On January 1, 2018, Lamb and Mona LLP admitted Noris to a 20% interest in net assets for an investment of $50,000 cash. Prior to the admission of Noris, Lamb and Mona had net assets of $100,000 and an income-sharing ratio of 25% to Lamb and 75% to Mona. After the admission of Noris, the partnership contract included the following provisions:? Salary of $40,000 a year to Noris. ? Remaining net income in ratio Lamb 20%, Mona 60%, Noris 20% ? During the fiscal year ended December 31, 2018, the partnership had income of $90,000 prior to recognition of salary to Noris.Record the journal entry to allocate the salary of Noris.
What will be an ideal response?
| Income Summary | 40,000 | |
| Noris, Capital | 40,000 | |
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Which of the following summarizes the factors involving hiring the best applicant?
a. Do they have the right experience? b. Does the person have the potential to grow? c. Is there a good fit between the person and the work environment? d. Is the person qualified to work at the company?
The ____ trigger clause allows a trigger to include multiple triggering events in a single trigger.
A. MULTIPLE B. MULTIPLE TRIGGER C. COMPOUND D. COMPOUND TRIGGER
The president and CFO of Spellman Transportation are having a disagreement about whether to use market value or book value weights in calculating the WACC. Spellman's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 25%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?
A. 1.42% B. 1.57% C. 1.75% D. 1.94% E. 2.16%