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vivado [14]
3 years ago
8

This problem has been solved! See the answer On January 1, Helmut pays $2,000 for a 10% capital, profits, and loss interest in a

partnership, which has recourse liabilities of $20,000. The partners share economic risk of loss from recourse liabilities in the same way they share partnership losses. In the same year, the partnership incurs losses of $6,000 and the recourse liabilities increase by $5,000. Helmut and the partnership use a calendar tax year-end. Helmut's basis at year-end is __________.
Business
1 answer:
Alinara [238K]3 years ago
4 0

Answer:

Helmut's basis at year-end is $3,900.

Explanation:

Beginning Basis  = $2,000

Add: January 1 Liabilities at the rate of 10% = $20,000 × 10% = $2,000

Add: Increase in liabilities by the rate of 10% = $5,000 × 10% = $500

Less: Loss incurred at the rate of  10%  = ($6,000 × 10%) = $600

Basis at the end of the year = $2,000 + $2,000 + $500 - $600

Basis at the end of the year = $3,900.

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An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee c
masya89 [10]

Answer:

Option A is correct.

<u>A decrease in the Equity Investment account</u>

Explanation:

Dividend received amount decreases the investment account. Net income interest in investee account is added to the investment account.

4 0
3 years ago
H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H
tresset_1 [31]

Answer:

The journal entry for J. Laney to record this transaction is

Dr legal expenses $12,990

______Cr Common stock $3,100

_______Cr Share premium $8,990

Explanation:

The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.

Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share premium = ($3.90 - $1) × 3,100

Share premium = $8,990

3 0
3 years ago
Raymond Vernon states that the classic rationale for international diversification is to: Group of answer choices preemptively d
wariber [46]

Answer:

extend the product's life cycle

Explanation:

International diversification refers to a situation wherein a company extends the sale of it's products or services beyond the domestic national boundaries, dealing in different i.e diverse goods and services which are somewhat unrelated to one another.

It refers to investing in more than one nation so as to spread and reduce the risk with respect to variability and fluctuation in return.

The higher the fluctuation in return, the higher is the risk, the more stable the return, lower the risk.

Diversification refers to investing in different assets and securities or nations, whose performance is least correlated to one another so that if one economy yields losses, profits and gains from another nation or economy would offset such losses and thus reduce the risks to which the total investment is subject to.

As per Raymond Vernon, the rationale behind international diversification is to extend the product's life cycle as international diversification increases the product's life cycle and i.e the period between a product's development and it's decline and withdrawal from a market.

4 0
3 years ago
what is the best definition of the capability of a process? select one: a. how well the input of a process satisfies the custome
anzhelika [568]

Correct option is A. The best definition of the capability of a process is how well the input of a process satisfies the customer of the process.

<h3>What is the purpose of process capability analysis?</h3>

To determine how well a certain process complies with a set of specification restrictions, a set of techniques called process capability analysis is utilized. In other words, it assesses the effectiveness of a procedure.

In actuality, it compares the distribution of sample values—representing the output of the process—against the specification limits, or the upper and lower bounds of what we aim to achieve. It may also be compared to a specification target.

Process capacity indices are frequently used to describe a process's capabilities. Depending on your analytical needs, you could calculate one or more of the several process capability indices. However, in order to compute any process capacity indices, you must first presume that your process is stable.

To learn more about process capability analysis from given link

brainly.com/question/20396505

#SPJ4

4 0
1 year ago
To be most effective, a Code of Ethics must _______________ . be drafted in a positive actions or results-based approach be draf
jarptica [38.1K]

Answer:

To be most effective, a Code of Ethics must be drafted in a positive actions or results-based approach.

Explanation:

A code of ethics can be defined as a document with several guidelines that guide people as to their ideal postures and attitudes, morally accepted or tolerated by society as a whole, framing the participants to a politically correct conduct and in line with good image that the entity or profession wants to occupy, including encouraging the voluntariness and humanization of these people and that, in view of the creation of some professional activities, is drafted, analyzed and approved by its competent class entity, organization or government, in accordance with with the attributions of the activity performed, so that it will suit the interests, struggles or desires of the community benefited by the services that will be offered by the professional on whom the code has an effect.

As such, a code of ethics sets standards that regulate the behavior of people within a company or organization. Although ethics are not coercive (they do not imply legal penalties), the code of ethics presupposes internal rules that are mandatory.

4 0
3 years ago
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