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satela [25.4K]
2 years ago
15

Dusan is a member of the Tonda LLC, and all members have equal interests in capital and profits. The LLC has made an optional ad

justment-to-basis election. Dusan's interest is sold to Adele for $35,000. The balance sheet of the LLC immediately before the sale shows the following:
Basis FMV
Cash $40,000 $40,000
Depreciable assets 80,000 100,000
$120,000 $140,000
Dusan, capital $30,000 $35,000
Randal, capital 30,000 35,000
Thom, capital 30,000 35,000
Erin, capital 30,000 35,000
$120,000 $140,000
a. How much is the 754 adjustment?

b. What is the amount of Adele's basis in the acquired interest?

c. Which partner receives deductions related to the step-up?
Business
1 answer:
Sergio [31]2 years ago
4 0

Answer: a. $5000 b. $35000 c. Adele

Explanation:

The balance sheet is a report which summarizes all of an entity's assets, the liabilities, and the equity at a given point in time.

Based on the balance sheet in the question, the following can be calculated:

a. The 754 adjustment will be the difference in the sale of interest and Susan's capital balance. This will be:

= Sale of interest - Dusan's capital balance

= $35,000 - $30,000

= $5000

b. Adele's basis in the acquired interest will be the value at which she acquired the interest. This will be = $35,000

c. Adele is the partner who receives deductions related to the step-up

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Answer:

The actual effective annual rate is <u>3.33%</u>.

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Effective Annual Rate (EAR) refers to an interest rate has been adjusted for compounding over specified period of time.

Effective annual rate can therefore be described as the interest rate that paid to an investor in a year after compounding has been adjusted for.

Effective annual rate can be computed using the following formula:

EAR = [(1 + (i / n))^n] - 1 .............................(1)

Where;

i = Annual interest rate claimed by the dealer = 3.28%, or 0.0328

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Substituting the values into equation (1), we have:

EAR = [(1 + (0.0328 / 12))^12] - 1 = 0.0332976137123635

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3 years ago
Department G had 2,040 units 25% completed at the beginning of the period, 12,200 units were completed during the period, 1,700
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Answer:

18261

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You have an ending inventory of 1,700 units and then you have a given data of $9 per unit for direct materials so mulitply those to get:

ending inventory $15,300 materials cost

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<u>First step, </u>will be to calculate the conversion cost for the period,

which is direct labor + factory overhead:

78,600 + 26,200 = 104,800

Remember conversion cost = labor + overhead

<u>Second,</u> calculate the equivalent units:

Here we have the data for completed units so we work it like this

<em>Complete units</em>                                                                              12200

(this are finished o they count entirely)

<em>+ ending units x percent of completion </em>                   1700 x 20% = 340

(this are units we work during this period)

<em>- beginning units x percent of completion  </em>            (2040) x 5% = (510)

(this are units we don't work on this period,

they are from the previous month,

so we subtract them)

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<u>Third,</u> we are almost there, we will divide this two to get the value of 1 unit of conversion cost

104,800 conversion cost / 12,030 equivalent units = 8.7115 CC per unit

<u>Fourth,</u> calculate the conversion cost for the ending inventory

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