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3 years ago

Can we treat all small businesses the same? Why or Why not?

Business

1 answer:

Pepsi [2]3 years ago

7 0

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got a tax free meal that 't go into the community didn't.

Explanation:

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On January 1, 2017, Alison, Inc., paid $60,000 for a 40 percent interest in Holister Corporation’s common stock. This investee h

diamong [38]

Answer:

It will be valued at:

investment 70,000

goodwilll 1,000

patent 4,000

total 75,000

Explanation:

first we calcualte the equity of the company:

200,000 - 75,000 = 125,000 equity

then we calcualtethe investment proportion:

125,000 x 0.4 = 50,000 investment

15,000 x 0.4 = 6,000 patent

goodwill: 4,000 (60,000 - 56,000)

2017

income: 30,000 x 0.4 = 12,000

dividneds: 10,000 x 0.4 = (4,000)

amortization on patent

6,000 / 6 = 1,000 per year

2018

income: 50,000 x 0.4 = 20,000

dividneds: 15,000 x 0.4 = ( 6,000 )

amortization on patent: ( 1,000 )

50,000 + 12,000 - 4,000 - 1,000 + 20,000 - 6,000 - 1,000 = 70,000

then we add the patent and the goodwill

70,000 + 4,000 + 4,000 = 78,000

and wecheck for impairment:

as the fair value is 75,000 we decrease goodwill

6 0

3 years ago

Prescott Bank offers you a five-year loan for $55,000 at an annual interest rate of 7.25 percent. What will your annual loan pay

Studentka2010 [4]

Answer:

Annual loan payment = $13,146.78

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.</em>

The monthly equal installment is calculated as follows:

Monthly equal installment= Loan amount/Monthly annuity factor

Monthly annuity factor

=( 1-(1+r)^(-n))/r

r- Monthly interest rate (r)

= 7.25%/12= 0.604 %

n- Number of months ( n) in 5 years

= 12* 6 = 60

Annuity factor

= ( 1- (1.00604)^(-60)/0.00604= 50.2024

Monthly installment= 55,000 /50.2024 = $1,095.56

Monthly installment = $1,095.56

Annual loan payment = monthly installment × 12

Annual loan payment =$1,095.56 ×12=13,146.78

Annual loan payment = $13,146.78

6 0

3 years ago

Peter was in the market for a new boat to use at his lake house. He attends the local boat show with his neighbor Sean. He sees

liq [111]

Answer:

As the salesperson person gave the offer to Peter which he was not sure about, Peter said that he will come back in an hour but Peter didn't came instead his neighbour Sean came and asked salesperson to buy that boat on the price he told to person to according to the rule of offer this offer was made to Peter not Sean. If Peter would have accepted it then salesperson and Peter would be in contract but in this case now the offeror is Sean and Offeree if salesperson so it is up to him to accept the offer. Until the salesperson does not accept the offer then contract has not been form. If the salesperson accepts the offer of 35,750 then the contract will be formed.

3 0

3 years ago

Assume that per capita income is growing at different rates in the following countries: Nepal, 0.7 percent; Kenya, 1.3 percent;

Blababa [14]

Answer:

100 years

53.8 years

10.1 years

18.4 years

Explanation:

country to double given its growth rate

Number of year for GDP to double = 70 / growth rate of country

1. 70 / 0.7 = 100

2. 70 / 1.3 = 53.8

3. 70 / 6.9 = 10.1

4. 70 / 3.8 = 18.4

4 0

3 years ago

If a company purchases equipment costing $5,100 on credit, the effect on the accounting equation would be:

alex41 [277]

Answer:

assets increase $5,100 and liabilities increase $5,100

Explanation:

Assets are the items that a company owns which can provide future economic benefit.

Liabilities are future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events, hence Liabilities are what a person or company owe other parties.

If a company purchases equipment costing $5,100 on credit, the assets of the company will increase by $5100 as a result of acquiring an equipment. Also, the liability will increase by $5100 as a result of debt owed.

4 0

3 years ago