The Prince-Robbins partnership has the following capital account balances on January 1, 2015:

Prince, Capital $130,000
Robbins, Capital 120,000

Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 7 percent is given to each partner based on beginning capital balances. On January 2, 2021, Jeffrey invests $40,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 6 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2021, the partnership reports a net income of $10,000.

Required:
a. Prepare the journal entry to record Jeffrey entrance into the partnership on January 2, 2015.
b. Determine the allocation of income at the end of 2015.

Answers

Answer 1

Answer:

The Prince-Robbins-Jeffrey Partnership

a) Journal entry to record Jeffrey entrance into the partnership on January 2, 2015:

Debit Capital Account - Prince $72,000

Debit Capital Account - Robbins $18,000

Credit Goodwill $90,000

To record the negative goodwill arising at Jeffry entrance into the partnership.

Debit Cash Account $40,000

Credit Capital Account - Jeffrey $40,000

To record the investment by Jeffrey into the partnership.

b) Allocation of income at the end of 2015:

                              Prince       Robbins    Jeffrey     Total

Interest 6%          $3,480       $6,120      $2,400   $12,000

on new capital

Loss sharing        -1,000           -600         -400       -2,000

Net income        $2,480      $5,520     $2,000     $10,000

Explanation:

a) Data and Calculations:

January 1, 2015:  Capital     Old Profit sharing ratio      

Prince, Capital  $130,000     80%

Robbins, Capital 120,000    20%

Total                 $250,000  100%

Interest on capital = 7% based on beginning capital balances.

b) Calculation of Negative Goodwill arising from Jerry's admission:

New capital after Jerry's admission = $290,000

Implied capital at Jerry's admission = $40,000/20% = $200,000

Negative goodwill arising = $200,000 - $290,000 = -$90,000

This negative goodwill will be shared by Prince and Robbins to reduce their capital:

Prince = $72,000 ($90,000 * 80%)

Robbins - $18,000 ($90,000 * 20%)

c) New Capital on January 2, 2015:      

                               Capital  Negative Goodwill    New Profit sharing ratio

Jerry, Capital         $40,000                                     20%

Prince, Capital      $58,000 ($130,000 - 72,000)     50%

Robbins, Capital $102,000  ($120,000 - 18,000)    30%

Total capital       $200,000                                     100%

Interest on capital = 6%

d) Jeffrey's admission and ownership of 20% reduced the capital balances of Prince and Robbins by $90,000.  There was a negative goodwill arising from his admission into the partnership.  This negative goodwill is shared between the old partners in their old profit-sharing ratio.


Related Questions

The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $415,000; Net sales were $1,100,000; Interest expense was $71,000; Loss from sale of investments was $87,000; Income tax expense was $58,000. What was Willie's net income

Answers

Answer:

net income = $199,000

Explanation:

In order to calculate net income, we will first start with EBIT or income from operations and then subtract income tax expense, loss from sale of investments and finally income taxes:

EBIT = $415,000Interest expense = $71,000Loss from sale of investments = $87,000Income tax expense = $58,000Net income = $199,000

Gross profit is deducted from net income, as are any other expenditures and costs, as well as any other earnings and revenue sources not shown in gross profit.

For the net income according to the following question is shown in the image.

For more information about Net Income refer to the link:

https://brainly.com/question/20938437

If the USA can produce 12,000 personal computers or 16,000 TVs, and Japan can produce 10,000 personal computers or 30,000 TVs, then it follows that a. the USA does not have an absolute advantage in TVs. b. the USA does not have an absolute advantage in computers. c. Japan has an absolute advantage in both TVs and computers. d. the USA has an absolute advantage in both TVs and computers.

Answers

Answer:

a. the USA does not have an absolute advantage in TVs.

Explanation:

Absolute advantage is an economic term that describes the relative ease with which a country is able to produce a good compared to other producers.

The country that has absolute advantage will produce more numbers a product with the same resources as the other producer.

In the given scenario USA can produce 12,000 personal computers compared to 10,000 personal computers by Japan. So they have absolute advantage in producing personal computers.

