Answer:
The combined total capital that would be recorded on the partnership books for the two partners is $79,000
Explanation:
Partnership : In partnership, there are two or more members who are called partners which are ready to share the profit or loss percentage according to their agreed ratio
The combined total capital for both partners is shown below:
= Contributed cash + truck fair value + garage fair value
= $8000 + $ 16,000 + $55,000
= $79,000
The other cost like purchase price, depreciation, construction cost is irrelevant for computation. Thus, these cost will not be considered.
Hence, the combined total capital that would be recorded on the partnership books for the two partners is $79,000
Answer:
Christie's share is $104500 while Jergens share is $48500. Thus, the first option is the correct answer.
Explanation:
The appropriation of net income among the partners will be as follows,
$ $
Net Income $153000
<u>Less: Salary to Partner</u>
Christie (66000)
<u>Less:Interest on Capital</u>
Christie 36000
Jergens <u>46000 (82000)</u>
Remaining Profit 5000
<u>Distribution of Remaining Profit</u>
Christie (5000/2 = 2500) 2500
Jergens (5000/2 =2500) <u>2500</u>
<u />
<u />
Christie's Share = 66000 + 36000 + 2500 = $104500
Jergen's share = 46000 + 2500 = $48500
Answer:
$1,135.05
Explanation:
Given:
Sales = $15,900
Net new equity = $500
Dividend payments = $75
Retained earnings = $418
Depreciation = $680
Interest expense = $511
Tax rate = 21% = 0.21
Now,
Net income = Retained earnings + Dividend payments
= $418 + $75
= $493
Profit before tax = Net income ÷ ( 1 - tax rate )
= $493 ÷ ( 1 - 0.21 )
= $624.05
Therefore,
Earnings before interest and taxes
= Profit before tax + Interest expense
= $624.05 + $511
= $1,135.05
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Total Estimated total machine-hours (MHs) 10,000
Estimated total fixed manufacturing overhead cost= $45,800
Total Estimated variable manufacturing overhead cost- per MH= $1.90 + $2.10= $4
To calculate the estimated manufacturing overhead rate we need to use the following formula:
<u>Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base</u>
<u>Estimated FIXED manufacturing overhead rate=</u> (45,800/10,000)= $4.58
