Which of the following is a source of insurance? *

Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership in

creativ13 [48]

Answer: Capital gain = $10,000 ; Ordinary income = $25,000

Explanation:

Here is the complete question:

The PLM Partnership balance sheet includes the following assets on December 31 of the current year:

Basis FMV

Cash $230,000 $230,000

Accounts receivable 0 75000

Land 70,000 100,000

Total $300,000 $405,000

Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership interest to Emma for $135,000 cash, how much capital gain and ordinary income must Pamela recognize from the sale?

The following can be calculated based on the question above:

Pamela's share of the unrealized receivables will be the ordinary income which will be the unrealized receivables of $75000 which is then multiplied by 1/3 which is the interest. This will be:

Ordinary income = 1/3 × $75,00

= $25,000

The capital gain will be the difference that occurs between total gain and ordinary income.

Total gain difference

= $135,000 - $100,000

= $35,000

Ordinary Income = $25,000

Capital gain = $35,000 - $25,000

= $10,000

5 0

3 years ago

One reason you should drive slowly around farm vehicles is:

murzikaleks [220]

Typical farm vehicles go slower and are expensive so you must drive slowly to make sure you don't run into it as Well as be polite

5 0

3 years ago

Read 2 more answers

which of the following entries records the adjustment for revenue earned, but not yet collected? multiple choice debit accounts

Yanka [14]

various options Debit receivables from customers, credit sales. Accounts Receivable is debited and Sales Revenue is credited. Sales revenue is debited and deferred revenue is credit. Debit receivables and credit deferred revenue are the two balances.

<h3> What are debit and credit?</h3>

An accounting entry that decreases an asset or cost account is known as a debit. or reduces an equity or liability account. In an accounting entry, it is placed on the left. An accounting item known as a credit raises a liability or equity account's balance. or lowers an account for an asset or expense.

The money that is placed into your checking account is a credit to the bank even if it is a debit to you (an increase in your asset) because it is not their money. It is your money, and the bank owes it to you, so it is a liability on their books. A credit is an increase in a liability account.

Explain debit and credit with an example:

Debit what comes in, credit what leaves, first. Second, credit all gains and revenue while debiting all expenses. Thirdly, debit the sender and credit the recipient.

<h3>Can you credit revenue and debit accounts receivable?</h3>

An accounts receivable transaction in journal entry form debits accounts receivable and credits a revenue account. Credit accounts receivable (to eliminate the receivable) and debit cash (to show that you have been paid) when your customer pays their invoice.

Debit or Credit Account: As a business owner, your equity grows as a result of your revenue. Revenues must be reported as credits rather than debits because your equity typically has a credit balance.

Revenue from sales is it an accounts receivable?

When a business sells anything, it reports the revenue from the transaction on its income statement. They list the amount owed as accounts receivable on their balance sheet if the consumer hasn't yet paid them for the purchase. The amount indicated on the income statement is offset by accounts receivable.

To know more about Debit or Credit , visit:

brainly.com/question/12269231

#SPJ4

7 0

1 year ago

Economists tend to see ticket scalping asA. an unproductive activity which should be made illegal everywhere.B. a way for a few

arlik [135]

Answer:

<h2>C. A way of increasing the efficiency of ticket distribution </h2>

Explanation:

Ticket Scalpers are the ticket speculators who buy the tickets to a sport or performance event and resells them at higher prices. Lassiez-faire economists consider it to be a good thing. the correct value of the ticker is decided by the market but the Scalpers are flexible in pricing than the venue, they may also bear a loss while still guaranteeing the full value that venue gets. But the problem with the scalping is the at the value goes to the <u><em>agents</em></u> instead of the venue that is providing the product.

7 0

3 years ago

On March 31, 2018, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The comp

AVprozaik [17]

Answer:

1)

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2)

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3)

Dr Interest expense 600

Cr Accrued interest 600

4)

Dr Supplies expense 1,960

Cr Supplies 1,960

5)

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6)

Dr Income tax expense 2,600

Cr Income tax payable 2,600

Explanation:

March 31, 2018

Prepaid insurance $14,740 - 3,618

Supplies 2,900 - 1,960

Equipment 22,100

Accumulated depreciation-equipment 5,680 + 1,226

Unearned revenue 9,730 - 6,487

interest payable 600

Income tax payable 2,600

Loan payable, due 2020 20,000

Rent revenue 30,900 + 6,487

Salaries expense 14,500

depreciation expense 1,226

interest expense 600

Supplies expense 1,960

Insurance expense 3,618

Income tax expense 2,600

1. The equipment, which was purchased on January 1, 2017, is estimated to have a useful life of four years. The company uses straight-line depreciation.

depreciation per year = $22,100 / 4 = $5,525

depreciation expense up to March 31, 2018:

$5,525 x 1.25 = $6,906.25 ≈ $6,906

adjustment entry = $6,906 - $5,680 = $1,226

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2. One third of the unearned revenue related to rent is still unearned at the end of the quarter.

adjusting entry = 9,730 - (9,730 x 1/3) = $6,486.67 ≈ $6,487

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2018.

interest per month = $20,000 x 6% x 1/12 = $600

Dr Interest expense 600

Cr Accrued interest 600

4. Supplies on hand total $940 at March 31.

adjusting entry = $2,900 - $940 = $1,960

Dr Supplies expense 1,960

Cr Supplies 1,960

5. The one-year insurance policy was purchased for $14,740 on January 1.

insurance expense per quarter = $14,470 x 3/12 = $3,617.50 ≈ $3,618

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6. Income tax is estimated to be $2,600 for the quarter.

Prepare the quarterly adjusting entries required at March 31.

Dr Income tax expense 2,600

Cr Income tax payable 2,600

8 0

4 years ago