1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AnnyKZ [126]
3 years ago
10

"Christie and Jergens formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership

agreement calls for Christie to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Christie and Jergens's respective shares are:"
Business
1 answer:
Katen [24]3 years ago
3 0

Answer:

The Christie and Jergens's respective shares are $92,500 and $42,500.

Explanation:

For computing the Christie and Jergens's respective shares, first, we have to compute the remaining income which is to be shared between these two partners. The computation is shown below:

= Net income - salary - interest on total capital

= $135,000 - $60,000 - 10% × ($300,000 + $400,000)

= $135,000 - $60,000 - $70,000

= $5,000

So, the remaining income would be divided equally between the partners

Now

Christie shares = Salary + interest on capital + remaining income

                         = $60,000 + ($300,000 × $10%) + $2,500

                         = $60,000 + $30,000 + $2,500

                         = $92,500

And, the Jergens shares  =  interest on capital + remaining income

                                          = ($400,000 × $10%) + $2,500

                                          = $40,000 + $2,500

                                          = $42,500

You might be interested in
A full-page, fully paid spread in the new york times publicizing a major oil company is best described as ________.
pickupchik [31]

scol usne jab js dj jd. jd

6 0
3 years ago
When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.)
belka [17]

Answer:

The correct answers are the following options:

After recording the transaction, total assets will always equal total liabilities plus equity.

The accounting equation must always remain in balance

Explanation:

To begin with, the name of <em>"Accounting Equation"</em> is famously known in the business field due to the fact that it is a concept from the accountant of companies and in fact a very important one. The accounting equation represents the sum between the equity and the debts of the company that will always give the total assets of the company. It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. Moreover, under its doctrine, it proves that the balance sheet must always remain balance.

4 0
2 years ago
What are the 4 tools used by the federal reserve to control the money supply ?
Mandarinka [93]
The Federal Reserve's three instruments of monetary policy are open market operations, the discount rate and reserve requirements.

5 0
3 years ago
On November 2, 2020, Ellie purchased and placed in service a building that cost $5,600,000. An appraisal determined that 15% of
tia_tia [17]

Answer:

Ellie

A. The property is classified for 27.5-year MACRS since more than 80% of the gross rental income emanates from residential dwellings.

B. The life of the asset for this type of MACRS is 27.5 years.

C. Ellie's cost recovery for 2020/2018 is $28,848.

Explanation:

a) Data and Calculations:

Cost of building and land = $5,600,000

Appraised cost of land = $840,000 ($5,600,000 * 15%)

Appraised cost of building = $4,760,000 ( ($5,600,000 * 85%)

Rent from the bottom floor leased to a retail business = $80,000

Rent from the other floors as rental apartments = $350,000

Total value of rental income = $430,000

Retail business % of rental income = 19%

Residential apartments % of rental income = 81%

Cost recovery = $173,091 ($4,760,000/27.5) per annum

For 2 months, the cost recovery = $28,848 ($173,091 * 2/12)

8 0
2 years ago
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $4,680 and is
tamaranim1 [39]

Answer:

Product cost=  $1248

Period Cost=  $312

Explanation:

Giving the following information:

The insurance coverage premium for the three years is $4,680.

Eighty percent of the premium applies to manufacturing operations and twenty percent applies to selling and administrative activities.

Total period:

Product cost= 0.80*4680= $3744

Period Cost= 0.20*4680= $936

For the first year:

Product cost= $3744/3= $1248

Period Cost= $936/3= $312

7 0
3 years ago
Other questions:
  • Find last​ year's salary​ if, after a 4% pay​ raise, this​ year's salary is $39,000.
    5·1 answer
  • An employee's commission is always based on total dollar sales.<br> true or false
    10·1 answer
  • How do economists and bankers determine how much the money supply will increase with each deposit?
    9·1 answer
  • If you put $700 in a savings account at an interest rate of 3 percent, how much money will you have in one year?
    9·1 answer
  • The majority of products that we purchase in America are produced where?
    7·2 answers
  • You are saving for retirement. To live​ comfortably, you decide you will need to save $ 1million by the time you are 65.Today is
    13·1 answer
  • A sandwich maker is needed in the deli restaurant. His job is to put together the sandwiches customers order. What type of resou
    9·2 answers
  • Kathy is an office manager at a growing law firm that specializes in pursuing awards for accident victims. She is assigned as th
    7·1 answer
  • Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In
    11·1 answer
  • Mark the example as ethical behavior, unethical behavior, or conflicts of interest:
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!