Given: -
Sarah's income = 25% of the partnership income but not less than $12,000.
Net income of partnership for the year = $32,000.
To find: -
1) Amount that can be deducted by partnership as guaranteed payment.
2) Income that Sarah is to report on her tax return.
Solution: -
Partnership income = $32,000
Sarah's share = 25% of 32000 = $8,000
But Sarah must receive $12,000 (Shortfall $12,000-$8,000=$4,000)
So, 1) $4,000 can be deducted by partnership as guaranteed payment.
2) Income that Sarah needs to report on her tax return = $12,000.
Answer: Charge a lower price after half-time
Explanation: Law of diminishing marginal utility holds that as the consumer consumes more and more units of a commodity, the incremental satisfaction derived from the successive units begins to fall after a certain point. Thus, as marginal utility begins to fall the persons willingness to pay shall also decline for the successive units. Therefore, the seller must sell the pop-corns at a lower price after half-time.
Answer: Junk bonds
Explanation:
Junk bonds are a high-yielding high-risk security, that are issued by a company which is seeking to raise capital quickly to finance a takeover.
Junk bonds represent bonds that are issued by companies that are financially struggling and possess a high risk of not paying the interest or repaying the principal to investors. Junk bonds are a good investment for the investors who need the higher return and those that can also afford the higher risk.
Answer:
Apr.8
Dr Account Receivable - Suntrust Bank $8,256
Dr Credit card expenses $344
Cr Sales $8,600
(to record sales, payment through credit card issued by Suntrust Bank)
Apr.12
Dr Account Receivable - Continental Card $7,995
Dr Credit card expenses $205
Cr Sales $8,200
(to record sales, payment through credit card issued by Continental Card)
Explanation:
The credit card expenses of the two transaction is calculated as: Sales proceed x % of fee
Thus, the sales made in 8 Apr has the credit card expenses of 8,600 x 4% =$344.
The sales made in 12 Apr has the credit card expenses of 8,200 x 2.5% =$205.
