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rosijanka [135]
2 years ago
10

In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ra

tio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.
Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?
A. $0
B. $6,000
C. $30,000
D. $36,000
Business
1 answer:
Setler [38]2 years ago
7 0

Answer: Option (D) is correct.

Explanation:

Given that,

Ron's capital = $80,000

Stella's = $75,000

Tiffany's = $50,000

Income sharing ratio = 3:2:1

Tiffany is retiring from the partnership

Amount paid to Tiffany = $56,000

Bonus = Amount paid to Tiffany - Tiffany's capital

          = $56,000 - $50,000

          = $6,000

Above bonus is 1/6th of goodwill.

Therefore, the total amount of goodwill recorded would be:

Goodwill = \frac{6,000}{\frac{1}{6} }

              = $36,000

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In the London market, Rolls-Royce stock closed at £0.875 per share. On the same day, the British Pound sterling to the U.S. doll
frutty [35]

Answer:

B. $1.12

Explanation:

The computation of arbitrage trading profit is shown below:-

Euro Share price = £0.875

Spot rate R = £0.6366/$1.00

1 ADR Share price in US = $5.75

1 ADR = 5 share of shares

Now, The actual price of 1 ADR P1 = 5 × Euro Share price ÷  Share price in US

= 5 × £0.875 ÷ £0.6366

= $6.87

Therefore, The  Arbitrage profit = Actual price - trading price

= Actual price - Price in US

= $6.87 - $5.75

= $1.12

Therefore for computing the arbitrage trading profit we simply applied the above formula.

5 0
2 years ago
Imagine that you are holding 5,000 shares of stock, currently selling at $40 per share. You are ready to sell the shares but wou
Bess [88]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
2 years ago
The efforts of employees who work directly to convert direct materials into the finished product are referred to as ______
Alex_Xolod [135]

Answer:

Direct labor

Explanation:

The role of direct labor is to convert direct material into the finished products. Without the help of direct labor, it is impossible to convert the direct material into the finished goods.

Here, the direct material means the labor which works on manufacturing a product which is directly related to the production level. The allocation of direct labor is done based on the number of hours worked or product.

Hence, The efforts of employees who work directly to convert direct materials into the finished product are referred to as direct labor

7 0
2 years ago
When an athletic director at state university evaluates how much time a coach spends with the team, the coach's ethical impact o
Leona [35]
I believe the correct answer is job performance.
This is because all of those things mentioned above (how much time he spends with his team, his impact on the team, and how well he explains new things) are part of his performance, and based on the effects that this has, his performance will either be considered to be good or bad.
3 0
2 years ago
Devlin Manufacturing makes a single product. Expected manufacturing costs are as follows:Variable costsDirect materials $6.50 pe
expeople1 [14]

Answer:

Manufacturing cost:                                        $

Direct material ($6.50 x 3,200)                   20,800

Direct labour ($2.40 x 3,200)                     7,680

Manufacturing overhead ($1.10 x  3,200)   3,520

Supervisory salaries                                       13,600

Depreciation                                                 5,500

Other fixed costs                                          <u>2,200</u>

Total manufacturing cost                            <u> 53,300</u>

Explanation:

Total manufacturing cost is the aggregate of direct material, direct labour,variable manufacturing overhead and fixed costs. Fixed costs include supervisory salaries, depreciation and other fixed costs. Direct material cost per unit, direct labour cost per unit and manufacturing overhead cost per unit should be multiplied by the budgeted units per month.                      

7 0
2 years ago
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