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Katen [24]
3 years ago
10

Problem 10-4 Partnership Formation (LO 10.2) Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the t

axable income from the partnership since she purchased the interest has been $70,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $1,000 of tax-exempt interest to Elaine. Calculate Elaine's current basis in her partnership interest. $fill in the blank 1 1,000
Business
1 answer:
dexar [7]3 years ago
5 0

Answer:

$31,000

Explanation:

Calculation to determine Elaine's current basis in her partnership interest

Using this formula

Elaine's current basis= Value of original basis + (interest purchased - Cash received) + Tax exempt interest

Let plug in the formula

Elaine's current basis= $40,000 + ($70,000 - $80,000) + $1,000

Elaine's current basis= $40,000 - $10,000 + $1,000

Elaine's current basis= $31,000

Therefore Elaine's current basis in her partnership interest is $31,000

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With which two key issues is corporate-level strategy concerned?
Andrej [43]

Answer:

Option B What businesses a firm should be in and how the corporate office should manage its group of businesses

Explanation:

The reason is that corporate level strategy helps in managing the all of the business units of the company which means that the strategy is to maximize the gains arising by increasing the effectiveness and efficiency of the business operations of the business units. So the question certainly would include the decision of whether or not we should close a business unit or that we should continue with it. It would also question whether the group business is well managed or there are any other better alternatives as well.

4 0
3 years ago
Read 2 more answers
Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

6 0
3 years ago
Biloxi Gifts uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general jou
SpyIntel [72]

<u>Solution and Explanation:</u>

<u>The following journal entries are passed in the books of accounts.</u>

Purchase of merchandise on credit - no entry is to be passed

Contribution of automobile to the company:

Date           Details                      debit                 credit

12- nov     Automobiles          17000

                      TB Capital                                      17000

( To record contribution of automobile to the company)

Sale of merchandise on credit:

Not recorded in gernal journal

Return of merchandise sold:

Date           Details                                            debit                 credit

19- Nov       Sales return and allowances      175

                     accounts receivable - KM                                 175

3 0
3 years ago
Accounting
kvv77 [185]

Answer:

I cannot see the picture

Explanation:

sorey

8 0
3 years ago
Sunland’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $21000 Direct Labor 6000
algol13

Answer:

$9,000

Explanation:

Total variable cost of manufacturing the components are as follows;

Direct materials $21,000

Direct labor 6,000

Variable overhead 3,000

————

Total $30,000

If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;

$39,000 - 30,000 = $9,000 (unavoidable fixed cost)

7 0
3 years ago
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