What is the primary reason to issue stock?

Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner

kirill [66]

a. The hot assets per Section 741(a) for this sale are as follows:

i. Accounts receivable

ii. Inventory

iv. Potential depreciation recapture in the equipment

b. Marco's gain or loss on the sale of his partnership interest is $33,000.

c. The character of Marco's gain or loss is iv. $33,000 capital gain.

<h3>What is a partnership interest?</h3>

A partnership interest refers to a partner's ownership and benefits that accrue from the partnership.

The partnership interest entitles the partner to participate in the distribution of profits and losses arising from the partnership business.

<h3>Data and Calculations:</h3>

Each partner's outside basis = $104,000

Sale proceeds of Marco's partnership interest = $137,000

Gain = $33,000 ($137,000 - $104,000)

Thus, Marco, who sold his partnership interest to Ryan, had a capital gain of $33,00 because of the difference between the sale proceeds and the partner's adjusted basis in the partnership interest.

Learn more about partnership interests at brainly.com/question/14835194

4 0

1 year ago

PA11.

NARA [144]

Answer:

Using Traditional allocation method

Allocation rate per unit

= Budgeted overhead

Budgeted direct labour hours

Brass

Overhead allocation rate

= $47,500

700 hours

= $67.86 per direct labour hour

Gold

= $47,500

1,200 hours

= $39.58 per direct labour hour

Using activity-based costing

Brass

Allocation rate for material cost pool

= $12,500

400

= $31.25 per material moved

Gold

Allocation rate for material cost pool

= $12,500

100

= $125 per material moved

Brass

Allocation rate for machine set-up pool

= $35,000

400

= $87.50

Gold

Allocation rate for machine set-up pool

= $35,000

600

= $58.33

Explanation:

Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.

Using activity-based costing, the material cost pool overhead will be divided by the material moved for each product in order to obtain allocation rate for each product.

The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each product.

4 0

3 years ago

ECG Company recorded two sales on March 1 of $20,000 and $30,000 under credit terms of 3/10, n/30 (3% discount if paid within 10

AlladinOne [14]

Answer:

In net method the discount not given is recorded as revenue and in gross method the discount allowed is recorded as expense.

Explanation:

ECG Company

Journal Entries

Net Method

Date Particulars Debit Credit

1 March Accounts Receivable 19400

Accounts Receivable 29,100

Sales 48500

( Calculation of net Sales ( 20,000* 3% = 600, 30,000* 3%= 900) 20,000- 600= 19,400 and 30,000- 900= 29,100)

8 Mar Cash 19400

Accounts Receivable 19400

Receipt of 20,000 Sales within discount period.

25 Mar Cash 30,000

Accounts Receivable 29,100

Interest Revenue 900

Receipt of payment after discount time period.

Gross Method

1 March Accounts Receivable 20,000 Dr

Accounts Receivable 30,000 Dr

Sales 50,000 Cr

Transactions of Sales on gross method. Here discount is not calculated unless given.

8 Mar Cash 19400 Dr

Discount Allowed 600 Dr

Accounts Receivable 20,000 Cr

Receipt of 20,000 Sales within discount period.

25 Mar Cash 30,000 Cr

Accounts Receivable 30,000 Cr

Receipt of Sales of 30,000 after the discount period.

6 0

3 years ago

A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. last year, its reside

My name is Ann [436]

In the current year, the nation's economic growth will be negative. This is an outcome produced by all factors involved. There have been no capital goods produced, and therefore, no income can be generated by capital goods. There has been no growth in population or in any productive resources that could yield come kind of economic growth for the nation.

8 0

2 years ago

Determining Net Cash Flow from Operating Activities: Burch Company reported the following items in its balance sheet and income

Tanya [424]

Answer:

$9,000

Explanation:

The cash flow statement is the financial statement where the cash flows from the various activities of a business are recorded. These activities include Operating, Investing and Financing. The statement may be shown using gthe direct or indirect method.

The operating activities include the changes to current assets and liabilities. Increases in assets (apart from cash) represents an out flow of cash while increases in liability represents and in flow of cash and vice versa.

The net cash flows from operating activities using the indirect method

= -5000 - 20,000 + 10,000 + 25,000 - 1,000 (all amounts in $)

= $9,000

This represents a net inflow.

3 0

3 years ago