - Total

= $125,000 - $75,000

= $50,000

3 0

3 years ago

A company prepares its income statement by listing all sources of revenues and gains at the top, followed by a list of all expen

lapo4ka [179]

Answer:

Single step income statement

Explanation:

The single step income statement is the simplest form in which an income statement is prepared, e.g.

Revenues:

Sales revenues $100
Interest income $20 $120

Expenses:

Rent expense $30
Utilities expense $10
Wages and salaries $60 ($100)

Income before taxes $20

Tax expenses ($4.20)

Net income $15.80

A multi-step income statement is more complex, since operating revenues and costs are reported first in order to determine operating income, then other revenues and expenses are introduced and income before taxes is calculated.

8 0

3 years ago

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and s

gogolik [260]

Answer:

Smart Stream Inc.

a) Total costs:

Variable costs:

Direct materials = $1,500,000 ($150 x 10,000)

Direct labor = $250,000 ($25 x 10,000)

Factory overhead = $400,000 ($40 x 10,000)

Selling and Administrative = $250,000( $25 x 10,000)

Total variable costs = $2,400,000 ($240 x 10,000)

Fixed Costs:

Factory overhead = $350,000

Selling and admin = $140,000

Total fixed costs = $490,000

I) Total costs = variable plus fixed costs = $2,890,000 ($2,400,000 + 490,000)

II) Total cost per unit = $289 ($2,890,000/10,000)

Explanation:

The total cost method includes all the costs in arriving at the unit cost before adding the desired profit to arrive at the selling price of a product.

Total costs include the cost of goods sold and the expenses incurred in running the business for the period.

It is unlike the product cost-plus and variable cost-plus approaches to product pricing. For the product cost-plus approach, only the costs of production is taken into consideration for arriving at the selling price. In that case, the costs of direct materials and labor, and factory overheads would be considered, while variable and fixed selling and administrative costs are excluded. The unit cost would have been $250.

The variable cost-plus approach considers only the variable elements of costs to arrive at the selling price. These include the direct materials and labor costs, and variable element of the factory overhead and selling and administrative expenses. The unit cost would have been $240 as stated in the question.

These different cost-plus pricing approaches are more suitable for some industries than others. No matter the choice made, it must be noted that they result in different selling prices and can affect the competitiveness of a company.

4 0

3 years ago

A subsidiary ledger:(A) used in place of the general ledger if the general ledger is destroyed or stolen.(B) a group of accounts

gayaneshka [121]

Answer:

The correct option is C

Explanation:

Subsidiary ledger are those kind of the ledger which is stated as the group of the similar or common accounts, whose combined balances are equal to the balance in the particular account of general ledger.

The general ledger is the account that summarizes or provide detailed information of the account balances of the subsidiary ledger is recognized as the control account or the master account.

The subsidiary ledger are those group of accounts which have a similar characteristic and provide summarized information regarding the control account.

3 0

3 years ago

Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the comp

Vilka [71]

Answer:

Should create a non disclosure agreement policy

Explanation:

This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.

Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.

8 0

3 years ago