Answer:
The journal entry to record direct labor for Department A and Department B would include None of these choices are correct.- d.
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750
Answer: a) $0
b) $21,150
c)$52,100
Explanation:
a) Karen would recognize no gain or losses in this scenario.
b) Karen would carryover the basis on the land which is $21,150
c) To calculate her remaining basis, we subtract the cash payment as well as the basis for the land she was distributed.
Calculating would be,
= 80,825 - 7,575 - 21,150
= $52,100
$52,100 is Karen's remaining basis in her partnership interest.
The types of investments that banks use to make profits include the following:
1. Buying stocks and bonds.
2. Buying several properties.
3. Buying the rights to loans.
Commercial banks are profits oriented and they make profits in diverse ways, these include the points mentioned above and many others.