Answer:
$11,400
Explanation:
Income Statement
For the year ended December 31, 2019
Particulars Amount
<u>Revenues</u>
Service revenue $37,900
<u>Expense</u>
Salaries & wages expense $16,000
Insurance expense $2,900
Rent expense $3,400
Supplies expense $2,500
Depreciation expense <u>$1,700</u>
Total expenses <u>$26,500</u>
Net income (loss) <u>$11,400</u>
<u>Solution:</u>
1. It is given that capital contribution on year 1 is $120,000. Loss allocation is $40,000. It is equal. Depreciation is allocated on the basis of 80:20. Thus, depreciation expense of $36,000 is allocated as $28,800 and $7,200. They all are added. Therefore, basis on the end of year 1 is $51,200 and $72,800. Income allocation on year 2 is $20,000. Depreciation allocation on year 2 is also allocated same with $57,600. It is $46,080 and $11,520. Therefore, basis on the end of year 2 is $25,120 and $81,280. No losses were suspended for any partner. As there is no loss beyond partner’s tax basis it is not suspended.
2. It is true that the allocations on the agreement of partnership have “economic effect”. Given gains, income or any losses are reflected through their allocation in the balance of capital accounts. Capital balances that are deficit must be restored and capital accounts balance on end should be in accordance with liquidating distributions.
Answer:
Statement of Comprehensive Income for 2021;
Net Income = $1,376,000
Other Comprehensive income (loss):-
Foreign Currency Translation Gain (Net of Tax):
= $350,000 - 25% of $350,000
= $350,000 - $87,500
= $262,500
Unrealized losses on investment securities (Net of tax):
= $90,000 - 25% of $90,000
= $90,000 - $22,500
= ($67,500)
Total other Comprehensive income:
= Foreign Currency Translation Gain (Net of Tax) + Unrealized losses on investment securities (Net of tax)
= $262,500 + ($67,500)
= $262,500 - $67,500
= $195,000
Comprehensive Income = Net Income + Total other Comprehensive income
= $1,376,000 + $195,000
= $1,571,000
Answer:
1. Excluding and 4. Understate
Explanation:
We know,
Unemployment rate = Unemployed people ÷ Total labor force
Here, the total labor force includes total employed and unemployed people minus out of the labor force and discouraged workers. Discouraged workers are those who either do not want to do the job because of a lack of a suitable position or do not look for a job. However, the U-4 measure of labor under-utilization includes the discouraged worker in the labor force.
Therefore, excluding discouraged workers from the official unemployment rate would understate the true extent of the official rate of underemployment.
Answer: $23,653.18
Explanation:Let
Then, we can use the mortgage formula because we can treat N as the number of payments and the rate that we'll be using in the formula is the apr = 8.35%.
So, the annual payment is calculated as: (
Note: change 8.35% to decimal)
Now, we need to calculate the interest amount in the first year, which is given by
Interest Amount = rP
= (0.0835)(660,000)
Interest Amount = $55,110
Now, we let
be the amount to be reduced from the principal balance. Then,
Hence,
$23,653.18 will be used to reduce the prinicipal balance.