______ = overhead
vote my answer the brainliest, please
Each of the following are types of Overheads allocation methods.
Types of overhead allocation method:Factory overheads like rent, electricity or water could not be traced directly to a cost object. At the time of measuring the cost of a cost object these overheads are apportioned to departments they pass via for processing or the actual job using an allocation method. The common methods for allocating overheads should be plant-wide rate method, departmental overhead rate method and activity-based costing method.
Learn more about allocation here: https://brainly.com/question/24590978
Chris Spear invested $16,700 today in a fund that earns 10% compounded annually. To what amount will the investment grow in 2 years? To what amount would the investment grow in 2 years if the fund earns 10% annual interest compounded semiannually?
a. Investment at 10% annual interest?
b. Investment at 10% annual interest, compounded semiannually?
Answer:
Results are below.
Explanation:
Giving the following information:
Chris Spear invested $16,700 today in a fund that earns 10% compounded annually.
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
a. Interest rate= 10% compounded annually.
FV= 16,700*(1.10^2)
FV= $20,207
b. Interest rate= 0.1/2= 0.05
n= 2*2= 4
FV= 16,700*(1.05^4)
FV= $20,298.95
he ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm.
Answer:
Organizational capabilities
Explanation:
The ability to hire, motivate, and retain human capital is an example of organizational capabilities in the resource-based view of the firm.
An organizational capability is the ability of a firm to manage resources, such as it's employees, effectively which will give them an edge over competitors. Organizational capabilities differntiates a firm from competitors.
1. Residents of the nation of Border Kingdom can forgo production of digital televisions and utilize all available resources to produce 300 bottles of high-quality wine per hour. Alternatively, they can forgo producing wine and instead produce 60 digital TVs per hour. In the neighboring country of Coastal Realm, residents can forgo production of digital TVs and use all resources to produce 150 bottles of high-quality wine per hour, or they can forgo wine production and produce 50 digital TVs per hour. In both nations, the opportunity costs of producing the two goods are constant.
a. What is the opportunity cost of producing digital TVs in Border Kingdom? Of producing bottles of wine in Border Kingdom?
b. What is the opportunity cost of producing digital TVs in Coastal Realm? Of producing bottles of wine in Coastal Realm?
2. Based on your answers to Problem above, which nation has a comparative advantage in producing digital TVs? Which nation has a comparative advantage in producing bottles of wine?
3. Critics of the North American Free Trade Agreement (NAFTA) suggest that much of the increase in exports from Mexico to the United States now involves goods that Mexico otherwise would have exported to other nations. Mexican firms choose to export the goods to the United States, the critics argue, solely because the items receive preferential treatment under NAFTA tariff rules. What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning.
4. Identify whether each of the following items creates a surplus item or a deficit item in the current account of the U.S. balance of payments.
a. A Central European company sells products to a U.S. hobby-store chain.
b. Japanese residents pay a U.S. travel company to arrange hotel stays, ground transportation, and tours of various U.S. cities, including New York, Chicago, and Orlando.
c. A Mexican company pays a U.S. accounting firm to audit its income statements.
d. U.S. churches and mosques send relief aid to Pakistan following a major earthquake in that nation.
e. A U.S. microprocessor manufacturer purchases raw materials from a Canadian firm.
5. Explain how the following events would affect the market for the Mexican peso, assuming a floating exchange rate.
a. Improvements in Mexican production technology yield superior guitars, and many musicians around the world buy these guitars.
b. Perceptions of political instability surrounding regular elections in Mexico make international investors nervous about future business prospects in Mexico.
6. Explain how the following events would affect the market for South Africa?s currency, the rand, assuming a floating exchange rate.
a. A rise in U.S. inflation causes many U.S. residents to seek to buy gold, which is a major South African export good, as a hedge against inflation.
b. Major discoveries of the highest-quality diamonds ever found occur in Russia and Central Asia, causing a significant decline in purchases of South African diamonds.
Answer:
1) a. 0.2 TVs , 5 bottles
b. 0.33 TVs , 3 bottles
2) Coastal realm has a comparative advantage in producing digital TVs.
Border Kingdom has a comparative advantage in producing bottles of wine.
Explanation:
1)
a. In Border Kingdom:
Opportunity cost of producing 300 bottles of wine = production of 60 TVs.
