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Mkey [24]
3 years ago
12

On Jan 15th, Mr. White discovered that the net income for the previous year was understated by $60,000. Mr. Black tells Mr. Whit

e that this net income of $60,000 should be shared in the proportion of their current capital balances. (Mr. White = 150,000/$250,000 = 60% = $36,000; Mr. Black = $100,000/$250,000 = 40% = $24,000). But Mr. White feels that the additional income should be shared in the ratio of 2:1 ($60,000 x 2/3 = $40,000 Mr. White; $60,000 x 1/3 = $20,000 Mr. Black). Who is correct? Why?
Business
1 answer:
vladimir1956 [14]3 years ago
5 0

Answer:

Mr. Black is correct.  There is a basis established by their current capital balances.  Mr. White's ratio of 2 : 1 has not discernible basis, unless that has been their profit sharing ratio.

Explanation:

In the absence of any contrary agreement, partners in a partnership business always share their net income based on their capital contributions.  Sometimes, this may not be strictly followed, especially with changes effected over the years, it becomes necessary to adopt home-grown solutions.  One of such is the current capital balances, instead of the original capital contributions.  This approach takes care of changes and value contributions over a number of years that the business has been in operation, which the current capital accounts will always show.

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The addition of acceptance criteria factors to the milestone schedule in a project charter helps the team understand who will ju
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The project Charter also sets the project deliverables with each mile stone,the criteria and standards through which the project deliverables associated with each milestone will be judged.

4 0
3 years ago
Which of these types of buildings would not be found on the plaza principal?
scoundrel [369]

The Answer is 

"<span>family homes "

</span>

<span>“Family homes” would not be found on the plaza principal. However the other two types i.e. municipal building as well as cathedrals will be found on plaza principal. The common events or activities found at the plaza principal are fiestas or festivals and meeting with friends.</span>

3 0
3 years ago
What do you think happens to the price of an object as it goes through a large number of intermediaries?
Mrac [35]
Because the manufacturer is also the entity selling the good or service, prices tend to be lower in a direct distribution channel. Indirect channels, on the other hand, generally see higher prices because of the number of intermediaries involved. The more there are, the higher the price.
6 0
3 years ago
The U.S. fiduciary monetary system: a. is one where money is not convertible to a valuable commodity such as gold. b. is the one
Minchanka [31]

The U.S. fiduciary monetary system is one where money is not convertible to a valuable commodity such as gold.

Option a

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The fiduciary currency is supplied in the economy by Fed. Fiduciary money can be classified into two categories namely,

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8 0
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Answer:

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7 0
3 years ago
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