Diane wants to invest $5,000 but she will not have an active role in the new business. (limited partnership) You prefer to work directly with customers, make decisions, and to do the actual website design. (limited partnership) You will be responsible for signing contracts on behalf of the new business.(limited partnership) Diane will not be liable for any debts.(limited partnership) Diane will not make business decisions and receive 30 percent of the profits. (limited partnership) You will receive 50 percent of the profits plus a small monthly fee for management services. (general partnership) Diane’s name will not be mentioned in any promotional materials about the business. (limited partnership)
<span>Diane will be the limited partner while you will be the general partner.</span>
Answer:
Net increase in cash position is $18,960
From operations $128,160
From investing activities -$83,200
From Finance activities -$26,000
Explanation:
The income statement has been uploaded for your benefit.
The schedules attached tagged "workings" explains how we arrived at each change in cash flow by line item.
Solution :
We know that the exchange takes place when the FMV receive is equal to the FMV given up.
Where the FMV = fair market value
The commercial substance means the future cash flows exchange.
The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.
The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :
Transaction Debit ($) Credit ($)
Asset(new) 11,000
Accumulated depreciation(old) 9,000
Asset (old) 28,000
Cash 2000
The journal entries for Delaware Corp. when the exchange lacks the commercial substance.
Transaction Debit ($) Credit ($)
Asset(new) 16,000
Accumulated depreciation (old) 10,000
Loss 2500
Assets (old) 28,000
Answer: B. The firm hires 45 workers and earns a $1200.00 Economic Profit
Explanation:
According to the table, when the Market Equilibrium Wage Rate is $105, the number of workers to hire would be 45 and the revenue would be $7,425.
If 45 workers are hired, they would cost:
= 45 * 105 per worker
= $4,725
Added to the fixed cost, the total cost would be:
= 4,725 + 1,500
= $6,225
The profit would be:
= Revenue - cost
= 7,425 - 6,225
= $1,200