Thus opportunity cost of producing 1 bottle of wine = 60/300 = 0.2 TVs
Opportunity cost of producing 1 TV = 300/60 = 5 bottles.
b. In Coastal realm:
Opportunity cost of producing 1 bottle of wine = 50/150 = 0.33 TVs
Opportunity cost of producing 1 TV= 150/50 = 3 bottles
2)
From the above, it is seen that the opportunity cost of producing 1 wine bottle is lower for Border Kingdom and the opportunity cost of producing TV is lower for Coastal Realm, therefore, the country Border Kingdom should produce wine bottles and Coastal Realm should produce TV's.
The closing entries show a debit to retained earnings of $350, and a credit to retained earnings of $750. There was also a credit to dividends payable of $100. This company had a:
Answer:
net income = $400
Explanation:
closing entries:
Dr Retained earnings 350
Cr Income summary 350
Dr Income summary 750
Cr Retained earnings 750
Dr Retained earnings 100
Cr Dividends 100
net income = $750 - $350 = $400
Dividends reduce retained earnings, but net income must exist before any dividends can be distributed.
A corporation has 50,000 shares of $25 par stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be a.50,000 shares b.100,000 shares c.150,000 shares d.16,666 shares
Answer:
Option C
Number of shares outstanding after split = 150,000 units
Explanation:
A stock split occurs where a company creates additional shares in units such the total nominal value of the outstanding shares remains the same. With a stock split, the total outstanding shares increases without a change in the total nominal value while the nominal value per share reduces.
Total shares before the split = 50,000
Total outstanding shares after split
= 50,000 × 3 = 150,000
Number of shares outstanding after split = 150,000 units
The following data were reported by a corporation: Authorized shares 20,000 Issued shares 15,000 Treasury shares 3,000 The number of outstanding shares is:
Answer:
12,000
Explanation:
The following data was reported for an organisation
Authorized shares is 20,000
Issued shares is 15,000
Treasury shares is 3,000
Therefore, the number of outstanding shares can be calculated as follows
Number of outstanding shares= Issued stock-Treasury stock
= 15,000-3,000
= 12,000
Hence the number of outstanding shares is 12,000
Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________.
Answer:
competitive dynamics
Explanation:
The term that is being described in this question is known as competitive dynamics. Like mentioned, this is the study of the rivalry between various firms that is made up of their competitive actions/responses, their micro/macro level context, and even their antecedents and consequences. Which all-in-all add up to their effort on acquiring the same customers as their client.
Consider a potential merger between two hypothetical beer companies. Prior to the merger, the first, Ann Hy, is worth $150 billion and the second, Czar Bosch, is worth $100 billion. If they merge, they will gain $30 billion in increased value from reduced costs and additional sales (in present discounted value). Thus the combined value of the new entity (called Ann Hy-Czar Bosch) would be $280 billion. How much more could Czar Bosch hope to get by using the theory of the pie instead of proportional division
Answer:
$3 billion more
Explanation:
Calculation of the amount that Czar Bosch could hope to get by using the theory of the pie instead of proportional division
If we are to use the theory of the pie instead of the proportional division this means that when using the proportional division, their would be likelihood that Czar Bosch would get an amount that is proportional to their market cap, 40% of the $30 billion, or $12 billion and in a situation where the they decide to split the pie this means that Czar Bosch would either get$15 billion or $3 billion more
.
A bond with a $1,000 face value and an 8 percent annual coupon pays interest semiannually. The bond will mature in 15 years. The yield to maturity is 11 percent. The price of the bond should be: Do no round intermediate computations. Round the final answer to two decimal places.
Answer:
$781.99
Explanation:
The price of the bond can be computed using excel pv function given below:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield to maturity i.e11%*6/12=5.5%
nper is the number of semiannual coupons the bond would i.e 30 semiannual coupons in 15 years
pmt is the amount of semiannual coupon=$1000*8%*6/12=$40
fv is the face value of $1000
=-pv(5.5%,30,40,1000)=$781.99
Consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity Yield to Maturity A 1 6.00 % B 2 7.00 % C 3 7.99 % D 4 9.41 % E 5 10.70 % The expected 1-year interest rate 4 years from now should be _________.
