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emmainna [20.7K]
3 years ago
5

Zelda Partnership holds cash of $30,000 and inventory worth $60,000 (basis equals $42,000). Zelda makes a $30,000 cash liquidati

ng distribution to Link, a one-third partner with an outside basis of $24,000. How much gain or loss, if any, does Link recognize
Business
1 answer:
Vsevolod [243]3 years ago
8 0

Answer:

6,000 ordinary gain

Explanation:

The computation of gain or loss is shown below:-

Given that

Worth of an inventory = $60,000

Basic inventory = $42,000

Now if we divide this two by each other so the percentage would be

= $60,000 ÷ $42,000 i.e to be greater than the 120% and it is said that the one third would be considered of $18,000

The $18,000 come from

= $42,000 - $24,000

= $18,000

Now its one third is $6,000 and the same is to be treated as ordinary gain

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Andrea invests $5,000 in five Epic Electronics bonds that mature in 10 years. Unexpectedly just the week after she invests, she
VladimirAG [237]

Answer:

The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.

Explanation:

She may immediately sell the bonds but it is unclear how much money they will sell for.

Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000  bond investment for 10 years, she would have been assured the  bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.

Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.

In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.

4 0
3 years ago
The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that includ
Aleks04 [339]

Answer:

The Journal entry at the beginning of the year is as follows:

Estimated revenue A/c                      Dr. $1,342,500

Estimated other financing sources-Bonds proceeds A/c Dr. $595,000

To Appropriations control                                                                     $960,000

To Appropriations-Other financing uses-operating transfer outs     $532,500

To Budgetary fund Bal.                                                                        $445,000

(To record entry at the beginning of the year)

8 0
3 years ago
a 1000 par value 18-year bond with annual coupons is bought to yield an annual effective rate of 5%. the amount for amortization
marta [7]

The book value of the bond at the end of year 10 is 1,160

What is the basis for determining premium amortization?

The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.

Total premium on bond issuance=20*18

total premium on bond issuance=360

bond price issued price=par value+ premium=1000+360=1360

As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years

bond premium amortized=20*10=200

book value of the bond at the end of year 10=1360-200

book value of the bond at the end of year 10=1,160

Find out more about bond premium on:brainly.com/question/14814327

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3 0
1 year ago
You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. What should you do to
SVETLANKA909090 [29]

Answer and explanation:

Demand elasticity measures the changes in quantity demanded as the result of changes in price. Demand elasticity is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal or higher than one (1) the product is <em>elastic </em>but if the result is lower than 1 the product is <em>inelastic</em>.

In the case, <em>as the elasticity of demand of the museum ticket is 0.45 it means the museum tickets is inelastic. This scenario implies that in front of changes of price the quantity demanded will not change. Thus, as a curator of the museum you should </em><u><em>increase the museum ticket price to increase revenue</em></u><em>.</em>

3 0
3 years ago
A manufacturer of washing machines has expanded its plant and has created excess capacity, just as the general economy has taken
Lostsunrise [7]

Answer:

. b. offer rebates and incentives for customers who purchase washing machines.

Explanation:

Increasing the productive structure of a firm must be carefully planned. There needs to be demand and take into account the expectations of the economy. When a company increases its structure over an inadequate period, the strategy can be fatal, as firms typically go to great lengths to make investments. In the case described, the company now has an idle capacity, ie does not use all its productive infrastructure. This is compounded by the moment of narrated economic crisis. In this situation, the company is most likely to promote price incentives through discounts to stimulate demand for washing machines. Thus, the employer gets a breath to maintain its activities until the economy recovers and she can use all the installed capacity.

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3 years ago
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