ACCT 540 Assignment 8 Mary and Todd form the MT Partnership, with a transfer of the following properties:
Mary $1,000,000 cash
Todd $1,000,000 FMV property
$310,000 tax basis
Both Mary and Todd receive a 50% interest in the partnership. They have an agreement that allocates all profits and losses 50% to each member. They also have language in their partnership agreement that satisfies the alternate test for economic effect.
Answers
The MT partnership formed by Mary and Todd transfers the properties with FMV $1,000,000 cash and $1,000,000 respectively.
While Mary contributed $1,000,000 in cash, Todd contributed property with a fair market value of $1,000,000 and a tax basis of $310,000.
Both partners receive an equal 50% interest in the partnership.
All profits and losses are shared equally between the partners according to their agreement.
Also, their partnership agreement satisfies the alternate test for economic effect.
The transfer of the properties to the partnership results in no taxable gain or loss to either Mary or Todd because they are contributing properties with an equal fair market value.
The partnership's initial basis in the contributed property is $1,000,000 for Mary's cash and $310,000 for Todd's property, which is its tax basis.
The partnership's basis in the contributed property may be increased if the partnership takes a depreciation deduction for Todd's property.
The alternate test for economic effect is a set of provisions in a partnership agreement that ensures that the partnership's allocation of tax attributes will be respected by the IRS.
The alternate test has four parts that the partnership must meet to satisfy it.
They are
(1) The partnership agreement must provide for a specific allocation of income, gain, loss, or deduction;
(2) The allocation must have "substantial economic effect";
(3) The allocation must be made using the "partners' interests in the partnership";
and
(4) The allocation must be consistent with the partners' sharing of "partnership items."
This test ensures that the partners are taking allocations that are consistent with their economic interests in the partnership. If the alternate test is met, the IRS will respect the allocations, and they will be treated as the partner's share of partnership income or loss.
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Related Questions
using the supply and demand analysis of the market for reserves, determine what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant, if:
Answers
If the demand for reserves in the market increases, while the supply of reserves remains constant, several changes can be observed:
1. Federal Funds Rate: The federal funds rate is the interest rate at which banks lend and borrow reserves from each other. As the demand for reserves increases, the federal funds rate will also increase. This is because the increased demand puts upward pressure on the rate as banks compete to borrow reserves.
2. Borrowed Reserves: With an increase in the demand for reserves, banks will need to borrow more reserves from the market. Consequently, the amount of borrowed reserves will increase. Banks borrow reserves from each other to meet their reserve requirements or to manage their daily cash flow needs.
3. Nonborrowed Reserves: On the other hand, nonborrowed reserves refer to the reserves that banks hold without borrowing from other banks. With an increase in the demand for reserves, banks might find it necessary to utilize their nonborrowed reserves to fulfill their reserve requirements. As a result, the amount of nonborrowed reserves will decrease.
Overall, an increase in the demand for reserves, while the supply of reserves remains constant, leads to an increase in the federal funds rate, an increase in borrowed reserves, and a decrease in nonborrowed reserves.
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Which section of a business plan gives details about a business’s core products and services?
The section of a business plan talks about a business’s core products and services, and their features and benefits to the consumers.
Answers
Answer:
Executive summary.
Explanation:
A business plan can be defined as a formally written document that comprises of the financial and operational objectives (plans) of a business firm.
Basically, a business plan is a roadmap or guide that outline the goals of a business, methods on how to achieve those goals, and the timeframe required to achieve those goals.
A business plan should be written in such a way that it comprises of all the important informations that an investor looks out for, in order to convince him or her to invest money in the business. Thus, the main section (contents) of a business plan include the following;
I. Title page.
II. Market analysis and competition.
III. Industry overview.
IV. Operating plan.
V. Sales and marketing plan.
VI. Financial plan.
VII. Management plan.
VIII. Appendices and exhibits.
IX. Executive summary.
The executive summary section of a business plan talks about a business’s core products and services, and their features and benefits to the consumers. Thus, the executive summary is the most important section of a business plan because it provides a concise summary of the business and it's the first section to be seen by an investor.
a sector fund is a mutual fund that tries to maximize the degree of diversification. T/F
Answers
False: A sector fund is a mutual fund that invests primarily in a specific sector or industry, such as technology or healthcare.
