Answer:
The cash a/c is debited as it is an asset for the business and the capital a/c is credited as it is a liability for the business according to the business entity concept.
Answer:
<em>The question is incomplete, complete question is as follows:</em>
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.
Shift the appropriate curve on the graph to reflect this change.
This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.
Explanation:
<em>To decrease.</em>
Saving is the basis of the loanable finance supply.
<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>
The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.
Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.
The advertisement of the new toothpaste "tidy" that provides highly valid research information is an example of scientific execution style. It is a type of marketing style that uses research or scientific<span> evidence to give a brand superiority over competitors. The consumer gets scientific information about the product.</span>
Answer:
$48,800
Explanation:
Ratio = 2:3
Total investment:
= Benson capital + Orton capital + Ramsey capital
= $60,000 + $40,000 + $20,000
= $120,000
Total Equity of Ramsey:
= 40% of Total investment
= 0.4 × $120,000
= $48,000
Old partners contribution:
= Equity of Ramsey - Ramsey capital
= $48,000 - $20,000
= $28,000
Benson’s capital balance after admitting Ramsey:
= Benson’s capital - Old partners contribution(2 ÷ 5)
= $60,000 - [$28,000 × (2 ÷ 5)]
= $60,000 - $11,200
= $48,800