Answer: $40,000
Explanation:
Kline brings in equipment that is worth $60,000 but has a basis of $45,000.
The equipment however is subject to a loan of $10,000.
This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.
Basis = 45,000 - 5,000
= $40,000
Answer:
yes it makes.although it doesn't buy love and affection. it fulfills our need which makes us happy.
Answer: 12.5%
Explanation:
Amount that will be raised with Equity = 65% * 5,700,000 = $3,705,000
This is more than the retained earnings so new equity will have to be issued at cost of 16%
Amount raised by debt = 35% * 5,700,000 = $1,995,000
Less than $2 million so cost of debt is 10%
WACC = cost of equity * weight of equity + weight of debt * cost of debt * ( 1 - tax rate)
= (16% * 65% ) + (35% * 10% * (1 - 40% tax))
= 12.5%
Answer:
He will have to come up with a bigger down payment
His monthly payments will be higher.
If Jamir leases the car, his down payment will be $1500.
If he purchases the car, his down payment will be 10% of purchase price which will be 
.
Hence his down payment will be higher if he purchases the car.
If Jamir leases the car, his monthly payments will be $290, as against the monthly payment of $432.46, which is higher.
