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tankabanditka [31]
3 years ago
10

Mary and David are partners who share profits and losses on a 3:1 basis. This means Mary receives 75% and David receives 25% of

income after any allocations. Mary receives a salary allowance of $15,000. Earnings for the period total $51,000. What will be the total amount credited to Mary's Capital account when the Income Summary account is closed?
Business
1 answer:
Arada [10]3 years ago
5 0

Answer:

$53,250

Explanation:

In case of profit sharing ratio 3:1

Mary will receive 75% of profits, provided after any allocations made.

Therefore total share of Mary = Salary + Share in profit.

= $15,000.00 + ($51,000.00 X 75%) = $15,000.00 + $38,250.00 = $53,250.00

Note: Salary will also be credited to Mary's capital account, although in some cases firms also open partner's current account in that case salary will be credited to current account and not the capital account. But generally only one capital account is being operated.

Therefore amount credited to Mary's Capital Account = $53,250.00

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C

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In 2019, Maia (who files as a head of household) reported regular taxable income of $116,300. She itemized her deductions, among
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Answer:

Maia’s alternative minimum taxable income is: =$119430

Explanation:

Given:

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From that, we can find out the taxable income

= Regular taxable income + State income taxes

= $116,300 + $3,130

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Because the deduction spent on charitable contributions will not consider as taxable income because charitable contribution is a deductible amount from a person's taxable income.

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How does immigration not lead to poverty?
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Poverty rates and median family income

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Explanation:

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3 years ago
Sanjay is looking for a new winter coat. Which of the following actions would NOT be part of making a comparison?
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4 years ago
Robert gillman, an equity research analyst at Gillman Advisors, believes in efficient markets, He has been following the mining
antoniya [11.8K]

Answer:

Q1) a. 6.60%

Q2) c. retaining a higher percentage of earning will result in a higher growth rate.

Explanation:

Q1.)

Use dividend discount model (DDM) to solve for the growth rate;

g = r- (D1/P0)

whereby;

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r = required rate of return = 11.40% or 0.1140 as a decimal

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P0 = Current stock price = $23.75

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Q2.)

c. Retained earning is the proportion of total net profit that a company reinvests back into the business for the purpose of investing in other potentially profitable projects.The returns from these projects would increase the value of the company at a faster rate if a higher percentage e.g 90% is retained. On the other hand, if the company pays a larger portion of its retained earnings e.g 70% as dividends, it will experience a slower growth rate making choice C correct.

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