G and L organize the GL partnership. Each contributes $50 for his partnership interest. The partnership purchases an apartment building for $1,000, making a $100 down payment and paying the remainder of the price with a mortgage loan. The principal of the mortgage loan is payable in a single payment after 12 years. The gross income and deductions of the partnership for each of the first few years are expected to be as follows:Rent: $240Cash operating expenses $150Interest expense 90Depreciation expense 50($290)Loss ($50)The partnership agreement allocates all depreciation to L. All other gross income and deductions are allocated to the partners equally.The partnership agreement provides that all income, gains, losses and deductions will be reflected in the partners’ capital accounts (which will be maintained in accordance with Reg. Sec. 1.704-1(b)(2)(iv)); and each partner will be entitled on liquidation (of either the partnership or the partner’s interest) to distribution of an amount equal to his positive capital account balance.Assume that the partnership operates for two years, and then sells the building at the beginning of year 3 for, alternatively, $1,100 or $800. How will the partnership’s income, gain, loss and deduction (including depreciation deductions) be allocated between G and L, and will the allocations be respected for federal income tax purposes, in the following alternative variations?(a) The partnership is a general partnership, the mortgage lender has full recourse against the partnership and the partners, and any partner having a deficit in his capital account when either the partnership or his interest is liquidated must then make an additional capital contribution equal to that deficit.(b) The partnership is a limited partnership with G as the general partner and L as the limited partner; the mortgage loan is recourse; and the partnership agreement says nothing about capital account deficit restoration on liquidation of a partner’s interest.(c) Same as (b), except L is obligated to restore any deficit in his capital account to the extent that it does not exceed $50, and there is a "QIO" provision [within the meaning of Reg Sec. 1.704-1(b)(2)(ii)(d)] in the partnership agreement.(i) Would the year 2 allocations have economic effect or alternate economic effect if: (1) as of the end of year 2 of operations, the partnership plans in year 3 to borrow $60 on a recourse basis and distribute the cash proceeds of the loan equally to G and L, and (2) the partnership reasonably expects to earn $60 net income in year 3?(ii) What if, in year 3, the partnership borrows $60 and distributes $30 to each of G and L as planned, but unexpectedly earns only $40 (net income)?
Answers
In a general partnership, both partners are jointly and severally liable for the partnership's debts, including the mortgage loan. Therefore, each partner's share of the income, gain, loss, and deduction would be allocated equally.
If the building is sold for $1,100, the partnership would realize a gain of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. Therefore, G's capital account would increase by $50 (his share of the loss), and L's capital account would increase by $150 ($50 depreciation plus his share of the loss). If the building is sold for $800, the partnership would realize a loss of $200. Again, the income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. G's capital account would decrease by $50 (his share of the loss), and L's capital account would decrease by $150 ($50 depreciation plus his share of the loss).
These allocations should be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
(b) In a limited partnership, the limited partner's liability is limited to his or her investment in the partnership. Therefore, only the general partner (G) would be personally liable for the partnership's debts. The income, gain, loss, and deduction would still be allocated equally between G and L, with L receiving the entire depreciation deduction. However, since the partnership agreement says nothing about capital account deficit restoration on liquidation of a partner's interest, L would not be required to restore any capital account deficits.
The allocations should still be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
(c) In this scenario, L is obligated to restore any deficit in his capital account up to $50. The partnership agreement also includes a qualified income offset provision (QIO), which allows L to reduce his share of partnership losses to the extent necessary to avoid restoring his capital account deficit.
If the building is sold for $1,100, the partnership would realize a gain of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. Since L is obligated to restore capital account deficits up to $50, his capital account would increase by $100 ($50 depreciation plus his share of the gain), and G's capital account would increase by $50 (his share of the gain). If the building is sold for $800, the partnership would realize a loss of $200. The income, gain, loss, and deduction would be allocated equally to G and L, with L receiving the entire depreciation deduction. L's capital account would decrease by $50 (his share of the loss), and G's capital account would decrease by $100 ($50 depreciation plus his share of the loss). If L's capital account deficit exceeds $50, he can offset the excess with his share of partnership income in future years.
These allocations should also be respected for federal income tax purposes because they comply with the partnership agreement and the tax code.
For more questions on partnership
https://brainly.com/question/15913927
#SPJ11
Related Questions
5 steps in developing a research instrument
Answers
Answer:
Explanation:
Step 1 – Locating and Defining Issues or Problems. ...
