Answer:
$459,000
Explanation:
The computation of the ending retained earning balance is shown below:
Ending retained earning balance is
= Opening retained earning balance + net income - dividend
where
Net income
= Service revenue - operating expenses
= $827,000 - $748,000
= $79,000
Now the ending retained earnings balance is
= $444,000 + $79,000 - $64,000
= $459,000
Answer:
c. $9,000
Explanation:
a. Adjusted basis in the passive activity: $0
b. Rhonda is facing a net loss of $12,000 from passive operation.
Since it uses $7,500 of the loss to. the total at risk to $0.
c. This year passive loss suspended $7,500
The loss suspended in the prior year is $1,500
So, Therefore, the suspended passive loss passed over to the following years total $9,000
Now, Suspended passive loss $9,000 ($7,500 suspended loss in current year + $1,500 suspended loss in the previous year)
Answer:B. So that the growth can be carefully monitored and managed
Explanation: Management is an act of planing,coordinating and the executing responsibilities in order to improve efficiency.
When a company grows the number of managers are expected to increase so that the activities of the organization is effectively coordinated,growth can be properly and efficiently monitored and managed.
If growth is not efficiently monitored and managed it will hinder the overall performance of the organization.
Answer:
The journal entry is as follows:
Cash A/c Dr. $18,000
Equipment (Fair value) A/c Dr. $9,000
To N's capital $27,000
(To record the investment bought by Nichols)
Workings:
Cash contributed by Nichols = $18,000
Equipment's Book value = $6,300
Fair value of equipment = $9000
Nichols capital = $18,000 + $9,000
= $27,000
Answer:
b. 6 units
Explanation:
Output Revenue Costs = Profit ( Revenue - Costs)
0 0 10 = -10
1 8 12 = -4
2 16 15 = 1
3 24 19 = 5
4 32 24 = 8
5 40 30 = 10
6 48 37 = 11
7 56 46 = 10
8 64 55 = 9
9 72 65 = 7
Note: The revenue is calculated by multiplying output by the market price of $8.
The firm should produce 6 units to maximize their profit which is $11.