A sector fund is a mutual fund that invests primarily in a specific sector or industry, such as technology or healthcare.
The goal is not necessarily to maximize diversification but rather to focus on a particular area of the market in order to potentially achieve higher returns.
While sector funds may still be diversified within that sector, they may not provide the same level of diversification as a more broadly diversified fund.
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Which resource management task determines the type quantity?.
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On february 2, miles inc. Pays $800 to purchase a one-year insurance policy that will expire next year on january 31. Miles indicates this transaction in its books by recording an $800 reduction in cash and an $800 increase in expenses. Did miles make the proper accounting entries? why or why not?.
Answers
If on february 2, miles inc. Pays $800 to purchase a one-year insurance policy. No miles did not make the proper accounting entries.
What is insurance policy?
Insurance policy can be defined as a coverage that help to cover cost incase of unforeseen circumstance.
Based on the scenario mile did not makes the proper accounting entries based on the following:
Prepaid insurance is not an expense but an asset.Hence, the company should have offset the decrease in cash of the amount of $800 and $800 increase in prepaid insurance into an asset account.Therefore miles did not make the proper accounting entries.
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If a switch occurs from deposits into currency, what happens to the federal funds rate? use the supply and demand curve of the market for reserves to explain your answer.
Answers
Therefore, deposit conversion reduces the number of reserves, which reduces the supply of reserves at any given interest rate, shifting the supply curve to the left.
As deposits fall, so do required reserves, shifting the demand curve to the left.
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1. Which of the following is always important for providing effective online
customer service?
a. Referring customers to your website.
b. Asking the customer to call your helpline.
c. Treating internet customers with a lower priority than phone customers.
d. Responding promptly to internet inquiries.
Answers
Answer:
d. Responding promptly to internet inquiries.
Explanation:
Customer service involves taking care of a customer's needs in a prompt, professional, and helpful manner. It is addressing a customer's concerns to their satisfaction.
For customer service to be friendly and effective, it must be helpful to the client. A customer will be happy only if solutions to their queries are provided promptly. Customers using online platforms should be givens as much priority as the rest of the clients. If queries are not responded to fast and solutions are not provided, customers will likely seek alternatives.
How can I unclog the toilet the potatoes got stuck in there? (I hope this not a inapropriate question)
Answers
Answer:
Just get something like a brush and it will get off
Explanation:
Just do it
what is the maximum variable cost per unit a firm to break even with a fixed cost of $400,000.00 if they project they can sell 25,000 units at a selling price of $75.00? $49 $69 $79 $89 $59
Answers
The maximum variable cost per unit that the firm can have to break even is $59. The correct answer is E.
To break even, the total revenue must equal the total cost, which can be expressed as:
Total Revenue = Total Cost
Total Revenue = (Unit Selling Price x Quantity Sold)
Total Cost = (Total Fixed Cost + Total Variable Cost)
We can rearrange this equation to solve for the maximum variable cost per unit:
Total Revenue = Total Cost
Unit Selling Price x Quantity Sold = Total Fixed Cost + (Variable Cost per Unit x Quantity Sold)
$75 x 25,000 = $400,000 + (Variable Cost per Unit x 25,000)
$1,875,000 = $400,000 + (Variable Cost per Unit x 25,000)
$1,475,000 = Variable Cost per Unit x 25,000
Variable Cost per Unit = $59
Therefore, the maximum variable cost per unit that the firm can have to break even is $59.
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Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Answers
Answer:
An interview
Explanation:
Being able to manage interactions successfully by using your knowledge of your emotions and the emotions of others is known as Multiple choice question. solution-oriented questioning. nonverbal communication. relationship management. workplace incivility.
Answers
Being able to manage interactions efficiently through the use of the knowledge of your feelings and the emotions of others is referred to as relationship management. It's one out the four domains of Emotional intelligence.
Emotional intelligence (EI) refers to the ability to recognize, understand, and manage one's own emotions, as well as the emotions of others. It is a key aspect of interpersonal skills and is linked to successful relationships, effective communication, and leadership. It involves being aware of emotions, understanding their impact on behavior, and managing emotions in oneself and in others.
