Answer and Explanation:
The items that should be reported on the cash flow statement is shown below;
On March 12 Purchase of fixed assets - investing activity - deducted - $104,300
On Oct 4 Sale of fixed assets - investing activity - added - $63,840
Gain on sale of fixed assets - operating activities - deducted - $31,710 ($95,550 - $63,840)
$410,000 goodwill should be recognized, and $270,000 is Darrow's beginning capital balance.
The implied value of the company is $900,000 ($270,000 ÷ 30%). Because the money is going to the partners rather than into the business, the capital total is $490,000 before realigning the balances. Hence, goodwill of $410,000 is recognized based on the implied value ($900,000 - $490,000). This goodwill is assumed to represent unrealized business gains and is attributed to the original partners according to their profit and loss ratio. They will then each convey 30 percent ownership of the $900,000 partnership to Darrow for a capital balance of $270,000.
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The question is incomplete. Please read below to find the missing content.
Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership:
William (40%) $220,000
Jennings (40%) $160,000
Bryan (20%) $110,000
Darrow invests $270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrow's beginning capital balance?
A sole proprietor is personally liable for the liabilities which remain unpaid after the utilization of assets. In the given case the sole proprietorship has total assets of $34,583 and liabilities of $55,867. It means total assets can be used to pay off $34,583 out of total liabilities of $55,867 and the proprietor shall be personally liable for the balance liabilities= 55867-34583 = $21,284
Hence, you are personally liable for <u>$21,284</u>
Answer:
the present value of the property taxes is 75,000
Explanation:
We can determinate the present value of all the future payment using the perpetuity formula:
150,000 x 2% = 3,000 property taxes per year as this will be paid indefinitely and the cash flow are equal; it is a perpetuity.
C/r = PV
3,000 / 0.04 = PV = 75,000
