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Jerry, a partner in the JSK partnership, begins the year on January 1, 2024, with a capital balance of $20,000. The JSK partnership agreement states that Jerry receives 6% interest on his monthly weighted average capital balance without regard to normal drawings. Each partner draws $5,000 in cash from the business every quarter. Any withdrawal in excess of that will be accounted for as a direct reduction of the partner’s capital balance. On March 1, 2024, when the partnership tax return for 2023 was completed, Jerry’s capital account was credited for his share of 2023 profit of $120,000. Jerry withdrew $5,000 quarterly, beginning March 31st. On September 1, Jerry’s capital account was credited with a special bonus of $60,000 for business he brought to the partnership. What amount of interest will be attributed to Jerry for the year 2024 that will go toward his profit distribution for the year?

Gale Company was formed on January 1, 2024, as a wholly owned foreign subsidiary of a U.S. corporation. Gale’s functional currency was the stickle (). The following transactions and events occurred during 2024: January 1 Gale issued common stock for §2,000,000. June 30 Gale paid dividends of §50,000. December 31 Gale reported net income of §120,000 for the year. Exchange rates for 2024 were: January 1 $ 1 = § 0.50 June 30 $ 1 = § 0.47 December 31 $ 1 = § 0.44 Weighted average rate for the year $ 1 = § 0.46 What was the amount of the translation adjustment for 2024? $121,500 positive translation adjustment $121,500 negative translation adjustment $120,900 positive translation adjustment $120,900 negative translation adjustment $152,200 positive translation adjustment

The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation: Cash $ 115,000 Liabilities $ 45,000 Noncash assets 230,000 Keller, Capital 100,000     Long, Capital 70,000     Mason, Capital 130,000 Total $ 345,000 Total $ 345,000 Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.Assume that noncash assets were sold for $60,000 and liquidation expenses in the amount of $18,500 were incurred. If Long was personally insolvent and could not contribute any assets to the partnership, and Keller and Mason were both solvent, what amount of cash would Keller receive from the distribution of partnership assets?  

Clark Stone purchases raw material from its foreign supplier, Rinne Clay, on May 8. Payment of 1,500,000 foreign currency units (FC) is due in 30 days. May 31 is Clark’s fiscal year-end. The applicable exchange rates were as follows: Date Spot Rate May 8 $ 1.16 May 31 $ 1.18 June 7 $ 1.12 How much Foreign Exchange Gain or Loss should Clark record on May 31? $0 $30,000 gain $30,000 loss $60,000 gain $60,000 loss

A subsidiary of Dunder Incorporated, a U.S. company, was located in a foreign country. The functional currency of this subsidiary was the Stickle () which is the local currency where the subsidiary is located. The subsidiary acquired inventory on credit on November 1, 2023, for §160,000 that was sold on January 17, 2024, for §207,000. The subsidiary paid for the inventory on January 31, 2024. Currency exchange rates between the dollar and the Stickle were as follows: November 1, 2023 $ 0.21 = § 1 December 31, 2023 $ 0.22 = § 1 January 1, 2024 $ 0.24 = § 1 January 31, 2024 $ 0.25 = § 1 Average for 2024 $ 0.27 = § 1 What amount would have been reported for this inventory in Dunder’s consolidated balance sheet at December 31, 2023? $35,200 $33,600 $38,400 $40,000 $43,200

A partnership began its first year of operations with the following capital balances: Young, Capital $ 143,000 Eaton, Capital $ 104,000 Thurman, Capital $ 143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with a net income of $52,000 in the second year.What was Young’s total share of net loss for the first year?  

On January 3, 2024, Madison Corporation purchased 30% of the voting common stock of Huntsville Company, paying $3,000,000. Madison decided to use the equity method to account for this investment. At the time of the investment, Huntsville’s total stockholders’ equity was $8,000,000. Madison gathered the following information about Huntsville’s assets and liabilities:   Book Value Fair Value Buildings (10-year life) $ 400,000 $ 600,000 Equipment (5-year life) $ 1,200,000 $ 1,400,000 Franchises (8-year life) $ 0 $ 480,000 For all other assets and liabilities, book value and fair value were equal. Any excess of cost over fair value was attributed to goodwill, which has not been impaired.What is the amount of goodwill associated with the investment? $600,000 $264,000 $0 $336,000 $480,000

Clark Stone purchases raw material from its foreign supplier, Rinne Clay, on May 8. Payment of 1,500,000 foreign currency units (FC) is due in 30 days. May 31 is Clark’s fiscal year-end. The pertinent exchange rates were as follows: Date Spot Rate May 8 $ 1.16 May 31 $ 1.18 June 7 $ 1.12 How much US $ will it cost Clark to finally pay the payable on June 7? $1,850,000 $1,500,000 $1,770,000 $1,740,000 $1,680,000

The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation: Cash $ 115,000 Liabilities $ 45,000 Noncash assets 230,000 Keller, Capital 100,000     Long, Capital 70,000     Mason, Capital 130,000 Total $ 345,000 Total $ 345,000 Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.Assuming noncash assets were sold for $70,000 and liquidation expenses in the amount of $18,500 were incurred, how much will each partner receive in the liquidation?   Keller Long Mason A) $ 14,000 $ 28,000 $ 28,000 B) $ 37,000 $ 74,000 $ 74,000 C) $ 63,833 $ 0 $ 57,667 D) $ 0 $ 0 $ 121,500 E) $ 57,833 $ 12,000 $ 51,667

On April 1, 2023, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2024. The dollar value of the loan was as follows: Date Amount April 1, 2023 $ 97,000 December 31, 2023 103,000 April 1, 2024 105,000 How much foreign exchange gain or loss should be included in Shannon’s 2023 income statement? $3,000 gain $3,000 loss $6,000 gain $6,000 loss $7,000 gain