Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer: Harrison will acknowledge a gain equal to the difference between his basis and the distribution . This is because he receives only money in the distribution and the amount transcend his basis in KH. He further allot his entire basis in KH to the basis in the money received resulting in $0 basis in KH after the distribution.
∴ <em>The capital gain will be $6000 i.e. (50000 - 44000) and $0 basis.</em>
Answer:
<u>X= $15,692.9393</u>
Explanation:
Giving the following information:
Number of years= 30
Final value= 1,000,000
First, deposit $10000 for ten years (last deposit at t=10).
After ten years, you deposit X for 20 years until t=30.
i= 6%
First, we need to calculate the final value in t=10. We are going to use the following formula:
FV= {A*[(1+i)^t-1]}/i
FV= {10000*[(1.06^10)-1]}/0.06= $131807.9494
We can calculate the amount of money to input every year. We need to isolate A:
A= (FV*i)/[(1+i)^n-1]
First, we need to calculate the final value of the $131807.9494
FV= PV*[(1+i)^n]
FV= 131807.9494*1.06)^20= 422725.95
We need (1000000-4227725.95) $577274.05 to reache $1000000
A= (FV*i)/[(1+i)^n-1]
A= (577274.05*0.06)/[(1.06^20)-1]= 15692.9393
<u>X= $15,692.9393</u>
Answer and Explanation:
The journal entries required to adjust the balance of cash as follows:
1. Cash Dr $1,128
To Notes receivable $1,100
To Interest revenue $28
(Being the cash is recorded)
Here cash is debited as it increased the assets and credited the notes receivable and interest revenue as it decreased the assets and revenue
2. Service expense Dr $78
Account receivable Dr $280
To cash $358
(being the cash paid is recorded)
here service expense and account receivable is debited as it increased the expenses and assets and credited the cash as it decreased the assets
To ensure that plans are moving in the right direction, managers can use the "Planning/control cycle".
Planning/control cycle refers to the arranging which is set under a way in which there are motion activities or exercises to achieve the arranged objective. Control works direct and screen exercises for deviations from plans (i.e., accomplishment of goals). Planning utilizes input from controls to enhance/change designs and actualize correct activities where they are fundamental.
