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Svetach [21]
2 years ago
11

Jerry, a partner with 30 percent capital and profits interest, received his Schedule K-1 from Plush Pillows, LP. At the beginnin

g of the year, Jerry's tax basis in his partnership interest was $41,000. His current-year Schedule K-1 reported an ordinary loss of $6,000, long-term capital gain of $4,900, qualified dividends of $3,900, $2,400 of non-deductible expenses, a $29,000 cash contribution, and a reduction of $5,900 in his share of partnership debt. What is Jerry's adjusted basis in his partnership interest at the end of the year
Business
1 answer:
Likurg_2 [28]2 years ago
3 0

Answer:

$64,500

Explanation:

The basis of a partnership interest is the money plus the adjusted basis of any property the partner contributed. In this case adjusted basis of jerry in his partnership can be calculated as follows

Adjusted basis of Jerry In his Partnership = Partnership interest - Ordinary Loss + Long term Capital gain + Dividend-Non Deductible Expenses + Cash Contribution - Share deduction

Adjusted basis of Jerry In his Partnership = $41,000 - $6,000 + $4,900 + $3,900 - $2,400 + $29,000 - $5,900

Adjusted basis of Jerry In his Partnership = $64,500

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Assuming the contract qualifies for revenue recognition while the performance obligations are being satisfied, excluding cash, w
shepuryov [24]

Question Completion:

Blue Co. had the following first-year amounts related to its $12,000,000 construction contract Actual costs incurred and paid Estimated remaining costs to complete Progress billings Cash collected $3,000,000 6,000,000 3,500,000 3,100,000 Assuming the contract qualifies for 'revenue recognition over time, what total amount (excluding cash) should Blue Co. recognize as current assets at year end?

Multiple Choice

a) $3,000,000

b) $1,000,000

c) $0

d) $900,000

Answer:

Blue Co.

The total amount (excluding cash) that Blue Co should recognize as current assets at year end is:

d) $900,000

Explanation:

a) Data and Calculations:

Value of Construction Contract =              $12,000,000

Actual costs incurred and paid                    $3,000,000

Estimated remaining costs to complete     $6,000,000

Progress billings                                           $3,500,000

Cash collected                                              $3,100,000

Percentage completion during the first year = Actual costs incurred/Total costs * 100

= $3,000,000/$9,000,000 * 100 = 33.333%

Revenue to be recognized based on percentage of completion and revenue recognition over time = $12,000,000 * 33.333%

= $4,000,000

Accounts Receivable = $900,000 ($4,000,000 - $3,100,000)

8 0
3 years ago
From the following list, identify those that are likely to serve as source documents.
Flura [38]

Answer:

Telephone bill

Sales ticket

Invoice from supplier

Bank statement

Prepaid insurance

Explanation:

Source documents in accounting are defined as the original record of a transaction that contains transaction details and provides evidence that a transaction occurred.

It is source of information entered into the accounting system. They can be printed on paper or electronic in nature.

From the given list the following are source documents: Telephone bill, Sales ticket, Invoice from supplier, Bank statement, Prepaid insurance.

They are sources from which transaction information can be obtained for entry into the accounting system

6 0
3 years ago
What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years, if
Serggg [28]

250,000/1.08 + 250,000/1.08^2 + 250,000/1.08^3 + 250,000/1.08^4 + 250,000/1.08^5 = $998,177.51 is the correct answer

<h3>What is an asset?</h3>

An asset is a resource having economic worth that a person, organization, or nation owns or manages with the hope that it may someday be useful.

The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current. They are acquired or produced in order to raise a company's value or improve the operations of the company.

Whether it's manufacturing equipment or a patent, an asset can be viewed of as anything that, in the future, can generate cash flow, lower expenses, or increase sales.

An asset is anything that can increase sales, lower costs, or generate cash flow, whether it be a patent or manufacturing equipment.

To learn more about asset, visit:

brainly.com/question/14404094

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3 0
1 year ago
John is trying to decide whether to expand his business or not.
wariber [46]

Answer:

B) John can expect to earn $120,000 in revenue more by expanding, but that is less than the cost of expansion, $150,000.

Explanation:

If John decides not to expand his expected revenue will be = ($100,000 x 50%) + ($300,000 x 50%) = $50,000 + $150,000 = $200,000

If John decides to expand his expected revenue will be = ($100,000 x 30%) + ($300,000 x 30%) + ($500,000 x 40%) = $30,000 + $90,000 + $200,000 = $320,000

If John decides to expand, his revenue will increase by $120,000.

Since we are not told if John's revenue is yearly or not, I assume that it includes a whole business or project cycle. The cost of expanding is $150,000 while the incremental revenue is only $120,000.

3 0
3 years ago
Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl
ElenaW [278]

Answer:

                                           Karim Corp

                                          <u>Cash Budget</u>

                                                 July              August         September

Cash inflows:                         $20,000      $26,000         $40,000                   

Cash outflows:                     (<u>$28,000) </u>    (<u>$30,000)</u>       (<u>$22,000)</u>

Monthly cash flow:                ($8,000)       ($4,000)          $18,000          

Monthly interests:                           $0             ($76)          ($116.76)

Initial cash balance:                <u>$8,400 </u>       <u> $8,000 </u>         <u> $8,000</u>

Ending cash balance:                $400          $3,924       $25,883.24

Required bank loan:               $7,600          $4,076                   $0

Payment of bank loan:           <u>        $0  </u>        <u>       $0  </u>       <u>  ($11,676)</u>

Total                                         $8,000         $8,000       $14,207.24           

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

4 0
3 years ago
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