Answer: c. $20,000
Explanation:
The Loss on Realization is monies accrued after assets have been sold off at less than their original value and in Calculating it, the following formula is used,
Loss on realization = Total Capital Balances after payment of liabilities minus - balance
Slotting in the figures therefore we have,
Loss on realization = $40,000 + $70,000 - $80,000
= $30,000 was the total loss on Realization
Seeing as Antonio and Barbara are partners who share income in the ratio of 1:2 we allocate to Barbara as follows,
Barbara = $30,000 * 2/(1+2)
= $20,000
Therefore option C is correct.
Real estate commission fee
Answer:
$5,000
Explanation:
Based on the information given we were told that had a total basis in her 500 shares of stock of the amount of $5,000 which means that The total basis of Melissa's 1,000 shares of stock after the dividend is $5,000 which is her total basis in her 500 shares of stock.
Answer:
Acquisition cost of the Equipment = $94,000
Double declining depreciation rate = 25%
Explanation:
a. The computation of the acquisition cost of the equipment is shown below:-
Acquisition cost of the Equipment = Invoice cost + Freight costs + Installation wiring and foundation + Material and labor costs used in testing
= $90,000 + $1,100 + $2,200 + $700
= $94,000
b. The computation of double declining depreciation rate is here below:-
Double declining depreciation rate = 1 ÷ Depreciation life × Times
= 1 ÷ 8 × 2
= 0.125 × 2
= 0.25
or
= 25%
Answer:
$1,565.48
Explanation:
This is an annuity due type of question since the recurring payments are made at the beginning of each year unlike Ordinary annuity whose payments occur at the end of each period.
With a financial calculator on beginning mode "BGN", use the following inputs to find the PV;
Total duration of investment; N = 3
Recurring payment; PMT = 550
Interest rate; I/Y = 5.5%
One time cashflows; FV = 0
then compute for Present value ; CPT PV = 1,565.476
Therefore, the most you should pay is $1,565.48
