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KATRIN_1 [288]
3 years ago
10

The Salt and Pepper Partnership was formed in January of the current year when Salt and Pepper each contributed $10,000 cash and

together began to operate a business as equal partners. Both work full-time in the partnership. The partnership borrowed $40,000 on a nonrecourse basis during the year. There are no guarantees or loss limitation agreements. Operations in the year resulted in a $5,000 ordinary loss, $2,000 tax-exempt income, and an $800 charitable contribution. What is Salt’s basis at the end of the current year?
Business
1 answer:
Novay_Z [31]3 years ago
3 0

Answer:

Salt's basis = -$3900 from a 50% sharing basis

Explanation:

profit sharing ratio as per contributions is 50%:50%

ordinary loss                  - $5000

tax exempt income       -$2000                  

Charitable contribution -$800

Taxable loss                 =$7800

profit(loss) share

Salt                         = -3900

Pepper                   =-3900

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3 years ago
A company had beginning assets and liabilities were Rs. 100,000 and Rs. 50,000 respectively.
elena-14-01-66 [18.8K]

Answer: Rs. 120,000

Explanation:

At the end of the year, both assets and liabilities had doubled. New asset and liability figures are therefore:

Assets = Rs. 200,000

Liabilities = Rs. 100,000

Net income is part of equity and as there is no equity, net income must be the entire equity.

Assets = Equity + Liabilities

200,000 = Equity + 100,000

Equity = 200,000 - 100,000

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3 years ago
Explain the concept of delegation of authority​
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Explanation:

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6 0
3 years ago
Read 2 more answers
A budgeting process where individuals who are impacted by a budget are directly involved in its development is​ called: A. parti
lina2011 [118]

Answer:

A. participative budgeting

Explanation:

Participative budgeting -

It refers to the type of method of budgeting , where the person implementing the budget as well as the person getting affected by the budget are involved in the process of creating the budget , is referred to as participative budgeting .

In this method the top - level managers are supposed to share the decision of budgeting with the bottom - level managers as well .

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The correct answer is A. participative budgeting .

6 0
3 years ago
The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated on June 30 and mature on June
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Answer:

cash      967,707 debit

  premium on BP      67,707 credit

  Bnds Payable     900,000 credit

interest expense 58062.42  debit

premium on BP 437.58       debit

       cash                     58500 credit

Explanation:

procceds 967,707

face value 900,000

premium on bonds payable 67,707

<em><u>first interest payment</u></em>

carrying value x market rate

967,707 x 0.06 = 58062.42

then cash outlay

face valeu x bond rate

900,000 x 0.065 = 58,500

the difference will be the amortization

8 0
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