Step 2 – Designing the Research Project. ...
Step 3 – Collecting Data. ...
Step 4 – Interpreting Research Data. ...
Step 5 – Report Research Findings.
Answer:Step 1: locatingOr defining issues problems problems
Step 2: designing the research project
Step 3: collecting data
Step 4: interpreting research data
Step 5: Report research findings
Explanation: it is there as soon a u look it up ! Hope that helps
Stocks are generally considered a higher risk because:
a) Their value varies over time
b) They are not covered by FDIC
c) Rate of returns are not guaranteed
d) All the above
Answers
there are three equally likely states of nature (high, medium, and low demand). if the large factory will post profits of $60,000, $25,000, and -$10,000 under these states of nature, respectively, what is the emv of the factory? group of answer choices $50,000 $28,333.33 $25,000 $21,666.67
Answers
The EMV of the factory under three equally likely states of nature with profits of $60,000, $25,000, and -$10,000 is $25,000.
What is the Expected Monetary Value (EMV) of a factory that has profits of $60,000, $25,000, and -$10,000 under three equally likely states of nature, and what is the process for calculating the EMV in this scenario?To find the Expected Monetary Value (EMV) of the factory, we need to calculate the weighted average of the profits under each state of nature,
where the weights are the probabilities of each state occurring.
In this case, there are three states of nature with equal probabilities, so each state has a probability of 1/3.
The profits under each state of nature are $60,000, $25,000, and -$10,000, respectively.
Therefore, the EMV of the factory is:
EMV = (1/3)($60,000) + (1/3)($25,000) + (1/3)(-$10,000)
= $25,000
So, the EMV of the factory is $25,000.
This means that, on average, the factory is expected to make a profit of $25,000 under these three equally likely states of nature.
Learn more about EMV
brainly.com/question/30198698
#SPJ11
what happens as a result of a search campaign consistently meeting its daily budget?
a. Accelerated ad delivery
b. Higher average cost - per - clicks (CPCs)
c. Fewer sites targeted at once
d. Missed potential ad impression
Answers
When a search campaign consistently meets its daily budget, it results in accelerated ad delivery. The correct answer is option (a).
This means that the campaign's ads will be displayed as frequently as possible until the daily budget is reached. As a result, the ads will reach a larger audience and potentially generate more clicks and conversions. However, this accelerated delivery may also lead to higher average cost-per-clicks (CPCs), as advertisers may need to bid higher to compete for ad space.Additionally, if the campaign is consistently meeting its daily budget, it may be targeting fewer sites at once.
Finally, if the campaign is consistently meeting its daily budget, it may be missing out on potential ad impressions. This is because the campaign is only able to show ads up to the daily budget, so if there are additional impressions available, they will not be utilized. Therefore, it is important for advertisers to regularly review their daily budgets and adjust them as necessary to ensure maximum reach and potential for conversions. Hence option (a) is the correct answer.
To know more about daily budget click here
brainly.com/question/32271942
#SPJ11
Entrepreneurs should not be greedy to grow big as this needs patience as well
Answers
It is important for entrepreneurs to have a growth mindset, they should not let greed and impatience cloud their judgment. Prioritizing patience and sustainable growth can help entrepreneurs build successful businesses that thrive in the long run.
The concept of "growth" is central to entrepreneurship, and many entrepreneurs strive to grow their businesses as quickly as possible. However, the pursuit of rapid growth can sometimes lead to greed, which can be detrimental to the long-term success of the business.
Entrepreneurs who are driven solely by the desire to grow quickly may make short-term decisions that sacrifice the long-term health of the business. They may prioritize revenue growth over profitability, take on too much debt, or neglect the needs of their employees and customers.
In contrast, entrepreneurs who prioritize patience and sustainable growth are more likely to build successful businesses that can weather the ups and downs of the market. They focus on building a solid foundation for their business, nurturing relationships with customers and employees, and making strategic decisions that prioritize long-term success over short-term gains.
To learn more about entrepreneurs
https://brainly.com/question/31104672
#SPJ4
Two projects are considered: A and B. The first project (A) requires an investment of 30,000$ now (today). In return, the investor will receive five annual payments of 8500, the first of which will be done one year after the investment. The second project (B) also requires an investment of 30,000$ now (today). In return, the investor will be paid 20000 one year after the investment. and another 25 000 two years after the investment. c) Calculate IRR for project B. by hand d) Calculate NPV and IRR using by excel e) Determine the interest rate for which these two projects. have the same NPV.
