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3 years ago

Which of the following transactions would qualify as an "arm's length transaction"?

1 answer:

8 0

<span>Which of the following transactions would qualify as an "arm's length transaction"? The arms length transaction concerns both parties within a transaction and how they committed they both are to the transaction. This protects any false pretenses that there is pressure from either side of the party to make the transaction happen. If they notice there is any conditions or pressure from either side they can get in trouble and potentially make the transaction null. </span>

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Bank A has an increase in deposits of $20 million dollars and all bank reserve requirements are 10%. Bank A loans out the full a

dexar [7]

Answer:

Total increase in deposit = $54,200,000

Explanation:

given data

deposits = $20 million dollars

bank reserve = 10%

solution

we know that Deposit in bank A is = $20,000,000

and Reserve @ 10% = $2,000,000

Bank A loans or bank B deposit will be = $20,000,000 - $2,000,000

Bank A loans or bank B deposit = $18,000,000

here Reserve @ 10% = $1,800,000

Bank B loans or Bank C deposit will be here = $18,000,000 - $1,800,000

Bank B loans or Bank C deposit = $16,200,000

so that

Total increase in deposit will be = Bank A + Bank B + Bank C ...............1

put here value we get

Total increase in deposit = $20,000,000 + $18,000,000 + $16,200,000

Total increase in deposit = $54,200,000

3 0

2 years ago

The profile of five partnerships firms

Ilia_Sergeevich [38]

The 5 Partnership Firms:
(Chronological order)

1) "Contract for Partnership"

2) "Maximum number of Partnership is 20"

3) "Carrying on business with Partnership"

4) "Sharing on profit with Partnership"

5) "Mutual Agency in a Partnership"

These are the five profiles of Partnership in any corporate agency

3 0

2 years ago

All of the following statements regarding a limited partnership subscription agreement are true except

USPshnik [31]

*A limited partner's signature on the subscription agreement grants the general partner power of attorney to conduct the partnership's affairs. The subscription agreement for a limited partnership is deemed accepted when the general partner signs the subscription agreement.

<h3>What is a subscription agreement for a limited partnership?</h3>

The subscription agreement, when executed by a limited partner, gives the general partner the authority to manage the business of the partnership. When the general partner signs the subscription agreement, it is considered approved for a limited partnership.

<h3>What does the general partner's signature on the subscription agreement mean?</h3>

The limited partners are given authority to manage the partnership's affairs by the general partner's signature. The subscription agreement, when executed by a limited partner, gives the general partner the authority to manage the business of the partnership.

<h3>What is a recourse note in a limited partnership?</h3>

Recourse notes obligate the limited partner to make payments regardless of what transpires. He is legally responsible for the $40,000, making his tax base and possible maximum loss $50,000.

A) manage partnership assets on behalf of the partnership as an agent. B) offer the limited partnership real estate.

Learn more about Limited partnership:

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#SPJ4

4 0

2 years ago

You run a hospital with 100 rooms. Fixed daily cost is $880.00 which includes staff salary, property charges, maintenance etc. V

andrew-mc [135]

Answer:

$924

Explanation:

The computation of the profit/loss is shown below:

= Sale - variable cost - fixed daily cost

where,

Sale = Selling price per room × Number of rooms sold

= $55 × 41 rooms

= $2,255

And, the variable cost would be

= Variable cost per room × Number of rooms sold

= $11 × 41 rooms

= $451

And, the fixed daily cost is $880

Now put these values to the above formula

So, the value would be equal to

= $2,255 - $451 - $880

= $924

7 0

3 years ago

Kate is an accrual basis, calendar-year taxpayer. On November 1, 2019, Kate leased out a building for $4,500 a month. On that da

katrin2010 [14]

Answer:

$31,500

Explanation:

On November 1, 2019, Kate leased out a buliding for $4,500 per month.

On the same day( November 1, 2019) she received seven months payment for the building. Which means she received $31,500 (4,500* 7 months).

Accural taxpayers must be able to include all amount they are to receive for payments of services, once they earn it.

Since Kate is an accural taxpayer, and she receive the $31,500 payment on November 1, 2019, she must include the whole $31,500 on her 2019 tax return as a result of this transaction.

4 0

2 years ago