Answer:
16.01%
Explanation:
The expected 1-year interest rate 4 years from now is determined using the below formula:
The expected 1-year interest rate 4 years=(1+YTM5)^5/(1+YTM4)^4-1
YTM5 is the yield to maturity in year 5 i.e 10.70%
YTM4 is the yield to maturity in year 4 i.e 9.41%
The expected 1-year interest rate 4 years=(1+10.70%)^5/(1+9.41%)^4-1
The expected 1-year interest rate 4 years=16.01%
Planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit is called
Answer:
Marketing Logistics
Explanation:
The term that is being described in the question is known as Marketing Logistics. Like mentioned, this is various aspects/processes that need to take place when moving products from producer to market all in order to meet customer demands while making a satisfactory profit at the same time. This is a big part of every business since a business with a good marketing logistics department can easily keep track of product shipments and move products or information quickly to the correct locations thus making everything much more efficient.
You have just recieved notification that you have won the $2 million first prize in the centennial lottery. However, the prize will be awarded on your 100th birthday, 76 years from now.
Requried:
What is the present value of your windfall if the appropriate discount rate is 8%?
Answer:
$5,765.35
Explanation:
Preparation of the present value of your windfall if the appropriate discount rate is 8%
To find the present value we are going to use this formula
PV = FV / (1 + r)^t
Where,
FV=$2,000,000
r=8%
t=76
Let plug in the formula
PV = 2,000,000 / (1 + .08)^⁷⁶
PV = $2,000,000 / (1.98)^⁷⁶
PV=$2,000,000/346.90
PV=$5,765.35
Therefore the present value will be $5,765.35
You want to have $12,500 in 10 years for a dream vacation. If you can earn an interest rate of .3 percent per month, how much will you have to deposit today?
Answer:
$8,778
Explanation:
To find the amount of money that you will have to deposit today, you have to use the formula to calculate the present value:
PV=FV/(1+i)^n
PV= present value
FV= future value= 12,500
i= interest rate= 0.003*12(to calculate the rate per year)= 0.036
n= number of periods of time= 10
PV=12,500/(1+0.036)^10
PV=12,500/1.424
PV=8,778
According to this, you will have to deposit today $8,778.
A Plus Appliances sells dishwashers with a fouryear warranty. In 2019, sales revenue for dishwashers is . The company estimates warranty expense at % of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31, 2019? A Plus Applicances began operating in 2019. (Round your final answer to the nearest dollar.)
A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 4.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,2019? A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.)
Answer:
$4230
Explanation:
Given that, the sales revenue to the dishwashers is equal to $94,000
Also the company estimated warranty expense cost is equal to 4.5% of revenues,
Thus, the estimated warranty payable can be determined by the following formula:
Annual sales revenue for the dishwashers * warranty expense revenues
= $94,000 * 4.5% = $94,000 * 0.045
= $4230
Hence, the total estimated warranty payable of A Plus Appliances as of December 31, 2019 = $4230
The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a(n)
Answer:
Supply chain.
Explanation:
The interrelationships with suppliers, customers, distributors and other businesses that are needed to design, build and sell a product make up the network of business entities, relationships and processes that is called a supply chain.
Supply chain encompasses all the logistics and distribution cycles of getting the finished goods and services to the final consumers.
Sheridan Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement?
Sales revenue $ 500,000
Cost of goods sold 300,000
Salaries and wages expense 40,000
Depreciation expense 55,000
Dividend revenue 45,000
Utilities expense 5,000
Extraordinary loss 50,000
Interest expense 10,000
a. $54,000
b. $34,000
c. $36,000
d. $16,000
Answer:
a. $54,000
Explanation:
The computation of income tax expense reported on the face of the income statement is shown below:-
Income before tax = Sales revenue + Dividend revenue - Cost of goods sold - Salaries and wages expenses - Depreciation expenses - Utilities expenses - Interest expenses
= $500,000 + $45,000 - $300,000 - $40,000 - $55,000 - $5,000 - $10,000
= $135,000
Income tax expenses = Before Income tax × Income tax rate
= $135,000 × 40%
= $54,000
Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: A. Investing activities. B. Direct activities. C. Indirect activities. D. Operating activities. E. Financing activities.
Answer:
D. Operating activities.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities. All the net income or cash from all operational business activities of a company is recorded as operating activities.
For many types of service organizations such as hospitals, banks and airlines, the primary cost of operations is:
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Labour costs.
b) Coping with obsolescence that results from the rapid pace of technological change.
c) Insurance and legal expenses.
d) Establishing and maintaining a presence on the Internet.
And the correct answer is the option A: Labour costs.
Explanation:
To begin with, most of those organizations that work in the services industry tend to have not so many costs as the ones that work for the production industry where the companies have to deal with so many commodities, materials and more. Therefore that, althought that the services companies still have to deal with marketing expenses like publicity and others like insuraces, the most important cost for the companies in the services industry are the labour costs due the big amount of employees that those kind of companies hire in the market.
