The amount that ACME Partnership should report as ordinary income is $83,000.
Data and Calculations:
Sales Revenue = $200,000
Cost of goods sold = 115,000
Gross profit = $85,000
Administrative expenses 2,000
Operating income = $83,000
Interest expense 13,000
Taxable income $70,000
Charitable contributions 2,000
Long-term capital gain 10,000
The operating income is the ordinary income before determining the eligibility of the charitable deductions and the long-term capital gain.
Thus, the ordinary income of ACME Partnership is $83,000.
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Answer:
Beta Corp.
A. Arnold = Agent (Arnold exercises significant power on behalf of the Beta's Board of Directors).
B. Carol = Agent-Employee (Carol does not exercise significant power on behalf of the principal (the Board of Directors of Beta). Instead, she is subject to Beta's control)
C. Dave = Agent-Employee, just like Carol. He is a mere employee subject to Beta's control.
D. Fred = Independent Contractor because he controls and directs the result of his work, though he does not decide the work or how it should be done.
Explanation:
Principal = a person who assigns the agent to act on her behalf.
Agent = a person who the principal authorizes to exercise significant power on her behalf.
Agent-employee = an employee of a company. The employee does not exercise the right of control and direction of the results of her work.
Independent contractor = a person who exercises the right of control and direction for work result, and not how and what is done.
Answer:
aging of receivables
Explanation:
Based on the scenario being described within the question it can be said that the method that is being mentioned is known as aging of receivables. This is report that includes a list of unpaid customer invoices and unused credit memos of various different date ranges, both from the past and some from the current dates.
Answer and Explanation:
The computation of the cost of the land and the new building is as follows
For land
= Purchase value + demolition of old building + legal fees - salvage materials
= $315,000 + $22,000 + $5,600 - $10,000
= $332,600
And, for building it is
= Architect fees + construction cost
= $35,400 + $1,401,000
= $1,436,400
Hence, the same is to be considered
