Answer:
$33,750
Explanation:
The computation of the amount of income which is credited to Katherine's capital account is shown below:
= (Katherine contribution ÷ total contribution) × partnership income
= ($150,000 ÷ $400,000) × $90,000
= $33,750
The total contribution equals to
= Katherine contribution + Alliah contribution + Paulina contribution
= $150,000 + $150,000 + $100,000
= $400,000
Answer:
B
Explanation:
When using the indirect method to prepare the operating section of a statement of cash flows , the gain on sale of land will be deducted from the net income as it has already been included in the net income as the gain on the sales of the land , which was a non cash recognition in the course of the business.
Decrease in receivable means that there was an inflow of cash as some receivables had paid their debts , thus it is added.
The amortization is a non cash expenses that had been deducted which will need to be added back to the net income for the purpose of cash flow.
Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = 
=
= 29.69 ≈ $29.70
The basis for this argument is that consumption tax takes a larger percentage of income from low income earners than from high income earners. This is because consumption tax is uniformly applied to all people irrespective of their situation.<span />
