1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Ryan bought a stock three years ago for $6 a share. Today, June 22, the stock is selling for $72 a share. Ryan is afraid that th
dem82 [27]

Answer:

B) Ryan's stock was sold for $9 a share causing him to lose most of his profits.

Explanation:

Stop loss order means the limit the loss to the extent investor has opted. Since Ryan placed a stop loss order at $70, so, when the price of the stock starts at $9, the stock would be sold at $9 because it is the next available price to what he placed a stop loss order.

So, the Answer is Ryan stock is sold for $9 a share causing him to lose most of his profits.

6 0
2 years ago
Faucet Company reported the following information for 2008: October November December Budgeted sales $620,000 $580,000 $720,000
max2010maxim [7]

Answer:

Cash receipt for the month of November is $600000

Explanation:

The receipt of the cash will be such that the sales made in a particular month will be calculated half in the month of sale and half in the next month. Thus, the cash receipt from the accounts receivables for the month of November will be,

Cash received from the October sales = 620000 * 0.5 = $310000

Cash received from the November sales = 580000 * 0.5 = $290000

Total cash receipt in the month of November will be,

Cash receipt - November = 310000 + 290000

Cash receipt - November = $600000

3 0
3 years ago
In 2019, Alliant Corporation acquired Centerpoint Inc. for $352 million, of which $62 million was allocated to goodwill. At the
Komok [63]

Answer:

1. $34 million

2. $0

Explanation:

Given that,

Fair value of Centerpoint Inc = $256 million

Book value of Centerpoint's net assets (excluding goodwill) = $228 million

Book value of Centerpoint's net assets (including goodwill) = 290 million

1. Actual Value of Goodwill:

= Fair Value of Centrepoint Inc. - Book Value of Net assets (excluding goodwill)

= $256 million - 228 million

= $28 million

Loss on Impairment of Goodwill:

= Goodwill recorded - Actual value of goodwill

= $62 million - $28 million

= $34 million

2. In this case Fair value of ($318 million) is more than Book value ($290 million) then there will be no Impairment Loss.

It means that the loss on Impairment of Goodwill = $0.

6 0
2 years ago
What are some examples of information you might include in the current status of a career plan? Check all that apply.
kolbaska11 [484]

answer:

a: classes you have taken

b: job or volunteer experience

e: software skills

g: leadership skills

4 0
3 years ago
Read 2 more answers
On March 1, Young Co. borrowed $1,000 by extending their past-due account payable with a 120-day, 6% interest-bearing note. On J
tamaranim1 [39]

Answer:

This entry would be recorded by Young with a credit to <u>cash account</u> in the amount of <u>$1,020</u>.

Explanation:

The complete journal entry for June 29 should be

  • Dr Notes Payable account 1000
  • Dr Interest Expense account 20
  • Cr Cash account 1020

The total interest due = $1,000 x 6% x 4/12 =$20

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.

7 0
3 years ago
Other questions:
  • Which position is responsible for the direct management of all incident-related tactical activities?
    7·1 answer
  • Ted has paid off half of his mortgage. Which payment is he no longer required to make?
    15·2 answers
  • Which of the following activities is not correctly associated with its cash flow classification? A) Operating – Sale of merchand
    14·1 answer
  • Braden is in the 12% marginal tax bracket with a taxable income of $36,000 for the year. In addition, Braden has a $500 long-ter
    10·1 answer
  • Banks pay interest to customers through a
    15·2 answers
  • Is stinky caught in 4k hot?
    10·2 answers
  • What is an introductory APR and how does it compare to a standard APR?
    5·2 answers
  • When a binding price ceiling is imposed on a market to benefit buyers,
    10·1 answer
  • The activities that managers create to attract and retain employees and to ensure that they perform at a high level to help an o
    12·1 answer
  • 3.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!