Answers
c. IRR for Project B = discount rate that makes NPV = 0.
d. NPV and IRR for Project B = Excel functions NPV() and IRR().
e. Interest rate for equal NPV = discount rate that makes NPV(A) = NPV(B).
c) To calculate the Internal Rate of Return (IRR) for Project B, we need to find the discount rate that makes the net present value (NPV) of the cash flows equal to zero. Using the cash flows of -$30,000 at time 0, $20,000 at year 1, and $25,000 at year 2, we can calculate the IRR manually using trial and error or use Excel's IRR function.
d) To calculate the NPV and IRR using Excel, input the cash flows of -$30,000 at time 0, $20,000 at year 1, and $25,000 at year 2 into Excel cells. Then, use the NPV function to calculate the NPV by discounting the cash flows at a specific discount rate. Additionally, use the IRR function in Excel to calculate the IRR automatically.
e) To determine the interest rate at which Projects A and B have the same NPV, we need to find the discount rate that makes the NPV of both projects equal. By setting the NPV of Project A and the NPV of Project B equal to each other, we can solve for the interest rate using trial and error or Excel's Goal Seek function.
To learn more about cash flows: https://brainly.com/question/30066211
#SPJ11
Question Help A company is convinced of the benefits of exercise for its workers. Healthy employees take fewer sick days and tend to be more focused on their job. In addition, exercise enhances the workers' positive moods. The company is so persuaded of the value of exercise that it has adopted a new policy: Moving forward, all workers will be allowed to exercise during the work day for up to three hours per week. The reasoning behind the company's exercise policy assumes that ________.
Answers
Answer:
fhehgtjgkfgjgddfedsswdefrrtryjyrtjhdrsaswybnuyterfert
Explanation:
egy44
You have opened a for-profit adult technical school and you want to advertise it to potential students throughout your state.
Which marketing method would be most appropriate?
Question 2 options:
Local Television Ad
Social Media
Email
Distribute Flyers
Thxz For your help
Answers
Advertisement strategy to opt for opening a for-profit adult technical school to its potential students throughout the state will be Social Media. Option B is correct.
What is social media?Social media refers to methods of communication where individuals produce, share, and/or exchange knowledge, business ideas, advertise products & services and concepts in online groups and networks.
The primary accounts on available by various social media apps which are managed by the Office of Communications and Marketing.
Social media is used by billions of people worldwide to connect and share information. Social media gives you the personal freedom to interact with loved ones, advertisement, product promotion learn new things, explore new interests, and be entertained.
Thus social media is important tool in advertising to potential school students.
Learn more about Social Media refer:
https://brainly.com/question/29036499
#SPJ6
Identify the reasons why failure and success exist
Answers
Answer:
without failure and success the whole world will not exist. both of them play very important role
Land labor capital on strawberries
Answers
Capital: The money that would be put into the strawberry and used to pay the workers
Labor: Workers that would Lantana and harvest the strawberries
What would CRM software help you
do?
Answers
CRM software can help you in the following ways.
They can help in streamlining deals and marketing efforts, manage client connections, and see to client satisfaction.Also, the capability to track client relations and data can help businesses optimize their operations and identify areas for improvement.What is CRM software?CRM software or Customer Relationship Management software is an important tool which was created to help businesses manage their relations with customers and potential customers.
It allows businesses to store client data like contact information, purchase history, and communication preferences, all in one centralized location.
This data gotten from the software can be analyzed and used to perceive how a customer behaves, his preferences, and needs.
Thus, a CRM tool can help businesses cultivate strong relations with their customers and drive long- term growth.
Learn more about CRM software at brainly.com/question/23823339
#SPJ1
Your friend Reggie needs to write a resume and asked for your help. In at least 150 words, create a guide for Reggie. What are the essential parts of the resume? What will he need to include? What will he need to avoid? Include information about how he should organize.
Answers
Answer:
Name
Address
Contact Number
Objective
Work Experience
Extra Curricular Activities
School Graduated
Referral
Signature
Explanation:
Simple steps in making a Resume
How would you make an ethical argument related to the promotion of work-life balance?
Answers
We can argue that promoting work-life balance is important for well-being and happiness of individuals and society.
