Answer:
$78,000
Explanation:
The computation of interest at year end is shown below:-
Interest at year end = Cash contribution + Income of partnership + Share of partnership liabilities - Cash from the partnership
= $50,000 + $20,000 × 50% + $60,000 × 50% - $12,000
= $90,000 + $10,000 + $30,000 - $12,000
= $78,000
Therefore for computing the partnership interest at year end we simply applied the above formula by considering all the items given in the question
Answer:
B. $300,000
Explanation:
Macaw Corporation increased its E & P last year for the entire amount of the deferred gain on the installment sale. Since one-half of the $800,000 gain is included in taxable income in the current year, taxable income should be reduced by this amount to determine current E & P. Therefore, Macaw Corporation’s current year E & P is $600,000 ($1 million taxable income – $400,000 of installment sale gain). Because one-half of the current E & P is allocated to Tracy’s distribution, she has a $300,000 dividend
Answer:
C
Explanation:
An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky
Answer:
you should accept the payments because they are worth $56,451.91 today
Explanation:
We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn
Then, the value of the annuity:
C 641.00
time 120 (12 months x 10 years)
rate 0.005416667
PV $56,451.9083
Answer:
internal rate of return is 20.463%
Explanation:
given data
Year Cash Flow
1 $48,000
2 $46,000
3 $41,000
equipment cost = $95,000
to find out
Determine the internal rate of return
solution
we consider here internal rate of return is x
so we can say present value of inflows = present value of outflows
equate here
$95000 = 
solve it we get
x = 20.463 %
so internal rate of return is 20.463%
