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
Anvisha [2.4K]
3 years ago
13

Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Be

n sold his shares to Joe for $10,000 on March 31, 1998. The corp. reported a $50,000 loss at the end of 1998.
How much of the loss is allocated to Joe?
A. $20,000
B. $15,060
C. $12,500
D. $10,000
Business
1 answer:
expeople1 [14]3 years ago
7 0

Answer: $15,060

Explanation:

From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.

We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:

= $50,000 × 40% × 9/12

= $50,000 × 0.4 × 0.75

= $15,000

The closest figure we have close to that is $15,060 which is option B

You might be interested in
Inheriting someone else’s _______ is one of the drawbacks of buying an existing business.
vaieri [72.5K]

Answer:

problems

before

franchise

idea

Any two of these:

Make time to meet with clients instead of talking on the phone.

Join a business networking group.

Take business colleagues or prospects out to lunch at least once a week.

Teach a workshop in your field at the community college.

Any two of these

Freedom

Creativity

Profit

Explanation:

pf

3 0
3 years ago
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.
Angelina_Jolie [31]

Answer:

Explanation:

                                        JOURNAL

Date   Account Title & Explanation  Post          Debit ($)   Credit($)

                                                              Ref.

3- May  Inventory                                                            16,000

             Cash                                                                                      16,000

            (To record the purchase at 8

             per $ for 2000 units

5-May    Account receivable                                             12,000

              Sales                                                                                      12,000

              (To record the sales on account)

5- May   Cost of goods sold                                               8000

              Inventory                                                                                 8000

             (To record Cost of goods sold)

7- May   Sales return & allowance                                      1,200

             Account receivable                                                                  1,200

            (To record the sales return)  

7- May   Inventory                                                                  800

             Cost of good sold                                                                     800

             (To record the cost of inventory

             restored to Allied Company)

8- May   Sales return allowance                                            400  

             Account receivable                                                                   400

             (To record the credit of $400 given

             to Macy company for compensate of

             damage)

15- May  Cash                                                                         10,192

              Sales discount                                                             208

              Account receivable                                                               10400

              (To record the cash received within

              discount period)

N:B

From above ; on May 15 ;

We determine the accounts receivable amount after sales return and allowances;

i.e

Account receivable = Sales - Sales return - Compensation Period

                                 = $12,000 -$1,200 - $ 400

                                 = $10,400

The cash discount =  Account receivable × 2 %

                               = $10,400 × 0.02

                               = $208

The cash received amount = Account receivable × 98%

                               = $10,400 × 0.98

                               = $10,192

I hope that helps alot!

4 0
3 years ago
Which of the following changes would increase structural unemployment? Select one:
Jet001 [13]

Answer:

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

Explanation:

Option D

Increased globalisation that moves the economy from manufacturing based economy to more service-based economy.

As manufacturing will decrease, the number of jobs will decrease drastically because the number of industries will become small.

8 0
2 years ago
Categories the following into Market economy and Non-market economy.
Umnica [9.8K]

Answer:

Market economy:

2. The invisible hand guides resources to their highest valued uses

4. Prices are sey by supply and demand

6. Buyers and sellers are motivated by self-interest

Non-market economy:

1. Prices are set by government agencies

3. Buyers and sellers are motivated by government directives

5. Buyers and sellers are motivated by a sense of communal well-being

Explanation:

On the one hand, the concept of <em>market economy</em> refers to a type of economy system that basically indicates that the market will find the equilibrium and work properly without the help of the government and therefore it establishes that the economy does not need from the figure of the government and that this last one must worry only about the other issues that do not include the economy.

On the other hand, a <em>non-market economy</em> like its name indicates, it refers to the type of system that do consider that the presence of the government is very important for the correct system of the economy and all of its factors regarding the market. Therefore that this type of system approves the planning of the economy from the government without discussions.

7 0
3 years ago
What is the total retail market value of all goods and services produced in a nation during a given period, usually a year?
Marianna [84]
I do believe that is the gross domestic product!
6 0
2 years ago
Other questions:
  • Jenny manages sales dealership of high-end luxury brand of automobile. Her target market is limited to a specific social class,
    15·1 answer
  • Zahra's Decoratives produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,000 units wer
    12·1 answer
  • Which documents are necessary to calculate ros?
    5·1 answer
  • Every product manufactured by the maker of slim-fast carries the slim-fast brand name. this company uses __________.
    6·1 answer
  • Assume milk is used to produce ice cream. Ceteris paribus, a decrease in the price of milk will cause the equilibrium price of i
    8·1 answer
  • After the administrative staff reviews the superbill and applies the charges for services to the patient's account, the next pro
    13·1 answer
  • Palante actually produced 8,000 units. The controller decided to compare their actual results to their budget. The following bud
    5·1 answer
  • Nonprice competition refers to:
    9·1 answer
  • All else equal, an increase in savings will cause capital stock to:
    6·1 answer
  • As we’re well aware, vending machines are used to sell snacks and beverages, whereas newspapers are sold out of a box that allow
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!