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alina1380 [7]
3 years ago
11

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $356,000; the partnership

assumes responsibility for a $128,000 note secured by a mortgage on the property. Monroe invests $103,000 in cash and equipment that has a market value of $78,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:_______.
a. Building $356,000; Fontaine, Capital $309,000.
b. Building $356,000; Fontaine, Capital $356,000.
c. Building $228,000; Fontaine, Capital $128,000.
d. Building $228,000; Fontaine, Capital $228,000.
e. Building $356,000; Fontaine, Capital $228,000.
Business
1 answer:
Lubov Fominskaja [6]3 years ago
5 0

Answer: e. Building $356,000; Fontaine, Capital $228,000.

Explanation:

The company would record the building which Fontaine brought in at its Market value which is $356,000.

However, because the partnership assumes responsibility for a $128,000 note secured by a mortgage on the property, this cannot be counted as a capital contribution from Fontaine so this will be removed from their capital contribution;

= 356,000 - 128,000

= $228,000

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torisob [31]

Answer:

The net present value of the machine is $5530

Explanation:

Data provided in the question:

Cost of the equipment = $84,000

Annual after-tax net income from the equipment after deducting depreciation = $3,000

Depreciation = $28,000

Useful life = 3 years

Required return on investment = 9% = 0.09

Now,

After-tax cash flow = After-tax net income + Depreciation

= $3,000 + $28,000

= $31,000

Therefore,

Net Present Value = Present value of cash flow - Investment

= ( $31,000 × PVIFA(11%, 3) ) - $84,000

= ( $31,000 × 2.5313 ) - $84,000

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= -$5529.7 ≈ - $5530

hence,

The net present value of the machine is $5530

4 0
3 years ago
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3 years ago
Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and a perpetual system was maintained
olga_2 [115]

Answer:

Total= $77,300

Explanation:

Giving the following information:

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3 years ago
Whenever there is a shortage at a particular price, the quantity sold at that price will equal:_____.
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