Answer:
The Jerry's adjusted basis in his partnership interest at the end of the year is $45,500
Explanation:
The adjusted basis of Jerry in his partnership is shown below:
= Partnership interest - Ordinary loss + long term capital gain + dividend - non deductible expense + cash contribution - share reduction
= $50,000 -$15,000 + $3,000 + $2,000 - $500 + $10,000 -$4,000
= $45,500
The ordinary loss, share reduction, and non deductible expense would decrease the Jerry interest in partnership firm while all other cost would increase his interest. That's why the amount is added and subtracted.
Hence, the Jerry's adjusted basis in his partnership interest at the end of the year is $45,500
Answer: They include land (including natural resources), capital, and labor.
Explanation:
Answer:
Correct Answer:
b. Less extensive testing of records
Explanation:
Technology which is the use of machines or electronical devices to make work easier is applied in most organizations by organizational managers. <em>Unfortunately, less extensive testing of records is not one of its uses but rather detailed and extensive testing in order to check if there is any error in the records.</em>
Answer:
d. 8%
Explanation:
The computation of the discount rate is shown below:
Initial investment = Present value of cash inflows
where,
Initial investment is $7,139,000
And, the present value of cash inflows
= Annual cash inflows × discount rate
We assume the discount rate be X
$7,139,000 = $1,000,000 × X
So,
X = 7139000 ÷ 1000000 = 7.139
= 8%
We simply applied the above formula in order to find out the discount rate
Answer:
11.3%
Explanation:
Given that,
Growth rate of industrial production, IP = 4%
Inflation rate, IR = 3.0%
Beta = 1.1 on IP
Beta = 0.5 on IR
Rate of return = 7%
Before the changes in industrial production and inflation rate:
Rate of return = α + (Beta on IP) + (Beta on IR)
7% = α + (1.1 × 4%) + (0.5 × 3%)
7% = α + 4.4% + 1.5%
7% - 4.4% - 1.5% = α
1.1% = α
With the changes:
Rate of return:
= α + (Beta on IP) + (Beta on IR)
= 1.1% + (1.1 × 7%) + (0.5 × 5%)
= 1.1% + 7.7% + 2.5%
= 11.3%
Therefore, the revised estimate of the expected rate of return on the stock is 11.3%.
