Answer:
Generally a minor cannot be held responsible for any contracts that they sign unless they involve basic necessities, e.g. food, clothes, shelter. But in this case, Robertson ratified the contract when he was already an adult (I guess he was an adult when he graduated as a dentist or during the next three years). Once Robertson ratified the contract, he cannot disaffirm it anymore.
Answer:
Option (B) is correct.
Explanation:
Given that,
Total Assets = $23,610
Interest-Bearing Debt (market value) = $11,070
Average borrowing rate for debt = 10.2%
Common Equity:
Book Value = $6,150
Market Value = $25,830
Marginal Income Tax Rate = 37%
Market Beta = 1.73
Hence,
Weight on equity capital = Equity ÷ (Debt + Equity)
= 25,830 ÷ (11,070 + 25,830)
= 25,830 ÷ 36,900
= 70%
Therefore, the weight on equity capital is 70%.
<u>Calculation of retained earnings beginning balance:</u>
Retained earning beginning balance can be calculated using the following formula:
Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends
Hence using the given information we can solve the equation as follows:
3,050 = Retained earning beginning balance + 1935 – 1065 - 550
3,050 = Retained earnings beginning balance +320
Retained earnings beginning balance = 3050-320 = $2,730
Hence, Retained earnings beginning balance is <u>$2,730</u>
Answer:
$5,300
Explanation:
Calculation to determine Ada’s total support for the year
Medical and drug expenses $600
Add Lodging $1,200
Add household total food expense $2,000
($6,000/3 Ada+Robert+Barbara)
Add Source of income $1,500
Total support $5,300
($600+$1,200+$2,000+$1,500)
Therefore what Ada’s total support for the year for purposes of determining whether Robert and Barbara can claim Ada as a dependent will be is $5,300