Wine and Roses, Inc. offers a 7% coupon bond with semiannual payments and a yield to maturity of 7.73%. The bonds mature in 9 years. Blank 1. Fill in the blank, read surrounding text. is the market price of a $1,000 face value bond
Answer:
current market price = $953.29
Explanation:
the market price of the bond = present value of the face value + present value of coupon payments
PV of face value = $1,000 / (1 + 3.865%)¹⁸ = $505.31
PV of coupon payments = $35 x 12.79935 (PV annuity factor, 3.865%, 18 periods) = $447.98
current market price = $505.31 + $447.98 = $953.29
The Sisyphean Company has a bond outstanding with a face value of $ 1 comma 000$1,000 that reaches maturity in 1515 years. The bond certificate indicates that the stated coupon rate for this bond is 8.98.9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.67.6%, then the price that this bond trades for will be closest to:
Answer:
$1,108.51
Explanation:
For computing the price of the bond we need to apply the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 7.67% ÷ 2 = 3.835%
NPER = 15 years × 2 = 30 years
PMT = $1,000 × 8.9% ÷ 2 = $44.5
The formula is shown below:
= -PV(Rate,NPER,PMT,FV,type)
So, after applying the above formula, the price of the bond is $1,108.51
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $40,000 at the beginning of the month and $26,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $58,600 and direct labor cost of $33,400. The actual manufacturing overhead cost incurred was $54,800. The manufacturing overhead cost applied to Work in Process was $54,600. The cost of goods manufactured for June was:
Answer:
$160,600
Explanation:
The computation of the cost of goods manufactured is shown below:
= Direct material cost + direct labor cost + manufacturing cost applied + beginning work in process - ending work in process
= $58,600 + $33,400 + $54,600 + $40,000 - $26,000
= $160,600
Hence, the cost of goods manufactured for June is $160,600
A newspaper advertisement for Cashmere Closet states "This Saturday 9 a.m., 1 Red Cashmere Scarf, worth $299.95… $10.00 First Come First Served." Which of the following statements is false?
A. The ad is clear and specific about what was being offered and asked for in exchange.
B. The ad lacks intent to constitute an offer.
C. The number of people who have the power of acceptance is limited.
Answer:
Option B
Explanation:
In simple words, The seller must have intention of making the offer. These are determined first from offeree 's place that there is intention to make an bid. When a fair person in the offerer 's position assumes that the terms or acts of the offeror represent an offer, that is an bid. It is an empirical, and not a moral, criterion for deciding that there is an desire to accept an bid.
Thus, from the above we can conclude that the correct option is B .
Sunland Company reported the following information for 2016: October November December Budgeted sales $1300000 $1200000 $1540000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sunland receive in November?
Answer:
Total cash receipts - November = $1250000
Explanation:
The credit sales are collected for in such a manner that the 50% amount of this month's sale and the 50% amount of previous month's sales are collected in the correct month. Thus, when calculating the cash receipts for November, we know that the 50% of collections will be for October's sales and the 50% of collections will be from the November's sales.
Cash receipts in November:
From October's sales = 1300000 * 0.5 = $650000
From November's sales = 1200000 * 0.5 = $60000
Total cash receipts - November = 650000 + 600000
Total cash receipts - November = $1250000
In the aftermath of the global economic crisis that started to take hold in 2008, U.S. government budget deficits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for quite some time. Does this make sense? Why or why not
Answer and Explanation:
the supply effect of large deficits should cause interest rates to go up. The economic crisis caused wealth and income to be lower
which brought about a depression inTreasury bond demand, corporate bond supply also fell the more as investment opportunities reduced. A greater leftward shift in the bond
supply curve than the rightward shift in the bond demand curve would bring about a rise in
bond prices and a reduction in interest rates. Because off the seriousness of the global crisis, the United States
treasury debt became safe for forms of investment, with relative risk falling and liquidity
for U.S. treasury debt rising.
This then increased the U.S. treasury bond demand, resulting into higher
bond prices and lower yields.
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year.
a. This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to _ and the level of investment spending to _.
b. An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.
The repeal of the previously existing tax credit causes the interest rate to _______ and the level of investment to ________.
c. Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.
