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sladkih [1.3K]
3 years ago
13

Tim and Janet were divorced. Their only marital property was a personal residence with a value of $120,000 and cost of $50,000.

Under the terms of the divorce agreement, Janet would receive the house and Janet would pay Tim $15,000 each year for 5 years, or until Tim's death, whichever should occur first. Tim and Janet lived apart when the payments were made to Tim. The divorce agreement did not contain the word "alimony."
Choose one answer:
a. Tim must recognize a $35,000 [$60,000 - 1/2($50,000)] gain on the sale of his interest in the house.
b. Tim does not recognize any income from the above transactions.
c. Janet is not allowed any alimony deductions.
d. Janet is allowed to deduct $15,000 each year for alimony paid.
e. None of these.
Business
1 answer:
guajiro [1.7K]3 years ago
8 0

Answer:

d. Janet is allowed to deduct $15,000 each year for alimony paid

Explanation:

Based on the information given we were told that based on terms of the divorce agreement between the husband and the wife which is Tim and Janet, Janet would be the one to receive the house which is their only marital property in which she would as well pay Tim the amount of $15,000 each year for 5 years which means that since the term of their divorce agreement did not contain the word "ALIMONY" which simply means the ability of either the husband or the wife to make provision for either of them after a seperation or divorce has occurred between both, Janet will be allowed to deduct the amount of $15,000 each year for alimony paid because the term of the divorce agreement between Janet and Tim does not include the word ALIMONY.

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what is a basic premise of the acquisition method regarding accounting for a noncontrolling interest?
miv72 [106K]
Answer: D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
7 0
2 years ago
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p
irina [24]

Relevant Information:

The relevant information is as under:

Segmented income statements appear as follows:

Product                                    Original  Strawberry  Orange

Sales                                     65,200   85,600          102,400

Variable costs                     (44,000)   (77,200)  (80,200)

Contribution margin              21,200     8,400    22,200

Fixed costs allocated                (9,400)    (12,000)   (14,200)

Operating profit (loss)       11,800      (3,600)      8,000  

Answer:

The product not be closed because it is generating net cash flows of ($3,060), which will generate loss for the organization. The better option would be to not abandoning the manufacturing of Strawberry.

Explanation:

Relevant costing says that any savings or losses are relevant if it satisfy following three conditions:

  1. Is a cash flow.
  2. Future related (Not arising due to Past bindings).
  3. Differential or Incremental in nature.

Its crystal clear that any inflows and outflows that are considered would be cash in nature, not related to past events it must be arising as a consequence of taking the decision whose consequences are we considering now, I mean it must arise in future due to the decision made which are considering. The last condition is the concept of differential that lies in the heart of relevant costing and is easily understood by following the following steps:

Step 1: What are the losses or savings if we don't make decision?

Step 2: What are the losses or savings if we make the decision?

Step 3: The difference between step one and two is differential or incremental cost.

Here we learned that relevant cost arises if we take the decision (closing manufacturing of Strawberry), and it doesn't arises if we don't take the decision (not abandoning manufacturing of  Strawberry).

Relevant costs associated with the decision are as under:

                                                    Step 1              Step 2        Step 3

                                            Make Decision    If we Don't Differential

Revenue loss                             (85,600)               -          (85,600)

Variable Costs Savings              77,200                 -            77,200

Fixed costs Savings (W1)             5340                   -              5340

Operating Profit                                                                   (3,060)

Working1: Fixed costs Savings

Total Fixed costs =21400+12000+14200 = $35,600

The saving is 15% of the total fixed cost and is as under:

Fixed costs Savings = $35,600 * 15% = $5340

Note:

Kindly also practice the following question:

brainly.com/question/14423321

8 0
3 years ago
Consider the case of the following annuities, and the need to compute either their expected rate of return or duration.
anastassius [24]

Answer:

1. 5.00%

2. 15.70 year

Explanation:

As per the data given in the question,

1)  For computing the interest rate we need to applied the RATE formula which is shown in the attached spreadsheet

Given that

Future value = 0

Present value = -$2587.09

PMT = $950

NPER = 3  years

The formula is shown below:

= RATE(NPER;PMT;-PV;FV)

The present value comes in negative

After applying the above formula, the interest rate is 5%

2)  For computing the number of years we need to use NPER i.e to be shown in the attachment below

Given that

Future Value = $920,925

Present Value  = 0

PMT = -$40,000

Interest rate = 5%

The formula is shown below

= NPER(RATE;-PMT;PV;FV)

The PMT comes in negative

After applying the above formula, the nper is 15.70 years

6 0
3 years ago
In the context of the types of organizations that do business across national borders, the architecture of the global informatio
8090 [49]

Answer:

Transnational:

In the context of the types of organizations that do business across national borders, the architecture of the global information system (GIS) in a(n) <u>transnational</u> structure requires a higher level of standardization and uniformity for global efficiency, and yet it must maintain local responsiveness

Explanation:

Organisations have the following <u>transnational</u> characteristics:

  • Parent and all subsidiaries work together in designing policies, procedures, and logistics
  • Usually focuses on optimizing supply sources and using advantages available in subsidiary locations
  • Architecture requires a higher level of standardization and uniformity for global efficiency (but must maintain local responsiveness) .

Global information system (GIS):

A global information system (GIS) is an information system which is developed and / or used in a global context. A global information system (GIS) is any information system which attempts to deliver the totality of measurable data worldwide within a defined context.

4 0
3 years ago
Joe watches Wall Street Week every week. He then throws a dart at the Wall Street Journal. He buys whatever the dart hits. If he
svlad2 [7]

Answer:

The correct answer is d. none of the above.

Explanation:

The purchase decision process represents the different stages through which the individual goes from feeling the need for a product or service to its purchase. This behavior goes beyond the purchase decision itself, reaches the post-purchase behavior phase.

In this case, it may be that there are no products that replace Wall Street, and people are required to purchase it so as not to lose any benefit. Surely because of the prestige of this publication and the guarantee it gives to buyers, despite not agreeing with it, there must be a decision motivated by any other factor.

8 0
3 years ago
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