Answer:
The amount is $4,000 and Brain character reflects the capital gain.
Explanation:
Partnership: In partnership, there are two or more partners who are ready to share the profit or losses in their profit-loss sharing ratio.
The computation is shown below:
= Brain's basis - the inside basis
= $16,000 - ($20,000 - $8,000)
Since the brain basis show excess amount than inside basis which reflects the capital gain
.
The inside basis is not relevant in the computation part. Hence, it is ignored.
Answer: Net Asset Value = 1950
Explanation:
Assets = $225 million
Liabilities = $30 million
Shares outstanding = 10 million
We can compute the Net Asset Value, using the following formula:
<em>
</em>
<em>
</em>
<em>NAV per share = 19.5</em>
<em>Therefore, the NAV of 100 share is 1950</em>
Risk evaluation involves rating the risks that may happen based on the likelihood of them happening. Risk evaluation also involves rating these potential happenings based on the impact they could have on the business. Evaluating risk is a step in the creative process of risk management.
True. It will use up valuable space.
We are asked to solve for the excess reserves. There are given values such as:
Checkable deposits = $ 150,000,000
Total reserves = $12,000,000
Required reserve ratio = 8%
Solving for reserve amount, we have:
Reserve amount = 0.08 * $150,000,000 = $ 12,000,000
Solving for the excess:
Excess reserves = $ 12,000,000 - $12,000,000 = $0
The answer is $0.