Japan can produce 30,000 TVs compared to 16,000 TVs by USA. So Japan has absolute advantage in producing TVs

Torino Company has 2,600 shares of $20 par value, 5.5% cumulative and nonparticipating preferred stock and 26,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $2,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Answers

Answer:

$3,220

Explanation:

total preferred dividends per year = 2,600 x $20 x 5.5% = $2,860

if $2,500 were paid during year 1, $2,860 - $2,500 = $360 remain to be paid during year 2.

Before common dividends can be paid, the company must first pay $2,860 + $360 = $3,220 in cumulative preferred dividends

If the preferred dividends were not cumulative, then if they are not paid during one year, they will be lost. Only cumulative preferred dividends accumulate from one year to another (or for several years).

Inheriting someone else’s _______ is one of the drawbacks of buying an existing business.

You make a business plan _______ you open your business.

Kinkos is an example of a _______.

One of the challenges of a new business is coming up with a workable _______.

Based on your reading, respond to the following.

List two ways to reduce the feeling of loneliness that can occur when you have your own business.

List two of the three “pro” reasons for starting your own business.

Answers

Answer:

problems

before

franchise

idea

Any two of these:

Make time to meet with clients instead of talking on the phone.

Join a business networking group.

Take business colleagues or prospects out to lunch at least once a week.

Teach a workshop in your field at the community college.

Any two of these

Freedom

Creativity

Profit

Explanation:

pf

The correct will be Answer:

Problems  Before  Franchise Idea                           Any of the two of these: When Make time to meet with the clients instead of talking on the phone. Then Join to a business with networking group. Take any business colleagues or and prospects out to lunch at least once a week. Teach any subject to a workshop in your field at the community college.  The three “pro” reasons for starting your own business. Any two of these Freedom Creativity Profitself-employed

Learn more about:

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When a business is worth more if its assets are sold than if it continues to operate, then the business is liquidated, and the proceeds from the sale are used to satisfy any outstanding debt. Liquidation occurs when businesses file for bankruptcy under Chapter 7 of the Federal Bankruptcy Reform Act. This act provides for an equitable distribution of the debtor's assets among the creditors. The distribution of assets i:s governed by a certain priority of claims. Which of the following claimants has the highest priority according to Chapter 7? A. State taxes due B. Unsecured claims for customer deposits C. Wages due before three months of filing D. Legal and administrative fees to operate the bankrupt firm

Answers

Answer:

D. Legal and administrative fees to operate the bankrupt firm

Explanation:

Under chapter 7, priority debt includes unpaid wages, child support, income taxes, etc. But before any priority debts, non-priority debts or secured or unsecured loans are paid, the bankruptcy court and trustee is paid first. In other words, you must first pay the administrative fees and expenses resulting from the bankruptcy procedure before any debts are paid off. The trustee is the person appointed to liquidate the firm.

Park Hyatt Philadelphia has 118 king/queen rooms that it offers to both leisure and business travelers. With leisure travelers in mind, the Hyatt offers a $125 low fare for a midweek stay, which contrasts with the regular fare of $300. The forecasted demand for business travel is normally distributed with a mean of 60 customers and standard deviation of 20 customers. Assuming that leisure travelers always reserve their rooms earlier than business travelers. To maximize the revenue, the Hyatt decides to save some rooms for business travelers. The optimal number of rooms protected should be:__________ a. <60 b. >118 c. >60 d. =60

Answers

Answer:

c. >60

Explanation:

Given that:

Overage (CO) = 125

Shortage (CS) = 300

The Service level = [tex]\dfrac{CS}{CS+CO}[/tex]

[tex]=\dfrac{300}{300+125}[/tex]

[tex]=\dfrac{300}{425}[/tex]

= 0.7059

The Z value of 0.7059 is 0.55

where;

the mean [tex]\mu[/tex] = 60

the standard deviation [tex]\sigma[/tex]= 20

Optimal booking = [tex]\mu +(Z \times \sigma)[/tex]

Optimal booking = 60 + (0.55 × 20)

Optimal booking = 60 + 11

Optimal booking = 71

Jeffery Davids has invested in something that acts like a mutual fund and that invests in hospitals all over the country. He knows there are federal laws that require this type of investment to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders. What type of investment has Jefferson made?

a. REIT
b. Foreclosure
c. Direct investment
d. Participation certificate
e. Limited partnership

Answers

Answer:

Option a: REIT

Explanation:

A REIT is simply known as Real Estate Investment Trust is a firm or organization that is responsible for pooling of investor funds and thereby investing them in real estate or uses them to so as to produce both construction and mortgage loans. REITS works by enabling companies to use the combined investments of many to purchase a real estate property and it allows both small and large investors to own a share of real estate.

