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pshichka [43]
4 years ago
8

Paul and Roger are partners who share income in the ratio of 3:2. Their capital balances are $90,000 and $130,000, respectively.

Income Summary has a credit balance of $50,000 after the second closing entry. What is Roger's capital balance after closing Income Summary to the capital accounts?
A) $150,000

B) $110,000

C)$115,000

D) $155,000
Business
1 answer:
andreyandreev [35.5K]4 years ago
6 0

Answer:

A) $150,000

Explanation:

The computation of the roger's capital balance is shown below:

= Opening capital balance of Roger + profit of roger

where,

Profit of roger = Net income × (Roger share ÷ total share)

                       = $50,000 × (2 ÷ 5)

                        = $20,000

And, the opening balance of Roger is $130,000

Now put these values to the above formula  

So, the value would equal to

= $130,000 + $20,000

= $150,000

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Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
Rudiy27

Answer:

D. Limited Partnership

Explanation:

Sole proprietorship is business owned , run & managed by single owner. Partnership is a business owned , run & managed by small group of people - deciding to share its profits .

Entrepreneurs in these have Unlimited Liability on personal assets, in case business assets are insufficient to settle business liabilities .

Corporation is a separate legal entity, distinct from its huge group of owners , guided by a board of directors. In case of any claim / sue case : it is against corporate entity & not the people, so they don't have any unlimited liability risk on personal assets to fulfil company's claims .

5 0
3 years ago
Activity-based costing (ABC) is said to result in improved costing accuracy when compared with traditional costing procedures. B
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Activity-based costing systems are greater correct than conventional costing structures. this is because they provide an extra specific breakdown of indirect prices.

Activity-based totally costing offers a greater correct approach to product/carrier costing, main to more accurate pricing decisions. It increases expertise of overheads and price drivers; and makes highly-priced and non-cost including sports greater visible, permitting managers to lessen or dispose of them.

There are pros and cons to both the traditional and the Activity-based costing gadgets. One gain of the ABC gadget is that it provides extra correct records on the charges to manufacture products, but it does not show up on the monetary statements.

The primary purpose of the usage of the activity-primarily based costing method is to increase the profitability and standard performance of a corporation. The Activity-based costing approach does this by identifying correct overhead fees and cost drivers main to extra streamlined enterprise procedures.

Learn more about Activity-based costing here: brainly.com/question/6654166

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6 0
2 years ago
An investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This is a:________.
Kitty [74]

Answer:

diagonal spread

Explanation:

Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.

In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.

The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.

The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.

The option dialogue spread is not a valid option too.

The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.

So the most suitable option is diagonal spread which is an example of Combination.

5 0
3 years ago
Your firm needs a computerized machine tool lathe which costs $53,000 and requires $12,300 in maintenance for each year of its 3
Sholpan [36]

Answer:

The depreciation tax shield for this project in year 3 is $2668.76

Explanation:

Depreciation in year 3 = 14.81%*53000

                                      = $7849.3

tax shield will = $7849.3*34%

                       = $2668.76

therefore, The depreciation tax shield for this project in year 3 is $2668.76

3 0
4 years ago
If someone owes you $100 right now, but they don't pay you for a year, you have lost the opportunity to collect _______________o
denis-greek [22]

Answer:

Interest

Explanation:

Opportunity cost of the money is the Interest that could have been earned on that money has the borrower saved it in the bank. Thus, the missing word here is Interest.

4 0
3 years ago
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