Answer:
Option B is correct.
Tom's outside basis be in Freedom,LLC=$26,100
Explanation:
Option B is correct.
Amount Paid by Tom for buying Bob's LLC interest=$23,000
Tom's Share of LLC debt= $3,100
Tom's outside basis be in Freedom,LLC= Amount Paid by Tom for buying Bob's LLC interest + Tom's Share of LLC debt
Tom's outside basis be in Freedom,LLC= $23,000+$3,100
Tom's outside basis be in Freedom,LLC=$26,100
Answer:
50K in 2018 means that 50,000 dollars were earned in the year 2018, so this could refer to the annual income of a person or a household.
This would be equivalent to a monthly wage of 4,166 dollars each month, because 50,000 / 12 = 4,166.
This wage would be very close to the median wage in the United States.
Answer:Bad debt expenses will be $2000 on the income statement and Allowance for uncollectible Accounts will be ($3000) on the balance sheet.
Explanation:
The bad debt accounts and allowance for uncollectible accounts are stated in the income and balance sheet statement respectively yearly to monitor activities on collectible debts.
A firm based on his experience determined an estimated percentage of debts outstanding for the year that are likely to go bad. If the new estimate is greater than the previous year, the difference is debited to income statement and if the new estimate is less than the previous year estimate the difference is credited to the income statement.
In the above scenario the new year estimate is greater than previous year by $ 2000 and that lead to $2000 to be debited to income statement.
The balance is made to reflect the total of the new estimate to be deducted from collectible debt and this is why ($3000) goes to the balance sheet.
Answer:
(a) $2,040
(b) $1,020
Explanation:
(a) Under the accrual method of accounting revenue is recognized in the month when product is delivered,
Revenue is recognized on the March income statement from this order:
= Units Delivers × Unit price
= 136 × $15
= $2,040
(b) Revenue is recognized on the April income statement from this order:
= Units Delivers × Unit price
= 68 × $15
= $1,020
Companies use the production function to determine the optimal combination of labor and capital to produce a certain amount of out put. increasing marginal costs can be identified using the production function.