How is work-life balance an ethical imperative?The commitment to promoting work-life balance is moral obligation that recognizes intrinsic value and dignity of individuals. As individual, we have right to lead fulfilling lives that allow to pursue personal goals and aspirations.
Failing to prioritize the balance can lead to negative consequences such as burnout, stress and health problems which not only harm individuals but also limit their ability to contribute to society.
Read more about work-life balance
brainly.com/question/6842800
#SPJ4
HELP PLZ WILL GIVE BRAINLIEST. Click this link to view O*NET’s Tasks section for Human Resources Managers. Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks performed by Human Resources Managers? Check all that apply.
Answers
Answer:
the awnser to this question is A C D F i promise these are right i had the same question
Explanation:
mark brainliest pls
it is A, C, D, F
Explanation:
I just answered it
There are only benefits of branding. No drawbacks exist.
true
false
Answers
Answer: false
Explanation:
Answer:
false
Explanation
what is the term for when businesses produce goods and services that consumers do not want
Answers
Answer:
Productive (technical) inefficiency.
Explanation:
A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet consumer demand.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market.
In Economics, there are two types of inefficiency associated with the production of goods and services, these includes;
1. Allocative inefficiency: it occurs when businesses do not maximise output from the given inputs. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.
In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.
2. Productive (technical) inefficiency: it occurs when businesses produce goods and services that consumers do not want. This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.
Oh boy not much points left better get some
Answers
Answer:
Im so confused
Explanation:
:)
Answer:
..........
Explanation:
Can't we run a business without training?
Answers
yes definitely.......
Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 19 percent per year for the next 8 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 10 percent. If the dividend per share just paid was $1.52, what is the stock price?
Answers
Answer:
Price of stock = $74.636
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity
Present value of dividend from year 1 to 8
The PV of the growing annuity = A/r-g) ( 1- (1+g)/(1+r)^n )
A- dividend payable now , r- required of return, g-growth rate, number of years
PV = 1.52×(1.19)/(0.1-0.19) × (1 -(1.19/1.1)^8)= 17.605
PV of Dividend from year 9 and beyond:
P = D× g/(r-g)
This will be done in two steps:
Step 1: PV(in year 8)of dividend = (1.52× 1.19^8× 1.05)/(0.1-0.05)= 122.250
Step 2 : PV in year 0 = 122.25× 1.1^(-8)= 57.030
Price of stock = 17.60 + 57.030= 74.63
Price of stock = $74.636
Under what conditions should a sponsor approve a project change, and when is it okay for the project manager to authorize a change? a. Sponsor approval is needed if a change requires additional funding; a project manager is generally authorized to make most other decisions b. Sponsor approval is needed only if the project manager is not available c. Sponsor approval is always needed d. Sponsor approval is needed if a change requires a change to the project charter; a project manager is generally authorized to make most other decisions
Answers
Answer:
never
Explanation:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Which of the following is an advantage of diversity in the workforce?
OA. Discrimination is increased.
B. Communication is easy.
OC. Teams are more productive.
D. Wages are always fair.
Answers
One advantage of diversity in the workforce is C. Teams are more productive.
What good thing does diversity at work bring?As a result of diversity in the workplace, there will be a flow of different ideas from various perspectives on how to handle things.
This would lead to more productivity as the best formulas from different cultures are applied to production to make it better.
In conclusion, an advantage of diversity in the workforce is teams are more productive.
Find out more on the benefits of diversity at https://brainly.com/question/1330957
#SPJ1
An electronic banking outlet that enables customers to use a card to
withdraw money is called a(n):
A. debit card cashier.
B. money market.
C. certificate of deposit.
D. automated teller machine.
Answers
Answer:
D) automated teller machine
do you mind marking me as brainliest?
Answer:D
Explanation: just got it right
Personal finance please help me thank youu
Answers
Personal finance is the management of an individual's financial resources. It involves making informed decisions about earning, spending, saving, investing, and managing debt. Proper management of personal finances is essential for achieving financial goals and avoiding financial stress.
The first step in managing personal finances is creating a budget. A budget helps individuals to track their expenses and income and ensure that they are spending within their means. It is essential to prioritize expenses and allocate resources accordingly. This involves distinguishing between needs and wants and making necessary adjustments. Savings are a crucial aspect of personal finance. Individuals should aim to save at least 10% of their income to build an emergency fund and save for long-term goals.
