Answer:
Rita's basis in her partnership interest is $35000
Explanation:
given data
cash = $10,000
fair market value = $150,000
adjusted basis = $55,000
liability = $60,000
to find out
Rita's basis in her partnership interest
solution
we know both Rita and Gerry half of total liability
we get here 50% share on debt that is
50% share on debt = 50% × liability
50% share on debt = 0.50 × $60,000
50% share on debt = $30000
so basis on interest is here as
basis on interest = cash + adjusted basis - 50% share on debt
basis on interest = $10000 + $55000 - $30000
basis on interest = $35000
Answer:
The <u>financial </u>account summarizes international asset transactions having to do with the international purchases and sales of real assets
Gross margin from sales equals net sales minus cost of goods sold.
In this case 5000 - 3000 = 2000
Gross margin is how much money from sales will be added to overall profitability to pay other expenses, basically how much above the cost of selling the goods do we make at the sales price we are charging.
Answer:
15%
Explanation:
Required rate of return = Net operating income other than income others / Average operating assets
Required Rate of Return = $90,000/$600,000
Required Rate of Return = 0.15
Required Rate of Return = 15%
Thus, the company's required rate of return is 15%
<u>Workings</u>
Return on Investment = Net Profit/Total investments*100
Net income = Return on investment*Total Investments
Net income = $600,000 * 22%
Net income = $132,000
Thus, Net Operating income = Net income - Residual income = $132,000 - $42,000 = $90,000.