Types of REITs includes Equity REITs which focus on own Properties and Mortgage REITs primarily focus own Mortgage Debt. People iinvest in REITS because it provide greater diversification, potentially higher total returns and/or lower overall risk.

A conceptual framework is an analytical tool with several variations and contexts. It can be applied in different categories of work where an overall picture is needed. It is used to make conceptual distinctions and organize ideas.

Answers

Incomplete question. I inferred you want to know if it is true or false.

Answer:

True

Explanation:

This term is often used in research by researchers to explain the reason for the hypotheses and conclusions made their work, etc. In other words, the conceptual framework paints a clearer/overall explanation of an idea.

For example, if an invention is made of a Car that uses water as fuel; such an invention must have a conceptual framework document explaining the idea behind that.

12. Which of the following statements are correct: A. Percentage ownership occurs with new issuance via rights offerings. B. Market value dilution occurs when the net present value of a project is negative. C. Market value dilution increases as the net present value of a project increases. D. Book value dilution has real impact on individual shareholders.

Answers

Answer:

B. Market value dilution occurs when the net present value of a project is negative.

Explanation:

In the case when the net present value is negative that represent the firm would lose its investment made that automatically reduce the valuation of the business in near future so the market again determine the current stock price also there would be decrease in the market value of the stock so here the dilution would be taken place

Therefore the option B is correct

Why are stocks considered a high-risk form of investment?

Answers

Answer:

A.

The value of stocks can rise and fall unpredictably

Explanation:

Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,150 and $165,550 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,650 of net income and paid dividends of $20,500. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent): Multiple Choice 26%. 20%. 75%. 28%.

Answers

Answer:

28%

Explanation:

let X = the percentage of ownership of Clor Confectionery

the investment account balance = $150,150 - X$20,500 + X75,650 = $165,550

$150,150 + X$55,150 = $165,550

X$55,150 = $15,400

X = $15,400 / $55,150 = 0.2792 = 27.92% ≈ 28%

Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the next year, the chance of recession is 40%, and the chance of normal condition is 60%. The stock's expected return next year is ______ %.

Answers

Answer: 8%

Explanation:

Expected return is a weighted average of the different returns that a stock will have in different economic conditions.

This stock's expected return is;

= (Probability Economic state * Return given economic state) + (Probability Economic state b * Return given economic state b)

= ( 40% * -10%) + (20% * 60%)

= 8%

A comparative balance sheet for Rocker Company appears below:ROCKER COMPANYComparative Balance SheetDec. 31, 2020 Dec. 31, 2019Assets Cash $34,000 $11,000Accounts receivable 18,000 13,000Inventory 25,000 17,000Prepaid expenses 6,000 9,000Long-term investments 0 17,000Equipment 60,000 33,000Accumulated depreciation-equipment (20,000) (15,000)Total assets $123,000 $85,000Liabilities and Stockholder's Equity Accounts payable $17,000 $7,000Bonds payable 36,000 45,000Common stock 40,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $123,000 $85,000Additional information:1. Net income for the year ending December 31, 2020 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. Sales for 2017 were $120,000.Prepare a statement of cash flows for the year ended December 31, 2020 using indirect method.

