Sets found in the same folder
Other sets by this creator
Part 1. Gibbs, Mier, and Hill are partners and share income and loss in a 5:1:4 ratio. The partnership’s capital balances are as follows: Gibbs, $303,000; Mier,$74,000; and Hill, $223,000. Gibbs decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Gibbs’s retirement. Prepare journal entries to record Gibbs’s April 30 withdrawal from the partnership under each of the following separate assumptions: Gibbs (a) sells her interest to Brady for$250,000 after Mier and Hill approve the entry of Brady as a partner; (b) gives her interest to a daughter-in-law, Cannon, and thereafter Mier and Hill accept Cannon as a partner; ( c) is paid $303,000 in partnership cash for her equity; (d ) is paid$175,000 in partnership cash for her equity; and (e) is paid $100,000 in partnership cash plus manufacturing equipment recorded on the partnership books at$269,000 less its accumulated depreciation of $168,000.
Part 2. Consider that Gibbs does not retire from the partnership described in Part 1. Instead, Brise is admitted to the partnership on April 30 with a 20% equity. Prepare journal entries to record the entry of Brise under each of the following separate assumptions: Brise invests (a)$150,000; (b) $98,000; and (c )$213,000.
The JLB Corporation is deciding whether to buy or rent research equipment. The company's current after-tax cost of debt is 8%, and it is subject to a tax rate of 40%. The following conditions apply to both the lease and the purchase: Lease: Over the course of the lease's three-year term, $25,200 in end-of-year lease payments must be made. The lessor shall bear all expenses of repair, insurance, and the lessee is responsible for any other expenses. At the end of the lease, the lessee will use its option to acquire the asset for$5,000. Purchase: A 14% loan with yearly end-of-year payments of $25,844 over the course of three years can be used to fund the total purchase of the research equipment, which costs$60,000. The company in this instance will use a 3-year recovery time to depreciate the equipment under MACRS. (For the applicable depreciation percentages, see Table 4.2 on page 117.) The company will pay $1,800 annually for a service contract that covers all maintenance fees; the company will be responsible for paying insurance and other fees. Over the course of its three-year recuperation phase, the company intends to keep and employ the equipment. Utilize the after-tax cost of debt to determine the present value of each cash outflow stream.
Golf Course Complaints. Recently, management at Oak Tree Golf Course received a few complaints about the condition of the greens. Several players complained that the greens are too fast. Rather than react to the comments of just a few, the Golf Association conducted a survey of 100 male and 100 female golfers. The survey results are summarized here.
c. Refer to the initial crosstabulations. For those players with higher handicaps, which group (male or female) shows the highest percentage saying the greens are too fast?