Answer:
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their:
fair market value at the time of the contribution.
Explanation:
This fair market value of the assets contributed by each partner provides the best measurement value at which assets contributed in a partnership should be recorded. The asset class is debited while the partner's capital account is credited with this fair market value and not the book or cost value.
Answer:
The answer to this question is $354.47
Explanation:
Firstly, interest payable based on face value of the bond and coupon interest rate is 6%*$100000*6/12,which is $3000 semi annually as given in the question.
However,interest based on market value and market interest rate is $95,842*7%*6/12=$3354.47
In other words, the bond discount amortization is the difference between the two interests as calculated above.
Difference=$3354.47-$3000
=$354.47
The necessary entries to pass in the books of accounts are stated thus:
DR Interest expense $3354.47
CR Interest payable $3000
CR Bond discount $354.47
Answer: B. The Fed cannot control the amount of money that households choose to hold as currency.
Explanation: If the Federal government wants to control the money supply, they will buy government bonds. For the Fed to pay for the bonds, the Fed will creates money. Its purchase of bonds will put the new money in the hands of the public.
But one thing the federal government cannot control is the amount of money households choose to hold as currency.
Answer:
Cost of purchasing the shares = 180 x $13 = $2,340
Commission = 3% x $2,340 = $70.20
Explanation:
In this case, we need to calculate the cost of purchasing the shares. Thereafter, we will calculate commission based on 3% load (3% of $2,340).
