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Natali5045456 [20]
4 years ago
11

Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership inter

est was $60,000, including his share of partnership liabilities. During the current year, CAR reported net ordinary income of $40,000. In addition, CAR distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Arthur's share of partnership liabilities increased by $20,000. Arthur's basis in the partnership interest at the end of the year is:a. $60,000.b. $120,000.c. $87,000.d. $75,000.e. None of these choices are correct.
Business
1 answer:
laila [671]4 years ago
3 0

Answer:

c. $87,000

Explanation:

The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:

= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount

= $60,000 + $12,000 + $20,000 - $5,000

= $87,000

Net operating income share is

= $40,000 × 30%

= $12,000

We simply applied the above formula

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Sliva [168]

Answer:

to get stronger and have more power

7 0
3 years ago
Felice bought a duplex apartment at a cost of $235,000. Her mortgage payments on the property are $1,510 per month, $803 of whic
BartSMP [9]

Answer:

$1,032

Explanation:

Calculation to determine What monthly rent must she charge for each apartment to break even

First step is to calculate the Monthly costs using this formula

Monthly costs = Mortgage payment + Real estate taxes + Insurance costs + Maintenance costs

Let plug in the formula

Monthly costs=$1,510 + ($2,304 / 12) + ($1,452 / 12) + [2 ×($1,446 /12)]

Monthly costs= $1,510 + 192+ 121 + 241

Monthly costs= $2,064

Now let calculate the Break-even monthly rent per apartment

Using this formula

Break-even monthly rent per apartment = Monthly costs / 2

Let plug in the formula

Break-even monthly rent per apartment = $2,064 / 2

Break-even monthly rent per apartment = $1,032

Therefore What monthly rent must she charge for each apartment to break even will be $1,032

3 0
3 years ago
Culver Company has a stock portfolio valued at $3,500. Its cost was $2,700. If the Fair Value Adjustment account has a debit bal
Ilya [14]

Answer:

Dr Fair Value Adjustment (Available-for-Sale) $660

Cr Unrealized Holding Gain or Loss—Equity $660

Explanation:

Culver Company Journal entry

Dr Fair Value Adjustment (Available-for-Sale) $660

Cr Unrealized Holding Gain or Loss—Equity $660

Fair Value Adjustment (Available-for-Sale)

Debit Balance $140

Adjustment $660

($3,500-$2,840)

Balance 800

8 0
3 years ago
Write the planning process for a profession.​
Goryan [66]

Answer:

1) Explore career options

2) conduct field research

3) determine your job target

4) Build your credentialsand resume

5) Prepare for your job search

4 0
2 years ago
On January 1, 2018, Orangewood Industries bought a new cash register for $7,500. Orangewood plans to use the cash register for 4
masya89 [10]

Answer:

Depreciation expense for the year ended December 31, 2018 equals: $1,725

Explanation:

Orangewood uses straight-line depreciation, Depreciation Expense each year is calculated by following formula:

Depreciation Expense = (Cost of asset − Residual Value)/Useful Life

In Orangewood:

Cost of ash register is $7,500. The company plans to use the cash register for 4 years and then sell it for $600, therefore, Residual Value is $600 and Useful Life is 4 years.

Depreciation Expense each year = ($7,500-$600)/4 = $1,725

The cash register was bought on January 1, 2018. Depreciation expense for the year ended December 31, 2018 equals: $1,725

7 0
3 years ago
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