This change in spending causes the government to run a budget __________ which ________ national saving. This causes the interest rate to ________ and the level of investment spending to _______
Answer:
a. Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is an increase in the maximum contribution, from $5,000 to $8,000 per year.
This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to _decrease and the level of investment spending to increase_.
b. An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government repeals a previously existing investment tax credit.
The repeal of the previously existing tax credit causes the interest rate to ___increase____ and the level of investment to ___decrease_____.
c. Initially, the government's budget is balanced, then the government responds to the conclusion of a war by significantly reducing defense spending without changing taxes.
This change in spending causes the government to run a budget ___surplus_______ which ___increases_____ national saving. This causes the interest rate to ___decrease_____ and the level of investment spending to __increase_____
Explanation:
Interest rate decreases with increased savings and this results to increased investment as funds are available at affordable costs. The situation is reversed when the savings are decreased, since the interest rate will increase as there are less savings for investment purposes.
There is a continuous interaction between taxation, savings, government spending, inflation, and investment versus interest rates. This means that interest rates also reflect these factors put together. This why in both fiscal and monetary policies, governments try to strike some balance in order to direct the economy towards desired targets. For example, when the government wants to stimulate the economy, it works to reduce interest rates in order to encourage investments, but this also lowers the propensity to save and encourages the propensity to spend, which trigger inflation and increases interest rate as an aftermath. And this seems to be an endless vicious or virtuous circle, depending on what is achieved by the monetary and fiscal measures in operation.
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.82 percent, a par value of $1,000 per bond, matures in 6 years, has a total face value of $5.2 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.59 percent, a par value of $1,000 per bond, matures in 14 years, has a total face value of $9.5 million, and is quoted at 107 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 35 percent. What is the firm's weighted average aftertax cost of debt
Answer:
3.22%
Explanation:
we must first determine the yield to maturity of both bonds in order to determine their before tax cost of debt:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM Bond₁ = {19.10 + [(1,000 - 1,030)/12]} / [(1,000 + 1,030)/2] = 16.6 / 1,015 = 0.01635 x 2 = 3.27%
YTM Bond₂ = {32.95 + [(1,000 - 1,070)/28]} / [(1,000 + 1,070)/2] = 0.0294 x 2 = 5.88%
firm's weighted after tax cost of debt = {[($5.2 / $14.7) x 3.27%] x (1 - 0.35)} + {[($9.5 / $14.7) x 5.88%] x (1 - 0.35)} = 0.75% + 2.47% = 3.22%
Fernando Designs is considering a project that has the following cash flows and WACC data. What is the project's discounted payback period? (6 points) What is the project’s modified internal rate of return?
Answer:
Discounted Payback period 3 years
Modified Internal rate of return 4.833%
Explanation:
Fernando Designs has following cash flows ,
year 1 : -$900
Year 2 : $500
Year 3 : $500
Year 4 : $500
Using 10% discount factor the cashflows will be,
discounted values
Year 1 : -900
Year 2 : 454.54
Year 3 : 445.45
Year 4 : 4132231
Payback period is -900 + 454.54 +445.45 = 3 years.
Modified Internal rate of return; [tex]\sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }[/tex]
[tex]\sqrt[4]{\frac{1314}{900} }[/tex] = 4.833%
Each bottle contains the same amount of pepper sauce. Which
28.
set of pepper sauce is the better buy?
B
ra
2 bottles for $22.50
3 bottles for S34.00
Answer:
2 bottles for $22.50
Explanation:
$22.50/2 = $11.25 per bottle
$34/3 = $11.33 per bottle
Better buy: 2 bottles for $22.50
A stock has a beta of 1.28, the expected return on the market is 12%, and the risk-free rate is 4.5%. Using the CAPM, what is the expected return on this stock
Answer:
14.10%
Explanation:
The calculation of expected return on this stock is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.28 × (12% - 4.5%)
= 4.5% + 1.28 × 7.5%
= 4.5% + 9.6%
= 14.10%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium
hence, the expected rate of return is 14.10%
A customer subscribes to a $10,000 limited partnership interest. The commission is $1,000. The up-front costs are $500 for legal expenditures, and $500 for organization costs. What is the customer's beginning tax basis
Answer: customer's beginning tax basis = $10,000
Explanation:
Customer's beginning tax basis are the initial cost of the partnership for commission legal and organizational fees and these are not deductible from the cost basis.
Given: A customer subscribes to a $10,000 limited partnership interest.
That means initial cost = $10,000
So, the customer's beginning tax basis = $10,000