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Arturiano [62]
2 years ago
11

Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his s

hare of partnership liabilities. Jay's share of the partnership's unrealized receivables is $6,000. The partnership has no substantially appreciated inventory items. Jay sold his partnership interest for $28,000 cash plus $15,000 of his liability relief. What is the amount and character of his gain
Business
1 answer:
Marta_Voda [28]2 years ago
4 0

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

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Allyson Gomez invests $8,000 today in an investment that earns 6 percent per year (compounded annually) for 25 years. The averag
REY [17]

Answer:

B

Explanation:

The first thing to do here is to calculate what the amount of money invested would be in 25 years given the interest rate.

Mathematically, that can be written as;

V = P(1 + r)^n

Where V is the future value

P is the present value which is $8,000

r is interest rate which is 6% (6/100 = 0.06)

n is the number of years which is 25 years

Now plugging these values into the equation, we have

V = 8,000(1 + 0.06)^25

V = 8,000(1.06)^25

V = $34,334.97 which is approximately $34,335

We can now proceed to get what this future value would be today if we take the inflation rate into consideration

Mathematically, this can work as follows

P = V(1 + i)^n

Where P is the present value of the money when the inflation is taken into consideration

V is the future value of the money which was calculated from above as $34,335

i is the inflation rate which is 1.8% per annum = (1.8/100 = 0.018)

n is the number of years which is 25

Substituting these values, we have;

P = 34,335/(1 + 0.018)^25

P = 34,335/(1.018)^25

P = 21,980.75

Which is approximately P = $21,981

5 0
3 years ago
A soft drink bottler incurred the following factory utility cost: $3,711 for 1,250 cases bottled and $3,790 for 1,800 cases bott
Brilliant_brown [7]

Answer:

$0.1436

Explanation:

Given that,

$3,711 for 1,250 cases bottled

$3,790 for 1,800 cases bottled

Factory utility cost is a mixed cost containing both fixed and variable components.

Variable cost per unit:

= Difference in costs ÷ Difference in units

= ($3,790 - $3,711) ÷ (1,800 - 1,250)

= $79 ÷ 550

= $0.1436

Therefore, the variable factory utility cost per case bottled is closest to $0.1436.

7 0
3 years ago
Which strategy would be most helpful in enhancing the reader’s comprehension of the poem?
Luden [163]

Answer:

Rewriting each line by hand.

3 0
2 years ago
Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 p
alexandr402 [8]

Answer:

cost of direct materials purchases   160,800

Explanation:

pounds required for production      54,000

desired ending inventory                    2,800

total needs                                         56,800

beginning inventory                           (3,200)

units to be purchased                        53,600

cost per unit of direct materials                  3

cost of direct materials purchases   160,800

<u>Notes:</u>

The pounds for production and the ending inventory are the raw materials demand.

The beginning inventory is a portion we already have, so we need to purchase less.

Then, we multiply the pounds to be purchased by their cost to get the total cost for direct materials

3 0
2 years ago
JLK is a partnership that was formed two years ago for the purpose of creating new fad items and distributing them directly to c
arsen [322]

Answer:

The correct answer is E. Initial public offering.

Explanation:

An Initial Public Offering (IPO) is an equity offering where a <u>private company</u> or '<u>issuer</u>' decides to <em>go public for the first time</em>. This is a big step for companies to raise capital through public investors, get access to better and more credit and further grow a company. To go through with an IPO, a company must meet the requirements of the Securities and Exchange Comission (SEC).

The process is made with the help of one or more <u>investment banks</u> that act as <u>underwriters</u>. Underwriters take care of the offering from the beginning to the end of the IPO by preparing documentation, providing proposals on selling price, amount of shares & timeframe for the market offering, marketing campaigns and going through the issuing process.

5 0
3 years ago
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