Answers

Answer and Explanation:

The preparation of the cash flow statement is presented below:

Rocker Company

Cash flow statement

Cash flow from operating activities  

Net Income $35000

Adjustments made

Depreciation $5,000

Loss on sale of investments $3,000

Change in operating assets & liabilities  

Less: Increase in accounts receivable  -$5,000

Less: Increase in inventory -$8,000

Add: Decrease in prepaid expenses $3,000

Add: Increase in accounts payable $10,000

Net cash flow from operating activities (a) $43,000

Cash Flow from Investing activities  

Sale of long term investments $14,000

Less: Purchase of equipment -$27000

Net cash Flow from Investing activities (b)-$13,000

Cash Flow from Financing activities  

Dividends paid -$15,000

Less: Bonds payable paid -$9,000

Add: Common stock issued $17,000

Net cash Flow from Financing activities (c) -$7,000

Net Change in cash c = a + b + c $23,000

Add: Beginning cash balance $11,000

Closing cash balance $34,000

You are deciding between two recurring projects. Project A requires $100,000 initial investment and runs for 5 years. Project B requires an initial investment of $80,000 and will run for 3 years. However, due to the limited managerial attention, you will need to choose one out of these two projects. Please choose the appropriate methodology to compare these two projects. A. Net Present Value B. Profitability Index C. Equivalent Annual Annuity D. Return on Investments E. Discounted Payback Period

Answers

Answer:

C

Explanation:

Equivalent Annual Annuity is used to compare projects with unequal lifespans

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows

profitability index = 1 + (NPV / Initial investment)

An advertising campaign is:
O A. a set of games customers can play to see whether or not they like
a product.
O B. a mass media device used to make advertisements more
interactive.
OC. a method of finding the best customers by determining their race
and age.
OD. a series of targeted activities aimed to make customers aware of
a product.

Answers

Answer:

D. a series of targeted activities aimed to make customers aware of

a product.

Explanation:

Advertising is the use of media to communicate messages that create awareness of a particular product or service. It is the relaying of persuasive information to a targeted audience with the expectation of increasing the sales of a product.

An advertising campaign will involve a series of events and messages to convince the targeted audience to buy the advertised product. The campaign communicates the benefits of the advertised product and gives reasons why customers should consume it. An advertising campaign is not a single event but a series of marketing activities that could last for days, weeks, or even months.  

Suppose that all social programs simultaneously become more generous. In particular suppose that there is an increase in UI benefits, and also an increase in welfare benefits, which are represented in the DMP model as payments to everyone who is not in the labor force. What will be the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, the aggregate output, and the labor market tightness? Explain your results.

Answers

Increase in unemployment Increase in vacancy rate Decrease in labor force Decrease in # of labor firms Tightening of the labor forces

A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution, while service times follow an exponential distribution. If the average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes.

What is the average number of customers in the system?

a. 0.50
b. 1.00
c. 2.25
d. 3.00
e. None of the above

What is the average number of customers waiting in line behind the person being served?

a. 0.50
b. 0.75
c. 2.25
d. 3.00
e. None of the above

What proportion of the time is the server busy?

a. 0.25
b. 0.50
c. 0.75
d. 2.25
e. 3.00

Answers

Solution :

The average number of the arrivals, λ = 6 per hour

Average service rate, [tex]$\mu = \frac{60 \times 2}{15}$[/tex]

                                      = 8

Average number of the customers in the system is given by,

    [tex]$= \frac{\lambda}{\mu - \lambda }$[/tex]

   [tex]$= \frac{6}{8 - 6 }$[/tex]

  = 3

Average number of the customers that are waiting in the line behind the person who are being served is,

   [tex]$=\frac{\left(\frac{\lambda}{\mu}\right)^2}{1-\frac{\lambda}{\mu}} $[/tex]

  [tex]$=\frac{\left(\frac{6}{8}\right)^2}{1-\frac{6}{8}} $[/tex]

 [tex]$=\frac{(0.75)^2 }{0.25} $[/tex]

  = 2.25

Proportion of the time the server is busy,

    [tex]$=\frac{\lambda}{\mu}$[/tex]

   [tex]$=\frac{6}{8}$[/tex]

   = 0.75

Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $7.50 per unit. A transfer price of $8.50 per unit is negotiated and 30,000 units of material are transferred from Division A to Division C, with no reduction in Division A's current sales. How much would Jefferson's total income from operations increase

Answers

Answer:

$75,000

Explanation:

Since both divisions are part of Jefferson Company, intercompany sales cannot yield a profit once the balance sheet is consolidated. In this case, Jefferson Company is saving $10 - $7.50 = $2.50  per unit and since it needed 30,000 units, it saved a total of $2.50 x 30,000 = $75,000. Whenever you save money, your profits will increase by the same amount.