The four domains of Emotional Intelligence — mindfulness, self administration, social mindfulness, and relationship management — each can assist a pioneer with confronting any emergency with lower levels of pressure, less close to home reactivity and less potentially negative results.
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I got this question on my quiz a few weeks ago and was wondering if anyone could explain the best/correct answer.
I'm currently leaning towards the last option, but I'm not sure.
Answers
Answer:
Easy it's B, this is because the rate at which we earn interest with only 1000$ does not keep up with the maintenance fee.
In B u get $1010 because of the interest after the first year,
In D u get $960 because if u get an annual interest of 2% from $1000 u get a total of $1020 but deduction from maintenance fee is $60 per year, Thus $1020-$60 = $960. Same explaination for the others as well.
Go See Darkfur and make sure to give him some appreciation! He Definitely deserves it!
Answers
Answer:
Will do !
Explanation:
Only cause u asked nicely ;3
Hope have a wonderful day !
Sleepy~
The business process management cycle begins by creating a model of the existing business processes. group of answer choices true false
Answers
The business process management cycle begins by creating a model of the existing business processes is a True Statement.
Business process management (BPM) is an organizational discipline that takes a step back and analyzes each of these processes both collectively and individually. It evaluates the present situation and identifies potential areas for improvement in order to create a more effective and efficient organization.
Every department in a company is in charge of gathering information or materials and transforming them into something else.
The BPM lifecycle steps
Step 1: Design
Step 2: Create a model
Step 3: Execute
Step 4: Look at
Pay close attention to it as the workflow for the process develops. Use the right metrics to track progress, evaluate effectiveness, and identify bottlenecks to ensure that process monitoring is successful.
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If Adam’s credit card has an APR of 14. 63%, what is Adam’s balance at the end of June? a. $629. 42 b. $629. 66 c. $627. 27 d. $628. 40.
Answers
The balance at the end of June for Adam's credit card can be calculated using the formula:
Balance = Previous Balance + (Previous Balance * Monthly Interest Rate)
To find the monthly interest rate, we divide the APR by 12 (assuming it is a yearly rate) and convert it to a decimal:
Monthly Interest Rate = 14.63% / 12 = 0.012192
Let's assume Adam's previous balance is $600.
Balance = $600 + ($600 * 0.012192) = $600 + $7.31 = $607.31
None of the provided answer choices match the calculated balance of $607.31.
Therefore, none of the options provided (a, b, c, or d) are correct.
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what's the time now?
Answers
Answer:
13:20 UK timeeeeeeeeee
The government claimed that, to illegally control the market, Microsoft used
a. predatory pricing and mergers.
b. predatory pricing and buying out competitors.
c. predatory pricing and forming a cartel.
d. predatory pricing and requiring customers to buy other products.
Answers
Answer:
B. Predatory pricing and buying out competitors
A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is offered, flotation costs will be 3 percent of the current market price of $80. The firm's marginal tax rate is 35 percent. What is the firm's cost of preferred stock financing
Answers
The company's fee for preferred stock financing is Annual dividend=75*8%=$6
Stock financing is the proper choice for organizations whose modern assets in large part include warehouse inventory. stock financing permits a company to efficaciously control its circulating capital and to enhance coins glide. the security for warehouse financing is new motors that are bought, in inventory, or in transit.
Common stock financing increases the borrowing capacity of the company. due to the fact, that commonplace stock gives a cushion in opposition to losses of creditors, the sale of not unusual inventory typically increases the credit score worthiness of the company.
Debt financing happens whilst an employer raises money through promoting debt contraptions to traders. Debt financing is the other of equity financing, which entails issuing stock to raise cash. Debt financing happens while a company sells fixed-income products, along with bonds, payments, or notes.
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Leadership is best defined by our text as.... Question 1 options: the ability to reduce the dependence of team members on each other the ability to influence a group toward the achievement of a vision or set of goals the ability to use factors like training and experience to reduce dependence on formal leadership the ability to merely project one's abilities in the lack of actual accomplishments
Answers
Based on sociocultural theory, Leadership is best defined by our text as "the ability to influence a group toward the achievement of a vision or set of goals."
