Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

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Suppose you take out a five-year car loan for $14000, paying an annual interest rate of 4%. You make monthly payments of $258 for this loan. Complete the table below as you pay off the loan. Months Amount still owed 4% Interest on amount still owed (Remember to divide by 12 for monthly interest) Amount of monthly payment that goes toward paying off the loan (after paying interest) 0 14000 1 2 3 + LO 5 6 7 8 9 10 10 11 12 What is the total amount paid in interest over this first year of the loan?

Suppose you take out a five-year car loan for $12000, paying an annual interest rate of 3%. You make monthly payments of $216 for this loan. mocars Getting started (month 0): Here is how the process works. When you buy the car, right at month 0, you owe the full $12000. Applying the 3% interest to this (3% is "3 per $100" or "0.03 per $1"), you would owe 0.03*$12000 = $360 for the year. Since this is a monthly loan, we divide this by 12 to find the interest payment of $30 for the month. You pay $216 for the month, so $30 of your payment goes toward interest (and is never seen again...), and (216-30) = $186 pays down your loan. (Month 1): You just paid down $186 off your loan, so you now owe $11814 for the car. Using a similar process, you would owe 0.03* $11814 = $354.42 for the year, so (dividing by 12), you owe $29.54 in interest for the month. This means that of your $216 monthly payment, $29.54 goes toward interest and $186.46 pays down your loan. The values from above are included…

Suppose you have an investment account that earns an annual 9% interest rate, compounded monthly. It took $500 to open the account, so your opening balance is $500. You choose to make fixed monthly payments of $230 to the account each month. Complete the table below to track your savings growth. Months Amount in account (Principal) 9% Interest gained (Remember to divide by 12 for monthly interest) Monthly Payment 1 2 3 $500 $230 $230 $230 $230 + $230 $230 10 6 $230 $230 8 9 $230 $230 10 $230 11 $230 12 What is the total amount gained in interest over this first year of this investment plan?

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

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Answer 3

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

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Answer 5

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

Answer 6

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

Answer 7

Chapter 18, Problem 2DQ

To determine

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ Ch. 18 - Prob. 12DQ

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

Solution Summary: The author explains if a partner, whose tax year ends on September 30, enjoys tax benefit or tax detriment for use of the partnership's fiscal year ending on December 31.

Explain, if a partner, whose tax year ends on September 30, enjoys a tax benefit or a tax detriment for use of the tax year of the partnership that ends on December 31.

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Chapter 18 Solutions