On August 31, a hurricane destroyed a retail location of Carla Vista's Clothier including the entire inventory on hand at the location. The inventory on hand as of June 30 totaled $1895000. Since June 30 until the time of the hurricane, the company made purchases of $495000 and had sales of $1480000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed

Answers

Answer: $1,502,000

Explanation:

The destroyed stock is the closing stock on August 31.

Cost of Goods sold = Opening stock + Purchases - Closing stock

Closing stock = Opening stock + Purchases - Cost of Goods sold

Opening stock = $1,895,000

Purchases = $495,000

Gross profit is 40% of sales so Cost of Goods sold must be 60%;

= 60% * 1,480,000

= $888,000

Closing stock = 1,895,000 + 495,000 - 888,000

= $1,502,000

International trade is the subject of much debate. Many economist favor encouraging international trade, citing the benefits gained by trade. However, there are economic arguments for limiting international trade with protectionism. Classify the given statements into the appropriate category. Arguments for promoting international trade Arguments for limiting international trade with protectionism

Answers

Answer:

the arguments are missing, so I looked for similar questions and found:

The ability of a nation to consume more than it can produce domestically. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. Excess production should be exported. The infant industry argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Certain new industries should be protected until they mature and become leaders. Changes in productivity associated with specialization. ⇒ ARGUMENT FOR PROMOTING INTERNATIONAL TRADE. As specialization occurs, production output increases allowing for trade benefits. The potential for other governments to subsidize firms, enabling them to charge lower prices than domestic firms can. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Since other countries subsidize their exports, we should impose tariffs to level the market. The national defense/interest argument. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Some sectors are important and should be protected. Job loss in some labor markets. / Worries about domestic labor markets. ⇒ ARGUMENT FOR LIMITING INTERNATIONAL TRADE WITH PROTECTIONISM. Imported goods result in people losing their jobs.

A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:

Answers

Answer:

Depletion expense per ton = $0.625

Explanation:

Given:

Total cost = $1,500,000

Total ore = 2,000,000 tons

Salvage value = $250,000

Find:

Depletion expense per ton

Computation:

Depletion expense per ton = [Total cost - Salvage value] / Total ore

Depletion expense per ton = [$1,500,000 - $250,000] / 2,000,000

Depletion expense per ton = $0.625

I just wanna know how do you know the percentage please help,,,,,Marble Company purchased a machine costing $137,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,700. The machine requires special mounting and wiring connections costing $11,700. When installing the machine, $3,000 in damages occurred. Materials costing $3,200 are used in testing and adjusting the machine to produce a satisfactory product. Compute the cost recorded for this machine assuming Marble paid within the discount period. I just want to know how do you know the percentage no one explains!! Thank you

Answers

Answer:

$150,253.00

Explanation:

The cost to be recorded will include all the direct cost of installing the machine less the discount allowed.

The total cost of the machine will be

cost price   $137,000

Freight charges    $3,700

mounting & wires    $11,000

testing materials       $3,200

Total cost   $154,900

The machine was paid with the discount period. The tern3/10, n 30  means that the buyer will get a 3% discount if they pay with ten days of the invoice date. Full payment is expected within 30 days if the buyer does not pay within ten days.

the discount amount will be 3% of $154,900

=3/100 x $154,900

=0.03 x $154,900

=$4,647.00  

the amount recorded will be

=$154,900.00 - $4,647.00

= $150,253.00    

Careless mining and timber harvesting in tropical forests can destroy entire species of flora and fauna, create soil problems, and even threaten the existence of primitive people who rely on what the forests provide. Yet in a number of countries, business entrepreneurs are exploiting the rain forests for profit. Under what conditions, if any, is it ethical for a mining or lumber company to harvest the resources of a rainforest

Answers

Answer:

if there are a significant amount of resources in the rainforest for it to be taken because if there isnt a plentiful amount for the animals, the animals wont get what they need which would hurt their population.