Characteristics of LeadershipLeadership has been found to have some of the following features:
Effective communicationEmpathyConfidenceIntegrityDelegationSelf-AwarenessMotivationCharisma, etc.All of the characteristics above are combined by leaders to influence followers toward accomplishing objectives, goals, or a vision.
Hence, in this case, it is concluded that the correct answer is option B. "the ability to influence a group toward the achievement of a vision or set of goals."
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Arcelor Mittal., has a target debt–equity ratio of 0,5. Its WACC is 10 percent, and the tax rate is 25 percent.
If Arcelor´s cost of equity is 15 percent, what is its pretax cost of debt?
Answers
The pretax cost of debt for Arcelor Mittal is 13.33%. Arcelor Mittal has a target debt-equity ratio of 0.5 and a weighted average cost of capital (WACC) of 10%. The tax rate is 25%.
The cost of equity is 15%. The question asks for the pre-tax cost of debt for Arcelor Mittal. The WACC formula is given by: WACC = (E/V) * Re + (D/V) * Rd * (1 - Tax Rate), where E is the market value of equity, V is the total market value of equity and debt, Re is the cost of equity, D is the market value of debt, Rd is the pre-tax cost of debt, and Tax Rate is the corporate tax rate.
Given that the target debt-equity ratio is 0.5 and the WACC is 10%, we can rearrange the formula to solve for Rd: Rd = (WACC - (E/V) * Re) / ((D/V) * (1 - Tax Rate)). We are given that the cost of equity (Re) is 15%, and since the target debt-equity ratio is 0.5, we know that (E/V) = 0.5 and (D/V) = 0.5.
Substituting the values into the formula, we get: Rd = (0.10 - 0.5 * 0.15) / (0.5 * (1 - 0.25)) = 0.05 / 0.375 = 0.1333 or 13.33%.. Therefore, the pretax cost of debt for Arcelor Mittal is 13.33%.
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You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the current state of the economy, he expects sales to decrease by 7 percent next year. What change should you expect in operating cash flows next year given your sales forecast?
Answers
Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%
How do performance standards best promote ethical behavior?
Answers
Answer:
reviews and if manage hold themselves to a high standard of ethical behavior how do managers deal with overstaffing problems teaching employees better time management/.
Explanation:
Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary. She’s hoping to earn a bit more interest than she currently is with that $45,000 just sitting in her traditional bank’s savings account. Which account would you recommend? Why?
SAVINGS ACCOUNT, CD, MONEY MARKET ACCOUNT
Answers
I will recommend she invest the $45,000 in Certificate of deposit or Money market account.
It is widely known that a traditional bank’s savings account does not provides significant interest rate for deposit unlike other account which are meant from pure investment at long term.
A certificate of deposit are issued by bank to customer promising them a certain interest rate on their deposit with them.
A money market is also an method of investing in short term market and guarantees high interest rate on deposit.
Therefore, I will recommend she invest the $45,000 in Certificate of deposit or Money market account.
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Regardless of which method you choose, why is it important to pay at least the monthly minimum payment on every debt? Your credit history is erased and you have a "thin file". Federal and state governments can increase your taxes if you don't make the minimum payment. You will have to pay fees and your credit score will decrease. Your credit score will increase by at least 30 points.
Answers
Answer:
You will have to pay fees and your credit score will decrease.
Explanation:
If you do not make at lest the minimum payments for all your outstanding debts, the lender will probably charge you late payment fees (which can be very expensive), and your credit score will certainly decrease. This will end up increasing your future credit costs and hurt your ability to access them.
Refer to the figure above. If the economy is currently producing at point X what is the opportunity cost of moving to point W
Answers
If the economy is currently producing at point X and decides to move to point W, the opportunity cost of this decision refers to the value of the next best alternative foregone in order to produce the additional goods or services associated with the movement from X to W.
Opportunity cost is the concept that refers to the value of the next best alternative that is forgone when making a choice or decision.
In the context of the figure mentioned, if the economy is currently producing at point X and decides to move to point W, the opportunity cost would be the value of the goods or services that could have been produced if the resources were allocated to the next best alternative.
To determine the opportunity cost of moving from X to W, it is necessary to compare the benefits or output gained from producing at point W with the benefits or output foregone by not producing at point X.
The difference between the two represents the opportunity cost.
