Answer:
a)Jada's basis for depreciation in the property is NIL.
b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Explanation:
Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).
According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.
IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.
Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.
2) Personal property with no intrinsic value:
Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.
Answer:
$1,610.51 (in both calculation)
Explanation:
1. Using Math formula,
We know, Future value, FV = PV × 
Given,
Present Value, PV = $1,000
Interest, i = 10% = 0.10
Number of periods, n = 5 years
Putting the values in the formula, we can get,
Future value, FV = PV ×
FV = $1,000 × 
or, FV = $1,000 × 1.61051
Therefore, FV = $1,610.51
2. Using excel formula,
See the image below:
We have to use present value as negative so that the result should be used as positive.
Answer:
Equity Capital(?)
Explanation:
Equity generated by a company by selling shares of stock, not borrowing money.
Answer:
C. Unlimited liability for all partners.
Explanation:
A general partner has unlimited liability to the debts of the business. It follows that in a general partnership business, all partners will have unlimited liability to business debts.
A general partnership is not a separate entity from its owners. Assets and liabilities of the business will be treated as those of the partners. Should the business fail in paying its debts, the partners' personal properties may be sold to clear the debts.