Saving requires discipline and consistency, and it is essential to develop a savings plan that is achievable. Investing is another critical aspect of personal finance. Investing helps individuals to grow their wealth and prepare for future financial needs. It is crucial to research investment options and diversify investment portfolios to minimize risks. Managing debt is also essential for personal finance. Individuals should aim to minimize debt and pay off high-interest debts first. It is important to avoid accumulating unnecessary debt, such as credit card debt, which can quickly spiral out of control.
For more such questions on finance
https://brainly.com/question/30974056
#SPJ11
A current account deficit is also known as a(n): a) Stock deficit b) Inventory deficit c) External deficit d) Tariff deficit e) Trade deficit.
Answers
A current account deficit is also known as an external deficit or a trade deficit. This occurs when a country's imports exceed its exports.
In other words, the country is spending more on goods and services from other countries than it is earning from selling its own goods and services to those same countries. This deficit can have various impacts on the country's economy, including a decrease in its currency's value and an increase in its foreign debt. Governments can try to address a current account deficit through policies such as increasing exports or decreasing imports through tariffs or quotas.
A current account deficit is also known as a(n) e) Trade deficit. A trade deficit occurs when a country's imports exceed its exports, leading to a negative balance of trade. This means the country is spending more on goods and services from other countries than it is earning from selling its own goods and services abroad. This situation can affect a nation's foreign exchange reserves, exchange rates, and borrowing ability. Addressing a trade deficit may involve implementing policies that boost exports, reduce imports, or promote domestic consumption and production.
Visit here to learn more about account deficit : https://brainly.com/question/31642580
#SPJ11
7. As little as
A. 6
B. 2
C. 15
D. 10
percent of privately owned businesses ever move from the start-up stage to the success stage.
Answers
As little as 6 percent of privately owned businesses ever move from the start-up stage to the success stage. The correct answer would be option A.
More than two thirds of new businesses fail and are unable to provide investors with a profit. There can be many reasons why such a low number of startups become successful. Business founders claim that reasons for failure include running out of money, being in the wrong market, lacking research, poor alliances, inefficient marketing and lacking industry expertise.
Since 2014, several causes of failure have become more common, such as a dearth of market demand. This does not imply that startup ideas are becoming scarce. It illustrates the lack of diversity among founders and investors in terms of culture, geography and socioeconomic status. For example, startups that couldn't adjust to a socially isolated lifestyle were throttled by COVID-19.
To learn more about startups refer:
https://brainly.com/question/25881160
#SPJ9
This management theory assumes there is no one best way to manage?
Answers
The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.
Millie, age 80, is supported during the current year as follows: Percent of Support Weston (a son) 20% Faith (a daughter) 35% Jake (a cousin) 25% Brayden (unrelated close family friend) 20% During the year, Millie lives in an assisted living facility. Under a multiple support agreement, indicate which parties can qualify to claim Millie as a dependent. a.Weston, Faith, Jake, and Brayden. b.Weston and Faith. c.Faith, Jake, and Brayden. d.Faith.
Answers
The parties who may qualify to claim Millie as a dependent are Weston and Faith (option B)
A support agreement is a contract between one or more people who voluntarily agree to support other people (usually children or elderly parents).
In the case presented, the people who qualify are:
Weston and Faith (option B)These two people qualify because between them they give more than 50% of the support and are closely related to Millie, they are her children.
On the other hand, Jake and Brayden do not classify because they do not contribute equally or more than 50% of the support and one of them is not related to Millie.
According to the above, the correct answer is B, because it mentions the people who qualify to claim Millie as a dependent.
Learn more in: https://brainly.com/question/12090527
company xyz offers a group term life insurance plan to its employees what does each employee covered
Answers
Answer: certificate of insurance
The each employee covered is certificate of insurance.
The following information should be considered:
A COI is a statement of coverage i.e. issued by the company that insures your business. Normally it is not more than one page, a COI provides a summary of your business coverage. It serves as verification that your business is indeed insured.Learn more: brainly.com/question/16911495
question 3
what is the difference between manufacturing and a cottage industry
Answers
Answer: Simply put, the cottage industry refers to a period of time in which goods for sale were produced on a very small scale, usually in a home. ... The factory system is a term that historians use to refer to the development of centralized factories or mills that produced goods on a mass scale.
Explanation: !!!!!!
Answer:
faster producing and stuff (ap.ex) i forgot the answer that i got right but it goes like that
Explanation:
What general rule of thumb connects your car payment and your monthly savings budget?