The opportunity cost could manifest in various ways depending on the specific circumstances of the economy and the goods or services involved.
It might include the loss of production of certain goods or the utilization of resources in alternative sectors that could have generated additional value.
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the constant growth stock valuation model can't be used under which of the following conditions? group of answer choices a zero growth rate a negative growth rate. a growth rate less than the stock's required return. a growth rate greater than the stock's required return.
Answers
D) Under a growth rate greater than the stock's required return, the constant growth stock valuation model cannot be applied.
Describe growth stock.Any stock in a company that is expected to increase in value significantly faster than the market as a whole is considered a growth stock. Typically, these stocks don't pay dividends.
This is so because companies that issue growth stocks typically want to reinvest any earnings they generate to hasten growth in the short term. When investing in growth stocks, investors hope to profit from capital gains when they eventually decide to sell their shares in the future.
What Qualifies as a Growth Stock?
When it comes to stocks, "growth" refers to the company's significant potential for capital growth. These are frequently newer, smaller-cap companies, or those operating in expanding industries like biotechnology or technology. Growth stocks frequently have high P/E ratios despite having low or even negative earnings.
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when ordering raw materials of steel and aluminium the business is considering changing to jit advise them if its a good idea or not
Answers
The advantages the business gets if they change to JIT are
reduction in inventory costImprovement in qualityIncrease in efficiencyThe Advantages:Decisions on whether or not to implement a Just-In-Time (JIT) inventory system for steel and aluminum raw material depend on many variables such as business size, market demand, lead time and supplier reliability. Here are the potential advantages and disadvantages of JIT inventory in such situations:
JIT helps businesses reduce inventory holding costs as raw materials are only ordered as required, thus freeing up cash flow for other investments and creating greater cashflow opportunities.
Quality Improvement: Just-In-Time production methods provide greater quality assurance as materials can be purchased in smaller batches that can then be thoroughly inspected upon their arrival.
Increased Efficiency: Just-In-Time ordering helps shorten lead times as raw materials are ordered only when necessary for production; leading to greater productivity gains overall.
Disadvantages of Just in Time production (JIT):
JIT requires businesses to become increasingly dependent on suppliers for materials delivery on time or at required quality levels; any supplier failure could create major disruption in operations and create costly supply issues for business operations.
Transportation Costs Increase with JIT Delivery Frequencies: JIT deliveries often necessitate more frequent delivery trips, which increases transportation expenses.
Difficulties Responding to Unexpected Changes: JIT requires accurate forecasts for demand and lead times
Requiring an efficient supply chain: JIT requires close cooperation between businesses and suppliers in the supply chain.
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Which action would a government most likely take to reduce its
unemployment rate?
A. Use tax money to hire workers for government projects
B. Cut taxes on businesses that operate with very few workers
C. Increase taxes on businesses that operate outside the country
D. Cut off loans to businesses in order to reduce the money supply
SUBMIT
Answers
The unemployment rate is the unemployed divided by the sum of employed and unemployed, in order to reduce it the government can hire workers for a new project by using tax money.
What is the unemployment rate?It is the rate of unemployment calculated by the number of people unemployed to the total number of people employed and unemployed multiplied by 100.
In order to reduce it, the government can hire workers for a new project by using tax money
Therefore, option A can help in the reduction of the unemployment rate.
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What is total amount spent on wages and salary before any tax is being taken? [those ernings above £40000 are paying 40% income tax on income tax over £40000 and 20% on anything below £40000
Answers
Answer: hello your question is open ended hence I will give you a more general answer
answer : $12,000 * number of workers or $24,000 * number of workers
Explanation:
Income taxes are taxes been levied directly on the income earned by the tax payer.
According to Tax rules there is a certain amount of income an individual would have to earned before any tax will be taken, incomes below $12,000 are tax free ( for singles ) and $24,000 for married individuals ; Hence the Total amount spent on wages and salary before tax is being taken = $12,000 * number of workers or $24,000 * number of workers . ( unless otherwise stated )
Define a product of your choice. What makes you purchase the
product? Why is the product better than competitors?
Answers
Product differentiation is what makes your product or service different and more appealing to customers than other options in your category. Product differentiation is what gives you a competitive advantage in your market.