Multiple Choice Question 54 Outstanding stock of the Sunland Corporation included 21100 shares of $5 par common stock and 10550 shares of 5%, $10 par non cumulative preferred stock. In 2019, Sunland declared and paid dividends of $4000. In 2020, Sunland declared and paid dividends of $12600. How much of the 2020 dividend was distributed to preferred shareholders

Answers

Answer:

$5,275

Explanation:

Preferred stock dividend = 10,550 shares * $10 * 5%

Preferred stock dividend = 10,550 * 10 * 5%

Preferred stock dividend = $5,275

So therefore, the dividend distributed to preferred shareholders in 2020 was $5,275

Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $320,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Answers

Answer:

$330,000

Explanation:

Change in WC = Opening receivables - Closing receivables

Change in WC = $84,000 - $74,000

Change in WC = $10,000

The decrease in working capital is $10,000

Cash from operating activities = Net income + Decrease in Working Capital

Cash from operating activities = $320,000 + $10,000

Cash from operating activities = $330,000

Thus, the cash from operating activities is $330,000

Depreciation--Jerry Company purchased machinery for $315,000 on May 1,2020 . It is estimated that it will have an useful life of 5 years, and a salvage value of $15,000. the machine is expected to last 100,000 hours. The machine was used for 25,000 hours the first year. What is the depreciation for the first year assuming working hours method (activity method) is expected to be used

Answers

Answer:

The depreciation for the first year is $75,000

Explanation:

In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.

First, we need to calculate the Depreciable value

Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000

Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000

A generous benefactor to a local symphony plans to make a one-time endowment that would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 6 percent for all future time periods. How large must the endowment be?

Answers

Answer:

The right answer is "$2,500,000".

Explanation:

The given values are:

Interest rate,

= 6%

i.e.,

= 0.06

Perpetuity per year

= $150,000

Now,

The present value will be:

= [tex]\frac{Perpetuity}{Interest \ rate}[/tex]

On substituting the estimated values, we get

= [tex]\frac{ 150,000}{0.06}[/tex]

= [tex]2,5 00,00 0[/tex] ($)

Jasmine (29) is filing as a single taxpayer. In 2019, she received income from the following sources:
$36,000 in wages.
Unemployment income of $4,320.
$500 in gambling winnings from a winning lottery ticket.
Jasmine also paid $2,100 in eligible student loan interest during the year. She will claim the standard deduction.
Use Schedule 1 (Form 1040), Additional Income and Adjustments to Income.

Answers

Answer:

$38,720

Explanation:

From the given information:

Using Schedule 1 (Form 1040), Additional Income & Adjustment to Income.

The taxable income can be determined as follows:

Particulars                                         Form                         Amount($)

Wages                                      (Form 1040, Line 1)           36,000

Add: Unemployed Income    Schedule 1, Line 7                4,320

Add: Gambling winning         Schedule 1, Line 8                   500

Total Income                                                                    $40,820

Less: Student loan Interest   Schedule 1, Line 20              2,100

Taxable income                                                               $38,720

Rasha is a protectionist. He witnessed the bankruptcies of several small businesses because they could not compete with cheaper goods marketed by foreign companies. When mobile phone manufacturing has just started in the U.K., Rasha's company was a first-entrant into the market. Which argument would Rasha most likely have used to convince the government to restrict the inflow of foreign mobile phones?

Answers

Answer:

Protection of domestic infant industry

Explanation:

Since in this case, the main reason for the bankruptcy of the smaller companies was because they could not compete selling their own phones at a cheaper amount like those marketed by foreign companies.

Hence, Rasha would most likely argue that the UK government has a responsibility to protect the domestic infant industry. In other words, there should be policies created to protect locally made mobile phone companies in the UK.

A zero coupon bond pays no interest-only it face value of $1,000 at maturity. One such bond has a maturity of 18 years and an initial price of $130. What annual interest rate is earned if the bond is bought when issued and held to maturity?

Answers

Answer:

12%

Explanation:

FV = PV*(1+i)^n

FV = 1000, PV = 130, i = annual interest rate, n = 18

∴ 1000 = 130*(1+i)^18

==> (1+i)^18 = 1000/130

==> 1+i = (1000/13)^(1/18)

i = 1.12001895 - 1

i = 0.12

i = 12%

Thus, the annual interest rate is 12%

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