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Naily [24]
3 years ago
7

Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business

for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows:Net income from operations (before guaranteed payment) - $ 90,000 Guaranteed payment to clover - 30,000 What is clover's share of the partnership's ordinary income and guaranteed payment?A. Ordinary income, $30,000; Guaranteed payment, $10,000
B. Ordinary income, $20,000; Guaranteed payment, $10,000
C. Ordinary income, $30,000; Guaranteed payment, $30,000
D. Ordinary income, $20,000; Guaranteed payment, $30,000
Business
1 answer:
Sergeeva-Olga [200]3 years ago
6 0

Answer:

D. Ordinary Income: $20,000 , Guaranteed payment: $30,000

Explanation:

Ordinary Income refers to that part of income which is classified under salaries, wages or net income in case of Partnership. Such income is taxable at ordinary rates.

Net income refers to income arrived at after deduction of all expenses and taxes from profits. In case of partnership, profits and losses are distributed in agreed profit sharing ratio as per the clause in partnership deed.

In the given case,

Net Income before adjusting guaranteed payment to Clover: $90,000

Less: <u>Guaranteed payment to Clover</u>:                                       <u>($30,000)</u>

Ordinary Income/Net Income for all 3 partner's                       $60,000

Clover's share in ordinary income is one third i.e                   $20,000

Clover's guaranteed payment                                                    $30,000

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Zielflug [23.3K]

Answer:

The answer is c. $3,883.27

Explanation:

For the problem, we will be using the formula for calculating the Future Value of money, which is:

F= P(1+r)^{n}

Where:

F - future value

P - Principal amount = ($100)

r - rate of growth in percent = (5% or 0.05)

n - number of years = (75)

We calculate thus:

F = 100(1 + 0.05)^{75}

F = 100(1.05)^{75}

F = 100  X  38.8327

F = 3,883.27

therefore the amount after 75 years will be $3,883.27

5 0
3 years ago
Directions: Something that is valuable is scarce and give utility. Something that isn't value either doesn't give utility, or it
suter [353]

Answer:

Scarcity and Utility

I will explain the concepts of scarcity, value, and utility using my laptop and some writing pens.  I have only one laptop available in my family.  I use it 24-hours daily.  I attach so much value (utility) to the laptop because it is only one.  It is very scare in my household.  On the other hand, I have a packet of writing pens.  Pens are relatively not scare in my household.  If my laptop is missing, I will raise uproar in the house.  Everybody present will answer a tedious query.  But, if one of the pens gets missing, I may not even be aware that it is missing.  At the moment, I do not attach much value (utility) to the writing pens because I have many of them presently .  Writing pens are not scare in my household, as I said earlier.

Using these examples, I have demonstrated the concepts of scarcity, utility, and value.

Explanation:

Therefore, scarcity is defined by the value and the relative availability of a good.  Scarcity is a basic economic problem that shows the gap existing between limited resources and unlimited needs.  Based on the lack experienced with satisfying a need, one has to always choose between alternatives in order to maximize resource allocation and utility.

Utility in Economics refers to the value or satisfaction derivable from the meeting of a human or economic need.  It is initially connected to the concept of scarcity.  But after attaining some level of utility, scarcity temporarily evaporates.  And this is the dividing thin line.  This is why they are mostly used together.  "Something that is valuable is scarce and give utility."  Something that is not highly valuable is not usual scarce and does not give much utility, at least, to an extent.

6 0
3 years ago
What do the underlying values in your mission statement tell you?
wariber [46]
A should be your answer
7 0
3 years ago
Read 2 more answers
On November 30, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co.
scoray [572]

Answer:

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Explanation:

In case where is investment in 100% shares of a company then that may give rise to goodwill or rise to capital reserve.

Any amount paid to acquire that interest in company more than the value of such company is recorded as goodwill.

Here, cost of acquisition = $15 \times 250,000 =  $3,750,000

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7 0
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jeka57 [31]

Answer and Explanation:

The preparation of the differential analysis is presented below:

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It is better to sell the machinery as it has a loss of $1,615

8 0
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