Given:
<span>Rita contribution:
cash of $10,000
building with a fair market value of $150,000, adjusted basis of $55,000 and subject to a liability of $60,000
</span><span>Gerry contribution:
cash of $100,000
</span>
<span>The partnership's basis in the building contributed by Rita is a. $55,000.
The amount corresponds to the adjusted basis. It is already the adjusted value of the building after the fair market value and the corresponding liabilities have been considered in the computation of the adjusted building value.</span>
Answer:
A cooperative effort among two or more organizations that share a common interest in a business enterprise or undertaking.
Explanation:
A joint venture is defined as a business agreement where two or more parties pool their resources together to achieve a common goal. Usually profits and losses are shared equally among the parties unless there is an agreement to share otherwise.
The joint venture is an independent entity that is seperate from its owners. That means any liability of the joint venture is not binding on the parties involved.
Answer:
The net operating income under variable costing is $139,000
Explanation:
Tustin Corporation
Contribution Margin Income Statement for 1st year
Amount
Revenue $680,000
(10,000 * $68)
Less: Variable Expense
Direct Material = $100,000
(10,000 * $10)
Direct Labor= $60,000
(10,000 * $6)
Variable manufacturing overhead $40,000
(10,000 * $4)
Variable selling and administrative <u>$60,000</u>
expense (10,000 * $6)
Contribution $420,000
Less: Fixed Costs
Fixed Manufacturing overhead $220,000
Fixed selling and administrative $61,000
overhead
Net Income $139,000
I would ask "how much is the initial investment" and "how long is the payback period of the project" before I decide which one to invest in. The IRR of both companies have already shown the return rate of the project, therefore knowing the period and the initial amount would be the best option<span>. This option related to our fund sufficiency and cash flow.</span>
